Skip to Content

Stock Quote


30-day Stock Price
1 month stock price graph
Price
Change

May 17, 2022 7:05 AM EDT
Copyright Nasdaq.
Minimum 15 minutes delayed

Allot Announces Fourth Quarter & Full Year 2021 Financial Results

Allot Announces Fourth Quarter & Full Year 2021 Financial Results

February 15, 2022 at 5:05 AM EST
Total ARR up 39% year-over-year; New security recurring revenue deals executed in 2021 added $193 million of incremental MAR

HOD HASHARON, Israel, Feb. 15, 2022 /PRNewswire/ -- 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.

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 

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of 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 1,000 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 in Europe. Allot. See. Control. Secure.

For more information, visit www.allot.com

* Total ARR - Support & Maintenance ARR (measures the current annual run rate of the support & maintenance revenues, which is calculated based on these expected revenues in the fourth quarter and multiplied by 4) and SECaaS ARR (measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected revenues in the current month of December and multiplied by 12).

** MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer's subscribers, as estimated by Allot, signed up for the service.

GAAP to Non-GAAP Reconciliation:

The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment, changes in taxes related items and other acquisition-related expenses.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.

Safe Harbor 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 set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: 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; the timing of completion of key project milestones which impact the timing of our revenue recognition; 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 fourth party channel partners for a material portion of our revenues; court approval of the Company's proposed share buy-back program; 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.

Investor Relations Contact:

GK Investor Relations

Ehud Helft

+1 212 378 8040

allot@gkir.com

 

 

Public Relations Contact:

Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com

 

 

 

TABLE  - 1

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)











Three Months Ended



Year Ended


December 31,



December 31,


2021


2020



2021


2020


(Unaudited)


(Unaudited)



(Unaudited)


(Audited)










Revenues

$       40,974


$       39,091



$     145,600


$     135,922

Cost of revenues

12,516


11,627



44,553


40,082

Gross profit  

28,458


27,464



101,047


95,840










Operating expenses:









Research and development costs, net

13,005


12,611



47,093


43,447

Sales and marketing

15,025


12,787



52,337


47,528

General and administrative

4,145


3,223



15,145


13,894

Total operating expenses

32,175


28,621



114,575


104,869

Operating loss

(3,717)


(1,157)



(13,528)


(9,029)

Financial and other income, net

176


343



339


1,857

Loss before income tax expenses

(3,541)


(814)



(13,189)


(7,172)










Tax expenses

489


867



1,851


2,176

Net Loss

(4,030)


(1,681)



(15,040)


(9,348)










 Basic net loss per share

$         (0.11)


$         (0.05)



$         (0.42)


$         (0.27)










 Diluted net loss per share

$         (0.11)


$         (0.05)



$         (0.42)


$         (0.27)










Weighted average number of shares used in 









computing basic net loss per share

36,426,471


35,317,213



36,050,540


35,007,201










Weighted average number of shares used in 









computing diluted net loss per share

36,426,471


35,317,213



36,050,540


35,007,201




























 

TABLE  - 2

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)












Three Months Ended


Year Ended



December 31,


December 31,



2021


2020


2021


2020



(Unaudited)


(Unaudited)

GAAP cost of revenues

$        12,516


$        11,627


$         44,553


$        40,082

 Share-based compensation (1) 

(137)


(113)


(581)


(355)

 Amortization of intangible assets (2) 

(152)


(152)


(608)


(608)

Non-GAAP cost of revenues

$        12,227


$        11,362


$         43,364


$        39,119










 GAAP gross profit 

$        28,458


$        27,464


$       101,047


$        95,840

 Gross profit adjustments 

289


265


1,189


963

 Non-GAAP gross profit 

$        28,747


$        27,729


$       102,236


$        96,803










 GAAP operating expenses 

$        32,175


$        28,621


$       114,575


$       104,869

 Share-based compensation (1) 

(1,749)


(1,663)


(7,419)


(4,843)

 Expenses related to M&A activities (3) 

-


-


-


(82)

 Changes in taxes and headcount related items (4)

367


296


367


296

 Non-GAAP operating expenses 

$        30,793


$        27,254


$       107,523


$       100,240










 GAAP financial and other income 

$             176


$            343


$              339


$          1,857

 Exchange rate differences* 

12


(84)


454


(552)

 Non-GAAP Financial and other income 

$             188


$            259


$              793


$          1,305










 GAAP taxes on income 

$             489


$            867


$           1,851


$          2,176

 Tax expenses in respect of net deferred tax asset recorded 

(118)


(15)


(282)


(202)

 Changes in tax related items 

(100)


(500)


(100)


(500)

 Non-GAAP taxes on income 

$             271


$            352


$           1,469


$          1,474










 GAAP Net Loss 

$         (4,030)


$        (1,681)


$        (15,040)


$         (9,348)

 Share-based compensation (1) 

1,886


1,776


8,000


5,198

 Amortization of intangible assets (2) 

