Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| I believe in Allot Secure, we have a very effective and highly differentiated product |
| The operators that are providing the service are happy with it, and I think that's great |
| We have a strong customer base |
| And that -- and I think that's very positive, and that's what we're building our 2024 forecast on |
| We remain excited about our SECaaS opportunities as operators continue to be interested in launching network-based security service, and we have a differentiated, scalable solution for CSPs |
| And like I said I think we have -- we see that a stronger pipeline of large deals actually both for governments and for emerging market opportunities |
| And they're seeing good returns |
| On the Allot Secure front, while spending by CSPs remains challenging and deployments are taking longer than we previously expected, our SECaaS revenues continue to grow double digits with a strong customer base |
| I believe we have a very strong product |
| This business remains our growth driver into the future, and we believe we are well positioned with existing customers and potential new customers |
| But when they have decided to do so, it historically has resulted in market share gains for Allot |
| Verizon, Vodafone, Jio, Telefonica, Hutchison, PPF Group, Far EasTon, our strong customer base is a testimony to the quality of our solution |
| We have significantly reduced our cost base in order to make -- to enable ourselves, I would say, the stamina and the ability to continue to grow the SECaaS business while waiting for the whole market at large to embrace the concept of network-native security and start launching it in much, much larger numbers that we see today |
| Overall, it's -- I think it's going very well in my mind |
| The clearest evidence of our leadership is a significant list of marquee customers who have launched network-native security services for their customers |
| And from everybody that we talk to in Verizon, it's considered a very successful launch and a very successful service |
| They're seeing good penetration |
| We expect our SECaaS revenue to continue to grow sequentially quarter-over-quarter throughout 2024 |
| We have scalable proven products |
| While the relevant network-native security market for CSPs is developing slower than we had originally hoped and expected, we are experiencing strong double-digit growth |
| One exciting new launch in 2023 was, of course, Verizon business, which has successfully launched its network-native security service, incorporating Allot Network Secure |
| But I would say that it's performing according to plan and perhaps even slightly better than planned |
| We have made significant changes in the company as we look to drive improved results going forward |
| Nehal Chokshi And so how does the overall DPI pipeline look like today relative to 10 to 12 months ago? Erez Antebi I think it looks significantly stronger |
| Erez Antebi Well, I think that was I'd say that almost all -- I'm saying almost all, just because I don't want to -- maybe there's one or two that I missed in my mind when I go through the list, everybody who's launched this is very happy with the service |
| It is time for us to execute and reallocate resources to the best ROI opportunities to drive sustainable profitable growth |
| So we see they're both much more significant growth in the terms of operator customer base |
| We are winning many of the new greenfield opportunities we see i.e |
| To ensure staying power, we reduced our expenses to reduce cash burn while waiting for the market to catch up |
| And while we do not expect significant sales in 2024 due to the long sales cycle, we feel it can help make a difference for us in the years ahead |
| Statement |
|---|
| Our fourth quarter revenues were $24.3 million, 26% lower than the comparable quarter last year |
| As a result of these issues, our negative net cash flow was $31.5 million |
| In addition, our core DPI business is experiencing macro-related headwinds |
| Our total revenues for the full year 2023 were $93.1 million, 24% lower than our revenues in 2022 |
| Budget tightening by both governments and CSPs led to lower 2023 smart bookings and revenues than we expected at the beginning of the year |
| These cancellations were the main reason for our 2023 SECaaS revenues but whereas 2023 SECaaS revenues ended up lower than we had expected at the beginning of the year |
| Our CSP and enterprise businesses remain soft |
| The transition of the business into SECaaS recurring revenue model has proven to be slower than we originally anticipated |
| We have had significant challenges with collection in several large deals |
| 2023 was extremely disappointing for us all |
| Will be lower than $19 million |
| Ziv Leitman Could be lower than $19 million |
| I expect our FTE to be around 510 by the end of Q1, about 35% lower than when it peaked in September 2022 |
| I do see a larger pipeline of large deals that I definitely see, but I would be cautious and wait on commenting whether these deals will start closing faster than they have during this year or something like that |
| During 2023, two large operators we expected would launch services, one in North America and one in Europe, decided to cancel their launches for now due to their own internal issues |
| In developing countries, where bandwidth is still a lot more expensive and ARPUs are much lower |
| Our backlog, our backlog as of December 31st, 2023, was $58.8 million, down from $87.7 million at the end of 2022 |
| Actual events or results may differ materially from those projected, including as a result of changing market trends, delays in the launch of services by our customers, reduced demands and the competitive nature of the security services industry as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission |
| After reassessing our ability to collect on several deals we had signed in previous years, we took a significant reserve for credit loss |
| I was just wondering if you could comment a bit further on that increased pipeline that you're seeing in the DPI business or the Smart business? And specifically, are you seeing any improvement in close rates or actual large deal closures? I know the pipeline progress is encouraging, but there were definitely issues over the past couple of years with deal slippage |
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