Allot Ltd (ALLT) 2025 Q2 法說會逐字稿

Good day to all of you and welcome to Allot's conference call to discuss its financial results for the second quarter of 2025. I would like to thank Allot's management for hosting this conference call. (Operator Instructions) As a reminder this conference call is being recorded. If you have not received the company's press release please check the company's website at www.allot.com.

大家好，歡迎參加 Allot 電話會議，討論其 2025 年第二季的財務業績。我要感謝 Allot 管理階層主持這次電話會議。（操作員指示）提醒一下，本次電話會議正在錄音。如果您尚未收到該公司的新聞稿，請造訪該公司的網站 www.allot.com。

With me today on the line are Mr. Eyal Harari CEO; and Ms. Liat Nahum CFO. Following Eyal's prepared remarks we will open the call for the question-and-answer session and both Eyal and Liat will be available to answer those questions.

今天與我一起通話的有執行長 Eyal Harari 先生和財務長 Liat Nahum 女士。在 Eyal 發表完準備好的演講後，我們將開始問答環節，Eyal 和 Liat 都將回答這些問題。

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

您可以在今天的收益新聞稿中找到本季的亮點，包括財務亮點和指標，包括我們通常在電話會議上討論的內容。

Before we start I would like to point out the following safe harbor statement. This conference call may contain projections or other forward-looking statements regarding future events or the future performance of the company. 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 customers reduced demands 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.

在我們開始之前，我想指出以下安全港聲明。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或其他前瞻性陳述。這些聲明只是早期的預測，Allot 無法保證它們會真正發生。Allot 不承擔更新資訊的任何義務。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 客戶服務推出延遲、需求減少、安全服務行業的競爭性質以及公司向美國證券交易委員會提交的文件中確定的其他風險。

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

此外，本次電話會議中的財務表和結果將主要以非 GAAP 為基礎呈現。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。有關所有數據，請參閱今天早些時候發布的業績新聞稿中公佈的財務表，其中還包括 GAAP 與非 GAAP 的對帳表。

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

現在我想將電話交給執行長 Eyal Harari。Eyal，請繼續。

Thank you Kenny. We are exceptionally pleased with our second quarter 2025 results from both a financial and strategic perspective. Most notable was the accelerated and very strong performance of our SECaaS growth engine. SECaaS ARR was up 73% year over year. We ended the quarter at $25.2 million ARR. SECaaS contributed over one-fourth of our revenues for the first time and in line with our strategy is becoming a sizable and increasing portion of our overall revenue with each passing quarter.

謝謝你，肯尼。從財務和策略角度來看，我們對 2025 年第二季的業績感到非常滿意。最值得注意的是我們的 SECaaS 成長引擎的加速和強勁表現。SECaaS ARR 年成長 73%。本季結束時，我們的 ARR 為 2520 萬美元。SECaaS 首次貢獻了我們超過四分之一的收入，並且根據我們的策略，其在我們總收入中所佔的比例逐季增加，且越來越大。

We also reported a 9% year-over-year overall revenue growth with improved margins growth and profitability and solid operating cash generation. In the quarter the highly successful launch of Verizon Business's new mobile offering My Biz Plan contributed meaningfully to our results.

我們還報告了總收入年增 9%、利潤率和盈利能力提高以及穩健的營運現金產生。本季度，Verizon Business 的新行動服務 My Biz Plan 的成功推出對我們的業績做出了重大貢獻。

Toward the end of June we significantly strengthened our balance sheet. We completed a share offering and combined with our positive operating cash flow we ended the quarter with over $72 million in net cash and equivalents and no debt. We have a strong balance sheet and expect to continue generating positive operating cash flow. We are executing well on our strategy and are driving sustainable profitable growth.

六月底，我們大幅加強了資產負債表。我們完成了股票發行，加上正的經營現金流，本季末我們的淨現金及等價物超過 7,200 萬美元，並且沒有債務。我們的資產負債表強勁，預計將繼續產生正的營運現金流。我們的策略執行良好，並正在推動可持續的獲利成長。

Focusing on some of the trends within the business I first want to discuss our SECaaS growth engine the Cybersecurity as a Service business. We continue to see strong momentum and growing traction among major telcos for our Security as a Service solution. We are increasingly seeing the fruits of our long-term investment in this solution.

專注於業務中的某些趨勢，我首先想討論我們的 SECaaS 成長引擎，即網路安全即服務業務。我們繼續看到主要電信公司對我們的安全即服務解決方案的強勁發展勢頭和日益增長的吸引力。我們越來越多地看到對該解決方案的長期投資所取得的成果。

As you may remember in February we signed our largest SECaaS deal to date with Verizon Business, a division of one of the largest and most prestigious wireless provider in the United States and in the world. In April, Verizon launched its new service called My Biz Plan, a customizable wireless plan geared towards small and midsized businesses. The service includes as a default option, mobile Internet security, which is built on Allot's cybersecurity protection.

您可能還記得，今年二月，我們與 Verizon Business 簽署了迄今為止最大的 SECaaS 協議，Verizon Business 是美國乃至全球最大、最負盛名的無線服務提供商之一的子公司。今年 4 月，Verizon 推出了一項名為 My Biz Plan 的新服務，這是一項針對中小型企業的可自訂無線計劃。該服務包括預設選項——行動互聯網安全，它建立在 Allot 的網路安全保護之上。

Importantly, customers are automatically opt in to service at the start and Allot gets paid by Verizon for each account that is connected to the My Biz Plan service. This new service is being actively marketed to Verizon Business mobile customers, which is over 30 million subscribers. It is also an attractive flexible package for new potential business subscribers. This exciting land-and-expand win represent a significant targeted addressable market and long-term growth opportunity for Allot.

