Allot(ALLT)2025-02-26 01:06Financial Data and Key Metrics Changes - In Q4 2024, Allot Ltd. reported revenues of 92.2 million, just 1% below 2023 levels [34][10] - The company achieved a non-GAAP net income of 53 million in the previous year [12][37] - Non-GAAP gross margin improved to 69.7% in Q4 2024, up from 51.7% in the same quarter last year, and full-year gross margin was 70.6%, compared to 59.6% in 2023 [35][36] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment generated 18.2 million as of December 2024, reflecting a 43% year-over-year growth [11][34] Market Data and Key Metrics Changes - Allot Ltd. secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence and customer base [14][22] - The company reported a strong adoption of its cybersecurity solutions among service providers, indicating a growing demand for integrated security offerings [15][19] Company Strategy and Development Direction - Allot Ltd. is focusing on a security-first strategy, integrating cybersecurity and network intelligence to create a unified business structure [25][31] - The company aims to broaden its security offerings to provide comprehensive protection for customers, both on and off their networks [27][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's turnaround, highlighting a return to profitability and positive cash flow generation for the first time in several years [12][30] - The outlook for 2025 includes expectations for continued double-digit growth in CCaaS revenue and ARR, driven by new customer acquisitions and service launches [18][31] Other Important Information - Allot Ltd. reported a year-end cash position of 15.6 million in Q4 2024, down 47% from the previous year [36] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS expansion and new service launches with existing customers [40][41] Question: What caused the increase in support and maintenance revenue? - The increase was primarily due to strong results from the smart product line and catch-up on support agreements at year-end [44][45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuations are common and depend on specific deals in each quarter, with CCaaS revenue increasing as a percentage of total revenue [49][52] Question: What is the expected growth rate for CCaaS in 2025? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [57][59] Question: How is Allot Ltd. addressing off-network security protection? - The company is investing in R&D to extend security offerings beyond the network, enhancing customer retention and satisfaction [90][91] Question: What is the outlook for the DPI legacy business? - Management expects similar revenue levels for the DPI business in 2025, with potential upside depending on new project wins [101][103] Question: What is the status of the CCaaS pipeline? - The company has a strong pipeline of opportunities for both new and existing customers, positioning itself well for growth [105][106]