Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the
“Company”), a global provider of enterprise and consumers internet
access solutions, today provided preliminary guidance on key
financial metrics for the second quarter ended June 30, 2023.
Based on a preliminary, unaudited review, Alarum
anticipates reporting strong performance in the second quarter of
2023, highlighting continued growth and business success:
- Expects to report its 10th
consecutive record-breaking quarter, with revenues projected to
exceed $6.4 million, resulting in projected revenues for the first
half of 2023 of over $12.2 million. This outstanding achievement
demonstrates Alarum's sustained growth and its ability to meet the
increasing demand for its internet access solutions, particularly
in the enterprise access segment.
- Projects adjusted EBITDA growth for
the second quarter of 2023, building on the first-ever positive
adjusted EBITDA achieved in the first quarter of 2023. This
positive trend showcases the Company's commitment to optimizing
costs and improving operational efficiency. Due to the continuing
calculations of impairment charges as a result of the developments
described below, the Company’s preliminary net loss changes from
the first quarter of 2023 are still being determined and will be
released with the full results when available.
- Estimated cash and cash equivalents
balance as of June 30, 2023, of approximately $3.8 million.
The figures provided are preliminary unaudited
estimates, and the final results may differ. Alarum will release
its official financial results, including reviewed financial
statements, for the second quarter of 2023, by August 31, 2023.
"We are pleased to announce Alarum's anticipated
10th consecutive quarter of record revenue and growth in adjusted
EBITDA," commented Shachar Daniel, Chief Executive Officer of
Alarum. "These results validate the strategic approach we have
implemented over the last few quarters, to focus our management and
operational resources to deliver fast, versatile, stable and
flexible internet access solutions, while we transition to
profitability.”
Recent Business
Developments
Over the years, Alarum has experienced
remarkable growth in revenue generation and remains steadfast in
its pursuit of profitability and business expansion. Recently, the
Company has recognized that the consumer internet access market has
become less lucrative, characterized by escalating costs for
consumer acquisition and diminished return on investment.
Scale Down of Consumer Internet Access
Activity
A purchase pause by the largest customer of
CyberKick, the Company’s Consumer Internet Access business unit,
which accounted for approximately 60% of the consumer internet
access segment and approximately 18% of the Company’s total revenue
for the second quarter of 2023, along with the above-mentioned
factors in this segment, supported the decision to focus on revenue
that yield high return on investment and profitability. The Company
will scale down operations in the Consumer Internet Access
business, with material expenses and headcount reductions, in order
to right-size accordingly. Alarum will focus on this segment only
on its current paying customers which require minor costs to
maintain and generate revenues from. These transition measures
taken by management will not impact on these existing Consumer
Internet Access customers, and the Company remains committed to
providing uninterrupted service and support.
Sale of the enterprise cybersecurity
business
Further to the Company's announcement of January
18, 2022, regarding the appointment of TerraZone Ltd. (“TerraZone”)
as the Company's exclusive reseller of its legacy cybersecurity
solutions, Alarum has now entered into a definitive agreement with
TerraZone for the sale of its enterprise cybersecurity business.
Alarum’s consideration for this transaction is 7% of the fully
diluted share capital of TerraZone.
The above-mentioned moves in these two segments
will allow the Company to further grow and enhance revenue and
profitability of its comprehensive suite of solutions to its
enterprise internet access customers. The recurring revenues
percentage the Company is therefore expected to increase, assuring
better stability and visibility.
"We believe that focusing our business on the
growing market for enterprise grade is the best way forward to
provide the Company and our shareholders with the best potential
value. By simplifying our portfolio, we will be able to focus our
efforts on business solutions, innovation, and exceptional customer
support, strengthening our position as a trusted provider of
Internet access services," Mr. Daniel concluded.
About Alarum Technologies
Ltd. Alarum Technologies Ltd. (Nasdaq, TASE:
ALAR) is a global provider of enterprise internet access
solutions.
The solutions by NetNut, our Enterprise Internet
Access arm, are based on our world’s fastest and most advanced and
secured hybrid proxy network, enabling our customers to collect
data anonymously at any scale from any public sources over the web.
Our network comprises both exit points based on our proprietary
reflection technology and hundreds of servers located at our ISP
partners around the world. The infrastructure is optimally designed
to guarantee privacy, quality, stability, and the speed of the
service.
For more information about Alarum and its
privacy and cybersecurity solutions for enterprises and consumers,
please visit www.alarum.io .
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Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal securities laws and the Israeli securities law. Words such
as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates” and similar expressions or variations of such
words are intended to identify forward-looking statements. For
example, Alarum is using forward-looking statements in this press
release when it discusses its preliminary unaudited results for the
second quarter ended June 30, 2023, the expected growth in adjusted
EBITDA, that the above-mentioned moves will allow the Company to
further grow and enhance revenue and profitability of its
comprehensive suite of solutions to its enterprise customers, that
the recurring revenues part of the Company are expected to
increase, assuring better stability and visibility, and its belief
that focusing its business on the growing market for enterprise
grade is the best way forward to provide its shareholders with the
best potential value. Because such statements deal with future
events and are based on Alarum’s current expectations, they are
subject to various risks and uncertainties and actual results,
performance or achievements of Alarum could differ materially from
those described in or implied by the statements in this press
release. The forward-looking statements contained or implied in
this press release are subject to other risks and uncertainties,
including those discussed under the heading “Risk Factors” in
Alarum’s annual report on Form 20-F filed with the Securities and
Exchange Commission (“SEC”) on March 31, 2023, and in any
subsequent filings with the SEC. Except as otherwise required by
law, Alarum undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
The Company is providing revenue, cash, and cash
equivalents balance estimates in this press release, rather than
final amounts, primarily because the financial closing process and
review are not yet complete and, as a result, the Company’s final
results upon completion of its closing process and review may vary
from these preliminary estimates.
Investor Relations
Contacts:
Michal
Efraty+972-(0)52-3044404investors@alarum.io
Alarum Technologies (NASDAQ:ALAR)
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