Q1 2024 Allot Ltd Earnings Call
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Speaker Change: Ladies and gentlemen, thank you for standing by welcome to the conference call to discuss today's announcement <unk> results Conference call. All participants are present in listen only mode. Following management's formal presentation instructions will be given.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Allot Conference Call to discuss today's announcement, Allot's Results Conference Call. All participants are present in listen-only mode.
Operator: Following management's formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not, please check the company's website at www.allot.com or call EK Global Investor Relations. I would now hand over the call to Allot Investor Relations Officer, Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin? Thank you, Oprah.
Speaker Change: For the question and answer session. As a reminder, this conference is being recorded.
Speaker Change: You have all received by now the Companys press release, if you have not please check the company's website at www dot a low dot com or call E K Global Investor Relations.
Speaker Change: I'll now hand over the call to a local Investor Relations officer, Mr. Kenny Green of Ek Global Investor Relations. Mr. Green would you like to begin.
Kenny Green: Thank you, Operator. Good day to all of you and welcome to Allot's conference call to discuss the results of the first quarter of 2024. I would like to thank Allot's management for hosting this conference. With me on the line today are Mr. Eyal Harari, CEO, and Mr. Ziv Leitman, CFO. Following A.L.
Kenny Green: Thank you operator, good day to all of you and welcome to a lots of conference call to discuss the results of the first quarter 2024.
Speaker Change: I can think of lots of management for hosting this conference call.
Speaker Change: With me on the line today.
Speaker Change: Ill, Harare, CEO and Mr. Ziv Leitman CFO.
Kenny Green: 's prepared remarks, we will then open the call for the question and answer session, and both A.L. and Ziv will be available to answer your questions. You can find the highlights of the quarter, including the financial results and metrics, including those we typically discuss on the conference call in today's Earnings Press. Before we start, I'd like to point out the following Safe Harbor Statement. This conference call contains projections of other forward-looking statements regarding future events or the future performance of the company.
Speaker Change: Hello.
Speaker Change: Remarks, we will then open the call for the question and answer session.
Ill unsafe won't be available to answer your questions.
Speaker Change: You can find the highlights of the quarter, including our financial results and metrics, including that typically discussed on the conference call in today's earnings press release.
Speaker Change: Before we start I'd like to point out the following safe Harbor statement.
Kenny Green: Those statements are early predictions, and Allot cannot guarantee that they will, in fact, occur. Allot does not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing market trends, delays in the launch of services by Allot's customers, reduced demand, and the competitive nature of the security services industry, as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission. And with that, I would now like to hand the call over to Eyal Harari, CEO. Eyal, please go ahead.
Speaker Change: Conference call contains projections or other forward looking statements regarding future events or the.
Speaker Change: Future performance of the company.
Speaker Change: Those statements are only predictions and allot cannot guarantee that they will in fact occur.
Speaker Change: Does not assume any obligation to update that information.
Speaker Change: Actual events or results may differ materially from those projected including as a result of changing market trends.
Speaker Change: As in the launch of services by lots of customers reduced demand and the competitive nature of the security services industry as well.
Speaker Change: Other risks identified in the documents filed by the company.
Speaker Change: Carriage fees and exchange Commission.
Speaker Change: And with that I would now like to hand, the call over to Al Harare CEO.
Speaker Change: Please go ahead.
Candice: Thank you Candice.
Eyal Harari: Kenny, I would like to welcome all of you to our first quarter 2024 call, and I would like to thank you for joining us today. I joined Allot as the CEO a few weeks ago, and I am super excited to work with the board and the entire leadership team to drive Allot to success. I am devoted my time to learning, listening, and planning the best strategy for the company to achieve long-term profitable growth. I bring over 20 years of experience working with top-tier telco customers, most recently as CEO of Radcon and as the company, a leader in automated service assurance solutions for telecom operators running 5G and 4G networks.
Al Harare: I would like to welcome all of you over first quarter 'twenty 'twenty, four cold and I would like to thank you for joining us today.
Speaker Change: John the load as the CEO a.
Speaker Change: A few weeks ago.
