Allot Announces Fourth Quarter 2024 Financial Results

Strong Double-Digit SECaaS Growth and Significant Improvement in Profitability

 

Hod Hasharon, Israel – February 25, 2025 - Allot Ltd. (NASDAQ: 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 fourth quarter and full year of 2024.

 

 

 

 

 

 

 

 

 

Eyal Harari, CEO of Allot, commented, “We are very pleased to report solid fourth-quarter and full year 2024 results, demonstrating that Allot is at a key inflection point in its turnaround process. Our results show renewed revenue growth and a return to profitability, with growing positive cash flow generation. Our SECaaS growth engine continued its strong performance in 2024, with high double-digit growth rates in both revenues and ARR.”

 

Continued Mr. Harari, “Our security-first strategy and renewed go-to-market focus are gaining strong traction and momentum.  As we recently announced, we were very excited to sign a new major agreement with Verizon Business. We are very happy that the significant Verizon Business mobile customer base will have the opportunity to sign up for Allot’s cybersecurity protection solution. This new agreement adds to the strong momentum that Allot has recently seen, including our announcements with Vodafone, O2 and MEO. These important partnerships illustrate our growing success and expand our potential for long-term recurring revenue.”

 

 

 

Total revenues for the fourth quarter of 2024 were $24.9 million, a 7% increase sequentially compared with $23.2 million in the prior quarter and a 2% increase year-over-year compared with $24.3 million in the fourth quarter of 2023. .

 

 

 

 

 

Net income on a GAAP basis for the fourth quarter of 2024 was $0.2 million, or $0.01 income per diluted share, an improvement compared to the net loss of $18.3 million, or $0.48 loss per basic share, in the fourth quarter of 2023.

 

Net income on a non-GAAP basis for the fourth quarter of 2024 was $2.0 million, or $0.05 income per diluted share, an improvement compared to the non-GAAP net loss of $16.4 million, or $0.43 loss per basic share, in the fourth quarter of 2023.

 

 

 

 

Gross profit on a GAAP basis for 2024 was $63.7 million (gross margin of 69.1%), a 20.9% increase compared with $52.7 million (gross margin of 56.6%) in 2023.

 

Gross profit on a non-GAAP basis for 2024 was $65.1 million (gross margin of 70.6%), a 17.2% year-over-year growth compared with $55.5 million (gross margin of 59.6%) in 2023.

 

 

 

 

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The Allot management team will host a conference call to discuss its fourth quarter and full year 2024 earnings results today, February 25, 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: +972-3-918-0610

 

 

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.

 

 

 

* SECaaS ARR – measures the current annual recurring of SECaaS revenues, which is calculated based on estimated revenues for the month of December 2024 and multiplied by 12.

 

 

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.

 

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.

 

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								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)				(Audited)
Revenues		$	24,906			$	24,342			$	92,195			$	93,150
Cost of revenues			7,853				12,941				28,505				40,464
Gross profit			17,053				11,401				63,690				52,686
Operating expenses:
Research and development costs, net			5,715				7,942				26,112				39,115
Sales and marketing			7,508				12,057				30,908				43,850
General and administrative			3,518				10,316				12,684				34,656
Total operating expenses			16,741				30,315				69,704				117,621
Operating profit (loss)			312				(18,914	)			(6,014	)			(64,935	)
Financial and other income (loss), net			368				661				1,910				3,215
Profit (Loss) before income tax benefit			680				(18,253	)			(4,104	)			(61,720	)
Tax expenses			439				96				1,765				1,084
Net profit (Loss)			241				(18,349	)			(5,869	)			(62,804	)
Basic net profit (loss) per share		$	0.01			$	(0.48	)		$	(0.15	)		$	(1.66	)
Diluted net profit (loss) per share		$	0.01			$	(0.48	)		$	(0.15	)		$	(1.66	)
Weighted average number of shares used in
computing basic net loss per share			39,379,254				38,293,808				38,928,475				37,911,214
Weighted average number of shares used in
computing diluted net loss per share			41,772,402				38,293,808				40,899,294				37,911,214

 

