Allot Ltd (ALLT) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by.

女士們先生們，謝謝你們的支持。

Welcome to Allot's results conference call.

歡迎參加 Allot 的業績電話會議。

(Operator Instructions).

（操作員說明）。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

You should have all received by now the company's press release.

現在你們應該已經收到公司的新聞稿了。

If you have not, please check the company's website at www.allot.com or call EK Global Investor Relations.

如果您還沒有，請查看公司網站 www.allot.com 或致電 EK 全球投資者關係部門。

I would now hand over the call to Allot Investor Relations Officer, Mr. Kenny Green of EK Global Investor Relations.

現在，我將把電話轉交給 Allot 投資者關係官、EK Global 投資者關係部的 Kenny Green 先生。

Mr. Green, would you like to begin?

格林先生，您想開始嗎？

Thank you.

謝謝。

Good day to all of you and welcome to Allot's conference call to discuss its financial results for the quarter.

祝大家美好的一天，歡迎參加 Allot 的電話會議，討論本季的財務表現。

I would like to thank Allot's management for hosting this conference call.

我要感謝 Allot 的管理階層主辦這場電話會議。

With me today on the call are Mr. Eyal Harari, CEO; and Ms. Liat Nahum, CFO.

今天與我一起參加電話會議的是執行長 Eyal Harari 先生；以及財務長 Liat Nahum 女士。

Following Eyal's prepared remarks, we will open the call for the question-and-answer session.

在埃亞勒準備好的發言之後，我們將開始問答環節。

And both Eyar and Liat will be available to answer those questions.

艾亞爾和利亞特都可以回答這些問題。

You can all find the highlights of the quarter, including financial highlights and metrics, including those we typically discuss on the conference call in today's earnings release.

您都可以找到本季的亮點，包括財務亮點和指標，包括我們通常在今天的財報電話會議上討論的內容。

Before we start, I'd like to point out the following Safe Harbor statements.

在我們開始之前，我想指出以下安全港聲明。

This conference call may contain projections and other forward-looking statements regarding future events or the future performance of the company.

本次電話會議可能包含有關未來事件或公司未來績效的預測和其他前瞻性陳述。

Those statements are early predictions and Allot cannot guarantee that they will, in fact, occur.

這些陳述是早期預測，Allot 無法保證它們實際上會發生。

Allot does not assume any obligation to update that information.

Allot 不承擔更新資訊的任何義務。

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 customers, reduced demands and the competitive nature of the securities services industry as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission.

實際事件或結果可能與預測有重大差異，包括由於市場趨勢變化、Allot 客戶推出服務的延遲、需求減少和證券服務行業的競爭性質以及文件中確定的其他風險該公司向美國證券交易委員會備案。

Also, the financial results in this call will be presented mainly on a non-GAAP basis.

此外，本次電話會議的財務表現將主要依據非公認會計準則（Non-GAAP）公佈。

Allot believes that these non-GAAP financial measures provide more consistent and comparable measures to help investors understand Allot's operating performance in the quarter.

Allot 認為，這些非 GAAP 財務指標提供了更一致且可比較的指標，有助於投資者了解 Allot 本季的營運表現。

For all the data, please refer to the financial tables published in the results press release issued earlier today, which also includes the GAAP to non-GAAP financial reconciliation tables.

有關所有數據，請參閱今天早些時候發布的業績新聞稿中發布的財務表格，其中還包括 GAAP 與非 GAAP 財務調節表。

And with that I would now like to hand the call over to Eyal Harari, CEO.

現在我想將電話轉交給執行長 Eral Harari。

Eyal, please go ahead.

埃亞爾，請繼續。

Thank you, Kenny.

謝謝你，肯尼。

I would like to welcome all of you to our results conference call and thank you for joining us today.

我歡迎大家參加我們的業績電話會議，並感謝您今天加入我們。

I'm pleased with the results of the second quarter as we have clearly made good focus.

我對第二季的結果感到滿意，因為我們顯然已經做好了重點。

Most notably, I'm happy that Allot generated positive operating cash flow and increased its overall net cash position for the first time in three years.

最值得注意的是，我很高興 Allot 產生了正的營運現金流，並在三年來首次增加了其整體淨現金部位。

This success was driven by our efforts, which drove a significant decrease in operating expenses, while also stabilizing revenue and gross margins.

這項成功得益於我們的努力，這推動了營運費用的大幅下降，同時也穩定了收入和毛利率。

In the past couple of quarters, we have significantly optimized operational expenses, which are approximately 25% lower than last year.

在過去的幾個季度中，我們大幅優化了營運費用，比去年降低了約 25%。

We undertook these actions to bring the business to sustainable profitability and to grow the cash position.

