The following is a summary of the Allot Ltd. (ALLT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Allot reported Q4 revenues of $24.3 million, a 26% decrease year over year.
Full year 2023 revenues were $93.1 million, reflecting a decrease of 24% compared to 2022.
Cash and equivalents at the end of 2023 were $54.9 million, down from $86.4 million at the end of 2022.
Backlog as of December 31, 2023, stood at $58.8 million, down from $87.7 million at the end of 2022.
Non-GAAP operating loss for 2023 was $55.2 million compared to a loss of $23.1 million in 2022.
Negative net cash flow for 2023 was marked at $31.5 million.
Business Progress:
Transformation to a SECaaS model faced headwinds with cancellation from two large operators.
Budget constraints from governments and CSPs led to complications in the core DPI business.
Cost-cutting and restructuring efforts took place in 2023, resulting in a reduced employee count and cost base.
Sharper focus will be put on lower ARPU countries due to their perceived higher growth potential.
The company's 2024 plan predicts breakeven while also investing in future growth.
Despite slower than anticipated development, focus will stay on developing the SECaaS business.
No further guidance on yearly or quarterly numbers will be provided for 2024.
In 2023, EMEA accounted for 60% of Allot's revenues, America 18%, and Asia 22%.
The company plans a reduction in workforce by 9% by the end of Q1 2024, from 559 to around 510 employees.
Total investment amount for 2024 is expected to be between $17 million and $19 million.
More details: Allot IR
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