Speaker Change: I'm Super excited to work with the board and the entire leadership team to drive a lot of success.
Speaker Change: I am devoting my time to learning and planning the best strategy for the company to achieve long term profitable growth.
Speaker Change: I brings over 20 years of experience working with top tier telco customers. Most recently as CEO of <unk> Com and that's the company.
Speaker Change: As a leader in automated service assurance solution for clinical Mulberry tolls on inside you unfolds you networks.
Eyal Harari: Already, in my first few weeks, I see an amazing organization with great potential, with professional people who are highly experienced and motivated. I see a company with a long tradition of innovation and excellence, fantastic technologies, and a base of top-tier leading customers. In addition, we have a growth engine that has already shown strong double-digit revenue growth, and I believe it has significant long-term potential. Over the coming month, I will be focused on learning about the business and its opportunities, as well as meeting our key customers and partners.
Speaker Change: Already in my first few weeks I see an amazing organization with great potential with proficient on people, who are highly experienced and motivated.
Speaker Change: I see a company with a long tradition of innovation and excellence with fantastic technologies in the base of top tier leading customers.
Speaker Change: In addition, we ever both syndrome, which has already shown strong double digit revenue growth and I believe there is significant long term potential.
Speaker Change: Over the coming months I will be focused on learning about the business and opportunities as well as meeting over to customers and partners.
Eyal Harari: I intend to work with the board, the leadership team, and employees to ensure that we fully capitalize on the opportunities that will drive the company to achieve long-term, sustainable, profitable growth. I decided to join Allot as I see a bright future ahead. I believe strongly in Allot's potential.
Speaker Change: Tend to work with the board the leadership team and employees to ensure that we fully capitalize on the opportunities that will drive the company to achieve long term sustainable profitable growth.
Speaker Change: Besides that you joined alone.
Speaker Change: See a bright future ahead.
Speaker Change: Believes strongly in a lot of potential.
Speaker Change: While they joined only after the first quarter was already over I will provide a short summary of the first quarter results.
Eyal Harari: While I joined only after the first quarter was already over, I will provide a short summary of the first quarter results. We made progress in the quarter towards reaching the break-even level in terms of operating profit and net cash flow. To summarize, first quarter revenue was $22 million, 4% ahead of Q1 last year. Gross margins returned to the 70% range, a strong improvement over the average gross margin in 2023, which was 60%.
Speaker Change: I love to make progress in the quarter towards reaching the breakeven level in terms of operating profit and net cash flow.
Speaker Change: To summarize third quarter revenue was 22 million rollout, 4% ahead of Q1 last year gross margins you can to the 70% range a strong improvement over the average gross margin in 2023, which was 60%.
Speaker Change: They've been revenue improve gross margin and a significant decreasing operating expense, which were 25% below those of the first quarter of last year.
Eyal Harari: Stable revenue, improved gross margin, and a significant decrease in operating expenses, which were 25% below those of the first quarter of last year, brought us much closer to the breakeven level. We reported an operating loss of $1.4 million, negative cash flow of $2.4 million, and EBITDA loss just below break-even at $0.1 million for the quarter.
Speaker Change: It's much closer to the breakeven level.
Speaker Change: We reported an operating loss of $1 4 billion rollout negative cash flow of $2 4 million and EBITDA loss just below breakeven as we all those 1 million rollout for the quarter.
Eyal Harari: We saw El Grota and Genesikas achieve revenues of $3.4 million, up 48% year-over-year. In March, CICAS ARR was 13.7 million, 47% higher than our CICAS ARR as of March 2023. Seekens revenue now makes up 16% of our total revenue and is becoming a more important part of the overall revenue mix. We continue to see CCAS as our growth engine, and we believe it will continue to grow as a percentage of revenue.
Speaker Change: Solar growth engine, because achieved revenues of $3 $4 million up 48% year over year.
Speaker Change: You launched the secrecy, along with $13 70, 147% higher than ours, because a lot of.
Speaker Change: As of March 2023.
Speaker Change: She says revenue now makes up 16% of our total revenue.
Speaker Change: We're becoming a more important part of the overall revenue mix.
