Its always been an excellent strategy to invest ahead of expected catalysts. Of course, not all companies provide the guidance allowing investors to capitalize on those opportunities. Then, again, some do. Alarum Technologies (NASDAQ: ALAR) (TASE: ALAR) is on that list. In fact, they have provided several publicly disseminated reasons to appreciate the value opportunity in play. And after a 2023 rebranding and a price consolidation around the $2.50 level, ALAR looks ready to break higher.
But it’s not only the technicals driving the bullish proposition. ALAR’s operating performance is also a signal resulting from posting over two years of consecutive quarterly revenue growth, closing accretive revenue-generating acquisitions, and strengthening its balance sheet by matching higher revenues to a significantly lower cash burn.
While those reasons are worthy of investor attention, the biggest reason to consider ALAR at these levels is that management has set its company up for its best year ever in 2023. In other words, ALAR expects to turn ambition into dollars. And, quickly.
Rev-Gen Momentum Into 2023
Investors following ALAR up to and after its rebranding aren’t surprised by the optimistic posture of the company. Those on board have been a part of a transformation within the company that changed the business focus from a traditional enterprise cybersecurity-centered company to an established leading provider of enterprise and consumer internet access solutions. That transition didn’t dilute investors or its time frame to become a much larger company.
Instead, it culminated in the ALAR team executing precisely as intended and fueling its growth engines to crystallize its accrued competitive advantages. The better news is that while ALAR is a market leader, they aren’t slowing its pace to extend competitive distance. In fact, they continue to lengthen it by tapping into a significant market opportunity from understanding that clients need a cybersecurity solutions company that can evolve with next-generation threats, integrate into long sales cycles, and develop proactive cybersecurity solutions that can stay a step ahead of cyber threats and predators.
That’s what they’ve done. During the last two years, ALAR has integrated the assets and technologies acquired since 2019 to target specific rev-gen opportunities while at the same time staying focused on generating revenue streams inherent to tailored privacy market solutions for organizations and consumers. ALAR also signed a cooperation agreement with a cyber-focused business that assumed all the expenses associated with its legacy cybersecurity activities. Those efforts resulted in two formidable business units that are not only growing but they’re also thriving.
Substantial Revenue Growth Reported, Guidance Is Bullish
ALAR proved that in its SEC filings. Specifically, the four quarters of revenue growth in 2022 added to the four posted in 2021, which combined to deliver eight straight quarters of growing revenues. Better still, revenues are on a steep upward trajectory. Based upon a preliminary, unaudited review, Alarum expects to report revenues for the full year ended December 31, 2022, of more than $18.5 million, compared to revenues of $10.3 million reported in the full year ended December 31, 2021, representing growth of approximately 80%.
The bullish guidance didn’t end there. Alarum said the revenue-generating momentum continued in January 2023, estimating that revenues for that period will reach $1.8 million. Even better, that number is expected to post with a decreasing burn rate after streamlining its operations, targeting two primary sector opportunities.
Assets gained through previous enterprise cybersecurity activities are the value drivers for near and long-term growth. That’s an expectation from Alarum being uniquely positioned to assert its product advantages and stand out in a crowded, but often commodity-based, competitive landscape. It’s a case where being different is good; and with client-specific solutions designed to address data access and privacy requirement for enterprises and consumers, Alarum is.
Targeting Lucrative Enterprise And Consumer Markets
Its NetNut Ltd. asset is a leading brand and solutions provider for its Enterprise Internet Access focus. It provides a global web data collection cloud service based on proprietary traffic optimization, routing, and network technology. In 2022, Alarum doubled its network’s infrastructure, enabling it to support and process billions in client requests. The scaleup in capabilities is a result of the onboarding of several strategic customers and the expansion of NetNut’s network by partnering with other Internet Service Providers. Notably, NetNut continues to generate revenue growth quarter after quarter and is cash flow positive.
Alarum’s other focus is to provide privacy and cybersecurity solutions to end users through its Consumer Internet Access segment. These solutions allow users to take charge of their online privacy with a powerful, secured, and encrypted connection seamlessly installed on the consumers’ computers or mobile phones, available conveniently through browsers and mobile application stores. Here’s another value-added feature.
By investing in acquiring new users, the Consumer Internet Access business model allows Alarum to build new revenue-generating assets designed to yield future revenue streams. It’s a unique model that’s attracting strategic investment. Alarum recently highlighted securing funding from an investor that chose to invest directly in its customer acquisition program, also establishing a credit line for working capital from a leading Israeli commercial bank to support this innovative business model.
A Case Justified For A Breakout 2023
Thus, agile and committed to growing responsibly, and on a path toward profitability, Alarum, at current prices, presents a pricing disconnect that may be too good to ignore. In fact, they look better positioned than ever to capitalize on several immediate, near, and long-term revenue-generating initiatives.
Moreover, the company is well-capitalized, expertly managed, and has the assets to turn strategic ambitions into potentially transformative revenues. That’s evident in recent filings. Most notable is that Alarum is growing at near triple-digit percentage levels despite facing some of the most challenging times in global business history. Hence, if they can grow by 80% in turbulent markets, the expectation for substantially better performance is justified.
Factor in the reduction in ALAR’s cash burn rate, together with becoming cash flow positive and maintaining a solid cash position, few can argue against Alarum being ideally positioned for breakout operating performance in 2023. Frankly, those that do may miss a compelling value-based investment proposition.
Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand-dollars cash via wire transfer to produce and syndicate content for Alarum Technologies, Inc. for a period of five weeks through 02/16/23. Please read the full disclaimer at https://primetimeprofiles.com/
As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
