Allot Ltd. (ALLT) Q2 2024 Earnings Call Transcript Summary
Allot Ltd. (ALLT) Q2 2024 Earnings Call Transcript Summary
The following is a summary of the Allot Ltd. (ALLT) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 revenue was $22.2 million, down 12% year-over-year but up 1% from prior quarter.
SECaaS revenue grew 54% YoY, accounting for 17% of total revenue.
Business Progress:
Continued growth in SECaaS, with a 54% increase in revenue YoY.
Signed expansion agreement with a Tier 1 European CSP, anticipated to boost revenue by year-end.
Opportunity:
Cybersecurity market expected to grow; Allot focusing on mobile security enhancements.
Potential for growth from 5G network rollouts and increased cloud adoption.
Risk:
Project delays possible in telecom sector due to long implementation and integration times.
Financial Performance:
Allot reported Q2 2024 revenue of $22.2 million, marking a 12% year-over-year decline but a 1% increase compared to the previous quarter.
SECaaS revenue was $3.7 million, up 54% year-over-year, comprising 17% of total revenue.
Gross margin was stable at 70.6%.
Non-GAAP operating loss significantly reduced by 95% to $1 million.
Generated positive operating cash flow of $1.2 million and increased net cash position.
Non-GAAP net loss was $0.8 million, or $0.02 per share.
Business Progress:
Continued investment and growth in SECaaS, with revenue increasing 54% year-over-year.
Signed an expansion agreement with a Tier 1 European CSP, expected to contribute to revenue by end of year.
Launched SECaaS with Verizon business; discussing potential service expansions within different customer segments.
Increased sales to new and existing customers for Allot Smart products, including expanding relationships with Rakuten Mobile.
Developing a strategic plan to drive renewed revenue growth and long-term profitability.
Opportunities:
Cybersecurity market growth and increased need for mobile security offerings.
Expanding and improving SECaaS offerings to enhance customer value and protection.
Capitalizing on the roll-out of 5G networks and the increasing adoption of cloud services for significant security needs.
Risks:
Implementation times and integration requirements within the telecom sector could affect project timelines and revenue recognition.
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