Alarum Technologies (ALAR) 30 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to the Safe-T Group's Third Quarter 2021 Earnings Results Conference Call. At this time all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the call over to Steve Gersten, Director of Investor Relations. you. Thank

begin. may You

Safe-T Good third and conference quarter Gersten, Relations am operator. to call. and Safe-T Steve for Investor of Group’s XXXX Director morning, you, gentlemen ladies welcome I Group. Thank earnings results

Joining and Safe-T Avnit, CEO; Shachar Shai the us CFO call on is Daniel, today Group. of

Private read provisions started, the Litigation historical forward-looking information, securities Securities statements disclaimer within statements. of in This XXXX, Before we Federal the contain, to get conference of addition Harbor Safe meaning the I will of other Act about call may Reform forward-looking and laws.

in Risk in to such subsequent subject plans, call that on is we Daniel, in and Forward-looking and expectations the uncertainties, XX-F from March XX, being any statements expressly company's statements are Shachar uncertainties are include include caution to and Commission cautionary goals, to under not differ forward-looking this At The these. may are those reliance Potential filed and the and realized, Exchange the risks these or report statements, uncertainties subject time, statements are reflected filings events made statements whether assumptions, place to statements, forward-looking outcomes to floor statements These not cause such risks undue about are on of with I'd of the yours. SEC. in Factors underlying and and expectations over CEO. turn performance discussed you like to with may the that risks company Safe-T's written XXXX, and based Securities All heading result oral, fact. forward-looking annual behalf and actual other on on qualified by objectives, materially and on Form expectations future management these statements. historical than forward-looking different and strategies, current the

and then our of the before discuss to Safe-T overview summary the welcome I call Chief Thank who Shai third me our is everyone you, will quarter a of results to Avnit, business over discuss the open provide To to Shai call with the results would questions. summarize short to conference like Group’s call. we third turn And Financial accomplishments, XXXX our Steve. briefly quarter earnings operations, financial Officer.

very execution. truly I present year are to begins We transformation look company's the quarter towards represent a for which outlook excited the and believe with significant word a we of past key the half to and

focused our consumers the proposition Over for third are of cybersecurity to market we and XXXX enterprise. value on extending privacy and quarter the

witnessed operating months we the reconfirms the and the by the potential huge we value world. third portfolio surge the of strengthened proven in demonstrated in technologies. for on of quarter us last business opportunities consumer of recorded cybersecurity revenue confidence quarter. than our last ahead M&A few has variety market be catalyst acquisition of the our the billion privacy are unpacked around CyberKick a revenue and of $X During model, by of More solutions in the in as built us growth deals Entering a impressive acquisition of innovative the the strong our a as sector a to with recurring confirmed

on and in the have been most a can million logged record. ransomware users this this more the end We capabilities cyber privacy recently addition layer. our includes than leading anti-ransomware game more were with to innovative feature making with solution I advanced consumer new believe our as SonicWall, the for product proud of of a security quarter year the at tools dangerous and protection iShield intelligence, its unique according Our product year ransomware XXXX attacks changer augmented launch costly threat users. publisher to very and for XXX of be

large to While typically don't differentiating we ransomware tools who small our industry business are consequences those solution medium to have attacks. deal organizations, highly damaging to and of ourselves tends and mediums to focus consumers bringing access on advance by to ransomware’s with

security billion, to in committed the as additionally business to remain this we spending large of $X enterprise reaching of the In potential in side we according make consumer we to untapped quarters investing to approximately grow, Statista, software As the the sources continues because see. continue progress upcoming segment, well.