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								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
GAAP cost of revenues		$	7,853			$	12,941			$	28,505			$	40,464
Share-based compensation (1)			(148	)			(162	)			(779	)			(1,219	)
Amortization of intangible assets (2)			(152	)			(1,024	)			(608	)			(1,606	)
Non-GAAP cost of revenues		$	7,553			$	11,755			$	27,118			$	37,639
GAAP gross profit		$	17,053			$	11,401			$	63,690			$	52,686
Gross profit adjustments			300				1,186				1,387				2,825
Non-GAAP gross profit		$	17,353			$	12,587			$	65,077			$	55,511
GAAP operating expenses		$	16,741			$	30,315			$	69,704			$	117,621
Share-based compensation (1)			(1,176	)			(1,449	)			(5,261	)			(7,626	)
Income related to M&A activities (2)			-				699				-				699
Non-GAAP operating expenses		$	15,565			$	29,565			$	64,443			$	110,694
GAAP financial and other income		$	368			$	661			$	1,910			$	3,215
Exchange rate differences*			159				(50	)			502				(378	)
Expenses related to M&A activities (3)			-				-				-				43
Non-GAAP Financial and other income		$	527			$	611			$	2,412			$	2,880
GAAP taxes on income		$	439			$	96			$	1,765			$	1,084
Changes in tax related items			(130	)			(25	)			(352	)			(100	)
Non-GAAP taxes on income		$	309			$	71			$	1,413			$	984
GAAP Net profit (Loss)		$	241			$	(18,349	)		$	(5,869	)		$	(62,804	)
Share-based compensation (1)			1,324				1,611				6,040				8,845
Amortization of intangible assets (2)			152				1,024				608				1,606
Expenses related to M&A activities (3)			-				(699	)			-				(656	)
Exchange rate differences*			159				(50	)			502				(378	)
Changes in tax related items			130				25				352				100
Non-GAAP Net income (loss)		$	2,006			$	(16,438	)		$	1,633			$	(53,287	)
GAAP profit (Loss) per share (diluted)		$	0.01			$	(0.48	)		$	(0.15	)		$	(1.66	)
Share-based compensation			0.03				0.04				0.16				0.23
Amortization of intangible assets			0.00				0.03				0.02				0.05
Expenses related to M&A activities			-				(0.02	)			-				(0.02	)
Exchange rate differences*			0.01				(0.00	)			0.01				(0.01	)
Changes in tax related items			0.00				0.00				0.00				0.00
Non-GAAP Net income (loss) per share (diluted)		$	0.05			$	(0.43	)		$	0.04			$	(1.41	)
Weighted average number of shares used in
computing GAAP diluted net income (loss) per share			39,379,254				38,293,808				38,928,475				37,911,214
Weighted average number of shares used in
computing non-GAAP diluted net income (loss) per share			42,560,457				38,293,808				42,289,637				37,911,214

* 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								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
(1) Share-based compensation:
Cost of revenues		$	148			$	162			$	779			$	1,219
Research and development costs, net			301				597				1,988				3,010
Sales and marketing			310				473				1,855				2,651
General and administrative			565				379				1,418				1,965
		$	1,324			$	1,611			$	6,040			$	8,845
(2) Amortization of intangible assets
Cost of revenues		$	152			$	1,024			$	608			$	1,606
		$	152			$	1,024			$	608			$	1,606
(3) Expenses related to M&A activities
General and administrative		$	-			$	(699	)		$	-			$	(699	)
Finanacial expensees (income)			-				-				-				43
		$	-			$	(699	)		$	-			$	(656	)

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)

		December 31,				December 31,
		2024				2023
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	16,142			$	14,192
Short-term bank deposits			15,250				10,000
Restricted deposits			904				1,728
Available-for-sale marketable securities			26,470				28,853
Trade receivables, net (net of allowance for credit losses of $25,306 and $25,253 on December 31, 2024 and 2023, respectively)			16,482				14,828
Other receivables and prepaid expenses			6,317				8,437
Inventories			8,611				11,874
Total current assets			90,176				89,912
LONG-TERM ASSETS:
Severance pay fund			464				395
Restricted deposit			279				158
Operating lease right-of-use assets			6,741				3,057
Other assets			2,151				704
Property and equipment, net			7,692				11,189
Intangible assets, net			305				915
Goodwill			31,833				31,833
Total non-current assets			49,465				48,251
Total assets		$	139,641			$	138,163
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	946			$	969
Deferred revenues			17,054				14,892
Short-term operating lease liabilities			562				1,453
Other payables and accrued expenses			17,412				22,094
Total current liabilities			35,974				39,408
LONG-TERM LIABILITIES:
Deferred revenues			7,136				7,437
Long-term operating lease liabilities			5,807				702
Accrued severance pay			946				1,080
Convertible debt			39,973				39,773
Total long-term liabilities			53,862				48,992
SHAREHOLDERS' EQUITY			49,805				49,763
Total liabilities and shareholders' equity		$	139,641			$	138,163

 

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