Allot Reports Strong First Quarter 2025 Performance
Profitability and Growth in First Quarter 2025
Allot Ltd. (NASDAQ: ALLT), a global leader in network intelligence and security, recently announced their financial results for the first quarter of 2025, marking a robust performance with notable growth metrics. This summary outlines their impressive year-over-year revenue growth and introduces their innovative offerings in the cybersecurity sector.
Financial Highlights
Allot reported revenues of $23.2 million, representing a 6% increase compared to the previous year. A significant highlight was the continued climb in Security as a Service (SECaaS) revenues, which surged by 49% year-over-year to $5.1 million.
The annual recurring revenue (ARR) from SECaaS as of March 2025 stood at $21.2 million, showcasing a remarkable 54% increase year-over-year. Their non-GAAP gross margin was reported at 70.4%, remaining consistent with the first quarter of last year.
Operating Performance
Reflecting upon operational achievements, Allot's non-GAAP operating profit reached $0.4 million, a notable recovery from an operating loss of $1.2 million during the same quarter in 2024. The company also realized a positive cash flow of $1.7 million in this quarter.
CEO Eyal Harari expressed optimism regarding future growth, stating, "We are very happy to report solid results for the quarter with renewed year-over-year growth across all key metrics. Our recent multi-million dollar agreements with new customers demonstrate our strong market position and aggressive pipeline expansion."
Strategic Partnerships and New Offerings
Mr. Harari continued, "The introduction of our Smart product and strong interest in our Tera III security offering from tier 1 customers signify a rising demand for our services. We believe that our innovations in cybersecurity will further enhance our recurring revenue streams and overall growth strategy."
Conclusion on Financial Results
Overall, the first quarter 2025 results reflect Allot's successful navigation of market challenges and their ability to maintain growth across critical business segments. With strategic partnerships and innovative product launches, Allot is well-positioned to achieve its full-year goals of profitable growth, with SECaaS revenues projected to rise by 50% or more compared to last year.
Frequently Asked Questions
What financial results did Allot report for Q1 2025?
Allot reported revenues of $23.2 million, a 6% increase from the previous year, with significant growth in SECaaS revenues.
What were the key highlights from Allot's financial performance?
The company achieved a non-GAAP operating profit of $0.4 million and positive cash flow of $1.7 million for the quarter.
What are SECaaS revenues, and how did they perform?
SECaaS revenues rose by 49% year-over-year to $5.1 million, with concluded ARR at $21.2 million, up 54% compared to last year.
How did Allot's management respond to the quarterly results?
The CEO expressed confidence in the company's momentum and emphasized the potential for future growth with new products and strategic partnerships.
What are the future projections for Allot?
Allot aims to achieve profitable growth for the full year 2025, with SECaaS revenues expected to grow by 50% or more year-over-year.
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