Alarum Technologies (ALAR) Q4 2024 earnings summary

Executive summary

• Gross margin improved to 77% in 2024 from 74.3% in 2023, driven by IT network enhancements to meet customer demand for stability and speed.

• 2024 revenue reached $31.8M, up 20% year-over-year; net profit $5.8M vs. $5.6M loss in 2023.

• Adjusted EBITDA for 2024 was a record $9.4M, up from $5.2M in 2023.

• Cash and liquid investments at year-end totaled $25M, supporting financial resilience.

• Achieved strategic shift to focus on data collection, positioning for AI-driven market growth.

Financial highlights

• Q4 2024 revenue grew 4% year-over-year to $7.4M; full-year revenue up 20% to $31.8M.

• Web Data Collection revenue rose 45% year-over-year to $30.9M.

• Operating expenses for Q4 2024 rose to $5M from $3.6M in Q4 2023, but annual operating expenses fell to $17.2M from $24.3M.

• Cash flow from operations surged 93% to $8.9M.

• Shareholders' equity doubled to $26.4M as of Dec 31, 2024, from $13.2M a year earlier.

Outlook and guidance

• Q1 2025 revenue is expected to be $7.3M ±3%.

• Q1 2025 adjusted EBITDA is projected between $0.8M and $1.2M.

• Management anticipates lower short-term revenue growth due to industry adjustments but remains focused on long-term value creation.