Alarum Technologies Ltd. (ALAR) Earnings Call Transcript & Summary

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Alarum Technologies Second Quarter 2024 Corporate Update Conference Call. [Operator Instructions] This conference is being recorded today, August 26, 2024. Before we get started, I'll read the forward-looking statements disclaimer. This conference call may contain, in addition to historical information, forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements include statements about plans, objectives, goals, strategies, future events or performance, and underlying assumptions, and other statements that are different than historical facts. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that may result in expectations not being realized and may cause actual outcomes to differ materially from expectations reflected in these forward-looking statements. Potential risks and uncertainties include those discussed under the heading Risk Factors in Alarum's annual report on Form 20-F filed with the Securities and Exchange Commission on March 14, 2024, and in any subsequent filings with the SEC. All such forward-looking statements, whether written or oral, made on behalf of the company are expressly qualified by these cautionary statements and such forward-looking statements are subject to risks and uncertainties, and we caution you not to place undue reliance on these. On the call, the company will also present non-IFRS key business metrics. The non-IFRS key business metrics the company uses our EBITDA and adjusted EBITDA, non-IFRS gross margin, non-IFRS net profit or loss, and non-IFRS basic earnings or loss per share or ADS. The exact definitions of these non-IFRS key business metrics are described in the company's second quarter of 2024 financial results press release. I'll now turn the call over to Shachar Daniel, Alarum Technologies' CEO. Mr. Daniel, the floor is now yours.

Thank you very much, and welcome, everyone, to Alarum Technologies' Second Quarter 2021 Results Conference Call. With me here is Shai Avnit, our Chief Financial Officer. I will be covering Alarum's performance, recent development, the trends we are seeing in the market, our strategy, and long-term vision. Today, for the first time, we provided quarterly guidance and are providing additional KPIs as we constantly strive to enhance transparency. Shai will review the financials in our Q3 2024 guidance. I will then conclude the prepared remarks part with a short summary before opening the call for your questions. Starting with a review of our Q2 2024 key achievements. The end of Q2 marked the first full year since we announced our shift to focusing on interparty Internet access. Total revenues for Q2 increased to $8.9 million, of which $8.7 million were attributed to NetNut, our enterprise Internet access arm. Adjusted EBITDA in Q2 reached a record of $3.4 million, more than 3x higher than in the same quarter last year. Revenues for the first 6 months of 2024 increased to $17.3 million, of which $16.8 million was attributed to NetNut and 98% year-over-year increase from the $8.4 million NetNut revenues in the first 6 months of 2023. I'm also very pleased with our continued progress in cash flow generation. Q2 marked our first consecutive quarter of positive cash flow, a significant achievement for a company of our size and stage. We ended the quarter with more than $21 million in cash and cash equivalents. Our cash balance well positions us to invest in opportunities that will drive long-term success and provide the foundation for sustained growth. In line with our strategy and long-term vision, we are on track with our 3 growth engines. First, increasing our market share in the IP proxy network, the IPPN segment; second, penetrating the data collection and labeling market; and third, providing our customers with data insights. We continue to make progress in each of these growth engines during the past quarter where the major and highly regarded brand names of our customer base as we continue to expand and further our network. We made substantial progress into the data collection and labor in market with our new and innovative products, the web unblocker, and the AI data collector. And, we continue to make progress towards adding AI and the managing capabilities to our data products. Addressing these parts establishing the broadest data collection and inside offering is the foundation on Alarum's future growth. As to the first pillar, our IPPN customer base, I'm excited to share that you in Q2, we have added to our customer base, some of the world's largest and most recognized brands. The significance of these new customers of leaders in their respective fields speaks to itself, highlighting the power and robustness of our offerings. We are extremely proud of these additions to our evolving and diversified customer base and look forward to seeing them enhance the usage of NetNut offer over the time. While I cannot share the specific names, I would like to provide some color about them. These new high-caliber customers include one of the largest social media platforms with over 1 billion active users as well as a leading B2B sales intelligence and sales engagement software marketplace company with a database of more than 250 million contracts. A third new Q2 noteworthy customer with one of the world's leading screening and background check providers for our identity verification, employment, and health screening. These customers, which conduct over 100 million background checks annually, we'll be able to reduce the number of manual processes attendance today, thereby improving its operational efficiency. As you may recall, towards the end of 2023, we stated that our growth strategy includes engaging with and