重要的是，客戶一開始就會自動選擇加入服務，而 Verizon 會為每個連接到 My Biz Plan 服務的帳戶向 Allot 支付費用。這項新服務正在積極向 Verizon Business 行動客戶推銷，其用戶數量超過 3,000 萬。對於新的潛在商業用戶來說，這也是一個有吸引力的靈活套餐。此次令人興奮的土地和擴張勝利對 Allot 來說意味著一個重要的目標市場和長期成長機會。

The Verizon Business reported that the new offering are resonating well with customers and driving strong sales momentum. We believe the long-term potential for Allot from this deal is substantial.

根據 Verizon Business 報導，新產品受到了客戶的熱烈歡迎，並推動了強勁的銷售勢頭。我們相信，這筆交易將為 Allot 帶來巨大的長期潛力。

A few weeks ago, we announced that Play, a leading converged operator in Poland, selected our DNS Secure solution to provide cybersecurity protection services to its fixed broadband customers. This win brings additional services to our existing network-based solution that Play deployed back in 2021 for their mobile customers. Play's fixed broadband customers and mobile customers now have a unified, converged user experience using Allot cybersecurity protection.

幾週前，我們宣布波蘭領先的融合營運商 Play 選擇了我們的 DNS Secure 解決方案，為其固定寬頻客戶提供網路安全保護服務。此次勝利為我們現有的基於網路的解決方案帶來了額外的服務，該解決方案是 Play 於 2021 年為其行動客戶部署的。Play 的固定寬頻客戶和行動客戶現在可以透過 Allot 網路安全保護獲得統一、融合的使用者體驗。

We also announced earlier this week that Mas Movil, a telecom operator in Panama, selected Allot NetworkSecure to provide its mobile and fixed customer with network-native cybersecurity protection.

本週稍早我們也宣布，巴拿馬電信業者 Mas Movil 選擇 Allot NetworkSecure 為其行動和固定客戶提供網路原生網路安全保護。

Our SECaaS strategy is built on the following four growth drivers; first, increasing the number of CSPs that we work with to launch cybersecurity services. Strong existing relationship include Verizon Business, Vodafone, MEO, O2 and Telefonica, just to name a few. We continue to see the potential to add new SECaaS telco and CSP customers such as Mas Movil, which we just announced, and we have a solid pipeline of opportunities. After launch, we aim to expand our services to new end user segments at the CSP, for example, expanding for mobile to broadband customers with Play being the most recent example.

我們的 SECaaS 策略建立在以下四個成長動力之上；首先，增加與我們合作推出網路安全服務的 CSP 數量。現有的牢固合作關係包括 Verizon Business、Vodafone、MEO、O2 和 Telefonica，僅舉幾例。我們繼續看到增加新的 SECaaS 電信和 CSP 客戶的潛力，例如我們剛剛宣布的 Mas Movil，並且我們擁有大量的機會。推出後，我們的目標是將我們的服務擴展到 CSP 的新終端用戶群，例如，將服務範圍擴展到行動和寬頻客戶，Play 就是最近的例子。

We also aim to increase the penetration of our cybersecurity protection services among our customers, end users. We have a strong group of telecom customers, and we are working closely with them to ensure that their customers, the end users, know about the solution and understand the significant added benefit they will get at only a marginal increase to their monthly bill.

我們也致力於提高我們的網路安全保護服務在客戶和最終用戶中的滲透率。我們擁有一群強大的電信客戶，我們正在與他們密切合作，以確保他們的客戶（最終用戶）了解該解決方案，並理解他們只需稍微增加每月帳單就能獲得的顯著附加利益。

And finally, we look to upsell and cross-sell new applications and products to the CSPs. Our OffNet solution is an example of a new product, which is a significant value added to the CSPs because it ensures that the end user can remain connected and protected by the CSP even when the end user is not under a network. Because we already have a strong working relationship with CSPs and telcos, the sales cycle for this type of new add-on services is significantly reduced.

最後，我們希望向 CSP 追加銷售和交叉銷售新的應用程式和產品。我們的 OffNet 解決方案是一個新產品的範例，它為 CSP 增加了重要的價值，因為它確保即使最終用戶不在網路下，他們也可以保持連線並受到 CSP 的保護。由於我們已經與 CSP 和電信公司建立了牢固的合作關係，因此此類新附加服務的銷售週期大大縮短。

The strong launch at Verizon, together with the growing traction among our customers that have recently launched our SECaaS offering gives us an improved visibility and make us increasingly comfortable that we will exceed our regional SECaaS growth estimates. As such, this quarter, we increased our SECaaS growth outlook. We expect 2025 year-end SECaaS ARR to show an exceptionally strong year-over-year growth in a range of 55% to 60%.

在 Verizon 的強勢推出，加上最近推出我們的 SECaaS 產品的客戶日益增長的吸引力，使我們提高了知名度，並讓我們越來越有信心我們將超越我們對區域 SECaaS 增長的預期。因此，本季我們提高了 SECaaS 成長預期。我們預計 2025 年底 SECaaS ARR 將呈現異常強勁的年成長，增幅在 55% 至 60% 之間。

Our Smart product for network intelligence remains an important part of the overall Allot business. Built on decades of Allot experience, offering best-in-class technology and innovation, this solution continues to be market-leading offering. Today, our Smart product is being sold as part of our unified, security-first platform.

