Allot Ltd.
|
|||
By:
|
/s/ Ziv Leitman
|
||
Ziv Leitman
|
|||
Chief Financial Officer
|
Exhibit Number
|
Description
|
|
• | Second quarter revenues were $25.0 million; |
• | SECaaS revenues were $2.4 million; June 2023 SECaaS ARR* was $9.7 million; |
• | Second quarter GAAP operating loss was $21.5 million, and non-GAAP operating loss was $18.9 million, including a provision of $14.1 million for credit losses from two customers in Africa; |
• | Q2 GAAP net loss was $20.7 million, and non-GAAP net loss was $18.3 million; |
• | Full-year 2023 revenues of $95 million to $110 million (of which SECaaS revenues are expected to be approximately $11 million); |
• | Full year 2023 operating loss of between $38 million and $44 million (includes a $14.1 million provision for credit losses from two customers in Africa); |
• | Full year 2023 negative cash flow of between $24 million and $44 million; |
• | December 2023 total ARR*, including SECaaS ARR* and Support & Maintenance ARR*, is expected to be between $51 million and $55 million; |
• | Reiterates expectations to be profitable in 2024; |
ARR - U.S. dollars in millions (Unaudited) |
||||||||||
Dec. 2021 |
Dec. 2022 |
Dec. 2023 target |
2022 vs. 2021 |
2023 (target) vs. 2022 |
||||||
Support & maintenance ARR * |
42.0 |
42.5 |
39-41 |
1% |
(8%)-(4%) |
|||||
SECaaS ARR ** |
5.2 |
9.2 |
12-14 |
77% |
30%-52% |
|||||
Total ARR |
47.2 |
51.7 |
51-55 |
10% |
(1%)-6% |
|||||
* Support & Maintenance ARR measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4. |
Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com
|
Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294 sgreenberg@allot.com |
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
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
||||||||||||||||
Revenues
|
$
|
25,047
|
$
|
32,772
|
$
|
46,173
|
$
|
64,668
|
||||||||
Cost of revenues
|
7,707
|
10,242
|
15,358
|
20,034
|
||||||||||||
Gross profit
|
17,340
|
22,530
|
30,815
|
44,634
|
||||||||||||
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development costs, net
|
10,752
|
12,480
|
21,246
|
24,510
|
||||||||||||
Sales and marketing
|
10,522
|
12,220
|
21,409
|
23,909
|
||||||||||||
General and administrative
|
17,558
|
4,303
|
21,518
|
8,340
|
||||||||||||
Total operating expenses
|
38,832
|
29,003
|
64,173
|
56,759
|
||||||||||||
Operating loss
|
(21,492
|
)
|
(6,473
|
)
|
(33,358
|
)
|
(12,125
|
)
|
||||||||
Financial and other income, net
|
985
|
620
|
1,779
|
867
|
||||||||||||
Loss before income tax expenses
|
(20,507
|
)
|
(5,853
|
)
|
(31,579
|
)
|
(11,258
|
)
|
||||||||
Tax expenses
|
225
|
380
|
515
|
1,102
|
||||||||||||
Net Loss
|
(20,732
|
)
|
(6,233
|
)
|
(32,094
|
)
|
(12,360
|
)
|
||||||||
|
||||||||||||||||
Basic net loss per share
|
$
|
(0.55
|
)
|
$
|
(0.17
|
)
|
$
|
(0.85
|
)
|
$
|
(0.34
|
)
|
||||
|
|
|
||||||||||||||
Diluted net loss per share
|
$
|
(0.55
|
)
|
$
|
(0.17
|
)
|
$
|
(0.85
|
)
|
$
|
(0.34
|
)
|
||||
|
||||||||||||||||
Weighted average number of shares used in
|
||||||||||||||||
computing basic net loss per share
|
37,743,328
|
36,827,197
|
37,583,412
|
36,684,017
|
||||||||||||
|
||||||||||||||||
Weighted average number of shares used in
|
||||||||||||||||
computing diluted net loss per share
|
37,743,328
|
36,827,197
|
37,583,412
|
36,684,017
|
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 |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
GAAP cost of revenues |
$ |
7,707 |
$ |
10,242 |
$ |
15,358 |
$ |
20,034 |
||||||||
Share-based compensation (1) |
(348 |
) |
(338 |
) |
(879 |
) |
(519 |
) |
||||||||