我們採取這些行動是為了使業務實現可持續盈利並增加現金狀況。

I want to spend few moments talking about the various parts of our business, starting with Allot Secure, our main growth engine.

我想花一些時間談論我們業務的各個部分，首先從我們的主要成長引擎 Allot Secure 開始。

We continue to invest in our SECaaS growth engine and the business continued to gain traction.

我們繼續投資 SECaaS 成長引擎，業務繼續獲得成長。

In the second quarter, SECaaS revenue increased by 54% year-over-year.

第二季度，SECaaS 營收年增 54%。

Our extensive list of Tier-1 customer enable us to pursue further expansions within these large accounts, while also providing us with high-quality references as we look to attract new logos.

我們廣泛的一級客戶名單使我們能夠在這些大客戶中尋求進一步的擴張，同時也為我們尋求吸引新徽標時提供高品質的參考。

We recently signed an expansion agreement with one of our Tier-1 European CSP customers for the provision of SECaaS to its customer base.

我們最近與歐洲一級 CSP 客戶之一簽署了一項擴展協議，為其客戶群提供 SECaaS。

The expansion agreement should start contributing to our revenue at the end of this year, representing additional SECaaS growth potential for Allot in 2025.

擴張協議應該會在今年年底開始為我們的收入做出貢獻，這代表著 Allot 在 2025 年的額外 SECaaS 成長潛力。

Our most exciting SECaaS launch last year was with Verizon business.

去年我們最令人興奮的 SECaaS 發布是針對 Verizon 業務的。

The engagement continues to be mutually beneficial.

這種接觸仍然是互利的。

And as a result, we are discussing several potential expansion opportunities within Verizon's different customer segments.

因此，我們正在討論 Verizon 不同客戶群中的幾個潛在擴張機會。

I want to point out that Verizon highlighted Allot's contribution to their security solution in the recent published 2024 Mobile Security Index report validating Allot as one of the trusted partners in protecting their network and customers.

我想指出的是，Verizon 在最近發布的 2024 年行動安全指數報告中強調了 Allot 對其安全解決方案的貢獻，證明 Allot 是保護其網路和客戶值得信賴的合作夥伴之一。

Specifically, the report noted, that the growth of the mobile computing and IoT is exponentially expanding the attack surface that needs protection, which in turn will require a matching focus on insurance sufficient mobile security processes, policies and investments.

該報告特別指出，行動運算和物聯網的成長正在指數級擴大需要保護的攻擊面，這反過來又需要相應地關注確保足夠的行動安全流程、政策和投資。

Overall, I believe the SECaaS solution is a key long-term growth driver for Allot in the security space.

總的來說，我相信 SECaaS 解決方案是 Allot 在安全領域的關鍵長期成長驅動力。

For Allot Smart, in the second quarter, we saw increasing traction, converting some of our pipeline into contracts.

對於 Allot Smart，我們在第二季度看到了越來越多的關注，將我們的一些管道轉化為合約。

We achieved an improved level of sales to new customers as well as an expansion of sales to current customers.

我們提高了對新客戶的銷售水平，並擴大了對現有客戶的銷售。

Allot is a trusted long-term supplier of its smart products to a strong customer base.

Allot 是一家值得信賴的智慧產品長期供應商，擁有強大的客戶群。

This is highlighted by our relationship with Rakuten Mobile.

我們與樂天移動的關係凸顯了這一點。

Rakuten is the fourth mobile network operator in Japan with a fully virtualized cloud-native network.

樂天是日本第四家擁有完全虛擬化雲端原生網路的行動網路營運商。

Allot has been working closely with Rakuten since 2019 when they were rolling out their network infrastructure.

自 2019 年 Rakuten 推出網路基礎設施以來，Allot 一直與 Rakuten 密切合作。

Rakuten recently announced that their subscriber base crossed 7 million.

Rakuten 最近宣布其用戶數量突破 700 萬。

Allot continues to provide Rakuten with solutions as they grow the network to support an expanding subscriber base.

隨著樂天網路的發展以支援不斷擴大的用戶群，Allot 繼續為樂天提供解決方案。

Since joining Allot earlier this year, I have been meeting with our key customers and partners globally.

自從今年早些時候加入 Allot 以來，我一直在與我們全球的主要客戶和合作夥伴會面。

I am focused on identifying ways we can leverage our technology to better serve our customers with a goal to reignite growth by expanding within our installed base.

我專注於尋找利用我們的技術來更好地服務客戶的方法，目標是透過擴大我們的安裝基礎來重新激發成長。

Allot has a long tradition of innovation with differentiated technology and a top-tier global customer base.

Allot 擁有悠久的創新傳統，擁有差異化技術和頂級的全球客戶群。

I have spent time with employees.

我與員工共度時光。

We have a strong team of professional and talented individuals, many with deep technology and know now and capabilities in the networking and the security space, which stands at the epicenter of TIP spending priorities.