我們的網路智慧產品仍然是整個 Allot 業務的重要組成部分。該解決方案基於數十年的 Allot 經驗，提供一流的技術和創新，並繼續保持市場領先地位。今天，我們的智慧產品作為我們統一的、安全第一的平台的一部分出售。

In the past few months, we have signed several multimillion dollar agreements with new customers as well as a very significant agreement with a Tier 1 telco, all of which will contribute significantly to our overall future growth. Our new integrated solution is enabling us to generate increased demand in 2025, and we are seeing a higher backlog and improved visibility.

在過去的幾個月裡，我們與新客戶簽署了數百萬美元的協議，並與一家一級電信公司簽署了一項非常重要的協議，所有這些都將對我們未來的整體成長做出重大貢獻。我們的新整合解決方案使我們能夠在 2025 年產生更大的需求，並且我們看到了更高的積壓訂單和更好的可見性。

I wanted to discuss the landmark deal that we announced a few weeks ago. This new business win was with a Tier 1 telco operator in EMEA. It is pivotal win for Allot, the largest in five years, and it validates our ability to expand our security and network intelligence footprint. The agreement is valued in the range of tens of millions of dollars. The project will be executed over 2026 and 2027. It includes a long-term recurring revenue tail of maintenance and support revenues. We see additional growth potential for further projects at this customer over the coming years.

我想討論一下我們幾週前宣布的具有里程碑意義的協議。此次新業務是與歐洲、中東和非洲地區的一級電信業者合作的。這是 Allot 五年來最大的一次勝利，也是至關重要的勝利，它證明了我們有能力擴大安全和網路情報覆蓋範圍。該協議價值數千萬美元。該計畫將於2026年和2027年實施。它包括維護和支持收入的長期經常性收入。我們看到未來幾年該客戶進一步的專案將具有更大的成長潛力。

The integrated solution will offer both our network intelligence and cybersecurity solution for this customer converged 4G and 5G mobile network and fixed fiber network. This solution will be delivered via unified service gateway based on our recently launched SG-Tera III platform. We launched this new service gateway at the end of last year. It is geared toward top-tier telco operators because it offers unparalleled visibility into network traffic under one unified platform.

此整合解決方案將為該客戶融合的4G和5G行動網路和固定光纖網路提供網路智慧和網路安全解決方案。該解決方案將透過基於我們最近推出的 SG-Tera III 平台的統一服務閘道交付。我們在去年年底推出了這個新的服務網關。它面向頂級電信營運商，因為它在統一平台下提供無與倫比的網路流量可視性。

This partnership is highly valuable for Allot, not only from a financial perspective, but also because it brings us a major new telco customer with large subscriber base. It also allow us to demonstrate the value of our unique technological advantages and core expertise for major telco players in both cybersecurity and network intelligence.

此次合作對 Allot 來說非常有價值，不僅從財務角度來看，還因為它為我們帶來了一個擁有龐大用戶群的重要新電信客戶。這也使我們能夠向主要電信業者展示我們在網路安全和網路智慧方面的獨特技術優勢和核心專業知識的價值。

We continue to see further interest in the SG-Tera III platform, and it is another contributing factor to our current strong pipeline. We see interest from both existing customers that we want to upgrade to our new platform as well as new customers that appreciate the value added that this new product can bring them.

我們繼續看到人們對 SG-Tera III 平台的進一步興趣，這是我們目前強大產品線的另一個促成因素。我們看到現有客戶和新客戶都對這款新產品能為他們帶來的附加價值感興趣，現有客戶希望升級到我們的新平台。

Towards the end of June, we successfully completed a follow-on equity offering, receiving strong support from the capital markets and our largest shareholder, Lynrock Lake. The proceeds were used to pay down our convertible debt as well as for general corporate purposes and to strengthen our balance sheet. We are very happy with the strong vote of confidence we have received from the capital markets. The offering added multiple new supportive and long-term focused institutional investor to our shareholder base.

6月底，我們成功完成了後續股票發行，並得到了資本市場和最大股東Lynrock Lake的大力支持。所得款項用於償還我們的可轉換債務以及用於一般公司用途並加強我們的資產負債表。我們很高興看到資本市場對我們投出了強而有力的信任票。此次發行為我們的股東基礎增加了多個新的支持性和長期關注的機構投資者。

We also gained support from a number of leading Wall Street investment bank that we continue to work with to bring additional interest to our company. In particular, I want to thank Lynrock team for their ongoing and meaningful long-term support of our company.

我們也獲得了多家華爾街領先投資銀行的支持，並將繼續與這些銀行合作，為我們的公司帶來更多利益。我特別要感謝Lynrock團隊對我們公司長期以來持續且有意義的支持。

Given our strong performance in the first half of 2025 as well as our improved visibility and solid backlog into the second half, we are introducing revenue guidance for the full year and we are also increasing our SECaaS growth expectation. For 2025, we expect overall revenues of between $98 million to $102 million, positioning us for a year of profitable growth. And as I mentioned earlier, we increased our 2025 SECaaS ARR growth expectations to between 55% and 60%.

鑑於我們在 2025 年上半年的強勁表現以及下半年的提高的知名度和穩固的積壓訂單，我們將推出全年收入指導，並提高我們的 SECaaS 增長預期。到 2025 年，我們預計總收入將在 9,800 萬美元至 1.02 億美元之間，這將為我們實現盈利增長的一年做好準備。正如我之前提到的，我們將 2025 年 SECaaS ARR 成長預期提高到 55% 至 60% 之間。

In summary, we are exceptionally happy with our second quarter 2025 performance and continued strong momentum into the second half of the year. We showed significant success with a new contract with a major telco player worth tens of millions of dollars, which will be executed over 2026 and 2027. We are especially excited about the increasing traction and the very strong growth of our SECaaS solution.