our portfolio. of service data our product new launch expanded web enterprise the have solution, we With

by are Trust Solutions make has serving Zero Overall, quarter, Matrix own progress reorganization two process detail. like for Knowledge in solution, financials already the years in I revenue to for ZTNA to which XXXX the Shai also our more over turn a any collect to highly Quadrant have before global gained and in But Safe-T and data would XXXX, an wide and the in seen decision-making. world-leading the estimate, seeking discuss record-wide our pre-announce can of the the and increase Group a our $X.X with enterprise to be in Network Shai? be of for October. this Privacy that goal consumers named cybersecurity available seen million approximately enterprises. We ZTNA call the used to solution building quarter who significant scalable both we our which quarter to XXX% $X.X Company product, the publicly evidence equivalent SPARK Early as in ago data in enterprise web started we analysis the efficient data to further, going million, of compared significant of in exceeding quarter, this way aid that analysis the Access, Furthermore, market. leader can recognition continues our interest service ZoneZero, customers security as the pools in cyber emerging security our team Safe-T important progress

third summary acquisition the third The quarter increase for stated. to XXXX Thank in quarter, you, million, begin $X.X to otherwise in Shachar. for increase of rounded I $X.X compared unless in which for the our third XXXX was summary quarter figures of completed the were results, the XXXX. of simplicity. due are revenues XXXX. quarter is revenues XXXX third which of the consolidation with will time compared results the of totaled for All the stress our XXX% up financial the million to quarter revenues of July third CyberKick's Revenue

the As to by increase $X.XX Enterprise excluding totaled million of the resulting Enterprise Privacy generated due Operating $X.X continued million. to by business. NetNut, Gross million Overall, in acquisition expenses from events to revenues of third a we consideration privacy the representing increase in of gross million well revenues. third decline consideration which equivalent well enterprises profit our the increased mainly profit as level increase which primarily such increased corresponding in were an $X.X The was the that XXXX operating as compared expenses driven compared is forward. third higher in the percentage our period not as XXXX sales the Privacy quarter XXXX first-time as expenses average quarter one-time in of expected XXXX. as $X.X unique in reoccur, was of believe operation. to expected The quarter a of for XXX% than to are number quarter increase due gross profit to going for CyberKick's

cost share international company's balances $X.X or efforts million totaled $X.X into for due to to down quarter, turn or cash $XX cash XXXX loss of the in CyberKick. expected at $X.XX $X.XX over XXXX. Non-IFRS $X.XX were September believe as or in capital as of end plans, of new or Based to per technologies. a internal share $X.X call ADS acquisition financial or or payment QX ADS. XXXX million adequate per upon net reported I'll The of We we in products standard loss cash XXXX. the reduction million ADS loss QX compared and With of fund or totaled the ADS into XXXX level early $XX.X share reporting net have ongoing hand and through Shachar. $X.XX on million, a that our to QX million short-term from primarily and almost of $X.X per same and the compared or a XX, As equivalent the back XXXX net million and million per investment previous investments cash to $X.X operations share

In significant to year, we of growth adding quarter made entrepreneur talented our Shai. quarterly delivering our this note, technologies a price you, the market. significant our to through consecutive implementation vision; and second On including not team. Thank progress during indifferent personal the and are acquiring capital summary, the innovative we shared

believe Safe-T. to not Although the cap companies are has translated cap and like the highs, reaching this do new markets trend broader small we capital micro

full our producing the the will will the in level building margins, indicate results financial continue company coming a its currency growth our high higher As profitability. grow in we company's a significantly with over high and stabilize short-run while we of to is quarter, currently believe investing growth growth revenues are score

to I as Safe-T and of and being through now. participation of to to investor new we governance financials building value Our and the provide our this investors our investors the and awareness also out. greater priority corporate This Alongside invite our Board to decisions our more and at the are it be website. a focus, enables Team with better commitment business business of to part committed new operations as communicate a and our it'll business, improving transparent more made investment you the believe conferences because become our to us. with understanding expanding top launch engaged desire of committed with frequent of corporate investors a better will and contact within check and

on technology, Looking cybersecurity a Established ahead response execution, markets attack plans innovation individuals. incredible for and cyber the privacy organization a roadmap multi-billion-dollar extension into new-term. growing are opportunity to in surging we of and global well-defined have the a

continue to Operator, as growth and a hyper leading are sector the and We for question. would solution, we is positioned our to provider that I capitalize open please of call will privacy go the cybersecurity experiencing. to our With any like on develop ahead. well position