我們擁有一支由專業人才組成的強大團隊，其中許多人擁有深厚的技術、對網路和安全領域的了解和能力，而網路和安全領域是 TIP 支出優先事項的中心。

I'm currently working closely with the Board and Management, including our new CFO, Liat Nahum, who joined us at the beginning of Q3 to formulate a strategic plan to drive renewed revenue growth and long-term profitability.

我目前正在與董事會和管理層密切合作，包括我們的新任財務長 Liat Nahum，他於第三季初加入我們，制定策略計劃，以推動新的收入成長和長期獲利能力。

I want to share my initial thoughts.

我想分享一下我最初的想法。

We are looking for long-term profitable growth opportunities that leverage Allot's core capabilities.

我們正在尋找利用 Allot 核心能力的長期獲利成長機會。

The cybersecurity market continues to experience rapid growth as threats continue to emerge and increase in sophistication.

隨著威脅的不斷出現和複雜性的增加，網路安全市場持續快速成長。

The mobile cybersecurity market is projected by analysts to be an $8 billion market with over 20% compound average growth over the next decade.

分析師預計，行動網路安全市場將是一個價值 80 億美元的市場，未來十年複合平均成長率將超過 20%。

Cybersecurity is one of Allot's growth engines and we are considering improvements and innovations to our SECaaS Solution to bring additional value and even better cyber protection to our customers.

網路安全是 Allot 的成長引擎之一，我們正在考慮對我們的 SECaaS 解決方案進行改進和創新，以為我們的客戶帶來額外的價值和更好的網路保護。

We are also looking at additional go-to-market strategies for SECaaS to expand our customer base and addressable market.

我們也正在尋找 SECaaS 的其他上市策略，以擴大我們的客戶群和潛在市場。

Another trend we are looking at is 5G evolution.

我們關注的另一個趨勢是5G演進。

As new 5G networks continue to be rolled out, the demand for advanced security solution is growing significantly with analysts expecting compound annual growth rate in excess of 40% over the next five years.

隨著新的5G網路不斷推出，對先進安全解決方案的需求正在顯著增長，分析師預計未來五年複合年增長率將超過40%。

A recent report indicates that around 70% of large companies and 40% of small businesses have adopted at least one cloud service to-date.

最近的一份報告表明，迄今為止，大約 70% 的大公司和 40% 的小型企業已經採用了至少一種雲端服務。

The movement to the cloud is being driven by the increasing need for remote work solution, digital transformation initiatives and the desire to optimize costs and enhance business agility.

對遠端工作解決方案、數位轉型計劃的需求不斷增長以及優化成本和增強業務敏捷性的願望推動了向雲端的遷移。

We are exploring the potential of our products to address and provide additional value to the cloud and 5G markets as we strive for further penetrate these markets.

我們正在探索我們的產品的潛力，以解決雲端和 5G 市場的問題並為其提供附加價值，同時努力進一步滲透這些市場。

While our go-to-market strategy is global in its outlook, we are underpenetrated in North America market.

雖然我們的市場進入策略是全球性的，但我們在北美市場的滲透率還不夠。

Allot has seen initial success in the region in recent years and we have strong references including Verizon.

Allot 近年來在該地區取得了初步成功，我們有包括 Verizon 在內的強大的參考。

We are exploring ways in which we can leverage our early success to deepen our engagement in this region, which today is leading many of the security growth trends.

我們正在探索如何利用我們早期的成功來加深我們在該地區的參與，該地區如今正在引領許多安全成長趨勢。

We see a significant opportunity for Allot in North America.

我們看到 Allot 在北美面臨巨大的機會。

Allot works with many large enterprises and leading CSPs and it is clear that customer success and deepening relationships are key drivers to potentially expanding our business within our installed base.

Allot 與許多大型企業和領先的 CSP 合作，很明顯，客戶的成功和加深的關係是潛在擴展我們的客戶群業務的關鍵驅動力。

We are looking at ways to make Allot more customer-centric as we strive to further cement customer relationships, enabling us to penetrate further into organizations with our products and services.

我們正在尋找方法，讓 Allot 更加以客戶為中心，努力進一步鞏固客戶關係，使我們能夠利用我們的產品和服務進一步滲透到組織中。

A goal would be to structure our organization to better support our customers' business goals as we believe this will allow us to increase business from existing customers.

我們的目標是建立我們的組織，以更好地支持客戶的業務目標，因為我們相信這將使我們能夠增加現有客戶的業務。

I'm working closely with the Board and the management on a strategic plan for renewed revenue growth and long-term profitability.

我正在與董事會和管理層密切合作，制定策略計劃，以實現新的收入成長和長期獲利能力。

We will provide more details as we progress.