總而言之，我們對 2025 年第二季的業績感到非常滿意，並將繼續保持下半年的強勁勢頭。我們與一家大型電信公司簽訂了價值數千萬美元的新合同，取得了巨大成功，該合約將於 2026 年和 2027 年執行。我們對 SECaaS 解決方案日益增長的吸引力和強勁的成長感到特別興奮。

Looking ahead, our visibility has improved. Our backlog is strong, and our pipeline continues to be broad with many opportunities. I'm increasingly optimistic about our long-term future and looking to continue progressing on our security-first strategy.

展望未來，我們的知名度已經提高。我們的積壓訂單很多，而且我們的管道仍然很廣闊，並且有很多機會。我對我們的長期未來越來越樂觀，並期待繼續推動我們的安全第一戰略。

And now I would like to hand over to our CFO, Liat Nahum, for the financial summary. Liat, please go ahead.

現在我想把財務摘要交給我們的財務長 Liat Nahum。Liat，請繼續。

Thanks, Eyal. We reported revenue of $24.1 million in the quarter, up 9% year over year. Revenue from our growth engine, SECaaS were $6.4 million in the quarter, in line with our expectations and up 73% year-over-year, comprising 27% of our revenue in the quarter. Our SECaaS annual recurring revenue, ARR, as of June 2025, was $25.2 million.

謝謝，埃亞爾。我們報告本季營收為 2,410 萬美元，年增 9%。本季度，我們成長引擎 SECaaS 的營收為 640 萬美元，符合我們的預期，年增 73%，佔本季營收的 27%。截至 2025 年 6 月，我們的 SECaaS 年度經常性收入 ARR 為 2,520 萬美元。

I will now discuss the non-GAAP financial measures. For all financial results, including the GAAP financial measures and other various breakdown of our revenue, please refer to the table in our results press release.

我現在將討論非公認會計準則財務指標。有關所有財務結果，包括 GAAP 財務指標和我們收入的其他各種明細，請參閱我們的業績新聞稿中的表格。

Our non-GAAP gross margin in the quarter was 73.4% compared with 70.6% in the second quarter of last year. Non-GAAP operating expenses for the quarter were $16.4 million, 2% below $16.7 million in the second quarter of last year.

本季我們的非公認會計準則毛利率為 73.4%，去年第二季為 70.6%。本季非公認會計準則營運費用為 1,640 萬美元，比去年第二季的 1,670 萬美元下降 2%。

Allot had 487 full-time employees as of June 2025. We expect this to gradually increase towards the 500 full-time employees by year-end.

截至 2025 年 6 月，Allot 擁有 487 名全職員工。我們預計到年底這一數字將逐步增加至 500 名全職員工。

We reported a non-GAAP operating income of $1.2 million compared with a non-GAAP operating loss of $1 million in the second quarter of last year.

我們報告的非公認會計準則營業收入為 120 萬美元，而去年第二季的非公認會計準則營業虧損為 100 萬美元。

In terms of non-GAAP net profit, we reported $1.5 million in the quarter or a profit of $0.03 per diluted share as compared with a non-GAAP net loss of $0.8 million or a loss of $0.02 per share in the second quarter of last year.

就非公認會計準則淨利潤而言，本季度我們報告的淨利潤為 150 萬美元，即每股攤薄利潤 0.03 美元，而去年第二季度的非公認會計準則淨虧損為 80 萬美元，即每股虧損 0.02 美元。

During the quarter, we completed a $46 million follow-on share offering, of which $40 million in gross proceeds were received before the end of the quarter and the remaining $6 million in gross proceeds were received after the close of the quarter. We used $31.4 million to repay back the convertible notes that our larger investor, Lynrock Lake held and they converted the remaining $8.6 million of debt to 1.25 million Allot shares. Our shares outstanding following the offering and the conversion of the convertible notes were 47.2 million shares outstanding.

在本季度，我們完成了 4,600 萬美元的後續股票發行，其中 4,000 萬美元的總收益在本季度結束前收到，其餘 600 萬美元的總收益在本季度結束後收到。我們用 3,140 萬美元償還了我們的大投資者 Lynrock Lake 持有的可轉換票據，他們將剩餘的 860 萬美元債務轉換為 125 萬股 A​​llot 股票。發行和可轉換票據轉換後，我們的流通股數為 4,720 萬股。

We reported positive operating cash flow in the second quarter of $4.4 million. Cash, bank deposits and investments as of June 30, 2025, totaled $72 million versus $59 million as of December 31, 2024. As part of the follow-on share offering, we repaid the $40 million convertible notes. And as of June 30, 2025, the company has no debt.

我們報告第二季度的營運現金流為 440 萬美元。截至 2025 年 6 月 30 日的現金、銀行存款和投資總額為 7,200 萬美元，而截至 2024 年 12 月 31 日為 5,900 萬美元。作為後續股票發行的一部分，我們償還了 4000 萬美元的可轉換票據。截至2025年6月30日，該公司沒有債務。

That ends my summary. Eyal and I are now happy to take your questions.

我的總結到此結束。埃亞爾和我現在很高興回答你們的問題。

Okay, we'll now take questions. (Operator Instructions)

好的，我們現在開始問問題。（操作員指示）

Shaul Eyal, TD Cowen.

沙烏爾·埃亞爾 (Shaul Eyal)，考恩 (Cowen) TD。

Thank you. Hi, good afternoon. Good morning, Eyal and Liat. Congrats on the results and outlook. Eyal, wondering what has been driving the strong ARR growth metrics? And maybe for Liat, healthy performance on the gross margin's front. What has been driving that improved performance across the board? Thank you.

