Alarum Technologies Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Alarm Technology's third quarter 2025 earnings results conference call. During today's presentation, all parties will be in a listen-only mode. Following management's presentation, the conference will be open to questions. If you have a question, please press star followed by the number one on your touchtone phone. If you would like to withdraw your question, please press star followed by the number two. If you're using speaker equipment, please lift the handset before making your selections. This conference is being recorded. I will now turn the call over to Kenny Green, Investor Relations at Alarm. Kenny, please go ahead.

Thank you. Good day to all of you and welcome to Alarm's conference call to discuss results of the third quarter of 2025. I would like to thank management for hosting this call. Today, we are joined by Shaha Daniel, Alarm's CEO and Shaiabni CFO. Shahar will begin the call with an overview of the third quarter, followed by Shai, who will review key elements of the financials. Finally, we will open the call to our question and answer session. Before we get started, I want to highlight the forward-looking statements disclaimer. This conference call may contain, in addition to historical information, forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Investigation Reform Act of 1995 and other federal security laws. Forward-looking statements include statements about plans, objectives, goals, strategies, future events of performance, and underlying assumptions and other statements that are different than historical facts. For example, when we discuss our strategy of prioritizing long-term relationships and market share capture over short-term margins and profitability, expected trends in market demand and AI-driven growth, our business momentum and pipeline, our expectations regarding future revenue patterns and margin improvements, The anticipated impact of our strategic investments and product mix and our estimates regarding fourth quarter 2025 revenues and adjusted EBITDA, we are using forward-looking statements. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that may result in expectations not being realized and may cause actual outcomes of different material from expectations reflected in these forward-looking statements. Potential risks and uncertainties include those discussed under the heading Risk Factors and Alarms Annual Report and Form 20F filed with the SEC on March 20, 2025, and in any subsequent filings with the SEC. All such forward-looking statements, whether written or oral, made on behalf of the company are especially qualified by these cautionary statements. As such, forward-looking statements are subject to risks and uncertainties, and we caution you not to place undue reliance on these. On the call, the company will also present non-IFRS key business metrics, The non-IFRS key business metrics the company uses are EBITDA and adjusted EBITDA, non-IFRS gross margin, non-IFRS net profit or loss, and non-IFRS basic earnings or loss per share or ADS. The exact definitions and reconciliations of these non-IFRS key business metrics are described in the company's financial results practice, which is available in the investor lobbies of Alarm's website. These measures may differ materially from similarly titled measures used by other companies and should not be considered in isolation from or as a substitute for financial information prepared in accordance with IFRS. And now, I'd like to turn the call over to Mr. Shachar Daniel, Alarmist CEO. Alarm, Shachar, please, go ahead.

Thank you, Kenny, and good morning, everyone. Thank you for joining us. Let me start with the headline. Q3 was a breakout quarter, $13 million in revenues, up 81% year-over-year and 48% sequentially. This is one of the strongest quarters ever in allowance history and clear evidence that our platform has become critical infrastructure for some of the world's leading and most exciting AI labs and global technology companies. This significant jump was driven by increased consumption from major AI customers, continued expansion, within existing enterprise accounts, and strong adoption of our newer AI-centric products. During the quarter we saw 26% more paying customers, 17% higher average revenue per customer, and 48% sequential revenue growth. While our largest customers contributed just over a quarter of our revenues, and our top two contributors, just over 40% growth, was growth-based. We also continue to see significant traction for major global e-commerce platforms in Asia, which face repeat and expanding orders. Despite the natural volatility of this yearly hyper-growth phase of the AI market, we are confident that demand is broadening and growing sharply, and AI will be a core long-term and significant growth engine for us. Profitability. As we noted last quarter, our gross margin will see a short-term impact by the mix of our two very large customers, both globally recognized brands operating at extraordinary scale. Their significant consumption at the start of significant work with them naturally comes with lower unit pricing and, for us, higher initial infrastructure costs. Part of our delivery for these customers only at the early and initial stages of delivery relies on third-party partners, and those calls flew directly into cost of revenue. That said, these customers validate the strength of our technology, reinforce our ability to deliver data at a massive scale, and represent significant long-term strategic upsides. Earlier this year, given the strong potential we saw, we made the deliberate decision to aggressively expand capacity, add premium residential infrastructure, and build dedicated high-throughput pipeline ahead of revenue. And these fund-loaded investments are the primary reason for the temporary pressure on margins. And importantly, I strongly believe that this is exactly the right long-term strategy. While remaining profitable overall, we are certifying some near-term profitability to strongly capture market share and secure multi-year relationship in a segment growing several hundred percent year over year. Looking ahead, margin improvement. This margin pressure is short-term planned and fully addressable. Several initiatives are already underway and are part of our strategy. One, in-house solutions. Our goal is to serve as the customer's leading and most reliable provider. To achieve this, we leverage our deep market expertise and long-standing relationship with numerous vendors. And sometimes when needed, we select a partner to collaborate with. And once we validate continued demand for the specific product, we will either develop it in-house alternative or consider acquiring the solution. This approach will allow us to enhance our capabilities at lower risk and ensuring demand while significantly improving our gross margins over time. Two, network optimization. We're identifying large optimization opportunities across our servers and network architecture. Improved efficiencies have already begun and will continue to improve over time. Three, shift toward higher value products. As data sets, scrapers, and websites and brokers grow as a percentage of the revenue, unit economics and margins will improve also. We remain confident in our ability to expand both growth and operating margins as our product mix continues to shift and our infrastructure becomes more efficient. AI market dynamics. We are operating at the frontier of the largest AI model training runs on the planet. At this stage of the AI build-out, demand from leading labs can move sharply quarter to quarter as they, one, refresh massive data sets, two, test new architectures, or shift compute priorities. This volatility is normal in a market that is still in a land-grab phase. As models move from research to more structured production, and fine-tuning cycles, revenue patterns will naturally become smoother and more predictable. Until then, our major KPIs are year-over-year trends, penetration, and quality of relationships. Across all these three, we have never been stronger. Product suite extension. Our AI-training product suite is scaling rapidly. Dataset, a material and fast-growing revenue contributor. Website Unblocker delivers triple-digit sequential growth. Custom Scrapers delivers high double-digit sequential growth. IP Proxy Network is stable to growing in absolute terms and continues to support massive AI workloads. Our revenue mix is evolving from a single-product proxy business into a diversified multi-product data infrastructure platform. This shift is expected to drive stronger long-term margins and healthier unit economics. Outlook and summary. We remain confident that we are in the right position at the early stages of a massive and long-lasting transformation in the data industry. Looking ahead to Q4, and as Shai will detail shortly, We expect revenues approximately of $12 million, plus minus 7%, which is up a very significant 62% year-over-year and will allow us to end the year at around $41 million in revenues, up almost 30% year-over-year and well ahead of our internal expectations earlier in 2025. From global tech leaders to fast-growing startups, All are increasing their reliance on high-quality, real-time public web data at unprecedented scale, and Alarm is uniquely positioned to serve this market. Our vision was and remains clear. Alarm will become one of the foundational data infrastructure companies powering the AI area. I will now hand it over to Shai for the financial details and our Q4 outlook.