Allot Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Outlook's first quarter 2025 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 Outlook's investor relations team at EK Global Investor Relations at 1-212-378-8040. or view it in the news section of the company's website at www.allot.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?

Thank you. Good day to all of you, and welcome to Allot's conference call to discuss its financial results for the quarter. 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 Harbor Statement. This conference call remains confidential. 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 operating 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 gap to 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. Let me begin by saying that we are very pleased to report a strong set of first quarter 2025 results. with top and bottom line growth as well as continued momentum in our CCAS growth engine. Our results demonstrate that we are successfully and consistently executing on our security first strategy, bringing renewed growth and profitability to a lot. Our first quarter revenues increased year-over-year by 6%, while in 2024, our focus was bringing the business to financial stabilization 2025 remarks a return to growth. The primary contributor to that revenue increase was our growth engine, the security as a service solution, SICAS. For the quarter, SICAS contributed over a fifth of our revenues, with SICAS ARR at 21.2 million, up 55% year over year. This growth, combined with the steps we took over the past two years to reduce expenses considerably, as translated into a profitable Q1 on a non-GAAP basis. Our non-GAAP net income was $0.8 million for the quarter versus a loss in the first quarter of last year. We reported positive operating cash flow of $1.7 million in the quarter This great performance is being driven by our motivated and experienced workforce. I want to thank our employees for their continued focus on execution, their steadfast passion for keeping our customer happy, and their ongoing commitment to achieving our business goals. The growing traction of our security as a service solution demonstrates our increased success in convincing telcos protection to their end customers. We are working closely with our customers to help them market cybersecurity solutions and drive increased adoption among their end customers. We are especially excited about our growing partnership with Vodafone and Verizon, which I will elaborate on further in a few minutes. We also have made solid progress growing a deep and broad pipeline of potential opportunities for both CCAS and small products. We are focused on converting this strong pipeline into new partnerships and agreements. We are very proud of our team's solid execution in securing wireless providers in the United States and in the world. We have been providing network-based cybersecurity protection to Verizon Business fixed wireless access customers, giving the 1.5 million subscribers the option to use our service. Our success here led to a new agreement to make our solution available to the full Verizon Business Mobile customer base of over 30 million subscribers. as well as any new subscribers that they gain. This exciting lead and expand win represents a significant targeted addressable market and long-term growth opportunity for a lot. A few weeks ago, Verizon Business launched a new mobile service called MyBizPlan, an attractive mobile plan geared towards small and mid-sized businesses that offers a scalable and fully customizable mobile service plan. Usually Verizon business includes mobile internet security as part of the base package rather than an add-on, meaning customers are automatically opt-in at the start and we get paid by Verizon for each account that is connected. The potential for us from just this deal is substantial. Verizon recently started actively marketing the new offering to both their existing customer base as well as new customers. It has only been a few weeks since launch, and we are very pleased by the initial traction. Given the success of the launch, together with a fixed wireless access customer already using our service, Verizon has become the largest contributor to Seca's revenues in the first quarter, and we expect it to only grow further from here. We have built a solid working relationship with Verizon business, and we hope to further extend our collaboration with them in the coming years. Together with other customers that have launched cybersecurity services based on our SICAS offering, including Vodafone, O2, NEO, and others, which all are progressing nicely, we feel comfortable with our goals estimates. And we expect that for the full year 2025, SICAS revenues and ARR will achieve strong year-over-year increase at around 50% or more. Last month, we launched our off-net-secure solution at RSA in San Francisco. This new cybersecurity solution allows operator to protect their customer against cyber threats when they are off network, meaning they are connected to the internet through means other than the operator's own network. This type of broad connectivity off-network was a blind spot for the service providers. Our off-net secure solution is an extension of the AllotSecure cybersecurity platform. The service is activated as part of the provider's branded customer app already running on the customer's device. This offering completes the circle of protection provided by our unified AllotSecure suite and offers telecom providers a new potential premium add-on revenue stream. Our smart product is a significant and important part of the overall Allot business. Built on decades of Allot experience, offering top-notch technology and innovation, this solution continues to be a market-leading offering. As a reminder, following our decision to combine our two business units into a single division, our smart product is being sold as part of our Unified Security First platform. We recently signed new customers for our smart product, which will contribute to our overall future goals. These orders were received from multiple different countries. Power to 2025 for Smart gives us confidence in the ongoing demand for these products and services. At the end of last year, we launched our new service gateway, the Terra 3 Multi-Service Platform, geared toward top-tier telecom operators. The product is a high one unified platform. We are seeing a lot of interest in this new product, and it has contributed to our strong pipeline of opportunities. During the recent quarters, we have gone our pipeline nicely. We have added both existing customers that may want to upgrade to our new platform, as well as new customers that appreciate the value added that this new product can bring to them. The pipeline includes multi-million dollar opportunities, including a few eight-figure deals. Our current pipeline therefore represents a significant future upside potential. A few weeks ago, we attended the RSA conference, which was held in San Francisco. It was highly productive event for Halot's marketing team, with multiple meetings and excellent feedback from both existing and potential customers. Customers are clearly supportive of our security fair strategy, with strong interest in our combined offering, especially given our recent top-tier customer wins. Key themes emerged at RSA that reinforce why our security fair strategy is so well-timed. Protecting home and small office networks has moved from nice-to-have to a must-have service. And the rise of AI has added a new dimension of risk. These conversations underscores the power of our allot secure suite and especially our new off-net secure product. Our solutions address market needs, positioning us to capitalize on the accelerating demand for cybersecurity solutions geared toward consumers and SMB segments. We are especially excited about the strong growth in both CCAS revenue and ARR. Our offerings across the board continue to gain momentum, as has been demonstrated by recent new contract wins and service launches at leading customers. Looking ahead over the remainder of 2025, given our recent successes, we expect that for full year 2025 we will achieve profitable growth, with CICAS revenue and ARR achieving strong year-over-year increases at around 50% or more. I am increasingly optimistic about our future. And now, I would like to hand it over to our CFO, Liat Makoum, for the financial summary. Liat, please go ahead.