Speaker Change: We continue to see Sika is our growth engine and we believe it will continue to grow as a percentage of revenues.
Speaker Change: With the goal of driving improved performance and profitable growth. The company has made significant changes in recent quarters.
Eyal Harari: With the goal of driving improved performance and profitable growth, the company has made significant changes in recent quarters. There have been several rounds of cost-cutting and restructuring through the last year, and as a result, we have significantly optimized our operational expenses and lowered our rate even point. Allot's full-time employee count as of March 2024 was 505 compared to 749 at the end of 2022. However, employee headcount has been reduced by 35% since the peak in September 2022.
Speaker Change: There have been several rounds of cost cutting and restructuring towards the last year.
Speaker Change: As a result, we have significantly optimized a little operational expense and lower our breakeven point.
Speaker Change: A lot of full time employees as of March 2024 was 505 compared to 749 at the end of 2022.
Speaker Change: And so we head count has been reduced by 45% since the peak in.
Speaker Change: September of 2022.
Eyal Harari: Our goal is to bring the business to break even during 2024. At the same time, we intend to maintain disciplined investments in the parts of our business that we believe will drive profitable long-term growth. I would like now to provide you with a short update on the two business lines, Allot Smart and Allot Secure. On the Allot Smart front, I believe we have a highly competitive product. However, there remains market weakness due to cutbacks in spending by our customers, as well as challenging macroeconomic trends.
Speaker Change: Our goal is to bring business to breakeven jewelry point to 24 at the same time, we intend to maintain disciplined investments is a part of our business that we believe will drive profitable long term goals I would like now to provide you with a short update on the two business lines a lot smarter networks, if you will.
Speaker Change: On the low smartphone I believe we have a highly competitive product.
Speaker Change: However, there remains market weakness due to the cutbacks in spending by our customers as words challenging macroeconomic trends.
Eyal Harari: Looking ahead, we have a healthy pipeline with a good mix of opportunities in different stages and across different territories. Despite the reduction in overall resources due to the cost-cutting initiatives, we have increased resources for Allot Smart Sales in very specific areas where we believe that we can capitalize on the pipeline. On the Allot Secure front, CCAS revenues continue to grow at a high double-digit rate with a Tier 1 customer base. From what I've seen so far, Allot Secure is a very effective and highly differentiated product.
Speaker Change: Looking ahead, we have a healthy pipeline with good mix of opportunities in different stages and of course, you can territories.
Speaker Change: Despite the reduction in overall of your source due to the cost cutting initiatives. We have increased the resources for a lot of small cells in very specific areas, where we believe that we can capitalize on the pipeline.
Speaker Change: On the allot secure one because revenues continue to grow at a high double digit rate with a tier one customer base.
So amortize your cellphone allot secure with a very effective and highly differentiated products.
Eyal Harari: We are the market leader in network-native security solutions for the mass market. The clearest evidence of our leadership and the differentiation of our product is the significant list of Tier 1 customers who have launched network-native security services for their customers, including Verizon, Vodafone, Telefonica, and Hatchison, just to name a few. This strong customer base is a testament to the quality of our solution and demonstrates the long-term potential to further expand within these customers as well as additional Tier 1 accounts.
Speaker Change: We are a market leader in network native security solution for the mass market.
The clearest evidence of our leadership and the differentiation of our quota is the significant list of tier one customers with launched network maintenance security services for the customer, including Verizon Vodafone.
Speaker Change: Four meter and Archie soon just to name a few.
Speaker Change: This strong customer base is a testament to the quality of our solution and demonstrates the long term potential to further expand within these customers as well as additional tier one accounts.
Speaker Change: I think our solution is a key potential long term growth driver and believe we are well position with existing customer, it's where they've done some new customers.
Eyal Harari: I see Seeker Solutions as a key potential long-term growth driver and believe we are well positioned with existing customers as well as potential new customers. We are focusing our efforts on our existing CICAS customers. We believe that a more aggressive go-to-market strategy can help them expand their customer base to whom our services are offered. For new CICAS customers, we are being very selective and focusing on specific strategic opportunities. Our most exciting launch in 2023 was Verizon Business, which successfully launched its network native security service, incorporating Allot Network Secure.