隨著進展，我們將提供更多詳細資訊。

In summary, with research management, we believe we are at the start of a new chapter for Allot.

總之，透過研究管理，我們相信我們正處於 Allot 新篇章的開始。

In the second quarter, we stabilized revenues and significantly reduced expenses.

第二季度，我們穩定了收入，大幅減少了費用。

We returned the business to the operating profit breakeven range with positive cash generation.

我們使業務恢復到營業利潤盈虧平衡範圍，並產生積極的現金。

I believe we are well positioned to drive sustainable, profitable long-term growth, and I'm optimistic that Allot will execute on the many opportunities ahead.

我相信我們處於有利地位，可以推動可持續、盈利的長期成長，我對 Allot 將抓住未來的許多機會感到樂觀。

Now I would like to hand it over to our CFO, Liat Nahum for the financial summary.

現在我想將財務摘要交給我們的財務長 Liat Nahum。

Liat, please.

莉亞特，請。

Thanks, Eyal.

謝謝，埃亞爾。

We reported revenue of $22.2 million in the quarter, representing a year-over-year decline of 12%, but up 1% versus the prior quarter.

我們報告本季營收為 2,220 萬美元，年減 12%，但較上一季成長 1%。

Revenue from our growth engine, SECaaS, were $3.7 million in the quarter, up 54% year-over-year and comprising 17% of our revenue in the quarter.

本季我們的成長引擎 SECaaS 的營收為 370 萬美元，年成長 54%，佔本季營收的 17%。

Our SECaaS annual recurring revenue as of June 2024 was $14.6 million.

截至 2024 年 6 月，我們的 SECaaS 年度經常性收入為 1,460 萬美元。

As we discussed in our press release, full year SECaaS revenue and SECaaS ARR are expected to continue experiencing accelerated growth at around 50% year-over-year.

正如我們在新聞稿中討論的那樣，全年 SECaaS 收入和 SECaaS ARR 預計將繼續以 50% 左右的速度加速成長。

You can find various breakdowns of our revenue in the table in our press release.

您可以在我們新聞稿的表格中找到我們收入的各種細目。

Our gross margin in the quarter was 70.6%.

本季我們的毛利率為 70.6%。

In the second quarter last year, our gross margin was 71.4%, and in the prior quarter, it was 70.4%.

去年第二季度，我們的毛利率為71.4%，上一季為70.4%。

While the gross margin depends on the specific product mix sold in the quarter, the long-term target for gross margin is an average of 70% and we are pleased with the return to the 70% level in the first half of 2024.

雖然毛利率取決於本季銷售的具體產品組合，但毛利率的長期目標是平均 70%，我們對 2024 年上半年恢復到 70% 的水平感到高興。

As Eyan mentioned, we reduced expenses considerably over the past year, with a non-GAAP OpEx at $16.7 million, similar to that of last quarter and down by over 25% from the second quarter of last year.

正如 Eyan 所提到的，我們在過去一年中大幅減少了開支，非 GAAP 營運支出為 1,670 萬美元，與上個季度相似，比去年第二季度下降了 25% 以上。

Allot had 500 full-time employees as of June 2024.

截至 2024 年 6 月，Allot 擁有 500 名全職員工。

The non-GAAP operating loss showed significant improvement with a 95% reduction on a non-GAAP basis from $18.9 million in Q2 last year and $1.2 million in last quarter to $1 million in Q2 2024.

非 GAAP 營運虧損顯著改善，以非 GAAP 計算，從去年第二季的 1,890 萬美元和上季的 120 萬美元減少到 2024 年第二季的 100 萬美元，減少了 95%。

For the second half of 2024, we expect a non-GAAP operating profit at around breakeven.

2024 年下半年，我們預期非 GAAP 營業利潤將在損益兩平點左右。

In terms of non-GAAP net loss, we reported $0.8 million in the quarter or a loss of $0.02 per share as compared with a non-GAAP net loss of $18.3 million or a loss of $0.49 per share in the second quarter of last year and net loss of $0.9 million or a loss of $0.03 per share in the previous quarter.

就非 GAAP 淨虧損而言，我們本季報告為 80 萬美元，即每股虧損 0.02 美元，而去年第二季的非 GAAP 淨虧損為 1,830 萬美元，即每股虧損 0.49 美元。虧損90 萬美元，即每股虧損0.03 美元。

Operating cash flow in the second quarter was $1.2 million.

第二季營運現金流為 120 萬美元。

Cash, short-term bank deposits and investments as of June 30, 2024, totaled $53.2 million, an increase of $0.6 million versus $52.6 million at the end of prior quarter, demonstrating stability in the cash level.

