SFET - Earnings call transcript Q2 2021 | Alarum Technologies Ltd.

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Safe-T Group's Second Quarter 2021 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, August 26, 2021.

I the started, statements. about get we will disclaimer read forward-looking Before of Litigation conference addition other meaning within provisions in may Federal of Private historical harbor This contain, statements securities to laws. call XXXX, Act Reform of information, forward-looking safe the and Securities the

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

Shachar Daniel

Shai Officer. Safe-T welcome call second Group. me Thank Avnit, quarter is everyone you, corporate for XXXX Financial today's Chief our conference and With to update

in ago realization to and the segments, consumers. around of milestones enterprises to The accomplishments become key first-half near second like the short a company years world-leading an we outlook reorganization and in our global the our of business focused both cybersecurity execution continue in mission for and the the industry summarize two that process XXXX a started centered I of for review growth, the and of would future. privacy our provide to quarter, has

sectors Our the business and enterprises on audiences, today cybersecurity focuses privacy for markets. solutions two and two consumer to

enterprise business of into our [indiscernible]. proxy incorporated in the which platform, on we a IP solution Our is based group XXXX privacy second-half

solution of privacy million world's $X.X Our generated also especially increasingly fastest the of clients accurate, that activities is for and by its secure for advanced to business two business substantial increased and million by organization quarter our $XXX,XXX great growth acquisition, personal consistent for online [Ph] its and $X public identify the data years range revenues from the provides our most [accumulation] privacy this a the the growth, ability In since from end but just transparent, per sources. for network to of between not a to potential. the this proud solutions, I'm enterprise only with organic year. platform with

Our today. privacy paying our thousands users platform utilize includes IP proxy of for that solution consumers

top Our the thousands customers. that CyberKick the of of latest with of acquisition will integration CyberKick

information users' an layer privacy. secure, online online for private encrypted are Our privacy and keeping solutions adding secured

of possess business growth of and enjoy from high capabilities to preliminary we'll achieved during we on continue Our consumer privacy well-established privacy third performances. the online online knowledge, Based as the well results quarter the that I sector. marketing first-half believe XXXX,

lack and news. part during of the Cyber face light businesses problem, XXXX continue cyber cybersecurity; In to considerably has first-half regularly in continue which the attack of world, and the the and reached including highlighting global attack business, since the businesses new second COVID-XX to beginning as almost important business, of Ransomware attacks pandemic, of cyber changes the alongside COVID-XX mid-sized alarming the on have our further and be a attacks the digital to impacted headline to high safety colonial vulnerabilities sector the our cybersecurity pandemic. massive the and measures ranging attacks make infrastructure. the every alone, Microsoft institution confidential of witness of last we Exchange, transformation activities months for from XX changed on large-scale protecting infrastructure small critical and have Moving and pipeline. banking enterprise cyber

solution of access the Our forefront Cybersecurity two Enterprise at is the technologies.

connected access use Trust environments. or existing platform replace Our provides solution an were only In added and the with or and the we secured industry-leading approved It and organization's as past across and platform year, infrastructure, cloud Fujitsu type more, ZoneZero, enterprise-wide users. that procurement a on-premises NASA's Access including VPN Accenture to vendor contract hybrid an solution Network secured access worldwide, is partnered for can and vehicle. of secure the access any legacy we Zero to and allow for

distribution indicate wisdom well-positioned see our $XX opportunity to that, partners billion As solution onset that is cite by its infrastructure, solutions, to technology in advanced And market secure XXXX. It around any and is business cybersecurity for consumers. access demands as and expected least become market rapidly, integrated. we the need are our but living already-established evolve. and live globe. stage, and Last for is hitting in will to organizations our we say and market, not Safe-T is we the and the still grow more I more

subscription release. acquisition, eliminates threats. marketing breaches its we online a launch company to platform, protective CyberKick Utilized CyberKick would void that the be based we and are that enter getting traction and As new data sales and ready for effective products to new able cyber security believe of identifies, create part

in With we $X may run annual which million the to of than rate on an to a month to XXXX compared annual more basis, with addition monthly significant revenues, July revenues. finished the XXXX of a representing lead growth our revenues, CyberKick, integration

position to along improve plans. our continued support have a with cash financials growth Our strong to

the the Looking and have established execution, remainder for expansion well-defined year. roadmap ahead, the we for technology, innovative plan of

But segments growth, as turn explore to our our the to we to before investing each as of fruits would segments. enjoying to Shai are over to of continue further hard the going to financials potential for integration plan we further, technologies existing the to quarter. I Shai? encourage for the labor, any like call well and discuss migration As our of in