Speaker Change: We are focusing our efforts on our existing customers. We believe this more aggressive go to market strategy can help them expand their customer base to more services are offered.
Speaker Change: So news because customers were being very selective and focusing on specific strategic opportunities.
Speaker Change: However, most exciting launch in 2023 awards with Iceland business, which successfully launched network Native security service.
Speaker Change: Incorporating the last nickel secure.
Eyal Harari: The launch is going well, and today Verizon is the largest science CITAS opportunity for Allot. The number of customers continues to grow, and we are discussing with Verizon several potential expansion opportunities for different customer segments. We remain excited about the long-term potential of our Seekers Growth Engine. We see CICAS opportunities as operators continue to be interested in launching a network-based security service with our differentiated, scalable solution.
Speaker Change: The launch is going well and today Verizon is the largest signed secrets opportunity for allot.
Speaker Change: The number of customers continues to grow and we are discussing with Verizon on several potential expansion opportunities for different customer segments.
Speaker Change: We remain excited about the long term potential of our <unk> growth engine with.
Speaker Change: We see opportunities as operators continue to be interested in launching a network based security service with that would differentiate them scalable solution.
Speaker Change: Before we move on to the Q&A I want to highlight with the Cfos like months will be leaving the loss at the end of June and joining us will be asking the home is the new CFO.
Eyal Harari: Before we move on to the Q&A, I want to highlight that our CFO Ziv Leitman will be leaving Allot at the end of June, and joining us will be Liat Nahum as the new CFO. LIAT brings more than 20 years of experience, great talent, and skill, both in finance and business leadership with top-tier high-tech companies, most recently at Amdocs, a public Nasdaq-listed multinational telecom technology I am confident she will significantly contribute to our finance and business strategy in the future.
Speaker Change: Yeah brings more than 20 years of experience, great talent, and SKU voting finance and business leadership, we talked to people with high Tech companies. Most recently with Amdocs Republic, NASDAQ listed multinational Telecom technology company.
Speaker Change: I am confident she will significantly contribute to our finance and business strategy.
Eyal Harari: On behalf of the employees, management, and the board, I would also like to thank Ziv for his four and a half years of financial leadership and wish him every success going forward. In summary, I am optimistic that Allot will execute on its opportunity to drive sustainable, profitable, long-term growth, has significant untapped potential, a highly experienced and motivated workforce, strong technological edge, a powerful growth engine, and a range of top-tier leading customers.
Speaker Change: On behalf of the employees management and the board I would also like to transition towards full enough deals or financial leadership.
Speaker Change: And wish you every success going forward.
Speaker Change: In summary, I want can you speak to just the lost we'll execute on its opportunity to drive sustainable and profitable long term growth.
Speaker Change: A little bit significant untapped potential.
Speaker Change: Hi experienced and motivated workforce strong technological edge, a powerful growth engine and range of top tier leading customers are new.
Speaker Change: For us to capitalize on our strengths to fully realize the opportunities ahead.
Eyal Harari: I look forward to capitalizing on our strengths to fully realize the opportunities ahead. And now, I would like to open the calls for Q&A, and Ziv and myself will be available to answer your questions. Operator. Thank you. Ladies and gentlemen, If you have a question, please press star 1.
Speaker Change: And now I would like to open the calls for Q&A and Z with myself and we'd be available to answer your questions.
Speaker Change: Operator.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen.
Operator: Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star 1. If you wish to decline from the process, please press star 2. Please stand by while we poll for your questions.
Speaker Change: At this time, we'll begin the question and answer session. If you have a question. Please press star one if you wish to decline from the process. Please press star two.
Speaker Change: Please standby, while we poll for your questions.
Speaker Change: Oh.
Speaker Change: Bright house.
Speaker Change: We have a question yes. The first question is from.
Operator: We have a question. Yes, the first question is from Nehal Chokshi of Northland Capital Markets. Please go ahead.
Speaker Change: Let me call chalk sheet of Northland capital markets. Please go ahead.
Speaker Change: Oh, yes, sorry, thank you for taking our questions.