Amortization of intangible assets (2) |
(194 |
) |
(152 |
) |
(387 |
) |
(304 |
) |
||||||||
Non-GAAP cost of revenues |
$ |
7,165 |
$ |
9,752 |
$ |
14,092 |
$ |
19,211 |
||||||||
GAAP gross profit |
$ |
17,340 |
$ |
22,530 |
$ |
30,815 |
$ |
44,634 |
||||||||
Gross profit adjustments |
542 |
490 |
1,266 |
823 |
||||||||||||
Non-GAAP gross profit |
$ |
17,882 |
$ |
23,020 |
$ |
32,081 |
$ |
45,457 |
||||||||
GAAP operating expenses |
$ |
38,832 |
$ |
29,003 |
$ |
64,173 |
$ |
56,759 |
||||||||
Share-based compensation (1) |
(2,077 |
) |
(1,831 |
) |
(5,014 |
) |
(4,187 |
) |
||||||||
Non-GAAP operating expenses |
$ |
36,755 |
$ |
27,172 |
$ |
59,159 |
$ |
52,572 |
||||||||
GAAP financial and other income |
$ |
985 |
$ |
620 |
$ |
1,779 |
$ |
867 |
||||||||
Exchange rate differences* |
(238 |
) |
(316 |
) | (281 |
) |
(389 |
) | ||||||||
Expenses related to M&A activities (3) |
14 |
- |
28 |
- |
||||||||||||
Non-GAAP Financial and other income |
$ |
761 |
$ |
304 |
$ |
1,526 |
$ |
478 |
||||||||
GAAP taxes on income |
$ |
225 |
$ |
380 |
$ |
515 |
$ |
1,102 |
||||||||
Changes in tax related items |
(25 |
) |
(50 |
) |
(50 |
) |
(50 |
) |
||||||||
Non-GAAP taxes on income |
$ |
200 |
$ |
330 |
$ |
465 |
$ |
1,052 |
||||||||
GAAP Net Loss |
$ |
(20,732 |
) |
$ |
(6,233 |
) |
$ |
(32,094 |
) |
$ |
(12,360 |
) |
||||
Share-based compensation (1) |
2,425 |
2,169 |
5,893 |
4,706 |
||||||||||||
Amortization of intangible assets (2) |
194 |
152 |
387 |
304 |
||||||||||||
Expenses related to M&A activities (3) |
14 |
- |
28 |
- |
||||||||||||
Exchange rate differences* |
(238 |
) |
(316 |
) |
(281 |
) |
(389 |
) |
||||||||
Changes in tax related items |
25 |
50 |
50 |
50 |
||||||||||||
Non-GAAP Net income (loss) |
$ |
(18,312 |
) |
$ |
(4,178 |
) |
$ |
(26,017 |
) |
$ |
(7,689 |
) |
||||
GAAP Loss per share (diluted) |
$ |
(0.55 |
) |
$ |
(0.17 |
) |
$ |
(0.85 |
) |
$ |
(0.34 |
) |
||||
Share-based compensation |
0.06 |
0.06 |
0.16 |
0.13 |
||||||||||||
Amortization of intangible assets |
0.01 |
0.00 |
0.01 |
0.00 |
||||||||||||
Expenses related to M&A activities |
0.00 |
- |
0.00 |
- |
||||||||||||
Changes in taxes and headcount related items |
- |
- |
- |
0.00 |
||||||||||||
Exchange rate differences* |
(0.01 |
) |
(0.00 |
) |
(0.01 |
) |
(0.00 |
) |
||||||||
Non-GAAP Net income (loss) per share (diluted) |
$ |
(0.49 |
) |
$ |
(0.11 |
) |
$ |
(0.69 |
) |
$ |
(0.21 |
) |
||||
Weighted average number of shares used in |
||||||||||||||||
computing GAAP diluted net loss per share |
37,743,328 |
36,827,197 |
37,583,412 |
36,684,017 |
||||||||||||
Weighted average number of shares used in |
||||||||||||||||
computing non-GAAP diluted net loss per share |
37,743,328 |
36,827,197 |
37,583,412 |
36,684,017 |
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 |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
(1) Share-based compensation: |
||||||||||||||||
Cost of revenues |
$ |
348 |
$ |
338 |
$ |
879 |
$ |
519 |
||||||||
Research and development costs, net |
754 |
844 |
1,956 |
1,689 |
||||||||||||
Sales and marketing |
733 |
619 |
1,770 |
1,532 |
||||||||||||
General and administrative |
590 |
368 |
1,288 |
966 |
||||||||||||
$ |
2,425 |
$ |
2,169 |
$ |
5,893 |
$ |
4,706 |
|||||||||
(2) Amortization of intangible assets |
||||||||||||||||
Cost of revenues |
$ |
194 |
$ |
152 |
$ |
387 |
$ |
304 |
||||||||
$ |
194 |
$ |
152 |
$ |
387 |
$ |
304 |
|||||||||
(3) Expenses related to M&A activities |
||||||||||||||||
Financial income |
$ |
14 |
$ |
- |
$ |
28 |
$ |
- |
||||||||
$ |
14 |
$ |
- |
$ |
28 |
$ |
- |
TABLE - 3
|
||||
ALLOT LTD.