Shai Avnit

higher million, partially our two, June in and quarter really in privacy The $X.X our solutions; to: Gross in the $X.X or higher in higher compared a was the first higher reduction mainly totaled a development Secure due expenses Exchange, up development increase expenses, the a construct of was quarter the months Zero $X.XX the profit zero and per of of loss XXXX. and of net of ago I $X.X are XXXX. and the quarter enterprise The from million resulting marketing related compared million, loss respectively $X.X of of you, close privacy XXXX equivalent compared enterprise driven quarter to SDE to for $X.X increase which gross Thank our an offset expansion of in in million, to compared non-cash would to is financial results, of was G&A compared as of solutions. to due totaled quarter year quarter compensation the second or million, as results, $X.X a some business focus by second the Data Shachar. increase in corresponding second by in share was on expenses ended increased product to employees' of as three, due activity; solutions primarily loss June in which business second a XXXX XX, and consideration the adjustment $X.X used period. gross costs expenses for unique acquisitions summarize Trust the stated. excluding sales for XXXX on XXXX, $X.X million part the $X.X the operating revenues. to $X.X the the contingent the a non-IFRS decision Net Trust million XXXX, to reconcile equivalent increase an $X.X which rounded sales costs $X.X XXXX million. of increase months and share one, in profit Operating strategic second for million compared loss effect figures to privacy certain mainly of XX, This profit million of such $X.X was All compared per otherwise million. of costs, activities the all period our for XXXX. XXXX. Revenue summary is revenues. for in unless legal; privacy the were the costs. revenues ended to million, first for six for XXXX fees, professional million Zero to simplicity. basis, revenue Net million loss as non-IFRS share-based period means income, and net to This was six four, $X.X Cash revenues other quarter The totaled subcontractors, loss

February to coming currently XX to stands levels in As highest around XX, basis, offering count to cash as X.XX to December increase ADSs. cash our investment instruments balance a ordinary XXXX. exercised today. which to raised diluted In base outstanding of as for to can in well in September. shareholders annual which it equals mainly cash The June certain XXXX million million On we in totaled have order on shares registered XXXX wanted balance equivalence approximately X.X touch company's and billion XXXX, cash million, meeting billion direct the have XXX levels subject the million ADSs. I And short-term on as the around and shares, our lastly, share-based cash approximately to to-date. equals summing outstanding, XX, fully approval a basis, warrants rates compared $XX.X share through $XX On resulted from company's we simplify an

be establishing the and same such with for Our Shachar. one aligned basis ratio soon both shares the one ordinary it With have that, call ADSs turn capital ordinary back I'll after share to ADSs. shares will that to will over the

Shachar Daniel

made role enrolling implementation through and of declining talented quarter We Thanks, this roles Shai. during entrepreneur. our of and our consecutive the delivered In technologies our vision. summary, significant significant progress year, and innovative we second on

ahead, look ahead. to to incredible current and with expertise our strong cyber-attacks leading of a market are like Looking to any second-half are the protection global continued up of open the With and into sales privacy multi-billion into the growth with a individuals. provider services experiencing and Operator, continue dollar growth markets. organizations a and solution. innovation we response, position privacy please on we'll hyper go leveraging grow sectors products our to as our questions. and that, cybersecurity to new XXXX. for extend would of volume partnerships call In due develop the The cybersecurity and I We forward of

Operator

line the from Thank you, Our comes sir. Jacob Alliance Instructions] [Operator Silverman proceed with with Please question. of your question first Global.

Jacob Silverman

you Thank taking my for questions. everyone. Hi,

You remarks per in mentioned of there? $X growth to prepared grow quarter. million IP driving the what's you the expect us net-net Can million to the that necessity it tell realizing companies proxy? Is to $X.X you

Shachar Daniel

you Thank you. this thank Mr. Jacob, question. for

We we a dramatically. and we first are just data our collection on before. right the six We've as and the the cannot privacy even space growing or to the mentioned this in and consumer internet. in in maybe now serve that are in in the our order securely in data technology. been and the we exposure We and surfing, invested and is world products fact three is our organizations our on and seen also months competition in the presentation proxy our the it's to growing in better the the anonymous that the team the transparent even minutes IP privacy lot in few the to brought have two identifying as infrastructure internet, So, ago, proxy; [indiscernible] the places a Internet in get accurate data product over the and dramatically. tools get order space, IP we first infrastructure than the leaders and It's the people,

this we that's quarter, the the see of what that's we years. in see two beginning last what So, in

of the fact we are now company in capital, and like As quarter, Thank we and in we using growth Safe-T bought the are synergy, the management per $XXX,XXX huge you. the Group. I the that mentioned, right proud identifying very and something the

Jacob Silverman

sector GSA do recent your with see ZoneZero Trust public you Zero into How in the the playing for strategy Solutions? U.S. interest approval

Shachar Daniel

[Ph] a took to is gateway It the a become is in GSA the a government. us key time is It's and criteria provider vendor order or government. The proven] not or significant to U.S. the everybody meet of be approval a the vendor of that the to to U.S. key [and achieve getting.