Nehal Sushil Chokshi: Yes, hi. Thank you for taking our questions. Well, you talked about how you want to focus more on existing CTAS customers. Can you delve deeper into why you're choosing to focus more on existing CTAS customers?
Speaker Change: Hello.
Speaker Change: You talked about how you want to focus more on existing <unk> customers can.
Speaker Change: Can you delve deeper onto why you're wanting to choose that to focus more on existing <unk> customers.
Hey, good morning so.
Eyal Harari: A good morning. So, as the company has already updated as of last year. The decision is to be very focused and selective on the CCAS business we are pursuing. So we identify key strategic accounts that we want to work with. Some of them are, of course, our key tier one existing customers and selective new additional customers we are pursuing in order to be very focused and build a relationship with those customers we see as having the highest potential for long-term success. So in this respect, this is not new, and we are continuing in 2024 with the same strategy.
Speaker Change: The company.
Speaker Change: So really updated.
Speaker Change: Last year.
Speaker Change: The decision is to be very focused and selective.
Speaker Change: On the <unk> business.
Speaker Change: You have to see.
Speaker Change: So we identified the key strategic accounts.
Speaker Change: We've.
Speaker Change: Now most of them are all schools.
Speaker Change: Key Q1 existing customers and select the new additional customers.
Speaker Change: In order to be very focused in and build a relationship with those customers who we see.
Speaker Change: The highest potential for long term success. So in this respect this is not new.
And we are continuing the 'twenty 'twenty four with the same strategy.
Speaker Change: Got it understood.
Nehal Sushil Chokshi: got it understood. Okay, and new CEO and CFO. What What changes, if any, do you expect to bring to the table?
Speaker Change:
Speaker Change: And.
Speaker Change: So what.
Speaker Change: Changes if any do you expect to bring.
Speaker Change: Brings to the table.
Speaker Change: So what I'm, saying.
Eyal Harari: I joined a lot, a bit more than two weeks ago. And I'm in this stage mainly busy on learning and listening to the employees, customers, partners, and establishing my plan moving forward. I came from, I have a lot of experience in the telco industry and I work over 20 years with many T1s globally and I'm looking to see where we need to focus and adjust in order to make a lot as successful as possible, mentioned already in previous calls, we are looking this year to be a turnaround year and get the company towards breakeven point, allowing us to stabilize the business and align moving forward to a strategic focus that we are now analyzing to make sure that we are using all the potential of the company.
Speaker Change: Hey, Julien.
Speaker Change: So a bit more than two weeks ago.
Speaker Change: In this stage mainly.
Speaker Change: Learning and listening to the employees customers.
Speaker Change: Establishing mine plan moving forward.
Speaker Change: I came to them because they don't have experience in the telco industry.
Speaker Change: And then I.
Speaker Change: I will go over to Wayne to use.
Speaker Change: Mainly a few ones globally.
Speaker Change: And then looking to see where we need to focus.
Speaker Change: Just in order to make a lot.
Speaker Change: As successful as possible.
Speaker Change: And then.
Speaker Change: Mentioned already disclosed.
Speaker Change: You can be obtained on you Danny on view and get the company to.
Speaker Change: Towards breakeven point.
Speaker Change: When it gets to stabilize the business and.
Speaker Change: In line moving forward.
Speaker Change: <unk> strategic focus.
Speaker Change: We are now analyzing to make sure that we are in.
Speaker Change: Using the all day.
Potential of the company.
Eyal Harari: So at this stage, I have nothing yet to share. Give me some time to continue learning, analyzing, and suggesting, and I'm sure that within a few quarters, I will be able to give you some more color about the new directions and the adjustments.
Speaker Change: So at this stage.
Nothing.
Speaker Change: Yes, I can show you give you some time to continue learning analyzing again suggestive and I'm sure that.
Speaker Change: The routines to workers.
Speaker Change: And we'd be able to give you.
Speaker Change: Some more color boats.
Speaker Change: The new directions and DHS.
Nehal Sushil Chokshi: Okay, great. And then on the... Corp, DPI Business. What are the... talked about that there's still market declines. I think there was, for Sandvine, a credit downgrade, implying that they're also seeing significant declines as well. What are you seeing in terms of market share discovery and what appears to still be a declining market?