152


152


608


608

 Expenses related to M&A activities (3) 


-


-


-


82

 Changes in taxes and headcount related items (4)

(367)


(296)


(367)


(296)

 Exchange rate differences* 

12


(84)


454


(552)

 Tax expenses in respect of net deferred tax asset recorded 

118


15


282


202

 Changes in tax related items 


100


500


100


500

 Non-GAAP Net income (loss) 

$         (2,129)


$            382


$          (5,963)


$         (3,606)










 GAAP Loss per share (diluted) 

$           (0.11)


$          (0.05)


$           (0.42)


$           (0.27)

 Share-based compensation 

0.05


0.05


0.22


0.15

 Amortization of intangible assets 

0.00


0.01


0.02


0.02

 Expenses related to M&A activities 

-


-


-


0.01

 Changes in taxes and headcount related items


(0.01)


(0.01)


(0.01)


(0.01)

 Exchange rate differences* 

0.01


(0.00)


0.02


(0.01)

 Changes in tax related items 


0.00


0.01


0.00


0.01

 Non-GAAP Net income (loss) per share (diluted) 

$           (0.06)


$           0.01


$           (0.17)


$           (0.10)



















Weighted average number of shares used in 








computing GAAP diluted net loss per share

36,426,471


35,317,213


36,050,540


35,007,201



















Weighted average number of shares used in 








computing non-GAAP diluted net loss per share

36,426,471


37,574,546


36,050,540


35,007,201










* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.










 

 

TABLE  - 2 cont.

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)












Three Months Ended


Year Ended



December 31,


December 31,



2021


2020


2021


2020



(Unaudited)


(Unaudited)










(1) Share-based compensation:









Cost of revenues

$             137


$            113


$              581


$             355


Research and development costs, net

646


412


2,499


1,368


Sales and marketing

740


683


3,212


2,145


General and administrative

363


568


1,708


1,330



$          1,886


$          1,776


$           8,000


$          5,198










 (2) Amortization of intangible assets 









Cost of revenues

$             152


$            152


$              608


$             608



$             152


$            152


$              608


$             608










 (3) Expenses related to M&A activities 









Research and development costs, net

$               -


$               -


$                -


$               82



$               -


$               -


$                -


$               82










 (4) Changes in taxes and headcount related items  









Sales and marketing

$            (367)


$           (296)


$            (367)


$            (296)



$            (367)


$           (296)


$            (367)


$            (296)










 

 

TABLE  - 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)








December 31,


December 31,



2021


2020



(Unaudited)


(Audited)




ASSETS





CURRENT ASSETS:





Cash and cash equivalents


$                   11,717


$                23,599

Short-term bank deposits


60,720


47,225

Restricted deposits


1,480


1,200

Available-for-sale marketable securities


11,531


27,178

Trade receivables, net


30,829


20,685

Other receivables and prepaid expenses


8,490


14,205

Inventories


11,092


12,586

Total current assets


135,859


146,678






LONG-TERM ASSETS:





Long-term bank deposits


215


215

Severance pay fund


407


434

Operating lease right-of-use assets


8,513


4,458

Trade receivables, net


6,643


-

Deferred taxes


(0)


420

Other assets 


1,639


2,975

Total long-term assets


17,417


8,502






PROPERTY AND EQUIPMENT, NET


15,000


11,993

GOODWILL AND INTANGIBLE ASSETS, NET


35,138


34,427






Total assets


$                 203,414


$              201,600






LIABILITIES AND SHAREHOLDERS'
EQUITY





CURRENT LIABILITIES:





Trade payables


$                     3,940


$                  2,092

Deferred revenues


22,138


26,658

Short-term operating lease liabilities


2,785


2,813

Other payables and accrued expenses


26,250


27,299

Total current liabilities


55,113


58,862






LONG-TERM LIABILITIES:





Deferred revenues


15,942


9,782

Long-term operating lease liabilities


5,467


1,835

Accrued severance pay


884


969

Total long-term liabilities


22,293


12,586






SHAREHOLDERS' EQUITY


126,008


130,152






Total liabilities and shareholders' equity


$                 203,414


$              201,600











 

 

TABLE  - 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands)










Three Months Ended


Year Ended


December 31,


December 31,


2021


2020


2021


2020


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)









Cash flows from operating activities:
















Net Loss

$        (4,030)


$     (1,681)


$    (15,040)


$     (9,348)

Adjustments to reconcile net income to net cash used in
operating activities:








Depreciation

1,255


1,041


4,635


3,704

Stock-based compensation

1,886


1,776


8,000


5,198

Amortization of intangible assets

235


152


941


608

Capital loss 

-


18


-


18

Increase (Decrease) in accrued severance pay, net

(14)


92


(58)


128

Decrease (Increase) in other assets

(138)


(2,315)


1,006


(2,048)

Decrease in accrued interest and  amortization of premium on marketable securities 

