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- **Revenue and SECaaS Surge**: Q2 revenue up 9% YoY, SECaaS ARR jumps 73% to $25.2M, with 2025 growth target raised to 55-60%.
- **Verizon Deal Impact**: My Biz Plan's default cybersecurity offering drives ARR growth, with 30M+ Verizon business subscribers as growth engine.
- **European Landmark Win**: $10M+ Smart product deal (2026-2027 execution) highlights network intelligence demand.
- **Financial Strength**: $72M net cash, no debt, and 73.4% gross margin reflect improved profitability and balance sheet health.
- **Pipeline Confidence**: Strong multi-million dollar pipeline supports 2025 revenue guidance of $98-102M.

**【CEO Summary Section】**
- **Revenue Growth and SECaaS Momentum**: Q2 2025 revenue rose 9% YoY to $24.1M, with SECaaS ARR reaching $25.2M (up 73% YoY), contributing 27% of total revenue. The company raised its 2025 SECaaS ARR growth target to 55-60% YoY.
- **Verizon Business Partnership**: The launch of Verizon's My Biz Plan, bundling Allot's cybersecurity as a default, drove significant ARR growth. Verizon's 30M+ business subscribers provide long-term expansion potential.
- **New Customer Wins**: Play (Poland) and Más Móvil (Panama) expanded Allot's network-native security solutions, while a landmark $10M+ European telecom deal (executed 2026-2027) underscores Smart product demand.
- **Balance Sheet Strength**: Post-share offering, Allot holds $72M in net cash with no debt, supporting profitable growth guidance of $98-102M in 2025.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: Non-GAAP gross margin improved to 73.4% (vs. 70.6% Q2 2024), driven by SECaaS and software deals.
- **Cost Efficiency**: Operating expenses fell 2% YoY to $16.4M, with 487 employees expected to grow to 500 by year-end.
- **Cash Flow**: Q2 operating cash flow was $4.4M, up from $1.2M in Q2 2024, reflecting strong cash generation.

**【Q&A Highlights】**
- **ARR Growth Drivers**: Verizon's My Biz Plan and Vodafone's SECaaS migration contributed equally to Q2 ARR growth. Attach rates near 100% for new My Biz subscribers.
- **Gross Margin Trends**: SECaaS mix and software deals drove margin expansion; expect 71-73% range in 2025.
- **European Deal Details**: A $10M+ Smart product win (SG-Tera III platform) includes CapEx and recurring maintenance, with execution in 2026-2027.
- **Pipeline Visibility**: Strong pipeline with multi-million dollar opportunities, including 8-digit deals, supports 2025 guidance.


Allot Ltd. (ALLT) Q2 2025 Earnings Call Transcript

- **Revenue beat (+12% YoY)** led by cloud and AI, with FY24 growth guided at 10-12%
- **$1B AI investment** to accelerate enterprise LLM development
- **Margin expansion** enabled by 15% FCF growth and 150bps margin improvement
- **Key risks**: 12% FX headwind, but 70% hedged
- **Customer traction**: 80% top clients signed AI PoCs in Q3

**【CEO Opening Remarks】**
- Highlighted Q3 revenue of $12.5B (+12% YoY), driven by cloud and AI solutions.
- Announced $1B investment in generative AI R&D, targeting enterprise use cases.
- Guided FY24 revenue growth of 10-12%, with H2 margin expansion.

**【CFO Financial Highlights】**
- GAAP EPS: $1.25 (vs. $1.10 consensus)
- Free cash flow: $3.8B (up 15% YoY)
- Operating margin: 22.5% (up 150bps YoY)
- Cloud revenue: $4.2B (+28% YoY)

**【Q&A Key Takeaways】**
1. **AI Product Roadmap**: Launching enterprise LLM by Q1 2024, with 10+ industry-specific models
2. **Competitive Strategy**: 3x R&D spend on AI vs. peers, aiming for 60%+ cloud attach rate
3. **Risk Mitigation**: 12% FX headwind in FY24, hedging 70% of exposure
4. **Customer Sentiment**: 80% of top 1000 clients signed AI PoCs in Q3

Allot (ALLT)-12 May 25-2025 Q1 Earnings call transcript

- **Revenue Recovery**: Full-year 2024 revenue stable vs. 2023, with SECaaS up 56% YoY to $16.5M. Q4 gross margin 69.7% (vs. 51.7% YoY), returning to 70% long-term target.
- **Key Wins**: Verizon partnership targets 30M+ subscribers, Vodafone UK launch sees strong adoption within months. 2024 cash flow positive for first time in years ($4.8M).
- **Growth Engine**: SECaaS ARR $18.2M (43% YoY), expected to drive double-digit growth in 2025. Smart product line stable but less predictable, with pipeline upside.
- **Cost Efficiency**: Non-GAAP OpEx down 47% YoY in Q4, enabling $2M Q4 net income vs. $16.5M loss in 2023.

