In This Article:
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Allot Ltd (NASDAQ:ALLT) reported a 6% year-over-year increase in first-quarter revenues, marking a return to growth.
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The company's Security as a Service Solution, CIA, contributed significantly to revenue, with a 55% year-over-year increase.
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Allot Ltd (NASDAQ:ALLT) achieved a non-GAAP net income of $0.8 million, compared to a loss in the same quarter last year.
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The company reported positive operating cash flow of $1.7 million, increasing its cash position to over $60 million.
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Allot Ltd (NASDAQ:ALLT) secured a significant expansion of its partnership with Verizon Business, offering a substantial growth opportunity.
Negative Points
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The official launch of Verizon's mobile service occurred only in mid-April, resulting in minimal contribution to Q1 results.
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The company's growth projections are reliant on the marketing efforts and campaigns of service providers, introducing uncertainty.
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Despite positive results, there is still potential for CIA's ARR growth to be slightly below the 50% target.
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The transition of Vodafone's partnership to a CCAS revenue structure is still ongoing, with some agreements not yet fully realized.
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The competitive nature of the industry and reliance on external service providers' marketing strategies pose risks to growth projections.
Q & A Highlights
Q: Did Verizon Business Mobile Internet Security contribute to your Q1 CCAS ARR results? A: (CEO) The official launch of the service happened only in mid-April, so there was minimal contribution for Q1. Most of the impact will be seen in Q2 and beyond as the service gains traction.
Q: What was the main driver for your biggest CCAS ARR growth this quarter? A: (CEO) The growth was driven by new service launches and agreements, particularly with Vodafone and other carriers. These are starting to contribute to our revenue, and we expect further growth throughout the year.
Q: Is there a possibility that CCAS ARR growth could be less than 50%? A: (CEO) While we are comfortable with the 50% growth estimate, there are still many moving parts, and we rely on service providers' marketing efforts. It could be slightly lower or higher, but we do not anticipate it dropping to 30%.
Q: Did Verizon become the largest contributor to CCAS revenue this quarter? A: (CEO) Yes, Verizon became our number one account for CCAS revenue due to the initial launch of their mobile service and the traction of their fixed wireless access.