截至 2024 年 6 月 30 日，現金、短期銀行存款和投資總額為 5,320 萬美元，較上季末的 5,260 萬美元增加 60 萬美元，顯示現金水準穩定。

Looking ahead, we expect our net cash position to not decrease below the current point.

展望未來，我們預計我們的淨現金部位不會降至目前水準以下。

Cash, short-term bank deposits and investments as of year-end 2023 were $54.8 million.

截至 2023 年底，現金、短期銀行存款和投資為 5,480 萬美元。

That ends my summary.

我的總結到此結束。

Eyan and myself would now be happy to take your questions.

Eyan 和我自己現在很樂意回答您的問題。

(Operator Instructions).

（操作員說明）。

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Thank you, and good to talk with both of you here.

謝謝你們，很高興在這裡與你們兩位交談。

I'd like to focus on the guidance, especially SECaaS ARR guidance.

我想專注於指南，尤其是 SECaaS ARR 指南。

When you say the same 50 -- around 50% year-over-year growth, that translates to an ARR of around $19 million, correct, versus $14.6 million at the end of the June quarter?

當您說同樣的 50（大約 50%）同比增長時，這意味著 ARR 約為 1,900 萬美元，對嗎？

Yes, this is correct.

是的，這是正確的。

We continue to see increased demand for our SECaaS service.

我們繼續看到對我們的 SECaaS 服務的需求不斷增加。

And we reported, as we reported this quarter, a 54% growth, we expect this trend to continue in the coming quarters.

正如我們本季報告的那樣，成長了 54%，我們預計這一趨勢將在未來幾季繼續下去。

Okay.

好的。

So when you think about your SECaaS ARR guidance, how do you build up that guidance?

因此，當您考慮 SECaaS ARR 指南時，您如何建立該指南？

Are you thinking about what are the incremental subscriptions you're going to likely see over the September and December quarter?

您是否正在考慮在 9 月和 12 月季度您可能會看到哪些增量訂閱？

Or are you really thinking more in terms of, this is the year-over-year growth that can be sustained?

或者你真的更多考慮的是，這是可以持續的同比增長嗎？

So the SECaaS growth is comprised from multiple things.

因此，SECaaS 的成長由多種因素組成。

The first is, obviously, winning new accounts that are implementing our SECaaS service.

顯然，首先是贏得實施我們的 SECaaS 服務的新帳戶。

This adds to our installed base and provide additional revenue.

這增加了我們的安裝基礎並提供額外的收入。

But we also see that within the existing customers, we are able to expand our SECaaS to additional services and address additional TAM and by that expand our business and revenue from our existing partners.

但我們也看到，在現有客戶中，我們能夠將 SECaaS 擴展到其他服務並解決其他 TAM 問題，從而擴大我們現有合作夥伴的業務和收入。

I will also mention that some of the nature of the business is after new win and launch a service, it takes some time for the service to uptake.

我還要提到的是，有些業務的性質是在新的勝利和推出服務之後，該服務需要一些時間才能接受。

And as the operator is starting to market and offer this service to its customers, and therefore, even within the specific service, there is a potential to grow.

隨著營運商開始向客戶推銷和提供這項服務，因此，即使在特定服務範圍內，也有成長的潛力。

So overall, we see a mix of three dimensions that are progressing and can grow.

總的來說，我們看到三個維度的混合正在進步並且可以成長。

Obviously, in some services, we reach to that plateau where the operator reached to the max level of revenue that it can generate.

顯然，在某些服務中，我們達到了營運商達到其可以產生的最大收入水準的平台期。

And the 50% is built out of those three growth that we foresee, both growth, use of the service within what we already launched.

50% 是基於我們預見的三個成長，即我們已經推出的服務的成長和使用。

Launching new services with our existing base and winning new accounts and starting to launch services with them.

在我們現有的基礎上推出新服務，贏得新客戶並開始與他們一起推出服務。

Okay.

好的。

That's great.

那太棒了。

That's really helpful.

這真的很有幫助。

So now thinking about the in terms of like the actual incremental SECaaS ARR that you're guiding to for the rest of the year that's basically $4 million to $5 million here, which would represent the most incremental SECaaS ARR for two quarters in a row or are you expecting that most of this $4 million to $5 million is going to come in the fourth quarter as opposed to being distributed between the third and fourth quarter?

因此，現在考慮一下，您在今年剩餘時間內指導的實際增量 SECaaS ARR 基本上為 400 萬至 500 萬美元，這將代表連續兩個季度增量最大的 SECaaS ARR 或您是否預計這400 萬至500 萬美元中的大部分將在第四季度支付，而不是在第三季和第四季之間分配？

It will come gradually, I would say, more on the last quarter, but we will also foresee increase in Q3.

我想說，上個季度的情況會逐漸增加，但我們也預計第三季會增加。

Some of the growth will come in Q3 and a higher growth in Q4.

