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1. Company Snapshot

1.a. Company Description

Alarum Technologies Ltd.provides cybersecurity and privacy solutions to consumers and enterprises in Israel, the United States, Hong Kong, the Asia Pacific, and internationally.Its cybersecurity solutions comprise iShield, a cybersecurity cloud software that protects users from online threats, including phishing, malware, ransomware and others; AdBlocker, an iOS application for an ad-free internet experience; ZoneZero SDP, a solution based on software defined perimeter and zero trust network access concepts that grant access to applications on a need-to-know basis only; ZoneZero MFA, a solution designed to add centralized multi-factor authentication capabilities for various types of internal applications; and SDE, which is designed to unify various data exchange scenarios of an organization.


The company also provides Proxy solutions consisting of static and dynamic residential proxy network cloud services, data center proxy network cloud services, and data collection API cloud services; Proxy-in-a-Box, an on-premise solution of private proxy access network for customers who wish to deploy and maintain their own proxy network; and Premium dedicated static residential proxies, a solution that creates a dedicated static IP for each user.It offers its products through resellers, distributors, and internet service providers.The company serves finance, healthcare, and retail sectors; and government agencies, commercial and online companies, and educational institutions.


The company was formerly known as Safe-T Group Ltd.and changed its name to Alarum Technologies Ltd.in January 2023.


Alarum Technologies Ltd.was founded in 2013 and is headquartered in Tel Aviv-Yafo, Israel.

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1.b. Last Insights on ALAR

Investors in Alarum Technologies Ltd. (NASDAQ: ALAR) are facing potential losses due to a series of securities fraud investigations. Multiple law firms, including Glancy Prongay & Murray LLP and Levi & Korsinsky, have announced investigations into the company's possible violations of federal securities laws. The investigations were sparked by Alarum's second quarter earnings release on August 26, 2024, and a subsequent class-action lawsuit was filed on February 23, 2025. These developments suggest that Alarum's financial reporting and business practices may be under scrutiny, potentially impacting investor confidence.

1.c. Company Highlights

2. Robust Revenue Growth Outpaces Estimates

The company reported a significant beat on EPS, with actual EPS coming in at $0.19 compared to estimates of $0.04. Revenue growth was also robust, driven by a significant demand for one of its products, specifically a combination of a scraper and data set. The customer in question is consuming a significant portion of revenues due to the high volume of data required. Analysts had estimated revenue growth of 30.1% for the next year, indicating a strong outlook for the company's future performance.

Publication Date: Nov -29

📋 Highlights
  • High Revenue Contribution from Scraper-Data Product:: A single customer accounts for a significant portion of revenues due to high-volume data demands.
  • Customer Segmentation by Usage Stage:: Two groups identified: 1) stable production-stage users and 2) volatile R&D-stage users with shifting needs, impacting predictability.
  • Predictable Long-Term Demand Potential:: R&D customers may transition to stable usage post-model development, though exact volume changes remain uncertain.
  • Gross Margin Recovery Projected:: Margins temporarily pressured by third-party vendors (simulated internal margin at 70%) but expected to improve as internal solutions scale.

Gross Margin Pressures Ease

The company's gross margin came under temporary pressure due to its reliance on third-party vendors for dataset delivery. However, as revenue scales and the company relies less on partners, gross margin is expected to recover. The management noted that if they simulated a scenario where they didn't use third-party vendors, their gross margin would be around 70%. The company is leveraging its approach and relationships with customers to mitigate risks and expenses while controlling costs.

Pricing and Unit Economics Improve

The company's pricing is currently lower, but it is developing its own internal solutions, which will reduce its reliance on third-party vendors. Management expects to see an improvement in unit economics in the fourth quarter, and potentially a material improvement in the next quarter if demand continues. As the market evolves, small players are likely to drop out due to infrastructure requirements, leaving only the leaders, which could lead to higher unit prices.

