Q1 2025 highlighted the growing traction of the company’s data collection solutions with leading AI and eCommerce players worldwide

Company strategically accelerated investments in scalable infrastructure and next-gen technologies to meet the rising demand for AI-ready data and to future-proof its position among top-tier global companies

First quarter 2025 revenue reached $7.1 million, in line with guidance, net profit was at $0.4 million and adjusted EBITDA exceeded guidance, reaching $1.3 million Cash and debt investments balance at quarter-end amounted to $24 million

TEL AVIV, Israel, May 29, 2025 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of web data collection solutions, today announced financial results for the three-month period ended March 31, 2025.

“2025 began with strong momentum, as demand for scalable, high-quality data continues to accelerate, driven by the rapid growth of AI technologies and eCommerce platforms,” said Shachar Daniel, Chief Executive Officer of Alarum.

“During the quarter, several of the world’s leading AI and eCommerce companies significantly expanded their usage of our platform, relying on our advanced proxy infrastructure, innovative data collector, and Website Unblocker, to power data collection, model training, and real-time access to public web data.”

“In line with our long-term vision, we made a deliberate decision to increase investments in our infrastructure and products, aiming to meet the growing global demand for large-scale data solutions. While this impacted our gross margin, it reinforces our position as a foundational player in the AI data ecosystem,” Mr. Daniel added.

“With discipline and vision, we are building the backbone of data access for the AI era. Our technology and collaborations with customers uniquely position us to deliver long-term value for our stakeholders as the market continues to evolve,” Mr. Daniel concluded.

______________________

		7.1		8.4		31.8
		7.0		8.1		30.9
Gross profit		4.8		6.6		23.9
Gross margin (in percentage)		67.5%		78.5%		75.1%
Total operating expenses		4.5		4.0		17.2
Financial income (expense), net		0.2		(0.9)		0.3
Tax expense		0.1		0.3		1.2
Net profit		0.4		1.4		5.8
		1.3		3.2		9.4
Basic earnings per American Depository Share (“ADS”) (in U.S. dollars)		$0.06		$0.23		$0.87
Non-IFRS basic earnings per ADS (in U.S. dollars)		$0.16		$0.45		$1.26
Cash, cash equivalents and debt investments (including accrued interest)3		24.0		15.1		25.0
Shareholders’ equity2		27.6		17.1		26.4

______________________

¹ See definition under “Other Metrics”.
² The table below contains certain non-IFRS financial measures. See “Use of Non-IFRS Financial Results” for additional information regarding these measures and reconciliations to the most comparable IFRS measures.
³ As of the last day of the period.

“First quarter revenues were in line with guidance, whilst Adjusted EBITDA exceeded expectations, surpassing our outlook,” said Mr. Shai Avnit, Chief Financial Officer of Alarum.

“Alarum has entered the second quarter of 2025 with solid momentum and demand. Accordingly, second quarter 2025 revenues are estimated at $7.9 million ±3%, and Adjusted EBITDA for the second quarter 2025 is expected to range from $0.5 million to $0.8 million. We remain attentive to market dynamics as the AI market reshapes and are actively optimizing our network infrastructure and product delivery, with a clear roadmap to drive efficiency, maintain high margins, and deliver long-term value to our stakeholders,” Mr. Avnit concluded.

We are unable to present a reconciliation of our estimated Adjusted EBITDA to net profit as we are unable to predict with reasonable certainty, and without unreasonable effort, the impact and timing of certain expenses on our net profit. The financial impact of these expenses is uncertain and is dependent on various factors, including timing, and could be material to our consolidated statements of profit or loss and other comprehensive income (loss).

Mr. Shachar Daniel, Chief Executive Officer of Alarum, and Mr. Shai Avnit, Chief Financial Officer of Alarum, will host a conference call today, May 29, 2025, at 8:30 a.m. ET, 5:30 a.m. Pacific time, 3:30 p.m. Israel, to discuss the first quarter of 2025 results and the second quarter 2025 outlook, followed by a Q&A session.

To attend, log in here or dial one of the following numbers, at least five minutes before the call starts: 1-877-407-0789 or 1-201-689-8562. If you are unable to connect using the toll-free number, please try the international dial-in number. An Israeli toll-free number is: 1 809 406 247. Participants will be required to state their name and company upon dialling in. 

Replay: The conference call will be broadcast live and available for replay here, after 11:30 a.m. ET on May 29, 2025.

Cash and cash equivalents			13,952			15,060			15,081
Trade receivables, net			3,789			2,945			3,231
Other receivables			698			1,449			503
Long-term deposits			119			104			121
Other non-current assets			85			119			85
Property and equipment, net			134			110			130
Right-of-use assets			429			709			498
Deferred tax assets			497			244			422
Debt investments at fair value through other comprehensive income			9,331			-			9,256
Debt investments at fair value through profit or loss			564			-			555
Intangible assets, net			677			1,225			811
Goodwill			4,118			4,118			4,118
Trade payables			373			416			251
Other payables			2,815			3,056			4,484
Current maturities of long-term loan			965			353			938
Contract liabilities			2,072			2,728			1,987
Derivative financial instruments			1			952			148
Short-term lease liabilities			362			365			359
Long-term lease liabilities			186			462			261
Long-term loans, net of current maturities			-			691			32
Ordinary shares			-			-			-
Share premium			112,059			104,097			111,892
Other equity reserves			11,705			13,856			11,012
Accumulated deficit			(96,145	)		(100,893	)		(96,553	)