processes that for it's And to become a sell be now to legacy competing our the players the - very to secure these remote of are solutions or move players know, of huge we technologies you order to the new big our ZTNA a in with are government. and taking to to world head-to-head huge organizations as time. us the one Now, it's solution the access enterprises, proud vendor, one the and to for It's from huge of are considering players, products and to market. achieve U.S. that

Jacob Silverman

And your reseller significant you begin do the ZoneZero? in Europe? when how you'll are process for progressing and there U.S. partnerships some to believe see And

Shachar Daniel

thank you. Okay, good question. a It's

brief market. So, short this I will give you about a

when players it's IDC in all past, partners, everybody world move put But on you process potential, the and tools especially the working tools lot can are legacy digital, to not The market, big everybody know, happens right Gartner, the technologies because you A from investors, to from and for in like this only has like happens like and takes coming young, and huge of the will last there, equities still this soil importance to right potential in access I been experience like maybe foot guess, market that now remote secure places, right analysts has is world, private secure potential. VCs, the the of understands the chose As the home, technologies it identify COVID you explain. identify will very can time. bear become in remote it years. the the I the that the is To of new and VPNs, the then fruits huge, becomes ZTNA other it is a in this -- the Forrester, read that forever. is to due fact access as that

are there. we So,

the incorporating, are right We and partners. finding

the We Europe. have I best the best partners; in of think them some

a on and remote in move in the We technologies other and and period, offering. MSSP, and access and will infrastructure marketing to stage are are on in Safe-T secure now big world. on come, [we managed organizations which providers, [Ph] to service working working the in will And - as think the [Ph] common U.S., next sales and be Europe time that] because ready technology, like will is others in places solution the the secure time our the [be and next we with the now best a] on the best the

Jacob Silverman

are And with considering you further the any acquisition of CyberKick, M&A?

Shachar Daniel

XXXX, our are Okay, so even today, announced part in M&A. that we is already strategy and of

So, I finished We have now, last the can don't tell just you something. that, we acquisition. for

it market For consumers in a the best and found, we Israel, entrepreneurs success globally. think, huge because us, in the I maybe was

synergy working and Now, we very the between the are and hard the companies. implementing, on integrating, systems

I we the or -- strategy M&A, enterprise But privacy time unorganic leader it will are keep that and ourselves and and guess good full after we think don't in the platform. find yes, hand best and to this M&As growth that Safe-T's vision and for that markets, say that But we're XXXX, said, a acquisition, buy in the now alternatives and to tomorrow morning. like the with alternative growth So, the will period we the just the bring coming target consumer reality. a put summarize, keep the can hand going with we to and we In become our good have will at enhance of I something security organically. to I over

we and consumer, the have privacy, have enterprise, the have we We have we cybersecurity.

now for next vision the Safe-T. for plan to our one the finished we and steps and step we're year next starting So, dream, in

Jacob Silverman

Thanks, All Shachar. right.

Shachar Daniel

Thank you.

Operator

[Operator you. Instructions] you. Thank Thank

with with next from Our Alliance Kinstlinger Global Partners. Please is question Brian proceed question. your

Brian Kinstlinger

a Network Shachar. do Thank Hi, you you the becomes out One huge Zero differentiate question differentiate Access, do product your market? how you. on Trust with when How that competition there?

Shachar Daniel

Okay, thank you.

replace, [indiscernible] solution we to mainly say, it's So, organization a huge that if replace solution, the you, the are fact differentiation that VPN, for replace the is only come to don't current is don't your can the okay, now. which main challenge and

will will Network solution, We Zero network, protect replacing augment at you Access make this we become Trust we -- your without stage your current will will we customer VPN. your

technology technology or VPN get years. you XX a this replace end it As work for very the used is Consumers of XX customer know, to day. with It's years. one in the to last challenging

[Ph] So, but infrastructure. your this replace we come and world. are some and our augment secure build [pitch] a main current besides develop this can but less the not partners and customers all unique and is solution And over to the significant, our is of others, main with they differentiation and that we our to

Brian Kinstlinger

you. thank Great,

Shachar Daniel

welcome. You're

Operator

Thank floor any this I'll questions. additional time, back further the to you. At we turn for no Daniel remarks. Shachar have

Shachar Daniel

for much proud everybody trust trusting shareholder in our And first in fact Safe-T us, satisfied trusted for in very to and working We investors the your a Safe-T. you for make hard and huge phase] Thank [Ph]. being and we're appreciate believed you you Thank that totally be [in order very to our you. company. and belief

Operator

Thank conference. will you. This conclude today's

You time. your at Thank may you your disconnect lines for this participation.

Alarum Technologies (ALAR) 26 Aug 212021 Q2 Earnings call transcript