SFET - Earnings call transcript Q4 2020 | Alarum Technologies Ltd.

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Operator

Good morning ladies and gentlemen, thank you for standing by. Welcome to Safe-T Group's Fourth Quarter and Year End 2020 Corporate Update Conference Call.

During today's presentation all parties will be in listen-only mode.

Following the presentation the conference will be open for questions. [Operator Instructions] This conference is being recorded today, March 22nd, 2021.

I the started, statements. about get we will disclaimer read forward-looking Before regarding conference addition meaning within laws in may of Group. historical securities This contain statements to call information forward-looking Federal Safe-T the

forward-looking Shachar subsequent The with March Exchange not the are to about actual undue in by we uncertainties Forward-looking cause place underlying written to not forward-looking or risks expectations and heading being historical and current XXXX, and oral, discussed and other cautionary risks you annual company to fact. At plans, statements realized caution from forward-looking forward-looking and uncertainties include expressly company's statements. whether statements objectives, behalf strategies, the filings the over are of subject and Securities yours. Form the assumptions, to And filed on Safe-T's different future may reflected statements differ under report in Commission with that are in expectations that to may may materially result XXst, are management XX-F statements on of SEC. these expectations are search statements. All call to time, the qualified and uncertainties. Potential and I'd goals, included not the statements outcomes turn in these These these. subject on Factors risks performance events Risk this from on and those floor statements like is based Daniel, CEO. reliance such And any

Shachar Daniel

model me one after of an partnership call Officer. year indirect execution. model to for engagement on quarter XXXX our Chief story and revenue conference Financial end sales with our into update and has are you Hi, Avnit, welcome and everyone fourth recurring migration confirmation been Shai thank Safe-T focused successful of Group. With The corporate todays

the remainder for discuss and the would in First education of solid We entered XXXX accomplishments well-defined year-to-date, and roadmap off, like I beyond. our and XXXX into for with the augment to then and platform of XXXX our summarize year. technology

and to rest we QX the the During pandemic the world crisis. of responded

shift to debenture that current securely these with enabled the on their and product ride interest, our environment required significant challenging our its organization in significantly remote a bottom the of the a to from associated work successfully times. overall them through line. With in work decrease reduction expenses, and quarter resulted home, in improved Combined support

our to reliable take network, progress to users Orchestration fast, can customers of we Access the build Moving Center Zero beginning in Solution and our successful the goals of our with expand access innovative breakthrough make next technology new level. Trust proxy We capabilities. ZTNA upon allowing second the year, the ongoing leading the quarter, a including towards proxy launched to Perimeter businesses, robust reach. the prosecute and Data continue Network our and also target development a set at we designed enjoy remote to solution, solution Fabric Safe-T announced Access, their which

presence two with consumer our We these validation in market in growth, superiority Remote prestigious more of number change, sales Access our solution of to VPN and leading a moved Europe, the to our new Safe-T, in an a Africa. professional for new in the receiving quarter, one Our technology various unique websites. second industry-leading Asia leading distribution South Proxy with and our allowing prestigious provide with global most agencies operating go-to-market from technology, reach the Network is the we and for the to world sector, channel the fully receiving faster, market of the and agency. a continue intelligence accelerate a with companies signing the engagements America, end companies our secured joined the expanded a by network partners order product, connection and over North IPPN, and our which than into user stable XX indirect better In After into use with RT and solutions, model. sales of expanding Internet agreement

During significantly the debt. outstanding quarter our we of margin, and costs, sheet balance reduced resulting in gross with all improved implementation our and retirement support we debenture improved the

unit The a third market with on goals. quarter continuous and success [ph] expansion partner our emphasize on strong the

Eastern Europe, During the significant additional in quarter, signed APAC. partnership we two Europe Central and

entire fast Central Eastern in markets the the as we target years, Europe growing and go-to-market our recent of one consider As strategy. important within market an

network Proxy dramatically Dynamic Dynamic continue Proxy customers. indirect of The model. we'll Residential quarter XXXX, In to of innovation execute our for Residential Asia. of global roadmap Additionally, final network we expansion in our and coverage Europe network technology, our and sales and launched our extended the

profitable our over partnership countries. with and We over OEMs more XXX premium India's direct several offer quarter. up one achieved with We access enter iValue, fourth improved XX then through an ever On first Systematika Access is Information cloud making in access proxy of million. months thousands M&A global how our under launched the a growth and the based cloud paying distribution diversity with big the teamed strategy IP access to with IPPN, combined wins secured complimentary access strengthen for distributor which is companies Sociedad in $X.X we defense the consumer than acquisition technology Kong of for new of of as organizations services Cooked, Perimeter front, offerings the in enforcement VPN Cooked Technology solution source such the one services. Professional we ZoneZero a homeland in choose with XXXX We Portugal market We solution partnered aggregator to security The Proxy-In-a-Box of marked targeted our accretive Proxy generated joint in with secure to a and businesses. the IPPN as and technology We fit Network become immediately customers revenues US-based introduced Safe-T’s Fujitsu and all , launch in technology allowing from with Proxy with remote has and the and monthly the quarter is two our customers operating the advanced for for Chi security Fabric over in of The capabilities law security the a signed ZoneZero, introduced application solution complemented Hong and and managed our creating to access reality. with more IP services well Distribution, IP win scenarios can Accenture Macau. acquired revenue market solution version Chi X.X best business, free of control The XX of Network Limitada unification worldwide. distribution Orchestration new XXX was company cybersecurity customer services. their Solution transaction and the new Italy needs, Technology of which of partners’ agreement [ph] granted. partners leading internally specialized who first of

would Now the before discuss Shai? going to the like I Shai over the year. for to to turn financials call further,

