Allot Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Alot's fourth quarter 2024 results conference call. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Alot's investor relations team at EK Global Investor Relations. 1-212-378-040 or view it in the news section of the company's website at www.allote.com. I would now like to hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin, please?

I'd like to welcome all of you to Allot's fourth quarter and full year 2024 results conference call. I would like to thank Allot's management for hosting this conference call. With me today on the call are Mr. Eyal Harari, CEO, and Ms. Liat Nahum, CFO. Following Eyal's prepared remarks, we will open the call for the question and answer session, and both Eyal and Liat will be available to answer those questions. You can all find the highlights of the quarter, including financial highlights and metrics, including those we typically discuss on the conference call, in today's earnings release. Before we start, I'd like to point out the following safe harbour statements. This conference call may contain... date that information. 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 a lot of customers, reduced demand, and the competitive nature of the securities services industry, as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission. Also, the financial results in this call will be presented mainly on a non performance in the quarter. For all the data, please refer to the financial tables published in the results press release issued earlier today, which also include the gaps of non-gap financial reconciliation tables. And with that, I would now like to hand the call over to Eyal Harari, CEO. Eyal, please go ahead.

Thank you, Kenny. I would like to welcome all of you to our results conference call, and thank you for joining us today. We are very pleased to report strong fourth quarter and full year 2024 results, demonstrating that a lot is at a key inflection point in its turnaround. Our fourth quarter revenues increased both year over year and sequentially, representing a return to revenue growth. For the full year of 2024, we reported revenues at a similar level to those of last year. A strong contributor to revenues was our growth engine, the security as a service solution, CCAS, consistently growing sequentially and year-over-year. For the full year, CCAS contributed revenues of $16.5 million, up 56% over the previous year, and the ARR day rent was $18.2 million, up 43% year-over-year. We brought the gross margins back to the allot's long-term range of around 70%, a significant recovery from around 57% in 2023. Our results show the return to profitability with a non-GAAP net income of $5.6 million for the year versus a loss of $53 million last year. Importantly, we reported positive cash flow generation for the first time in several years generating 4.8 million in 2024. As a result, our year-end cash position increased to 59 million, a positive trend that we expect to continue going forward. I would very much like to thank the fantastic team at Allot for their hard work through the past year supporting and bringing about this successful turnaround. I admire their determination and dedication which was key in achieving the strong results of 2024. I am incredibly proud of what we have accomplished together and I look forward to building on this momentum in the years ahead. Our security first strategy and renewed go-to-market focus are gaining strong traction and momentum. A recent highlight was securing significant new contracts, which included major telecom operators in key markets. I am especially excited with our recent win with Verizon, which I will elaborate on in a few minutes. Allot continues to gain strong traction among telcos and CSPs, as we work closely with them to market our cybersecurity solution and help their end customers adopt our solutions. The continued success of CCAS demonstrates that consumers and small businesses appreciate the importance of being seamlessly and fully protected by their service provider. As we move through 2025 and continue to successfully advance our security first strategy, a lot is well positioned and very much at an inflection point of a new long-term trend of growth and profitability. Today, our smart product line is sold as part of our unified security-first business structure. It is a solid product built on Allot's excellent technology and years of innovation, and it continues to provide significant revenue to Allot. Looking ahead, we expect a stable level of revenue from our smart product line during the coming year. While this product line's long-term visibility is less predictable than our SICAS product line, we have a solid pipeline in 2025, and we believe there is a potential for upside. Now, moving over to our growth engine, our SICAS offering. Our SICAS revenue continues to grow, contributing an increasing share of our business as each quarter passes. Looking ahead to 2025, we expect another year of strong double-digit CCAS revenue and ARR growth and improved profitability. Growth will be driven largely by our extensive and growing list of top-tier customers launching our solution, as well as the increased traction of our security solution among the subscriber bases of those customers. We have a strong pipeline of opportunities that we are working on, some of which we hope to convert to new contracts in the coming quarters. To demonstrate