謝謝。嗨，下午好。早上好，Eyal 和 Liat。祝賀取得的成果和前景。Eyal，想知道是什麼推動了強勁的 ARR 成長指標嗎？對於 Liat 來說，毛利率方面可能表現良好。是什麼推動了整體業績的提升？謝謝。

Thank you, Shaul. We are happy with the results of the quarter. And definitely, the SECaaS ARR growth is exceptionally high this quarter. As mentioned in the prepared remarks, the growth in the ARR is driven both by new customers, new services we launched with existing customers, increased adoption within the services already launched and upsell of new applications. In the recent couple of quarters, we announced about Vodafone expansion and in specific Verizon (technical difficulty) --

謝謝你，沙烏爾。我們對本季的業績感到滿意。毫無疑問，本季 SECaaS ARR 成長率異常高。正如準備好的演講中所提到的那樣，ARR 的成長是由新客戶、我們與現有客戶一起推出的新服務、已推出的服務的採用率提高以及新應用程式的追加銷售共同推動的。最近幾個季度，我們宣布了沃達豐的擴張計劃，特別是 Verizon（技術難度）——

Gross margin in the last few quarters. As SECaaS is becoming a higher percentage of our revenue, it is driving the higher gross margin. But also, in addition, the revenue mix which we had in product this quarter in Q2 was in favor of more software expansion deals, which contributed to a higher gross margin. As we stated before, our gross margin is dependent on the revenue mix. And going forward, we do expect to remain in the range of 71% to 73% gross margin.

過去幾季的毛利率。隨著 SECaaS 在我們收入中所佔的比例越來越高，它推動了毛利率的提高。此外，我們第二季產品的收入組合有利於更多的軟體擴展交易，這有助於提高毛利率。正如我們之前所說，我們的毛利率取決於收入組合。展望未來，我們預期毛利率將維持在 71% 至 73% 的範圍內。

Many thanks.

非常感謝。

Jonathan Ho, William Blair.

喬納森·何、威廉·布萊爾。

Hi, good morning. Congratulations on the strong results. Can you give us a little bit more color on the My Biz opportunity and how you expect that to potentially ramp over time?

嗨，早安。恭喜您取得如此優異的成績。您能否向我們詳細介紹 My Biz 機會以及您預計該機會將如何隨著時間的推移而成長？

Thank you, Jonathan. So as shared last quarter, Verizon decided to launch a new flagship My Biz business plan. This is their main service offering for their business customers, focused on the SMB customers, mobile business phones. As part of the launch of this program, they decided to offer Allot cybersecurity protection as a default add-on to the package as part of -- they see cybersecurity as very important for business customers. And as part of a value added to customers to move to this new plan, they decided to bundle our solution with it by -- as default.

謝謝你，喬納森。因此，正如上個季度所分享的那樣，Verizon 決定推出新的旗艦 My Biz 商業計劃。這是他們為商業客戶提供的主要服務，主要針對中小企業客戶和行動商務電話。作為該計劃啟動的一部分，他們決定將 Allot 網路安全保護作為該軟體包的預設附加元件提供——他們認為網路安全對商業客戶非常重要。作為向客戶轉用這項新計劃所增加的價值的一部分，他們決定預設將我們的解決方案與其捆綁在一起。

Verizon are now promoting their My Biz Plan in a lot of their focus and capacity. They were mentioning this success launch in their earnings call. And we are actually getting subscriber fee for any new subscriber that is joining the plan.

Verizon 目前正在大力推廣其 My Biz Plan。他們在財報電話會議上提到了這次成功的發布。事實上，對於任何加入該計劃的新用戶，我們都會收取訂閱費用。

From past experience with other carriers, we know that it takes between two to three years to get into the peak. We are just now in one quarter to the penetration of this service. So obviously, now it's moved from zero to start to share ARR. So growth is affecting a lot. But we expect the growth to continue in the next two to three years as more carriers more customers are moving to this My Biz plan.

根據過去與其他業者合作的經驗，我們知道需要兩到三年的時間才能達到頂峰。我們目前才剛開始普及這項服務一個季度。顯然，現在它已經從零開始共享 ARR。因此，成長影響很大。但我們預計，隨著越來越多的營運商和客戶轉向 My Biz 計劃，未來兩到三年內成長將持續下去。

This is what we expect, again, and it depends on the Verizon go-to-market approach. It's not something they are committing to us. It's not something we have full visibility, but based on what we see from other carrier in similar cases. So now we are one quarter to go, but we expect two to three years growth from this service launch.

這正是我們所期望的，而且它取決於 Verizon 的行銷策略。這不是他們向我們承諾的事。我們對此還沒有完全了解，但基於我們從其他承運商的類似案例中看到的情況。現在我們只剩下一個季度了，但我們預計這項服務推出後將實現兩到三年的成長。

Excellent. And maybe just as a follow-up, can you talk a little bit about the large European telecom deal that you signed or a CSP deal that you signed. And is this mostly SECaaS or is there sort of a networking component as well? Any color would be helpful. Thank you.

出色的。也許只是作為後續問題，您能否談談您簽署的大型歐洲電信協議或您簽署的 CSP 協議。這主要是 SECaaS 嗎，還是也存在某種網路元件？任何顏色都會有幫助。謝謝。

So the -- what we call the landmark deal of tens of millions of dollars, we issued a PR a few weeks ago, is a deal around our network intelligence product line, the Smart. It's not part of our SECaaS. And this win is for a leading CSP in EMEA, which decided to purchase our Tera III platform to cover both mobile and fixed network with our solution.

