Allot Ltd. Reports Strong Q3 2024 Financial Performance
Reports non-GAAP operating profit for the first time in three years
Allot Ltd. (NASDAQ: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises, has announced its unaudited financial results for the third quarter of 2024. The company is pleased to share these results, which mark an important milestone in its recovery journey.
Financial Achievements
Key Highlights
For the third quarter, Allot reported revenues of $23.2 million, reflecting a sequential increase of 5% and a year-over-year growth of 3%. This performance demonstrates a significant return to growth for the company.
The company achieved a non-GAAP gross margin of 71.7%. Notably, Security as a Service (SECaaS) revenues surged 69% year-over-year, totaling $4.7 million. Furthermore, as of September 2024, SECaaS annual recurring revenue (ARR) reached $17.2 million.
Profitability Progress
In a significant improvement, Allot reported a non-GAAP operating profit of $1.1 million, contrasting with a GAAP operating loss of $0.2 million. This marked the first positive non-GAAP operating income in three years. Additionally, the company achieved positive operating cash flow of $1.9 million.
Net cash increased by $2.0 million compared to the previous quarter, demonstrating strong cash management and operational efficiency.
Optimistic Financial Forecast
Looking ahead, Allot anticipates maintaining its progress towards breakeven on a non-GAAP operating profit basis in Q4 2024, alongside generating positive cash flow. Management is optimistic about achieving double-digit growth for full-year SECaaS revenue and ARR.
Management's Insights
Eyal Harari, CEO of Allot, expressed satisfaction with the company’s financial performance, stating, "We are especially pleased with our first positive non-GAAP operating income in three years. Revenue has grown both sequentially and year-over-year, and our security services continue to expand."
Emphasizing the significance of their security solutions, Harari noted the launch of new services with major partners, which broadened the subscriber base for Allot's offerings. This integrated approach aims to solidify the company's future growth and profitability objectives.
Q3 2024 Financial Results Summary
Total Revenues for Q3 2024 reached $23.2 million, a 3% increase from $22.6 million in Q3 2023. This quarterly improvement of 5% over the previous quarter is commendable.
Gross Profit on a GAAP basis stood at $16.4 million with a gross margin of 70.4%, marking a significant increase from $10.5 million (46.3% margin) year-over-year.
Operating Income on a non-GAAP basis for Q3 2024 amounted to $1.1 million, a considerable improvement compared to an $11.1 million loss in Q3 2023.
Lastly, total cash and cash equivalents at the end of September 2024 reached $54.5 million, highlighting a healthy financial position for the company.
Frequently Asked Questions
1. What are the key financial results for Allot in Q3 2024?
Allot reported revenues of $23.2 million, a 5% sequential increase, and a non-GAAP operating profit of $1.1 million for Q3 2024.
2. How much did Security as a Service (SECaaS) revenue grow?
SECaaS revenue increased by 69% year-over-year, reaching $4.7 million in Q3 2024.
3. What is the outlook for Allot's financial performance moving forward?
Allot expects to maintain breakeven on a non-GAAP operating profit basis and generate positive operating cash flow in Q4 2024.
4. What measures is Allot taking to enhance its value proposition?
The company is integrating its network intelligence and security offerings to strengthen its position as a security-first company and drive long-term growth.
5. How has Allot's cash position changed recently?
Net cash increased by $2.0 million from the prior quarter, with total cash and equivalents reaching $54.5 million as of the end of Q3 2024.