Valuation Metrics

With a P/E Ratio of 10.98 and an EV/EBITDA of 19.22, the company's valuation appears reasonable considering its growth prospects. The ROE of 19.94% indicates a strong return on equity, while the ROIC of 5.24% suggests that the company is generating returns on its invested capital. These metrics suggest that the company's stock is fairly valued, with the market pricing in a significant portion of its growth potential.

3. NewsRoom

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Alarum Technologies Ltd. (ALAR) Q3 2025 Earnings Call Transcript

Nov -26

Source: seekingalpha.com

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Alarum Technologies Reports Record Third Quarter Revenue Growth of 81% to $13 Million Driven by Surging Demand from Leading AI Model Developers

Nov -26

Source: globenewswire.com

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Alarum Technologies: Well Positioned To Benefit From AI/ML Revolution

Sep -17

Source: seekingalpha.com

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Alarum Technologies Ltd. (ALAR) Q2 2025 Earnings Conference Call Transcript

Aug -28

Source: seekingalpha.com

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Alarum Technologies Announces Second Quarter 2025 Results

Aug -28

Source: globenewswire.com

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Alarum to Participate at the Canaccord Genuity 45th Annual Growth Conference on August 13, 2025

Aug -07

Source: globenewswire.com

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Alarum Technologies Updates Second Quarter 2025 Revenue and Adjusted EBITDA Outlook

Jun -09

Source: globenewswire.com

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Alarum Technologies Ltd. (ALAR) Q1 2025 Earnings Call Transcript

May -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.71%)

6. Segments

Enterprise Internet Access

Expected Growth: 10.27%

Alarum Technologies Ltd.'s Enterprise Internet Access growth of 10.27% is driven by increasing demand for secure and reliable connectivity, adoption of cloud-based services, and rising need for digital transformation among enterprises. Additionally, the growing importance of IoT, AI, and big data analytics is fueling the demand for high-speed internet access, contributing to the segment's growth.

Consumer Internet Access

Expected Growth: 7.4%

The 7.4% growth in Consumer Internet Access from Alarum Technologies Ltd. is driven by increasing demand for high-speed internet, proliferation of smart devices, and rising adoption of online services. Additionally, government initiatives to expand broadband infrastructure and improve digital literacy also contribute to this growth.

7. Detailed Products

Cybersecurity Solutions

Comprehensive cybersecurity solutions to protect against advanced threats and vulnerabilities

Cloud Services

Scalable and secure cloud infrastructure solutions for businesses of all sizes

Data Analytics

Advanced data analytics solutions to extract insights and drive business decisions

IT Consulting

Expert IT consulting services to optimize business operations and improve efficiency

Network Infrastructure

Designing and implementing robust network infrastructure solutions for businesses

Managed Services

Proactive managed services to monitor, maintain, and support business IT systems

8. Alarum Technologies Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Alarum Technologies Ltd. is medium due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Alarum Technologies Ltd. is high due to the presence of a large number of customers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Alarum Technologies Ltd. is low due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Alarum Technologies Ltd. is medium due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Alarum Technologies Ltd. is high due to the presence of a large number of competitors and the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.98%
Debt Cost 4.53%
Equity Weight 90.02%
Equity Cost 4.53%
WACC 4.53%
Leverage 11.09%

11. Quality Control: Alarum Technologies Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
F-Secure

A-Score: 4.8/10

Value: 5.5

Growth: 4.2

Quality: 8.1

Yield: 3.1

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
secunet

A-Score: 4.6/10

Value: 1.5

Growth: 6.6

Quality: 6.5

Yield: 1.9

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Alarum Technologies

A-Score: 4.0/10

Value: 3.8

Growth: 5.2

Quality: 8.0

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Lesaka Technologies

A-Score: 3.4/10

Value: 8.8

Growth: 3.7

Quality: 3.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Cognyte Software

A-Score: 3.4/10

Value: 3.6

Growth: 4.7

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
HUB Cyber Security

A-Score: 3.3/10

Value: 9.8

Growth: 0.9

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.16$

Current Price

8.16$

Potential

-0.00%

Expected Cash-Flows