因此，我們幾週前發布了一份公關文件，稱這項具有里程碑意義的數千萬美元交易是圍繞我們的網路智慧產品線 Smart 達成的。它不是我們 SECaaS 的一部分。此次中標的是歐洲、中東和非洲地區一家領先的 CSP，該公司決定購買我們的 Tera III 平台，以便透過我們的解決方案覆蓋行動和固定網路。

The Smart product line includes both our traffic management capabilities, which allow them to better manage the performance of their network. But it also includes some of our cybersecurity engines to protect their network. This is a CapEx deal, that, as mentioned before, is expected to be executed in the coming years, and we expect most of the revenue to come in '26 and '27. And as CapEx deal, this should be then providing additional services, mainly supported maintenance during the following years.

智慧產品線包括我們的流量管理功能，使他們能夠更好地管理其網路效能。但它還包括一些我們的網路安全引擎來保護他們的網路。這是一項資本支出交易，如前所述，預計將在未來幾年內執行，我們預計大部分收入將出現在 26 年和 27 年。作為資本支出交易，這應該提供額外的服務，主要支援接下來幾年的維護。

Great, thank you.

太好了，謝謝。

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Thank you. Congrats on an excellent quarter, really, really strong SECaaS ARR. That's fantastic to see. And just to point out that second quarter in a row of record incremental ARR, this quarter being $4 million versus $3 million in the March quarter. So that's fantastic. Just to be clear, that increase in the record incremental ARR for the June quarter, it sounds like that is being driven by a full quarter of Verizon Business mobile being available? Or is that due to increased attach rates as Verizon pushes the My Biz Plan harder?

謝謝。恭喜本季取得優異成績，SECaaS ARR 確實非常強勁。看到這個真是太棒了。需要指出的是，這是連續第二季創下增量 ARR 記錄，本季為 400 萬美元，而 3 月季度為 300 萬美元。這真是太棒了。需要明確的是，6 月季度 ARR 增量創紀錄的增長，聽起來像是受到 Verizon Business 移動整整一個季​​度的可用推動嗎？還是因為 Verizon 大力推廣 My Biz Plan 導致附加率上升？

So it's -- thank you, Nehal. The growth is coming mainly from full quarter of promotion of the My Biz. This is -- the service was launched around mid-April. So it's the first time we see the contribution of the My Biz to our ARR growth. The growth is also coming from the Vodafone launch. We announced a few quarters ago that now is coming to full capacity and contribute the ARR. As you'll recall, Vodafone was a security customer, but was not using the SECaaS service. And during the last few quarters, we migrated them to the new solution. And now they are contributing into fuller extent to the ARR. So the mix of the two is what helps us to drive this exceptional growth this quarter.

所以——謝謝你，Nehal。這一增長主要來自於 My Biz 整個季度的推廣。該服務於四月中旬左右推出。因此，這是我們第一次看到 My Biz 對我們的 ARR 成長的貢獻。這一成長也得益於沃達豐的推出。我們在幾個季度前宣布，現在已達到滿載並貢獻 ARR。您可能還記得，沃達豐是安全客戶，但並未使用 SECaaS 服務。在過去的幾個季度中，我們將它們遷移到了新的解決方案。現在他們正在為 ARR 做出更大貢獻。因此，兩者的結合幫助我們推動了本季的卓越成長。

Got it. And it kind of sounds like both of them are kind of equal contributors to the increase in the incremental ARR. Is that correct?

知道了。聽起來，它們兩者對於增量 ARR 的成長都做出了同等的貢獻。對嗎？

Both of them are significantly contributing to the ARR. Yes.

他們兩人都對 ARR 做出了重大貢獻。是的。

Okay. Fantastic. And then can you comment on what has been the profile of attach rates as users within the Verizon Business mobile and users within Vodafone come up for potentially device renewal, which is often the opportunity to attach the SECaaS service. Are you seeing any sort of change in those attach rates?

好的。極好的。然後，您能否評論一下，當 Verizon Business 行動用戶和 Vodafone 用戶進行潛在的裝置更新時，附加率的情況如何，這通常是附加 SECaaS 服務的機會。您是否看到這些附加率有任何變化？

So with Vodafone, it's a mature customer. For them, it's not a new service. They were offering network security based on our previous platform for years. So this is a more stable customer. For the My Biz, as this is offered by default for everyone that is moving to -- is joining the My Biz Plan, obviously, the attach rates are exceptionally high. You can decide to opt out if you really want to, but it's included in the bundle. It's not going to save you any costs. So a very few to -- are choosing that. So it's really very, very high attach rates, close to 100%, something in the 90s. And it's mainly now about how many Verizon customers are joining to the My Biz.

所以對沃達豐來說，它是一個成熟的客戶。對他們來說，這並不是一項新服務。多年來，他們一直基於我們之前的平台提供網路安全。所以這是一個更穩定的客戶。對於 My Biz，由於這是為每個加入 My Biz 計劃的用戶預設提供的，因此附加率顯然非常高。如果您確實願意，您可以決定退出，但它包含在捆綁包中。這不會為您節省任何成本。所以很少人選擇這樣做。所以它的附加率確實非常非常高，接近 100%，大約在 90 年代。現在主要關注的是有多少 Verizon 客戶加入了 My Biz。

They have their own marketing campaigns in order to move their business customers. They have more than 30 million business customers. And they have their campaigns, how and when to migrate them to the My Biz. Obviously, changing devices, new customers that are joining in are opportunities for touch point with -- for them with the end customer and offer this service. And we -- as I answered before, we expect it to be a process of two to three years in order to grow to the maximum penetration of this service as these processes take time. For example, devices, you change every two to three years. And then you conclude the cycle of migration. But those that join My Biz, we see very, very high rates of attachment because it's added by default.