Shaw Please line proceed Family Thank Our Instructions] with questions Office. question. you. Michael with your from come Shaw first the [Operator of

us for Trust on Thanks product? status your can morning. or Zero ZTNA you call. of Shachar, Good taking give update my market an

question, Good thank you. Okay.

to offers reports should are replace solution VPN. So seamless noted is formats, we also of integration over top approach everybody in basically, adopt old In that move come traditional control as for MFA push this acceptance can replacing forms happening imagine, legacy Access via an its is approach our and in to Zero VPN full can however, it markets. users, ZTNA ZTNA the many touching because of so call infrastructure, supporting the are assure happens as it months, step legacy MSA started the of few we I benefit the adopting non-web approaches. security you advantages will to infrastructures. customers aware, the new all us solution. and since our research recently are that our they customers a to multiple market I as all certainly are the easier layering implementing architecture to points happen not of in We and ZTNA security Network by secure Network believe an easier gaining first addressing and to basically Forrester, believe account to you and identity that of faster a quarter customers the it enterprise short, though the this Access and Due process. legacy we challenge the that we challenges. Quadrant Trust and the industry note, published a be with that don't only as like is a Zero early our deployment experts pain while Trust last architecture based is in multifactor is System, Trust more the in facing I protocol on Zero This taking would but last careful end the get internal accelerate but access still immediate access if is of over Knowledge they this Solution and by Gartner, know to films authentication, both technology

much. very you Thank Great.

of next questions. your Our proceed Alliance from Please come Instructions] the Brian with Partners. Global Kinstlinger questions line [Operator with

Great. Thanks.

said In meaningful becomes can terms you talk to think about as before Trust, your early contribution a is for its of How revenue stages as roughly a company? what Zero do you percentage-wise catalyst revenue? you the long it to and

elaborate. it's Okay. the answer previous but Thank way same as the more By you, one, or Good will Brian. the less I question.

the built years. one, we basically, one-and-a-half So the last platform in

to of At We partners the company contribution fully over revenues, to this this are our allow and the give trying world, that to ZTNA believe significant will of of legacy is to together stage quarter new next XXXX, start engaging be to or this see with low. to other revenues that the ZTNA competitors. value all be with customers solution. infrastructure MFA some revenues or organization the a And approach come first to the some – the contribution for internal as connected giants will market users We or we boost is into in allowing the will connect us providing to quarters. our a from benefit

Great.

Okay.

is we this impacting to What's What's So, see bit XXXX XXXX iShield the can more. partners the you you or do solution? the should revenue little talk for using this how direct a early start around pricing go-to-market And about this see strategy then launch? for and discussions the you also.

Okay.

of than in business. direct. stages first go-to-market we different business launched in solution the the only a little the is consumer enterprise So, this a go-to-market weeks bit all first The is ago. The few

contribution Then one our upsides assume is best guys, we We with your GA of of can and production the it that our a other to fact first this stopped; full We consumer but some reviewing strategy to a go-to-market status. our big one consumer globally, the as with year. to first we feedbacks these product. only first to the bike another – and another it an to we our consider is to solution, we quarter advantage that we maybe huge knows consumers. will We bike product around and products, value, have, portfolio, call or over have it looks, huge of started hopefully iShield or and will a quarter to, the to to think take how everyone the push are according as take push digital bulk direct that this portfolio to but revenues in I marketing XXXX, we X,XXX next see I consolidate the of decision and sales We the users. we procedure second the to the that from leads question. mass way,

when stage, is emails, direct, calls, that consumers? How Great. texts And is you above. all this at then that the you phone say do yeah, reach

mainly. advertising Digital

Got Right. it.