our growing momentum and strong traction, I want to highlight a few examples of recent service provider launches in our SICAS business. We were very happy to announce the sign support them with cybersecurity solutions for their mobile phone business customers. We are proud to partner with Verizon, one of the largest and most prestigious wireless providers in the United States and the world. Since late 2022, we have partnered with Verizon to provide our network-based cybersecurity protection to Verizon Business Fixed Wireless Access customers giving 1.5 million subscribers the option to use our service. This service has experienced strong adoption over the past year and continues to grow among the Verizon Business customer base. This new agreement makes our solution potentially available to the extended Verizon Business mobile customer base. As of 2024, year-end, Verizon Business reported over 30 million subscribers, representing significant targeted addressable market and long-term growth opportunity for a lot. Our network-secure product will support Verizon Business, expand security capabilities, offering the customers zero-touch protection from a wide range of cyber threats. We have built a solid, strong working relationship with Verizon Business and we hope to extend our collaboration with them further over the coming years. In November, we announced a new contract with Vodafone UK and our relationship with them continues to grow. Together, we launched a protection service to fix broadband customers. Complementing the cybersecurity protection they already provide their mobile customers, all builds on a lot of services. Our solution enhances threat protection across both Vodafone UK mobile and broadband networks and across all customer devices on the home network. In only a few months since launch, our solution has gained strong traction and notably increased customer satisfaction at Vodafone UK. Last month, O2 Czech Republic, part of PPF Group, launched a cybersecurity solution for both mobile and fixed broadband customers, powered by AllotDNS Secure. O2 is now the fifth operator of PPF Group to deploy our security solution, further strengthening our footprint within the group. Last quarter, I discussed Allot's new organizational structure and strategy for new growth. I will recap our strategy, especially for our new investors. Allot is becoming a security-first company, operating under one unified business unit. Our foundation is deep expertise and proven capabilities, combining two key areas, cybersecurity and network intelligence. We have been working hard to leverage synergies between our existing network intelligence assets and our security offerings, including integrated cloud-based solution focused on network visibility, traffic management, and cybersecurity for the 5G era. The combination creates a compelling value proposition, enabling us to deliver a highly differentiated, fully integrated solution, one that only a handful of companies worldwide can match. For example, we see strong value in offering CS network intelligence customers a combined offering that enhances their ability to protect networks while maintaining deep visibility into traffic. Stagger threats are constantly expanding and finding new ways to take advantage of the consumer. We are looking to stay ahead of those threats by broadening our security offering to offer a 360 degree cybersecurity protection both on and off net. Today, Telco customers can seamlessly provide cybersecurity to end users while connected to their networks. Our vision is that our customers will be able to provide consumers with the protection at all times, whatever network they choose to use. Our product and R&D teams are constantly working to broaden our security as a service offering, looking to add ever-growing value to our customers to ensure our solutions position. With our strong market presence, expanding portfolio of innovative solutions, and agility in meeting customer needs, we are well positioned to win new customers while also continue to expand within our existing customer base. This brings me to our customer-centric go-to-market approach. We have structured the organization to better support evolving customer demands. our marketing and sales team now have a regional focus on sales and customer success, empowering them to function more effectively while enabling a more personalized approach. We believe this new structure is already creating opportunities for us, expanding our install base, and attracting new customers. In summary, we are pleased with our performance in 2024 culminating in a strong false quarter with double-digit CCAS revenue and ARR growth, and a positive profit and cash flow. It is clear that a lot is at key inflection point of profitable growth following our first profitable year on an ongoing basis in a very long time. Our security offerings continue to gain momentum. as is demonstrated by recent new contract wins and service launches at leading customers. Our unified security-first strategy, integrating cybersecurity and network intelligence, differentiates us in the market, delivering fully integrated solutions that widely enhance value for both existing and new customers. Looking ahead to 2025, and improves profitability. I am increasingly optimistic about the expanding opportunities ahead. And now, I would like to hand it over to our CFO, Liat Nahum, for the financial summary. Liat, please go ahead.