Allot announces preliminary Q3 2023 financial results
Nov 17, 2023
Hod Hasharon, Israel – November 16, 2023 – Allot Ltd. (NASDAQ: ALLT, TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the third quarter ended September 30, 2023.
Q3 Financial Highlights
- Third quarter revenues were $22.6 million;
- SECaaS revenues were $2.8 million; September 2023 SECaaS ARR* was $10.6 million;
- Third quarter GAAP operating loss was $12.7 million, and non-GAAP operating loss was $11.1 million;
- Q3 GAAP net loss was $12.4 million, and non-GAAP net loss was $10.8 million;
Looking ahead, management expectations are as follows:
- Fourth quarter of 2023 revenues of $20 million to $25 million (of which SECaaS revenues are expected to be between $3 million to $3.5 million);
- Fourth quarter of 2023 Non-GAAP operating loss of between $4 million and $6 million
- Fourth quarter of 2023 negative cash flow of between $5 million and $12 million;
- December 2023 total ARR*, including SECaaS ARR* and Support & Maintenance ARR*, is expected to be between $51 million and $53 million;
Erez Antebi, President & CEO of Allot, commented, “The macro-economic environment remains significantly challenging for Allot. One of the consequences we are experiencing is the resulting added budget constraints of some of our potential customers which has had a negative effect on our business.
Last quarter, we announced a cost reduction plan which we are currently implementing, and consequently, we aim to reduce our yearly operating expenses in 2024.”
Q3 2023 Financial Results Summary
Total revenues for the third quarter of 2023 were $22.6 million, a decrease of approximately 10% compared to $25.0 million in the third quarter of 2022.
Gross profit on a GAAP basis for the third quarter of 2023 was $10.5 million (gross margin of 46.3%), a 36% decline compared with $16.4 million (gross margin of 65.4%) in the third quarter of 2022.
Gross profit on a non-GAAP basis for the third quarter of 2023 was $10.8 million (gross margin of 47.9%), a 36% decline compared with $16.8 million (gross margin of 67.2%) in the third quarter of 2022.
The gross margin level for both GAAP and non- GAAP basis in the current quarter was impacted by an unusually unfavorable product mix.
Net loss on a GAAP basis for the third quarter of 2023 was $12.4 million, or $0.32 per basic share, compared with a net loss of $12.9 million, or $0.35 per basic share, in the third quarter of 2022.
Net loss on a non-GAAP for the third quarter of 2023 was $10.8 million, or $0.28 per basic share compared with a non-GAAP net loss of $10.6 million, or $0.28 per basic share, in the third quarter of 2022.
Cash, short-term bank deposits and investments as of September 30, 2023, totaled $60.4 million, compared to $86.4 million as of December 31, 2022.
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