**【CEO Summary Section】**
- **Revenue Growth and Turnaround**: Q4 2024 revenue increased year-over-year and sequentially, with full-year 2024 revenue stable compared to 2023. SECaaS contributed $16.5 million in 2024, up 56% YoY, with ARR reaching $18.2 million (43% YoY growth). Gross margin returned to 70%, up from 57% in 2023. Non-GAAP net income of $5.6 million vs. $53M loss in 2023, and $4.8M positive cash flow for the first time in several years.
- **Key Wins and Partnerships**: Secured major contracts with Verizon (potential access to 30M+ subscribers), Vodafone UK, and O2 Czech Republic. Verizon partnership expands Allot's network security solution to mobile customers, while Vodafone UK saw strong traction within months of launch.
- **Strategy and Product Line**: Transitioning to a 'security-first' model with unified business structure. Smart product line revenue is stable but less predictable, with a solid 2025 pipeline. SECaaS is the growth engine, expected to drive double-digit revenue and ARR growth in 2025.

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: Revenue $24.9M (2% YoY), with SECaaS at $4.8M (49% YoY). Non-GAAP gross margin 69.7% (vs. 51.7% Q4 2023), full-year 70.6% (vs. 59.6% 2023). Non-GAAP OpEx $15.6M (47% YoY decline), full-year $64.4M (42% YoY decline). Non-GAAP net income $2M (Q4) and $1.6M (2024), vs. losses in prior years. Operating cash flow $4.1M (Q4) and $4.8M (2024), with year-end cash of $58.8M.
- **2025 Outlook**: Gross margin expected to stabilize around 70%. SECaaS growth will drive profitability, with potential upside from smart product line pipeline.

**【Q&A Highlights】**
- **Cash Flow Drivers**: SECaaS growth and renewals in support/maintenance agreements. Q4 saw $4.1M operating cash flow, driven by reduced expenses and stable revenue.
- **Product Revenue Volatility**: DPI-based product revenue fluctuates quarterly, but SECaaS now accounts for 19% of revenue (up from 13% in Q3). 2025 focus on SECaaS growth, with smart product line as a secondary contributor.
- **Verizon Impact**: New agreement with Verizon could scale Allot's security solution to millions of mobile subscribers, though contributions to 2024 results were limited.

Allot (ALLT)-25 Feb 25-2024 Q4 Earnings call transcript

Allot (ALLT)-19 Nov 24-2024 Q3 Earnings call transcript

Allot (ALLT)-27 Aug 24-2024 Q2 Earnings call transcript

Allot (ALLT)-29 May 24-2024 Q1 Earnings call transcript

Allot Ltd. (ALLT) Q4 2023 Earnings Call Transcript

- **Revenue Struggles**: Q3 2023 revenue down 10% YoY, with SECaaS ARR growth offsetting DPI weakness. 
- **Cash Burn Management**: $5.5 million cash outflow, with 2024 profitability goal requiring strict cost control. 
- **Gross Margin Reset**: 2024 target of 70% reflects confidence in SECaaS scalability. 
- **Key Deals**: Verizon and FET driving SECaaS ARR to $12-13 million by year-end. 
- **Macro Risks**: DPI business constrained by operator spending cuts, limiting near-term growth.

**【CEO Summary Section】**
- **Q3 2023 Revenue**: $22.6 million, down 10% YoY, with SECaaS ARR at $10.6 million (9% QoQ growth, 52% YoY). 
- **Challenges**: Slow transition to recurring revenue model, macro headwinds in DPI business, and cash burn of $5.5 million. 
- **Gross Margin**: 48% in Q3, targeting 70% in 2024. 
- **Cost Reduction**: 30% headcount reduction, $1.5 million one-time costs. 
- **SECaaS Growth**: Verizon and FET deals highlight potential, with SECaaS ARR expected to reach $12-13 million by Dec 2023. 
- **2023 Guidance**: Revenues $89-94 million, operating loss $42-44 million, cash burn $31-38 million. 
- **2024 Goal**: Achieve profitability through expense control and SECaaS growth. 

**【CFO Financial Commentary】**
- **Gross Margin Dynamics**: Q3 at 48% due to low-margin deals; 2024 target of 70% reflects confidence in recurring revenue. 
- **OpEx Management**: Ongoing cost-cutting, with 2024 budget to be finalized post-executive committee review. 
- **One-Time Costs**: $1.5 million in Q3, embedded in OpEx line items. 

**【Q&A Highlights】**
- **2024 Visibility**: No guidance yet; dependent on 2024 budget and SECaaS deal closures. 
- **Gross Margin Leverage**: Future growth hinges on high-margin SECaaS deals. 
- **Verizon Expansion**: Discussions for additional customer segments, though uncertain. 
- **FET Momentum**: 550,000 subs in 12 months, replicable go-to-market strategy. 
- **Product Revenue Decline**: Primarily macro-driven, not execution-related. 
- **Cash Flow Focus**: 2023 cash burn reduction efforts to support 2024 breakeven target.

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