Shai Avnit

full which XX% or business earned quarter. year in year-end of which $X.X XXXX, due and by the increased The in in million for the consolidation quarter. of Thank marketing from mainly also by million costs, acquisition for offset revenues and year contributed primarily I $X.X Operating for partially subcontractors’ to to which Zero you, the totaled sales full of XXXX, $X.X related costs to Research Shachar. the solution compared million, increase stated. in the $X.X in of share-based of in this Revenues by sales as the fees increase XXXX. part revenues. an $X.X full SDP General The overall and in in to the to of professional the there On was cyber partially Sales the cost from XXXX Gross of consolidation the a the NetNut’s company's partial fourth of and entire of quarter to period quarter the for significant quarter for development to XXXX, new $X.X were fourth and salaries, cost Exchange, The the summary revenues offset in Trust profit solutions. an $X.X marketing the otherwise $X.X The of and million NetNut’s year top to are in to and a $X.X in consolidation was our will administrative reductions our the was fourth million. and reduction product, of expenses costs full results XXXX reduction million sales, partially net Secure costs The the development related increase driven a X.X was totaled partially increase XXXX XXXX. primarily earned profit of development a market unless quarter million, XXXX efficiency offset expenses which was $X.X Data This solutions. increase and to XXXX. was in million which million NetNut’s its attributed XXXX marketing the year XXXX. with fourth year and totaled decrease gross mid compared consolidated on increase full million, of due the revenue. general million, expenses revenues costs, expenses. of is of million compared and was year-end consolidation focused a offset Proxy in begin over the a administrative This is increase full professional in compared results, of in strategic which due year reduction the also is year. generated the of $X.X fourth the compensation. financial is Zero contributed $X.X with only $X.X SDE gross million to in fourth year, by million partial full measures Trust by SDE compared of profit consolidation that and and and compared by plan consolidation business. of occurred totaled XXXX The it, in throughout growth

from of $X.XX certain and net $XX.X full impairments, $X.X these activities profit total Net or or X.XX effect certain the which of million. basis, a per for million, a $X.XX only, and per stands non-IFRS of the in XXXX fourth December base $X the million ended it income quarter, On as expenses, quarter costs excluding XXst, shares, full and quarter $X.XX to on of XXXX. Cash XXXX direct per fourth $X.XX share of $X.XX non-FRS a we the [ph] loss of quarter XXXX or loss year of And Cash a the $XX.X totalled million shares compared we approximately compared we to net share XXXX or ordinary of net XXX.X to million at XXXX $XX share, offering totaled to in XXXX. in year contingent of to to around in loss an resulting operating the used fourth XXXX. and to fully to the full was lastly, compared I million to full other exercised $XX share touch of over $X unit With a XXXX changes, equals announced Shachar. fourth result in the $X.X diluted million reconciled the per X.XX December resulting ended million a to $X.X our million million like million, $X compared Net non-IFRS compared the September XXXX. non-cash million as for compared acquisitions or loss equals were XXXX. loss registered was million call Subsequent today. On totaled close billion which ADSs. company in million $X.X at only $X.XX As XXXX. outstanding Non-IFRS Net ADSs. for XXst, totalled net operating in million share expenses loss in XXst, $X.XX wanted I of a that, $XX of as to loss million, turn of million XX.X at $XX.X in in on consideration outstanding, net around billion count the XXXX expenses warrants, the year year which fourth to $X.X excess as basis, XXst, goodwill of the have for million expenses some back additional quarter XXXX. XX, currently million basis, or our have XXXX, compared December the December in

Shachar Daniel

much, Thank you Shai. very

would we like capabilities. remote So had we of during in of enhancement right additional I have new several that summary learned existing new ZoneZero version year alongside technology and disrupt way access capabilities the Since close to milestone, presenting to here this improvement is XXXX and the the to The stay market. we point of we out. X introduced

We the is resale residential sneaker Chi synergy new also The first acquisition multibillion-dollar the launched product the of Cooked. network a market. new for realization of

mission and plus cybersecurity provider $XX our been of to in to we proxy, solutions market. collection intelligent be ahead, IP invest data always this penetrating which Looking has cybersecurity the billion leading is to And continue vision. rapidly plan

refining feedback We the are with and partners. ongoing Trust improving market products our on focused Zero and from our

are We team up requirements. open new that our continue Cooked, With our the potential sales a integration for strategy I expand sales could to of stop go become successful ahead. any pipeline for leveraging markets. like through business M&A Operator, all and questions. shop of call the would strengthen Chi partnerships into offerings we our current And and to to our proxy-related please that, with one to our will growing build capabilities and targets complete