Revenue	7,133			8,376			31,824
Cost of revenue	2,318			1,803			7,915
	4,815			6,573			23,909
Research and development	1,370			1,022			4,495
Sales and marketing	1,827			1,725			7,033
General and administrative	1,285			1,240			5,661
	4,482			3,987			17,189
	333			2,586			6,720
Financial income (expense), net	212			(848)			281
	545			1,738			7,001
Tax expense	(137)			(298)			(1,221)
Change in fair value of debt investments	72			-			(80)
Basic profit per share	$0.01			$0.02			$0.09
Diluted profit per share	$0.01			$0.02			$0.08
Basic profit per ADS	$0.06			$0.23			$0.87

In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, this press release contains non-IFRS financial measures of EBITDA (EBITDA loss), Adjusted EBITDA (Adjusted EBITDA loss), non-IFRS net profit (loss), non-IFRS gross profit, non-IFRS gross margin and non-IFRS basic earnings (loss) per share or ADS for the periods presented. The Company defines EBITDA (EBITDA loss) as net profit (loss) before depreciation, amortization and impairment of intangible assets (if any), financial income (expense) and income tax; defines Adjusted EBITDA (Adjusted EBITDA loss) as EBITDA (EBITDA loss) as further adjusted to remove the impact of (i) impairment of goodwill (if any); and (ii) share-based compensation; defines non-IFRS net profit (loss) as net profit (loss) before depreciation, amortization and impairment of intangible assets (if any), impairment of goodwill (if any), financial income (expense) effects primarily related to derivative financial instruments as well as long-term loans, deferred tax effects and share-based compensation; defines non-IFRS gross profit as gross profit adjusted to remove the impact of depreciation, amortization and impairment of intangible assets and share-based compensation recorded under cost of revenues; defines non-IFRS gross margin as the percentage of the non-IFRS gross profit out of revenues; and defines non-IFRS basic earnings (loss) per share or ADS as non-IFRS net profit (loss) divided by the weighted average number of ordinary shares or ADSs. The Company’s management believes the non-IFRS financial information provided in this press release is useful to investors’ understanding and assessment of the Company’s ongoing operations. Management also uses both IFRS and non-IFRS information in evaluating and operating its business internally, and as such deemed it important to provide this information to investors. The non-IFRS financial measures disclosed by the Company should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with IFRS, and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the reconciliations of these non-IFRS measures to their most directly comparable IFRS financial measures provided in the financial statement tables herein.

Net retention rate (NRR) is a key indicator of customer base health and revenue expansion. It is based on NRR point in time, which measures the revenue growth of current customers over the past four quarters, compared to the revenue generated from these customers during the same period a year earlier.
NRR is calculated as an average of the NRR points in time for the end of the current period and the three preceding quarters.
NRR > 1 (or 100%): Indicates revenue growth driven by existing customers, where upsells and cross-sells outweigh churn.
NRR < 1 (or 100%): Shows revenue loss due to churn exceeding gains from upsells or cross-sells.

The following tables present the reconciled effect of the above on the Company’s Adjusted EBITDA; non-IFRS net profit; and non-IFRS gross profit for the three months ended March 31, 2025 and 2024, and the year ended December 31, 2024:

Adjustments:
Depreciation and amortization		0.2		0.2		0.6
Financial expense (income), net		(0.2)		0.9		(0.4)
Tax expense		0.1		0.3		1.4
EBITDA		0.5		2.8		7.4
Adjustments:
Share-based compensation		0.8		0.4		2.0

		Three Months Ended March 31,				For the Year Ended December 31,
		2025		2024		2024
Net profit		0.4		1.4		5.8
Adjustments:
Depreciation and amortization		0.2		0.2		0.6
Financial expense (income), net effects		(0.2)		0.9		0.1
Deferred tax effects		(0.1)		(0.1)		(0.1)
Share-based compensation		0.8		0.4		2.0
Non-IFRS net profit for the period		1.1		2.8		8.4

			For the Three Months Ended March 31,					For the Year Ended December 31,
			2025		2024			2024
Gross profit			4.8		6.6			23.9
Adjustments:
Depreciation and amortization			0.1		0.1			0.6
Share-based compensation			*		*			*
Non-IFRS gross profit for the period			4.9		6.7			24.5

* Less than $0.1 million

About Alarum Technologies Ltd.

Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is a global provider of web data collection solutions, empowering organizations to gain a competitive edge by streamlining the collection, extraction, and analysis of large-scale structured data from public online sources. Our data collection solutions by NetNut, are based on our world’s fastest and most advanced and secured hybrid proxy network, which comprises both exit points based on our proprietary reflection technology and hundreds of servers located at our ISP partners around the world. Pushing the boundaries of innovation in data collection, we are building a robust platform, complemented by the Website Unblocker, Data Collector, Data Sets and AI data collector. As the impact of the AI revolution unfolds, Alarum, with its robust market-leading data collection offerings is preparing itself to play a meaningful role as the world reshapes in a new form.

For more information about Alarum and its web data collection solutions, please visit www.alarum.io.

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