部分成長將出現在第三季度，而更高的成長將出現在第四季。

Okay.

好的。

And you mentioned that there is something that's happening at the end of the calendar '24 that's going to be a driver to SECaaS ARR.

您提到 24 年日曆末發生的一些事情將成為 SECaaS ARR 的驅動力。

What is that driver there at the end of calendar '24?

24 日曆末的那位司機是誰？

So one of our existing customers, we got into an agreement to expand our SECaaS services to its customers.

因此，我們與現有客戶之一達成了一項協議，將我們的 SECaaS 服務擴展到其客戶。

This is going to be implemented in the coming couple of quarters.

這將在未來幾季內實施。

And by end of the year, we are looking to expand our SECaaS service in this EMEA customer.

到今年年底，我們希望在該 EMEA 客戶中擴展我們的 SECaaS 服務。

After it will be launched, we are looking to see growth in 2025 from this new service.

推出後，我們預計這項新服務將在 2025 年成長。

This is a very encouraging agreement that we got as this customer was using our SECaaS service in a perpetual way and a onetime fee and now it's going to contribute to our SECaaS revenue moving forward.

這是我們獲得的一項非常令人鼓舞的協議，因為該客戶以永久方式和一次性費用使用我們的 SECaaS 服務，現在它將為我們的 SECaaS 收入做出貢獻。

Got it.

知道了。

Okay.

好的。

So I think you guys had a relatively well-known perpetual SECaaS customer and Vodafone, one of the geos with Vodafone.

所以我認為你們有一個相對知名的永久 SECaaS 客戶和沃達豐，沃達豐的地理客戶之一。

So presumably that's the one that you're referring to?

所以想必這就是您所指的？

We didn't reveal the name and we are subject to NDAs.

我們沒有透露名字，而且我們受到保密協議的約束。

But one of our customers that is working with us going to contribute in the SECaaS revenue.

但與我們合作的一位客戶將為 SECaaS 收入做出貢獻。

I think most important is not the exist customer, but the ability and the importance of the service as SECaaS is critical for them and they are looking to continue a long-term relationship with us providing the customer the right security protections.

我認為最重要的不是現有客戶，而是服務的能力和重要性，因為 SECaaS 對他們來說至關重要，他們希望與我們繼續保持長期合作關係，為客戶提供正確的安全保護。

Right.

正確的。

Sure.

當然。

Very good point.

非常好的一點。

And I guess the key point here is that this is a customer that had a perpetual lessons for existing set of customers.

我想這裡的關鍵點是，這個客戶為現有客戶群提供了永久的教訓。

And now that they see the value of that, presumably, they would prefer to get another perpetual license.

現在他們看到了它的價值，想必他們更願意獲得另一個永久許可證。

But because of the strong value they've agreed to the SECaaS revenue sharing?

但由於強大的價值，他們同意 SECaaS 收入共享？

Yes.

是的。

Okay.

好的。

Great.

偉大的。

And then so what's the level of risk that this customer's intention to roll out to additional to next set of customers flips out into calendar '25 as opposed to launching within calendar '24.

那麼，與在日曆 '24 內推出相比，該客戶打算在日曆 '25 中向下一組客戶推出更多產品的風險程度是多少？

And if that does occur, what's the potential impact to your guidance then?

如果這種情況確實發生，那麼對您的指導有何潛在影響？

We have very good visibility in terms of our SECaaS revenue and this is based on the agreement already in place.

我們的 SECaaS 收入具有非常好的可見性，這是基於已經簽訂的協議。

Of course, as some of the projects we have implementation time that might fluctuate as we are implementing within the telco environment that is always require some integration and some work and things may take time.

當然，對於某些項目，我們的實施時間可能會有所波動，因為我們是在電信環境中實施的，而電信環境總是需要一些集成，並且某些工作和事情可能需要時間。

But overall, we are feeling very confident with the progress, and this is why we indicate this guidance.

但總的來說，我們對進展感到非常有信心，這就是我們提出這項指導的原因。

Now it might move, some of the projects might move a quarter, but it's based on our already secured agreement.

現在它可能會移動，一些項目可能會移動四分之一，但這是基於我們已經達成的協議。

So you might say it quite secured.

所以你可能會說它非常安全。

Okay.

好的。

All right.

好的。

And then looking at the June Q, SECaaS ARR results, there was an incremental $0.9 million of SECaaS ARR, very close to $1 million that you reported for the March quarter.

然後查看 6 月季度的 SECaaS ARR 結果，SECaaS ARR 增量為 90 萬美元，非常接近您報告的 3 月季度的 100 萬美元。

And I don't believe you had any new CSPs that launched within the June quarter.

我不認為您在六月季度內推出了任何新的 CSP。

So can you talk about what was the driver of sustaining basically $1 million of incremental ARR in the June quarter?