Speaker Change: Okay great.
Speaker Change: And then on the.
Speaker Change: Core DPI business.
Speaker Change: Hum.
Speaker Change: What are you.
Speaker Change: You talked about that there's still market declines.
Speaker Change: There was.
Speaker Change: For standby occurred a downgrade implying that they're off the screen.
Speaker Change: That's good declined as well.
Speaker Change: What are you seeing in terms of market share that occurring and what appears to still be a declining block there.
Speaker Change: Yeah.
Eyal Harari: So, the smart product line is based on very advanced, deep technology that was invested in for many years and hundreds of R&D, many years. And it's very unique and advanced in the market. We feel that the technology we have is advanced and very competitive, while in parallel, we see that the CSPs, the operators, are now under pressure to cut costs and reduce capex due to the macroeconomy and overall delays with the 5G network adoption.
Speaker Change: So.
Speaker Change: The smart.
Speaker Change: The product line.
Speaker Change: It is based on very advanced deep technology that was invested in loans.
Speaker Change: In many years and hundreds of R&D.
Speaker Change: Menus.
Speaker Change: And it's very unique in advance in the market.
Speaker Change: We are we feel that.
Speaker Change: <unk>.
Advanced and very competitive.
Speaker Change: You see that.
Speaker Change: DSP is the operational so now under pressure to cut costs and reduce capex due to the macro economy and the overall.
Speaker Change: <unk> you doing inside your network reduction.
Speaker Change: I am confident that the unique technology, we have we.
Eyal Harari: I'm confident that with the unique technology we have, we can capitalize on our assets. We are looking to find the right differentiators and use cases that will give us an advantage over our competitors and eventually provide the most value to our customers. And eventually, when you provide the right value, business will follow. So we continue to invest in this very important business line and make sure we have the right solutions for Customer Demand. Okay, and then...
Speaker Change: We can capitalize on our assets.
Speaker Change: Yeah.
Speaker Change: We are looking to find the right differentiate us and use cases that you provided us.
<unk> got all the competitors and eventually provide the most value to our customers.
Speaker Change: Essentially when you provide the right value.
Speaker Change: This new follow.
Speaker Change: So we continue to invest in this very important business line.
Speaker Change: Making sure we have the rights.
Speaker Change: Solutions sold to customer demands.
Okay, and then you mentioned.
Ziv Leitman: and Liza. Yes.
Speaker Change: Yes.
Ziv Leitman: And Nehal, if I may add, in our strategy, let me remind you all of you, is that we assume that the DPI market is stable, and our strategy for profitable growth will come from an increase in the sickest business. And for instance, this quarter, CCAS revenues are 50% higher than the comparable quarter, and this was also the growth rate in previous years. So we cannot promise the same growth rate for the future. It can be higher, it can be lower, but there is no doubt that this is the growth engine of the company, and the profitable growth will come from the second business, while the smart business will remain stable.
Speaker Change: If I may add and I'll start with you let me remind all of you.
Speaker Change: We assume the DPI market is stable.
Speaker Change: And I'll start with useful all suitable growth will come from the increase in the <unk> business.
Speaker Change: And.
Speaker Change: For instance, this quarter.
Speaker Change: The CCAR the revenues are 60% higher than the comparable quarter.
Speaker Change: And this was also the growth rate in previous years.
Speaker Change: So we cannot promise.
Speaker Change: The same growth rates for the future it can be higher.
Speaker Change: But no doubt that this is the growth engine of the company and deposits and also income.
Speaker Change: And the second one.
Speaker Change: Why.
Speaker Change: Smart business.
Speaker Change: Remain stable.
Yeah, and your state cannot say you are was off 1 million euro or two here.
Nehal Sushil Chokshi: Yeah, and your CKAS ARR was up 1,000,000 QRQ, um, a little less than 10%. What was the driver of that, uh, sequential increase in your CKAS ARR?
Speaker Change: No.
Speaker Change: Although less than 10% are.