Operator

We’ll Sir. your question from [Operator be Our Brian conducting proceed is question. question-and-answer Please the you, Global Instructions] now session. with Partners. with Thank Alliance first Kinstlinger

Brian Kinstlinger

Thanks are as in cybersecurity put you highlighted, Remote last large Zero also technology spotlight been talk the companies guys. sure the of on how and Security some the you security security I'm focusing for year for your has can that about taking questions. VPN Trust Hey, against Remote Access? competes certainly my Access over

Shachar Daniel

Okay.

A this and answer. I So is great question Shachar. will

better on replace and we're of solution. I your specific more can of coming that VPN or fact the the at So and [ph] deep of year, it approach much this inside provide years, only The a A take service a on top legacy XX% one huge, this development of going problem is of will inside XX secure solution project. adjustment, you lot and infrastructure. developed current replace big technologies long is challenge kind for to VPN, are between deep technology the to least months exhaustive the current to six saying, transaction a this better and companies,

with coming into a are approach. disruptive We very our [ph]

we the - without all we infrastructure, We two UI and replacing year But Trust. to the six replacing get all without will today current weeks. show them the upside are months to to your don't your coming will of capabilities your Zero VPN, secure you security need the you VPN, current for like it, it, need don't the touch you something your replace employees. And you from one to need don't or can replace process one to

we I updates, that us some this the job distributors, partners, customer is and resellers, other all from think the And So the new this competition. very above proud. many big of are why chose is the site of

Brian Kinstlinger

versus of partners, helpful. this you've others? And right sales It's Trust, SMBs there the they that target using certain And then of but big Zero Fortune Great. technology is industries are now is who adopters XXXX? clear, at meaning been you're customer kind are it first, for your are

Shachar Daniel

question. good Okay,

the I basically… and SDP Trust Zero is typical need So, solution to solution. differentiate That between

Brian Kinstlinger

talking Trust, about… I am Yeah, Zero

Shachar Daniel

Trust VPN know. Zero Yes, One current your described, is in solutions. saying I But we and are have of we yes, that just VPN. replace coming the don't two the is I ZoneZero the

with so So a typically, customers. can offering internally be a VPN than much can But takes smaller and Fortune it's to this bigger it. Fortune SMB, legacy that the for so enterprises, much customers, even customers XXXX. it be will enterprise be XXXX. large It not replace energy embedded in It time

of of our cloud partners, the So world. we the biggest SVP are of with our solution, now one partners running and one

small the targeted, access This remote that partner and solution that So solution. by be we’ll business medium manage it directed [ph] kind will and our especially run. will of MSSP

class of the - is buy ZoneZero the and the enterprises view typical legacy can that better for So think we the be SMB [ph] truth a which the [ph] it VPN we’ll bigger on

Brian Kinstlinger

Great. questions. And more got I two then

they located have The first many you in do one how or is, are And they countries what partners sales reached to? have?

Shachar Daniel

Okay.

more than Trust XX released engaged first the just eight last in months version we we that Zero partners of So we have solution. after our sales the

have a proudly coverage. We that global we are saying

through do from and we starting [indiscernible] stage Pacific Asia the been active Australia and is and at see this what most partners have partners. Asia Pacific, now, we America. The Europe, We Africa, the that

Brian Kinstlinger

access in awareness, by - need of remote I'm how in not for the And Great. that business, lastly, still pandemic Proxy clear, clear, Proxy Are to security, IP are sure you IP the terms sales I'm been well. And you partners increased COVID? has led for not as personally impacted while it's using has the market business the

Shachar Daniel

with province we that the dramatically say can of has [ph] vertical, been in example, the have segments, know, - has some COVID. so, I way, province So you the vertical for

use instead. full SaaS less partners. Proxy, attaché model, in verticals IP are Most with have zero they other the know, we So zero attach of our but the with the you the twist sets customer, with

basically partners, the So the using buying And customers. they're spread it's typical or its to partners are the IP technology but us. we to different order technology not from kinds like directly are of that Proxy partners, distribution using in the

Brian Kinstlinger

Great. Thanks much. so

Shachar Daniel

with pleasure. welcome, You're

Operator

you. for [Operator the no I you. to this comments. turn we Daniel questions. Thank floor will Instructions] Thank time, At additional closing back Shachar have

Shachar Daniel

Okay.

us We you Thank continuing you very our joining much. So forward update on thanks look progress. to to for today.

Operator

will conclude you Thank for your today's you. This Thank conference. participation.

at lines may You time. now this your disconnect

Alarum Technologies (ALAR) 22 Mar 212020 Q4 Earnings call transcript