Allot Announces First Quarter 2025 Financial Results
PR Newswire
HOD HASHARON, Israel, May 12, 2025
Solid start to the year with profitable growth including 54% increase in SECaaS ARR YoY
HOD HASHARON, Israel, May 12, 2025 /PRNewswire/ -- Allot Ltd. $(ALLT)$ (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the first quarter 2025.
Financial Highlights for the First Quarter of 2025
-- Revenues of $23.2, up 6% year over year;
-- Security as a Service (SECaaS) revenues continued to grow strongly,
increasing 49% year-over-year to $5.1 million;
-- March 2025 SECaaS ARR* of $21.2 million, up 54% year-over-year;
-- Non-GAAP gross margin of 70.4%, similar to the first quarter of last
year;
-- Non-GAAP operating profit of $0.4 million, versus an operating loss of
1.2 million in the first quarter of last year;
-- Positive operating cash flow of $1.7 million in the quarter;
Management Comment
Eyal Harari, CEO of Allot, commented, "We are very happy to report solid results for the quarter with renewed year-over-year growth across all key metrics. We recently signed a number of multi-million dollar agreements with new customers for our Smart product and see strong interest in our new Tera III product from tier-1 customers which is increasing our pipeline, all of which will contribute to future growth."
Continued Mr. Harari, "We continue to drive strong results with our SECaaS offering. Recent agreements illustrate the success of our security business, and we are well positioned to continue growing our recurring revenue stream. We are pleased that Verizon Business recently launched a new mobile plan which includes our SECaaS service, demonstrating the importance that Verizon places on providing cybersecurity protection to their customers."
Concluded Mr. Harari, "Given our solid execution, we expect that for full year 2025 we will achieve profitable growth, with SECaaS revenue and ARR achieving strong year-over-year increases at around 50% or more."
First quarter 2025 Financial Results Summary
Total revenues for the first quarter of 2025 were $23.2 million, a 6% increase year-over-year compared with $21.9 million in the first quarter of 2024.
Gross profit on a GAAP basis for the first quarter of 2025 was $16.0 million (gross margin of 69.3%), a 6% increase compared with $15.1 million (gross margin of 69%) in the first quarter of 2024.
Gross profit on a non-GAAP basis for the first quarter of 2025 was $16.3 million (gross margin of 70.4%), a 6% increase compared with $15.4 million (gross margin of 70.4%) in the first quarter of 2024.
Operating loss on a GAAP basis for the first quarter of 2025 was $0.7 million, compared with an operating loss of $2.7 million in the first quarter of 2024.
Operating income on a non-GAAP basis for the first quarter of 2025 was $0.4 million, compared with an operating loss of $1.2 million in the first quarter of 2024.
Net loss on a GAAP basis for the first quarter of 2025 was $0.3 million, or $0.01 per share, an improvement compared to the net loss of $2.5 million, or $0.07 per share, in the first quarter of 2024.
Net income on a non-GAAP basis for the first quarter of 2025 was $0.8 million, or $0.02 income per diluted share, an improvement compared to the non-GAAP net loss of $0.9 million, or $0.03 loss per basic share, in the first quarter of 2024.
Operating cash flow generated in the quarter was positive $1.7 million.
Cash and cash equivalents, short-term bank deposits, short-term restricted deposits and investments as of March 31, 2025, totaled $60.7 million, an increase of $2 million versus $58.8 million as of December 31, 2024.
Conference Call & Webcast:
The Allot management team will host a conference call to discuss its first quarter 2025 earnings results today, May 12, 2025 at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:
US: 1-888-642-5032, UK: 0-800-917-5108, Israel: +972-3-918-0644
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm
About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot's multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.
For more information, visit www.allot.com
Performance Metrics
* SECaaS ARR -- measures the current annual recurring SECaaS revenues, which is calculated based on estimated revenues for the month of March 2025 and multiplied by 12.
GAAP to Non-GAAP Reconciliation:
The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.
These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.