Speaker Change: What was the driver of that sequential increase in New York City, That's a R. R.
Eyal Harari: Eventually, we see incremental increases with most of our customers as they continue with their marketing plans and onboard additional subscribers to our services. This trend is expected to continue as we add more customers, more operators that use our services, and they continue their marketing efforts to onboard additional subscribers to their services. And this is why we are seeing double-digit growth so far, and we are expecting to continue to see that with the addition of another subscriber in the next quarter.
Speaker Change: Eventually we see incremental increase most of our customers.
Speaker Change: Continuing with their marketing plans and onboard additional subscribers with services.
Speaker Change: This trend is expected to continue as we add more customers small operators to use those services and they do their marketing efforts to onboard additional subscribers to those savings.
Speaker Change: Yes.
Speaker Change: And this is why we see so far.
Speaker Change: Double digit growth and we don't expect it to continue to see that the addition of <unk>.
Speaker Change: Subscriber in the next quarters.
Speaker Change: Okay, and then you mentioned that Verizon is your largest opportunity or if they are they also the largest seek has a R. R contributor.
Nehal Sushil Chokshi: Okay. And then you mentioned that Verizon is your largest opportunity. Are they also the largest CCAS ARR contributor?
Speaker Change: Yes in general.
Eyal Harari: Yes, in general, they are definitely our biggest opportunity as Verizon is a very large CSP with the potential to expand into many services in many areas. We don't detail a customer ARL, but they are definitely a very important and strategic customer. All right, thank you.
Speaker Change: Sure.
Speaker Change: And that's the biggest opportunity is.
Speaker Change: He is a very large.
Speaker Change: The CSP.
Speaker Change: So to expand into many languages in many areas.
Speaker Change: We don't do too.
Speaker Change: Customer.
Speaker Change: Iran, but.
Speaker Change: Definitely a very important and strategic customer.
Speaker Change: Okay alright, thank you.
Nehal Sushil Chokshi: Okay. All right. Thank you.
Speaker Change: Yeah.
Yeah.
There are no further questions at this time.
Operator: There are no further questions at this time, before I hand back the call to Allot. I would like to remind you that a recording of this call will be available from Allot's website at investors.allot.com in the coming hours. And now, I would like to hand back the call to Mr. Kenny Green, Allot's Investor Relations, to make his concluding statement. Thank you, operator. So over the coming months, we will be organizing calls and meetings for lots of new management with all our investors. If you're interested in meeting or speaking with us, please feel free to reach out to me.
Speaker Change: I hand back the call to I loved.
Speaker Change: I would like to remind you that a recording of this call will be available from our website.
Speaker Change: At investors that are low dot com within the coming hours and now I would like to hand back the call to Mr. Kenny Green of lots of Investor relations to make his concluding statement.
Kenny Green: Thank you, operator. So, over the coming months, we will be organizing calls and meetings for Allot's new management with all our investors. If you're interested in meeting or speaking with us, please feel free to reach out to me or anyone in the Allot Investor Relations team. On behalf of Allot, I'd like to thank all of you for joining this call and your interest in Allot, and I'd like to thank Eyal and Ziv for hosting this call and wish Ziv the best of luck in his future endeavors. And with that, we end our call and look forward to speaking with you next quarter. Have a good day.
Speaker Change: Thank you operator, so over the coming months, we will be organizing coles, a meaningful new management with all our investors.
Operator: Thanks for watching!
Speaker Change: Youre interested in meeting or speaking with US please feel free to reach out to me or anyone in the law.
Speaker Change: Relations team.
Speaker Change: On behalf of a lot I'd like to thank all of you for joining this call and your interest in a lot and I'd like to thank you all and see for hosting this call and wish him. The best of luck in his future endeavors.
And with that we end up call and look forward to speaking with you next quarter have a good day.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
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Speaker Change: Good.
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Speaker Change: Thank you.
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Speaker Change: [music].
Speaker Change: No.
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Speaker Change: No.
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Speaker Change: Thank you.
Speaker Change: Great.
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Speaker Change: [music].
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Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Yes.
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Speaker Change: Yes.
Yes.
Speaker Change: Okay.