他們有自己的行銷活動來打動他們的商業客戶。他們擁有超過 3000 萬商業客戶。他們有自己的活動，如何以及何時將它們遷移到「我的業務」。顯然，更換設備、加入新客戶都是他們與最終客戶接觸並提供這項服務的機會。正如我之前回答的那樣，我們預計這將需要兩到三年的時間才能實現該服務的最大滲透率，因為這些過程需要時間。例如，設備每兩到三年更換一次。然後你就完成了遷移週期。但是對於那些加入 My Biz 的用戶來說，我們看到了非常非常高的附加率，因為它是預設添加的。

Okay. Fantastic. Moving to the landmark deal that you announced this quarter here. You characterized the pipeline, I think, as very strong, I think. Can you -- presumably, that landmark deal was in the pipeline a quarter ago. And so that must have represented a significant portion of the pipeline a quarter ago. Are you saying that your pipeline has actually increased relative to the quarter despite this landmark deal exiting the pipeline successfully?

好的。極好的。談到您本季宣布的具有里程碑意義的交易。我認為，您所描述的管道非常強大。你能嗎——據推測，這項具有里程碑意義的交易在一個季度前就已經在籌備中了。因此，這肯定代表了一個季度前管道的很大一部分。您是否是說，儘管這項具有里程碑意義的交易成功退出，但您的管道實際上相對於本季度有所增加？

Yes. We still see strong pipeline despite the orders that were very high this quarter, obviously, with these tens of millions of dollar deals. As mentioned also before, we have additional multimillion-dollar opportunities, some of them even eight-digit opportunities with a good mix of existing and new customers. And we still feel that we have good visibility to continue to execute well on the Smart product line.

是的。儘管本季的訂單量非常高，顯然這些交易都達到了數千萬美元，但我們仍然看到了強勁的銷售管道。正如之前提到的，我們還有額外的數百萬美元的機會，其中一些甚至是八位數的機會，並且擁有現有客戶和新客戶的良好組合。我們仍然認為，我們擁有良好的預見性，可以繼續在智慧產品線上取得良好表現。

Okay. And does this landmark deal show up in deferred revenue immediately? Or how is that going to show up in the balance sheet, if at all?

好的。這筆具有里程碑意義的交易會立即反映在遞延收入中嗎？或者，如果真的有的話，這將如何在資產負債表中反映出來？

In general, as Eyal stated, this is a deal that will be recognized in the CapEx part during '26, '27. And therefore, there will be some deferred revenue, but of course, not all. It's a five-year deal. So overall, of course, not everything is invoiced and going to deferred. But over time, as all deals that are project-based, we'll see some increase around the deferred revenue and then shifting it into the revenue. So overall, during '26, '27, this is the trend that you we will see.

總體而言，正如 Eyal 所說，這是一項將在 26、27 年期間的資本支出部分中確認的交易。因此，會有一些遞延收入，但當然不是全部。這是一份五年期的合約。因此，總體而言，當然不是所有的事情都會開立發票並延期。但隨著時間的推移，由於所有基於專案的交易，我們會看到遞延收入增加，然後轉化為收入。所以總的來說，在 26 年和 27 年期間，我們將看到這種趨勢。

What about remaining performance obligations? Is that a metric that you've been reporting in your 10-Qs and will it show up in that then?

剩餘的履約義務怎麼辦？這是您在 10-Q 中報告的一個指標嗎？它會在其中顯示出來嗎？

Yes. So as Eyal stated, there is also recurring revenue from this deal. As any network intelligence deal, there is a maintenance and support part, which is also committed. And going forward, you will see that after we will, of course, execute the full project.

是的。因此，正如 Eyal 所說，這筆交易也帶來了經常性收入。與任何網路情報交易一樣，其中也包含維護和支援部分，這也是必須承諾的。展望未來，您會看到，我們當然會執行整個專案。

Okay, great. Thank you.

好的，太好了。謝謝。

Matt Calitri, Needham.

馬特·卡利特里，尼德姆。

Great. This is Matt Calitri over at Needham. I'll echo how it's great to see the continued momentum at this quarter and the raise to your ARR growth expectations. From a go-to-market perspective, can you provide some color on how you're working with providers to ensure effective marketing? And what are you doing internally to convert pipeline?

偉大的。我是 Needham 的 Matt Calitri。我也很高興看到本季的持續成長動能以及 ARR 成長預期的提高。從行銷角度來看，您能否介紹一下您如何與供應商合作以確保有效的行銷？您在內部做了什麼來轉換管道？

Thank you, Matt. So working with our existing customers for SECaaS is mainly about sharing with them best practices from other carriers we work with. We are trying to work closely with our customers and see what works for them and what doesn't work for them. And when we see in other countries, for example, if we see something that works well in the UK, we share this success story with Verizon for the US. And if we see something works well for Verizon in the US, we might share it with Play in Poland. And they really appreciate as they always like to see more ideas and innovation to drive their services.