那麼，您能否談談在六月季度維持基本上 100 萬美元增量 ARR 的驅動因素是什麼？

Yes, as pointed out before, we did see increase of usage that some of our existing customers managed to penetrate deeper into the installed base.

是的，正如之前指出的，我們確實看到了使用量的增加，我們的一些現有客戶設法更深入地滲透到安裝基礎中。

So more of their customers are using now our service as well as some of the customer launched additional protections.

因此，更多的客戶現在正在使用我們的服務，並且一些客戶推出了額外的保護措施。

For example, one of the some -- couple of our customers launched HomeSecure, do not only cover and protect the customer from the network side, but also protect them from the home router.

例如，我們的幾個客戶推出了 HomeSecure，不僅從網路側覆蓋和保護客戶，而且還保護他們免受家庭路由器的影響。

So these are incremental expansions within those existing customers that contribute to the revenue growth and we expect this trend to continue as we still have in our installed base customers that didn't fully maximize the potential of their SECaaS revenue and penetration and this is why we are expecting growth to continue even in the installed base.

因此，這些是現有客戶的增量擴張，有助於收入成長，我們預計這種趨勢將持續下去，因為我們的安裝基礎客戶中仍然有一些客戶沒有充分發揮其SECaaS 收入和滲透率的潛力，這就是我們的原因預計安裝量也將持續成長。

Okay.

好的。

And so I think this is a third quarter availability within the Verizon SMB.

因此，我認為這是 Verizon 中小企業第三季的可用性。

How does the trajectory of attach rates within Verizon look?

Verizon 的額外費率軌跡如何？

Is that continuing to stay steady from when you launched or has it started to you know the attach rate has started to come down here?

自您推出以來，這種情況是否一直保持穩定，還是您知道附加率已經開始下降？

No.

不。

So, overall, we feel that the trend is to continue to grow and adoption should increase.

因此，總的來說，我們認為趨勢是繼續成長，採用率應該會增加。

We still have a big potential of installed base of business customers to address.

我們仍然有巨大的商業客戶群潛力需要解決。

We are working closely with Verizon to see best ways to market our solutions into the customers.

我們正在與 Verizon 密切合作，尋找向客戶推銷我們的解決方案的最佳方法。

Also, as pointed out in my previous comments, looking into expansion to additional services, I believe the Verizon relationship is something we need to look long-term strategically and we are very optimistic on our ability to further grow within Verizon.

此外，正如我之前的評論中指出的那樣，在考慮擴展其他服務時，我相信我們需要從長期戰略角度看待與 Verizon 的關係，並且我們對我們在 Verizon 內進一步發展的能力非常樂觀。

Okay.

好的。

Just to be clear when I was talking about attach rate, my impression is that when you get an incremental subscriber through an existing CSP, it's usually because that CSP had signed up a new subscriber.

需要澄清的是，當我談論附加率時，我的印像是，當您透過現有 CSP 獲得增量訂閱者時，通常是因為該 CSP 已註冊了新訂閱者。

It's at that point of sale that the SECaaS attach most likely occurs.

SECaaS 附加最有可能發生在銷售點。

So that's the attach rate that I'm talking about, the attach rate to new subscribers for a given CSP?

這就是我所說的附加率，即給定 CSP 的新訂戶的附加率？

Yeah.

是的。

So we see both new attached subscribers, the rise on a reporting growth in the business customers on the fixed wireless service and we are enjoying this growth.

因此，我們看到新的附加用戶以及固定無線服務的企業客戶的報告成長都在增加，我們正在享受這種成長。

We also have the installed base of existing customers with our potential to use our service.

我們也擁有有潛力使用我們服務的現有客戶群。

And not only installed base is already leveraging that.

不僅已安裝的基礎已經在利用這一點。

And we are looking on ways to both capture as much as bigger share as possible from the new subscribers as well as the installed base.

我們正在尋找方法，從新訂戶和現有客戶群中獲取盡可能大的份額。

So in overall we see more potential to grow there.

因此，總的來說，我們看到那裡有更大的成長潛力。

Got it.

知道了。

Okay.

好的。

So the bottom line is that the attach rate to new subscribers for the fixed wireless customers of Verizon has stayed relatively steady from the March to June Q?

那麼，從 3 月到 6 月的第一季度，Verizon 固定無線客戶的新用戶附加率是否保持相對穩定？

You could say that.

你可以這麼說。

Okay.

好的。

All right.

好的。

Great.

偉大的。

And is that in contrast to most of your prior CSP launches?

這與您之前推出的大多數 CSP 相比是否形成鮮明對比？

No.

不。

We see that you know it depends on the business model.

我們看到您知道這取決於商業模式。

The operator decides to promote the service.