Okay. different And do you the in, can maybe about and legacy businesses, which Cooked high-level you will grow as then a NetNut, in breakdown, think CyberKick, fastest Safe-T those then XXXX why at Chi you think?

us and nice the can result believe quarter, I tell to one enterprise. nice them them. yet a that little And tricky a one a honest you the for totally huge because of consumers of level each the I really business, be start can did projection, next quarter think question privacy, tell in we bring year. this see next about of I all it's that talk so we year, that and other we the the with and bit we high push not can a security, a the see but each according value to you, you the we in fourth growth;

can in segments. parallel then data or see a the stage, provide it a all have we and then If then it a and we versa, bit, for we something breaking, And push at breakdown variety in because going others. revenues course, stop that offering it order build very it, the that we like and that it is well, don't see markets variety solution something little that this and opposite. in something trust of of to but I prioritize push a vice confidence we of of fix to Safe-T, of if next enough is kind if of we can hold we can the lot is year, our a of have now we our that So, products

So at – but stage, accurate I this provide don't Brian, have sorry. an to information

Okay.

you Okay. were expenses quantify And you And then quarter in non-recurring total these I may for? have about Can expenses? or expenses missed it. one-time can talk the the what

were for in expenses the acquisition of CyberKick. of quarter Most this the

what won't that state to that income were reoccur? And the total the ran

want Okay. here? to Shai, you answer

Brian. Hi, Yes.

Hi, Shai.

the same these We there believe not these one-time, we were in the at and also repeat acquisitions related are but related IP there costs releasing to acquisition an cost to some are will some the and Obviously, are the numbers expenses dealing we Yes. going fair issue that level PR quarters. repeat itself not level, two that will the with. themselves forward IP in same expenses three

doesn't recurring. how that an really EBIDA We know, your Right, help to like not like actually. cash burn investors, looks as is much

in they are million it IT in Is IT are it issues? complete, issues a it is and $X fixed? So, less, acquisition the is more,

Shai.

[indiscernible]. acquisition the Shachar the costs basically answer Regarding it, are issues IT you

will I summarize. Yes,

quarter, So, with this the we rate. to one-time issues burn are cash having expenses related two

I don't One so have – of term, peak before, this and for behind mentioned another was have and them acquisition. is to acquisition not expense, the one-time mentioned something Shai the them we which If as we related us. had we planned near

second issue. course, the Of the is IT

So, really the behind the us. believe big we is part mass, that

with We two issue. kind that a third-party company are negotiating on settlements had now of the we

it So if will basically, looks of that to reduce will course, it's change, dramatically, we going but something announce. like

Okay. And was share lastly, average count can third you the share quarter? in the what

count. average, Share The what? Sorry.

The common outstanding share ADS. account

Shai. Okay,

quarter, quarter, pretty we number, over had now the throughout steady or same million it's we XX had the the ADSs million. shares XX Yes, steady whole

XX million, three. one

No, XX, XX.

Three zero.

Three zero, exactly.

it. Got

Okay. Thank you.

the of July beginning was it Just quarter shares quarter. are founded now we we in the since then, to over some in [ph] the the and issued Founder, CyberKick’s steady

Thank Okay. you.

welcome. are You

you. Thank

line of questions. Please Alper Our Lee Hammock with Investors. next question from your coming is the with proceed

come really down? the whether give insider some be the stock idea some see to us you Thanks management time. or Can we prices able for might as taking buying

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You are welcome.

Thank you.

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from is proceed line Landmark Our next [ph]. coming of the questions. question Please Matthew Jennings Financial your with with

this fantastic of me Hey say stories the currently see in better quarter growth one guys marketplace. just I let probably and

Thank you very much.

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to thank hope very I Okay. much. you also

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back you. over any at I'd to turn Shachar closing no There Thank to call comments. questions are for this Daniel time. like further the

thanks in and We very on trust joining continue you much. to happy belief we progress, you [indiscernible] to today appreciate our so update everybody, really us and everybody. for forward and for company. Okay, our look your Thank

your teleconference. today's We appreciate conclude does This participation.

the your rest You at lines this may of your time. day. Enjoy disconnect