謝謝你，馬特。因此，與我們現有的 SECaaS 客戶合作主要是為了與他們分享我們合作的其他營運商的最佳實踐。我們正在努力與客戶密切合作，了解什麼對他們有用，什麼對他們有用。當我們在其他國家看到某種產品時，例如，如果我們發現某種產品在英國運作良好，我們就會與美國的 Verizon 分享這個成功案例。如果我們發現某些產品對美國的 Verizon 效果良好，我們可能會與波蘭的 Play 分享。他們非常感激，因為他們總是喜歡看到更多的想法和創新來推動他們的服務。

Mostly, we -- they are relying on their own teams. We are working with large carriers, Tier 1 carriers that usually have a lot of resources and a lot of knowledge and a lot of know-how. So they know how to promote their services. We are mainly there to support them and provide our expertise and any materials that can be leveraging the campaigns. And as mentioned before, some success stories from other carriers.

大多數情況下，我們——他們依靠自己的團隊。我們正在與大型承運商、一級承運商合作，他們通常擁有大量資源、大量知識和大量技術訣竅。所以他們知道如何推廣他們的服務。我們主要是為了支持他們，提供我們的專業知識和任何可以利用活動的材料。正如之前提到的，其他運營商也有一些成功案例。

As for new customers, this is working on business development in order to create new partnerships. We have dedicated sales executives that are working around targeted accounts. We identify countries and carriers that we feel appreciate cybersecurity, and they have a need for a solution like ours. They have large enough installed base and ability to charge for this service. And we have targeted go-to-market approach. And this is the reason we are expanding our sales team to further engage with additional carrier and build more partnerships. Once we create new partnership with the carrier, we are actually expanding our addressable market to their end customers.

對於新客戶，我們正在進行業務開發以建立新的合作夥伴關係。我們有專門的銷售主管負責目標客戶的工作。我們確定了那些重視網路安全的國家和營運商，他們需要像我們這樣的解決方案。他們擁有足夠大的安裝基礎和對這項服務收費的能力。我們已經採取了有針對性的行銷方法。這就是我們擴大銷售團隊以進一步與更多運營商合作並建立更多合作夥伴關係的原因。一旦我們與營運商建立新的合作夥伴關係，我們實際上就會將我們的目標市場擴展到他們的最終客戶。

So we have a mix of teams that are doing more of the customer success, which are making sure that the current customers are happy, working on expansions and working on best practices for their go-to-market. And with new customers, it's more of a hunting going after account we dedicated sales team.

因此，我們擁有多個團隊，他們致力於為客戶取得成功，確保現有客戶滿意，致力於擴展業務，並致力於為客戶進入市場提供最佳實踐。對於新客戶，我們更傾向於尋找專門的銷售團隊來爭取客戶。

That's great to hear and makes a ton of sense. And then are you seeing any macro impact on sales cycles? And more specifically, how are the multimillion dollar deals like the European telco progressing through the pipe compared to expectations?

聽到這個消息真是太好了，而且很有道理。那麼，您是否看到對銷售週期的任何宏觀影響？更具體地說，與預期相比，歐洲電信公司等數百萬美元的交易進展如何？

So telco deals and specifically large deals in the tens of million size are taking always time. Sales cycle in telco can be varying between 12 months to 24 and sometimes even longer, and this is expected. Overall, we don't see any macro influence. The telco market in the last few years is quite stable. We see overall good progress with 5G, which drives more efforts by carriers.

因此，電信交易，特別是數千萬美元的大型交易總是需要時間。電信公司的銷售週期可能為 12 個月到 24 個月不等，有時甚至更長，這是預期的。總體而言，我們沒有看到任何宏觀影響。過去幾年的電信市場相當穩定。我們看到5G總體上取得了良好的進展，這推動了營運商的更多努力。

And in specific, we see that the demand we are receiving is coming from the new platform we launched, the Tera III, which is unparallel in its capacity and capabilities and the combined feature set of traffic management with cybersecurity as part of our security-first strategy that we offer something customers really like. So this is really what's driving the demand. But sales cycles are long, and this is why we -- the good side is we see the pipeline building up, and we can track the progress with that.

具體來說，我們看到我們收到的需求來自於我們推出的新平台 Tera III，它的容量和性能無與倫比，並且結合了流量管理與網路安全的功能，這是我們安全第一戰略的一部分，我們提供的產品是客戶真正喜歡的。這才是真正推動需求的因素。但銷售週期很長，這就是為什麼我們——好的一面是我們看到通路正在建立，我們可以追蹤進度。

And there is still always -- with large deals, it's zero-one. You need -- either you win the deal or lose the deal, and this could be influencing the performance over time. But since the beginning of the year, we see good execution, both with existing customers and new customers. We mentioned about multiple deals of multiple million dollars and this landmark deal that was -- we were very happy to win. And we have many more opportunities in the pipeline. We hope to access in well and come with additional good news.

而且對於大宗交易來說，這個數字總是零比一。你需要——要么贏得交易，要么失去交易，這可能會影響長期的表現。但自今年年初以來，我們看到現有客戶和新客戶的執行情況都很好。我們提到了多筆數百萬美元的交易，而這項具有里程碑意義的交易——我們很高興贏得了它。我們還有更多的機會正在籌備中。我們希望一切順利並帶來更多好消息。

Awesome thank you so much.

太棒了非常感謝。

Thanks, Matt. So it looks like there are no more questions in the queue. So that will end our question-and-answer session. In the next few hours, this call will be made available on Allot's Investor Relations website. I would like to thank everyone for joining this call today and especially to Allot's management for hosting this call.

謝謝，馬特。看起來隊列中沒有其他問題了。我們的問答環節到此結束。在接下來的幾個小時內，該電話會議將在 Allot 的投資者關係網站上公佈。我要感謝大家今天參加這次電話會議，特別是感謝 Allot 管理階層主持這次電話會議。

And with that, we end our call. Thank you very much.

就這樣，我們的通話結束了。非常感謝。