營運商決定推廣該服務。

Some of them might offer it as a bundle and included as part of the package.

其中一些可能將其作為捆綁包提供並作為包裝的一部分包含在內。

So some offer it to everyone and some offer it as an upsell.

因此，有些人向所有人提供它，有些人則將其作為追加銷售。

And if you offer it as an upsell like Verizon offer it as an incremental service then it's an opportunity to increase over time.

如果你像 Verizon 一樣將其作為追加銷售提供增量服務，那麼這就是一個隨著時間的推移而增加的機會。

It also depends on the network service that we are connected to.

它也取決於我們連接到的網路服務。

It's different if you are protecting the mobile consumer that already you know we know it's a separated market, everyone has a phone and you need to find the right timing for engaging with the customer to do this upsell as opposed to fixed wireless factor, that is a new service to the operator, and it's still growing.

如果您要保護行動消費者，那就不同了，您已經知道我們知道這是一個獨立的市場，每個人都有手機，您需要找到與客戶互動的正確時機來進行追加銷售，而不是固定無線因素，即向運營商提供的一項新服務，而且仍在不斷增長。

And it's one of the growth engines of many of the carriers from North America.

它是許多北美航空公司的成長引擎之一。

And we are attached to a growing service.

我們致力於不斷發展的服務。

And by that we are expecting to grow as part of the natural service growth in the foreseeable future.

透過這一點，我們預計在可預見的未來將成為自然服務成長的一部分。

Okay.

好的。

Great.

偉大的。

And then shifting over to the DPI portion of the business.

然後轉向業務的 DPI 部分。

I believe key competitors Sandvine reported significant layoffs.

我相信主要競爭對手 Sandvine 報告了大規模裁員。

Is this part of the increased pipeline that you're talking about?

這是您所說的增加管道的一部分嗎？

We are mainly focused on what we do and what we approach with our customers.

我們主要關注我們所做的事情以及我們與客戶的接觸方式。

We know that we have a very competitive product for the smart for the traffic management and DPI.

我們知道我們在流量管理和 DPI 方面擁有非常有競爭力的智慧產品。

Overall, we know that this market is the legacy market with specific customer requirements that we know that there are not so many competitors that can fulfill.

總的來說，我們知道這個市場是傳統市場，有特定的客戶要求，我們知道沒有那麼多競爭對手可以滿足這些要求。

And we are happy to see more and more requests from customers to, we don't know if necessarily come from our competitor situation, we mainly focus on our ability to deliver.

我們很高興看到客戶越來越多的要求，我們不知道是否一定來自我們競爭對手的情況，我們主要專注於我們的交付能力。

But still we see that there is the demand is still lower than previous years.

但我們仍然看到需求仍然低於往年。

We are looking to see ways how we can increase our pipeline in this area as well and how we can leverage short-term opportunities that might be raised due to market dynamics.

我們也在尋找如何增加該領域的管道，以及如何利用市場動態可能帶來的短期機會。

Okay.

好的。

And so can you give some quantification of how much improved is the pipeline that you're seeing?

那麼您能否量化一下您所看到的管道改進了多少？

And is it showing up in bookings already?

它已經出現在預訂中了嗎？

So it's not, it's too early to say, and it's not something we are not sharing our pipeline information.

所以這不是，現在說還為時過早，而且我們也不是不分享我們的管道資訊。

I would say that it's now being under analysis and we are looking for the best way to leverage the business potential.

我想說的是，現在正在對其進行分析，我們正在尋找利用業務潛力的最佳方法。

Okay.

好的。

Great.

偉大的。

And then I did notice that you had a relatively large CapEx in the quarter of about $1 million relative to prior quarters.

然後我確實注意到，與前幾季相比，本季的資本支出相對較大，約為 100 萬美元。

Any particular reason to call out for that?

有什麼特別的理由來呼籲這一點嗎？

The CapEx is a mix of SECaaS customers that we invest and some CapEx investment into our own environment.

資本支出是我們投資的 SECaaS 客戶和我們自己環境中的一些資本支出的組合。

Liat, maybe you want to add.

Liat，也許你想補充一下。

No.

不。

So nothing special.

所以沒什麼特別的。

Basically just additional investments around the business as usual and as Eyan mentioned, SECaaS.

基本上只是像往常一樣圍繞業務進行額外投資，正如 Eyan 提到的 SECaaS。

Okay.

好的。

Thank you for addressing all my questions.

感謝您解答我的所有問題。

Thank you, Nehal.

謝謝你，內哈爾。

(Operator Instructions).

（操作員說明）。

There are no further questions at this time.

目前沒有其他問題。

This concludes the Allot Second Quarter 2024 Call.

2024 年第二季分配電話會議到此結束。

Thank you for calling in.

感謝您的來電。