|
||||
AND ITS SUBSIDIARIES
|
||||
CONSOLIDATED BALANCE SHEETS
|
||||
(U.S. dollars in thousands)
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
15,473
|
$
|
12,295
|
||||
Short-term bank deposits
|
30,065
|
68,765
|
||||||
Restricted deposits
|
1,274
|
1,050
|
||||||
Available-for-sale marketable securities
|
19,061
|
4,293
|
||||||
Trade receivables, net (net of allowance for credit losses of $17,365 and $2,908 on June 30, 2023 and December 31, 2022, respectively)
|
29,445
|
44,167
|
||||||
Other receivables and prepaid expenses
|
7,023
|
7,985
|
||||||
Inventories
|
18,360
|
13,262
|
||||||
Total current assets
|
120,701
|
151,817
|
||||||
|
||||||||
LONG-TERM ASSETS:
|
||||||||
Severance pay fund
|
361
|
371
|
||||||
Operating lease right-of-use assets
|
3,937
|
5,387
|
||||||
Trade receivables, net
|
4,767
|
4,934
|
||||||
Other assets
|
1,058
|
864
|
||||||
Total long-term assets
|
10,123
|
11,556
|
||||||
|
||||||||
PROPERTY AND EQUIPMENT, NET
|
12,149
|
14,236
|
||||||
GOODWILL AND INTANGIBLE ASSETS, NET
|
34,791
|
35,344
|
||||||
|
||||||||
Total assets
|
$
|
177,764
|
$
|
212,953
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
9,460
|
$
|
11,661
|
||||
Deferred revenues
|
20,427
|
20,825
|
||||||
Short-term operating lease liabilities
|
2,103
|
2,542
|
||||||
Other payables and accrued expenses
|
21,173
|
25,573
|
||||||
Total current liabilities
|
53,163
|
60,601
|
||||||
|
||||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues
|
6,384
|
7,285
|
||||||
Long-term operating lease liabilities
|
1,475
|
2,579
|
||||||
Accrued severance pay
|
1,003
|
940
|
||||||
Convertible debt
|
39,673
|
39,575
|
||||||
Total long-term liabilities
|
48,535
|
50,379
|
||||||
|
||||||||
SHAREHOLDERS' EQUITY
|
76,066
|
101,973
|
||||||
|
||||||||
Total liabilities and shareholders' equity
|
$
|
177,764
|
$
|
212,953
|
TABLE - 4
|
|||||||
ALLOT LTD.
|
|||||||
AND ITS SUBSIDIARIES
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||
(U.S. dollars in thousands)
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net Loss
|
$
|
(20,732
|
)
|
$
|
(6,233
|
)
|
$
|
(32,094
|
)
|
$
|
(12,360
|
)
|
||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||||||||||
Depreciation
|
1,327
|
1,332
|
2,647
|
2,746
|
||||||||||||
Stock-based compensation
|
2,425
|
2,169
|
5,893
|
4,706
|
||||||||||||
Amortization of intangible assets
|
277
|
235
|
553
|
470
|
||||||||||||
Increase in accrued severance pay, net
|
13
|
26
|
73
|
20
|
||||||||||||
Decrease (Increase) in other assets
|
168
|
19
|
(194
|
)
|
436
|
|||||||||||
Decrease (Increase) in accrued interest and amortization of premium on marketable securities
|
(166
|
)
|
16
|
(147
|
)
|
48
|
||||||||||
Changes in operating leases, net
|
290
|
(191
|
)
|
(93
|
)
|
(563
|
)
|
|||||||||
Decrease (Increase) in trade receivables
|
10,403
|
(4,082
|
)
|
14,889
|
(4,807
|
)
|
||||||||||
Decrease (Increase) in other receivables and prepaid expenses
|
300
|
141
|
1,161
|
(893
|
)
|
|||||||||||
Decrease (Increase) in inventories
|
(1,645
|
)
|
591
|
(5,098
|
)
|
(1,164
|
)
|
|||||||||
Decrease in trade payables
|
(2,941
|
)
|
(1,433
|
)
|
(2,202
|
)
|
(937
|
)
|
||||||||
Increase (Decrease) in employees and payroll accruals
|
(1,042
|
)
|
523
|
(2,494
|
)
|
(1,963
|
)
|
|||||||||
Increase (Decrease) in deferred revenues
|
870
|
287
|
(1,299
|
)
|
1,129
|
|||||||||||
Decrease in other payables, accrued expenses and other long term liabilities
|
(923
|
)
|
(1,252
|
)
|
(1,824
|
)
|
(1,523
|
)
|
||||||||
Amortization of issuance costs of Convertible debt
|
49
|
49
|
98
|
71
|
||||||||||||
