Alarum Technologies (ALAR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $7.2 million, with NetNut contributing $7 million, surpassing full-year 2023 revenues in the first three quarters of 2024.

• Adjusted EBITDA for Q3 2024 was $1.4 million, exceeding guidance, and cash and cash equivalents rose to $24 million.

• Net profit for Q3 2024 was $4.2 million, a record high, mainly due to non-cash finance income from warrant revaluation.

• Strategic focus on expanding the IP proxy network (IPPN), entering the data collection and labeling market, and scaling down consumer internet access operations.

• Continued investment in network infrastructure and product innovation to support scalable, profitable growth.

Financial highlights

• Q3 2024 revenues increased 6.6%–7% year-over-year to $7.2 million, with NetNut contributing $7 million.

• NetNut revenues grew 13.7% year-over-year in Q3 and 63% year-over-year for the first nine months of 2024.

• Non-IFRS gross margin was 73.6% in Q3 2024, down from 79.4% in Q3 2023; IFRS gross margin was 71.8%.

• Cash flow from operating activities for the first nine months of 2024 rose to $8.1 million from $1.4 million year-over-year.

• Q3 2024 marked the fifth consecutive quarter of positive operating cash flow; cash balance increased to $24 million from $10.9 million at year-end 2023.

Outlook and guidance

• Q4 2024 revenue is projected at $7.5 million, plus or minus 3%, with Adjusted EBITDA expected between $1.3 million and $1.7 million.

• Strong customer retention rates anticipated across most verticals in Q4.

• Strong cash position supports investment in growth opportunities and long-term success.