Total ARR up 39% year-over-year; New security recurring revenue deals executed in 2021 added $193 million of incremental MAR;
Hod Hasharon, Israel – February 15, 2022 – 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 fourth quarter and full year 2021 financial results.
Financial Highlights
- Fourth quarter revenues were $41.0 million, up 5% year-over-year;
- Full year revenues were $145.6 million, up 7% year-over-year;
- Gross margin on a non-GAAP basis in 2021 was 70% compared to 71% in 2020;
- Total ARR* for December 2021, including SECaaS ARR* and Support & Maintenance ARR* was $47 million, up 39% year-over-year;
- Incremental MAR** (maximum annual revenue potential of concluded transactions) reported for the year 2021 was $193 million;
- GAAP operating loss for Q4 2021 was $3.7 million compared to $1.2 in Q4 2020;
- Non-GAAP operating loss for Q4 2021 was $2 million compared to an operating profit of $0.5 million in Q4 2020;
Financial Outlook
For 2022, management expects:
- Revenues to be between $147-153 million;
- Additional recurring security deals to be executed, providing incremental MAR** of more than $180 million;
- December 2022 total ARR* including SECaaS ARR* and Support & Maintenance ARR* to be between $61-$73 million, representing more than 40% year-over-year growth versus 2021 at the midpoint;
- December 2022 SECaaS ARR* to be between $20-$30 million;
- Recurring security revenue to be between $10-$15 million;
Management Comment
Erez Antebi, President & CEO of Allot, commented: “During 2021 more of our SECaaS partners began to launch their service, and we started to show traction and revenue growth from recurring security services. This year, more network-based security deals were signed by operators worldwide than in any previous year. By our count, we won most of these deals that were closed during the year. We see this as a testament to the accelerated growth in the network-based security market, as well as our leadership and strength in the market. I expect this trend will continue in 2022 and beyond.”
Convertible Notes
The Company issued a separate Press Release announcing the signing of a $40 million private financing with Lynrock Lake Master Fund LP.
Q4 2021 Financial Results Summary
Total revenues for the fourth quarter of 2021 were $41.0 million, an increase of 5% compared to $39.1 million in the fourth quarter of 2020.
Gross profit on a GAAP basis for the fourth quarter of 2021 was $28.5 million (gross margin of 69.5%), a 4% improvement compared with $27.5 million (gross margin of 70.3%) in the fourth quarter of 2020.
Gross profit on a non-GAAP basis for the fourth quarter of 2021 was $28.7 million (gross margin of 70.2%), a 4% improvement compared with $27.7 million (gross margin of 70.9%) in the fourth quarter of 2020.
Net loss on a GAAP basis for the fourth quarter of 2021 was $4.0 million, or $0.11 per basic share, compared with a net loss of $1.7 million, or $0.05 per basic share, in the fourth quarter of 2020.
Net loss on a non-GAAP for the fourth quarter of 2021 was $2.1 million, or $0.06 loss per basic share compared with a net income of $0.4 million, or $0.01 earning per basic share, in the fourth quarter of 2020.
2021 Financial Results Summary
Total revenues for 2021 were $145.6 million, an increase of 7% compared to $135.9 million in 2020.
Gross profit on a GAAP basis for 2021 was $101.0 million (gross margin of 69.4%), a 5% improvement compared with $95.8 million (gross margin of 70.5%) in 2020.
Gross profit on a non-GAAP basis for 2021 was $102.2 million (gross margin of 70.2%), a 6% improvement compared with $96.8 million (gross margin of 71.2%) in 2020.
Net loss on a GAAP basis for 2021 was $15.0 million, or $0.42 per basic share, compared with a net loss of $9.3 million, or $0.27 per basic share, in 2020.
Net loss on a non-GAAP basis for 2021 was $6.0 million, or $0.17 per basic share, compared with a net loss of $3.6 million, or $0.10 per basic share, in 2020.
Cash and investments as of December 31, 2021 totaled $85.7 million, compared to $99.4 million as of December 31, 2020.
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Conference Call & Webcast:
The Allot management team will host a conference call to discuss fourth quarter and full year 2021 earnings results today, February 15, 2022 at 8:30 am ET, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:
US: 1-888-668-5032, Israel: +972-3-918-0609
A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm
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Additional Resources:
Allot Blog: https://www.allot.com/blog
Allot On-air Podcast: https://www.allot.com/resources/podcasts
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About Allot
Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Our industry-leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers globally.
Allot. See. Control. Secure.
Forward-Looking Statement
This release contains forward-looking statements, which express the current beliefs and expectations of company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: acceptance of our products by our reseller and customer in EMEA, our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors, government regulation; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third-party channel partners for a material portion of our revenues; and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.