Safe Harbor Statement
This release contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; and other factors discussed under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact: Public Relations Contact: EK Global Investor Relations Seth Greenberg, Allot Ltd. Ehud Helft +972 54 922 2294 +1 212 378 8040 sgreenberg@allot.com allot@ekgir.com
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TABLE - 1
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended
March 31,
--------------------------------
2025 2024
--------------- ---------------
(Unaudited)
--------------------------------
Revenues $ 23,150 $ 21,890
Cost of revenues 7,103 6,792
Gross profit 16,047 15,098
--------------- ---------------
Operating expenses:
Research and development costs, net 5,991 7,149
Sales and marketing 7,338 7,790
General and administrative 3,427 2,902
--------------- ---------------
Total operating expenses 16,756 17,841
Operating profit (loss) (709) (2,743)
Financial and other income (loss), net 673 540
---------------
Profit (Loss) before income tax
benefit (36) (2,203)
Tax expenses 296 307
---------------
Net profit (Loss) (332) (2,510)
=============== ===============
Basic net profit (loss) per share $ (0.01) $ (0.07)
=============== ===============
Diluted net profit (loss) per share $ (0.01) $ (0.07)
=============== ===============
Weighted average number of shares used
in
computing basic net loss per share 39,620,521 38,411,724
=============== ===============
Weighted average number of shares used
in
computing diluted net loss per share 39,620,521 38,411,724
=============== ===============
TABLE - 2
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three Months Ended
March 31,
-----------------------------------
2025 2024
----------------- ----------------
(Unaudited)
-----------------------------------
GAAP cost of revenues $ 7,103 $ 6,792
Share-based compensation (1) (94) (154)
Amortization of intangible assets
(2) (152) (152)
Non-GAAP cost of revenues $ 6,857 $ 6,486
----------------- ----------------
GAAP gross profit $ 16,047 $ 15,098
Gross profit adjustments 246 306
Non-GAAP gross profit $ 16,293 $ 15,404
----------------- ----------------
GAAP operating expenses $ 16,756 $ 17,841
Share-based compensation (1) (887) (1,206)
Non-GAAP operating expenses $ 15,869 $ 16,635
----------------- ----------------
GAAP financial and other income $ 673 $ 540
Exchange rate differences* (61) 94
Non-GAAP Financial and other income $ 612 $ 634
----------------- ----------------
GAAP taxes on income $ 296 $ 307
Changes in tax related items (45) (44)
Non-GAAP taxes on income $ 251 $ 263
================= ================
GAAP Net profit (Loss) $ (332) $ (2,510)
Share-based compensation (1) 981 1,360
Amortization of intangible assets
(2) 152 152
Exchange rate differences* (61) 94
Changes in tax related items 45 44
Non-GAAP Net income (loss) $ 785 $ (860)
================= ================
GAAP profit (Loss) per share
(diluted) $ (0.01) $ (0.07)
Share-based compensation 0.03 0.04
Amortization of intangible assets 0.00 -
Exchange rate differences* 0.00 0.00
Changes in tax related items 0.00 0.00
Non-GAAP Net income (loss) per share
(diluted) $ 0.02 $ (0.03)
================= ================
Weighted average number of shares
used in
computing GAAP diluted net income
(loss) per share 39,620,521 38,411,724
================= ================
Weighted average number of shares
used in
computing non-GAAP diluted net income
(loss) per share 42,880,655 38,411,724
================= ================
* Financial income or expenses related to exchange rate differences in
connection with revaluation of assets and
liabilities in non-dollar
denominated currencies.
TABLE - 2 cont.
ALLOT LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three Months Ended
March 31,
-----------------------------------
2025 2024
----------------- ----------------
(Unaudited)
-----------------------------------
(1) Share-based compensation:
Cost of revenues $ 94 $ 154
Research and development costs,
net 242 498
Sales and marketing 305 443
General and administrative 340 265
$ 981 $ 1,360
----------------- ----------------
(2) Amortization of intangible
assets
Cost of revenues $ 152 $ 152
$ 152 $ 152
----------------- ----------------
TABLE - 3
ALLOT LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
March 31, December 31,
2025 2024
-------------------------- ------------------------
(Unaudited) (Audited)
-------------------------- ------------------------
ASSETS
CURRENT ASSETS: Cash
and cash
equivalents $ 10,061 $ 16,142
Short-term bank
deposits 16,700 15,250
Restricted deposits 584 904
Available-for-sale
marketable
securities 33,372 26,470
Trade receivables,
net (net of
allowance for
credit losses of
$22,324 and $25,306
on March 31, 2025
and December 31,
2024 ,
respectively) 19,234 16,482
Other receivables
and prepaid
expenses 5,983 6,317
Inventories 8,193 8,611
Total current assets 94,127 90,176
-------------------------- ------------------------
LONG-TERM ASSETS:
Severance pay fund 456 464
Restricted deposit 296 279
Operating lease
right-of-use
assets 6,366 6,741
Other assets 564 2,151
Property and
equipment, net 6,550 7,692
Intangible assets,
net 153 305
Goodwill 31,833 31,833
Total non-current
assets 46,218 49,465
-------------------------- ------------------------
Total assets $ 140,345 $ 139,641
========================== ========================
LIABILITIES AND
SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Trade payables $ 1,021 $ 946
Deferred revenues 20,013 17,054
Short-term operating
lease liabilities 1,062 562
Other payables and
accrued expenses 15,781 17,408
-------------------------- ------------------------
Total current
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