17


11


182


357

Changes in operating leases, net

(84)


198


(451)


(413)

Decrease (Increase) in trade receivables

(6,250)


(1,740)


(16,787)


8,323

Decrease (Increase) in other receivables and prepaid expenses

1,197


(6,126)


4,902


(7,272)

Decrease (Increase)  in inventories

(2,194)


2,950


1,494


(1,918)

Decrease (Increase) in long-term deferred taxes, net

255


(76)


420


96

Increase (Decrease) in trade payables

2,552


(8,807)


1,848


(9,584)

Increase in employees and payroll accruals

2,531


2,395


458


2,047

Increase (Decrease) in deferred revenues

(9,684)


4,215


1,640


(5,182)

Increase (Decrease) in other payables, accrued expenses and other long term liabilities

1,938


2,091


(1,559)


3,061

Net cash used in operating activities

(10,528)


(5,806)


(8,369)


(12,225)









Cash flows from investing activities:








Decrease (Increase) in restricted deposit

120


519


(280)


32,896

Redemption of (Investment in) short-term deposits

14,205


7,936


(13,495)


(41,883)

Purchase of property and equipment

(3,051)


(2,035)


(7,642)


(7,582)

Investment in available-for sale marketable securities

-


(844)


-


(1,219)

Proceeds from redemption or sale of available-for sale marketable securities

5,162


5,483


15,094


34,847

Net cash provided by (used in) investing activities

16,436


11,059


(6,323)


17,059









Cash flows from financing activities:
















Proceeds from exercise of stock options

150


155


2,810


1,835

Net cash provided by financing activities

150


155


2,810


1,835

















Increase (Decrease) in cash and cash equivalents

6,058


5,408


(11,882)


6,669

Cash and cash equivalents at the beginning of the period

5,659


18,191


23,599


16,930

Cash and cash equivalents at the end of the period

$        11,717


$     23,599


$      11,717


$     23,599

















 

 


Other financial metrics (Unaudited)

U.S. dollars in millions, except number of full time employees, % of top-10 end-
customers out of revenues and number of shares




Q4-2021

FY 2021


FY 2020

Revenues geographic breakdown







Americas


9.8

24%

19.4

14%

8.1

6%


EMEA


16.5

40%

82.0

56%

104.3

77%


Asia Pacific


14.7

36%

44.2

30%

23.5

17%




41.0

100%

145.6

100%

135.9

100%










Breakdown between products & services revenues






Products


23.2

56%

88.1

60%

92.5

68%


Professional Services

7.3

18%

19.3

14%

13.3

10%


Support & Maintenance

10.5

26%

38.2

26%

30.1

22%




41.0

100%

145.6

100%

135.9

100%










Revenues per customer type








CSP


34.5

84%

116.9

80%

114.8

84%


Enterprise


6.5

16%

28.7

20%

21.1

16%




41.0

100%

145.6

100%

135.9

100%










Security revenues




40.1


22.8











SECaaS (Security as a Service) revenues


4.1


1.9











Incremental MAR*





193.0


192.0











Backlog (end of period)




88.6


109.7











% of top-10 end-customers out of revenues

69%


51%


71%











Total number of full time employees 

741


741


676


(end of period)

















Non-GAAP Weighted average number of basic shares (in
millions)

36.4


36.1


35








Non-GAAP weighted average number of fully diluted
shares (in millions)

38.6


38.4


37.2


*MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature
and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the customer's subscribers,
as estimated by Allot, signed up for the service (the MAR of previous years ($ millions): 2018- 3, 2019- 85)










 

 

SECaaS (Security as a Service) revenues- U.S. dollars in millions (Unaudited)
















Q4-2021:

1.3









Q3-2021:

1.2









Q2-2021:

0.9









Q1-2021:

0.8



















SECaaS ARR * (annualized recurring revenues)- U.S. dollars in millions (Unaudited)















Dec. 2021:

5.2









Dec. 2020:

2.7









Dec. 2019:

0.5



















*ARR: annualized recurring SECaaS revenues, calculated based on the monthly revenues multiplied by 12












 

 

ARR- U.S. dollars in millions (Unaudited)




Dec. 2020


Dec. 2021 


Dec. 2022
estimation


2021 vs. 2020


2022 (est.) vs. 2021 

Support & maintenance ARR *

31.2


42.0


41-43


35%


(2%) -2%













SECaaS ARR **

2.7


5.2


 20-30


93%


 285%-477%













Total ARR

33.9


47.2


 61-73


39%


 29%-55%













* Support & Maintenance ARR measures the current annual run rate of the support & maintenance revenues, which is
calculated based on these expected revenues in the fourth quarter and multiplied by 4.

** SECaaS ARR measures the current annual run rate of the SECaaS revenues, which is calculated based on these expected
revenues in the current month of December and multiplied by 12.



 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/allot-announces-fourth-quarter--full-year-2021-financial-results-301482342.html

SOURCE Allot Ltd.