Net cash used in operating activities
|
(11,327
|
)
|
(7,803
|
)
|
(20,131
|
)
|
(14,584
|
)
|
||||||||
|
||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Decrease (Increase) in restricted deposit
|
(224
|
)
|
260
|
(224
|
)
|
380
|
||||||||||
Redemption of (Investment in) short-term deposits
|
21,700
|
520
|
38,700
|
(25,180
|
)
|
|||||||||||
Purchase of property and equipment
|
(290
|
)
|
(1,281
|
)
|
(560
|
)
|
(2,556
|
)
|
||||||||
Investment in available-for sale marketable securities
|
(9,584
|
)
|
-
|
(18,567
|
)
|
-
|
||||||||||
Proceeds from redemption or sale of available-for sale marketable securities
|
590
|
2,872
|
3,960
|
6,030
|
||||||||||||
Net cash provided by (used in) investing activities
|
12,192
|
2,371
|
23,309
|
(21,326
|
)
|
|||||||||||
|
||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from exercise of stock options
|
-
|
15
|
-
|
250
|
||||||||||||
Issuance of convertible debt
|
-
|
-
|
-
|
39,404
|
||||||||||||
Net cash provided by financing activities
|
-
|
15
|
-
|
39,654
|
||||||||||||
|
||||||||||||||||
Increase (Decrease) in cash and cash equivalents
|
865
|
(5,417
|
)
|
3,178
|
3,744
|
|||||||||||
Cash and cash equivalents at the beginning of the period
|
14,608
|
20,878
|
12,295
|
11,717
|
||||||||||||
Cash and cash equivalents at the end of the period
|
$
|
15,473
|
$
|
15,461
|
$
|
15,473
|
$
|
15,461
|
Other financial metrics (Unaudited) |
||||||||||||||||||||||||
U.S. dollars in millions, except number of full time employees, % of top-10 end-customers out of revenues and number of shares |
||||||||||||||||||||||||
Q2-2023 |
YTD 2023 |
FY 2022 |
||||||||||||||||||||||
Revenues geographic breakdown |
||||||||||||||||||||||||
Americas |
8.0 |
32 |
% |
10.4 |
22 |
% |
21.8 |
18 |
% |
|||||||||||||||
EMEA |
12.7 |
51 |
% |
26.1 |
57 |
% |
71.2 |
58 |
% |
|||||||||||||||
Asia Pacific |
4.3 |
17 |
% |
9.7 |
21 |
% |
29.7 |
24 |
% |
|||||||||||||||
25.0 |
100 |
% |
46.2 |
100 |
% |
122.7 |
100 |
% |
||||||||||||||||
Revenue breakdown by type |
||||||||||||||||||||||||
Products |
11.0 |
44 |
% |
17.8 |
39 |
% |
61.1 |
50 |
% |
|||||||||||||||
Professional Services |
1.7 |
7 |
% |
3.6 |
8 |
% |
11.6 |
9 |
% |
|||||||||||||||
SECaaS (Security as a Service) |
2.4 |
10 |
% |
4.7 |
10 |
% |
7.2 |
6 |
% |
|||||||||||||||
Support & Maintenance |
9.9 |
39 |
% |
20.1 |
43 |
% |
42.8 |
35 |
% |
|||||||||||||||
25.0 |
100 |
% |
46.2 |
100 |
% |
122.7 |
100 |
% |
||||||||||||||||
Revenues per customer type |
||||||||||||||||||||||||
CSP |
20.4 |
82 |
% |
37.5 |
81 |
% |
98.3 |
80 |
% |
|||||||||||||||
Enterprise |
4.6 |
18 |
% |
8.7 |
19 |
% |
24.4 |
20 |
% |
|||||||||||||||
25.0 |
100 |
% |
46.2 |
100 |
% |
122.7 |
100 |
% |
||||||||||||||||
% of top-10 end-customers out of revenues |
54 |
% |
49 |
% |
44 |
% |
||||||||||||||||||
Total number of full time employees (end of period) |
684 |
684 |
749 |
|||||||||||||||||||||
Non-GAAP Weighted average number of basic shares (in millions) |
37.7 |
37.7 |
37.0 |
|||||||||||||||||||||
Non-GAAP weighted average number of fully diluted shares (in millions) |
40.1 |
40.1 |
39.5 |
SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited) |
|||||||||
Q2-2023: |
2.4 |
||||||||
Q1-2023: |
2.3 |
||||||||
Q4-2022: |
2.2 |
||||||||
Q3-2022: |
1.7 |
||||||||
Q2-2022: |
1.7 |
||||||||
SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited) |
|||||||||
Jun. 2023: |
9.7 |
||||||||
Dec. 2022: |
9.2 |
||||||||
Dec. 2021: |
5.2 |
||||||||
Dec. 2020: |
2.7 |
||||||||
*ARR: annualized recurring SECaaS revenues, calculated based on the monthly revenues multiplied by 12 |