attracting Fortune 500 and leading global companies. I am excited to share that in Q3, we won a Fortune 100 customer, a leading merchandise retailer. Before selecting NetNut, they have all evaluated our capabilities, verifying their compliance with their strict performance, scalability, and reliability standards. These wins are a clear testament to our robustness of our products, the innovation driving our development, and our growing reputation as an industry leader. As part of our strategy to increase our market share in the IPPN segment, we continue to invest in expand and better our network, which has now become one of the leading networks in the industry. According to the 2024 Proxy Market Research, which is a comprehensive public report on the IPPN industry, NetNut network is recognized as a top performer, which is a significant endorsement of our technology capabilities and potential scale. What really sets us apart in the size of our network, its stability, and robust functionality, coupled with our ongoing global expansion. Our infrastructure now is capable of handling significantly more traffic. This is a remarkable achievement as it will allow us to scale our revenue significantly while improving our gross margin. This highlights both the robustness of our network and our strategy of building an infrastructure that can drive scalable and profitable growth. Moving on to the second pillar, product innovation in the data collection and labeling market. We continue to focus on and invest in broadening the scope of our data collection offerings. Over the past quarter, we made a significant progress with our new products arising this market, the web unblocker and the AI data collector. The web unblocker and the AI data collector are key components in facilitating our long-term growth and accomplishments in a huge multibillion-dollar prospective market. According to both market research data and our internal assessments, the data collection and labeling market is expected to continue and grow rapidly over the next years. I'm happy to share that in Q2, we started generating initial revenues from new customers who placed orders for the web unblocker. We see a growing pipeline of opportunities for the web unblocker, which has been tested and rated as the best on the market by industry experts. The robust web unblocker is also a key to the success of our AI data collector. The AI data collector will enable enterprises to easily generate a collector within minutes, thanks to its intuitive no-code interface. It's advance AI will enable you to automatically adapt to website changes while ensuring continuous data collection with minimal downtime. With these innovations, we continue to push the boundaries of what's possible in our industry. We also continue to make inroads in our third long-term growth pillar data insights. In Q2, we continued working intensively on bringing to life our vision of adding AI and analysis capabilities to our data products, aiming to create the most comprehensive solution in the market. The significant investment we have made in NetNut the recent years is the gateway to our penetration into the data world. The [indiscernible] of the artificial intelligence strengthens the underlying principle behind this investment. We all acknowledge the importance of data in every aspect of our lives. The conflict between AI and traditional website as it relates to access to transparent, high-quality information is at the core of our data consumption and analysis is evolving. AI relies on data sources and on products that generate insights from existing processes provide recommendations and forecast. I would like to touch upon what we are seeing in the market and specifically in our Q3 business so far. The market we operate in is an ever-evolving and nascent market. Therefore, as we continue to expand our customer base, enhance our offerings, and grow the business, we may experience some short-term variances. Q3 2024 projected revenues assume a year-over-year increase but are also expected to be lower than Q2 due to the market dynamics that some of our customers are experiencing, which have impacted revenues in June. However, as we approach the end of August, we are now observing a positive trend with consistent growth in the monthly revenues rate from June to July continuing into August. This positive trend is driven by primarily by the strong performance and retention of our existing customers and complemented by new customers. This represents an excellent opportunity to share some KPIs we use internally to measure our performance and projected midterm revenue growth. Analyzing data from the past 3 years shows that on average, our NetNut customers have been generating approximately 15x to 18x the revenues compared to their initial month's activity. In Q2 2024, we generated total revenues of nearly $400,000 from dozens of new customers in their first month of activity. This was approximately 60% higher than the revenues generated from new customers that on boarded in the prior quarter, Q1 2024, and was also approximately 35% higher than the average of the last 4 prior quarters. According to our model, these new Q2 customers are expected to generate revenues of about $6 million to $7.2 million over the next few years alone. This is a clear indicator of the resilience of our business model. In Q3, in line with the projected year-over-year growth, we expect to continue to enjoy strong solid customer retention rates across most verticals. In fact, NetNut is expected to surpass the full-year 2023 revenue bar within the first 3 quarters of 2024. Our ongoing growth trend will be driven by continued investment in our record. The success of our new products, expansion of the market, which we anticipate will lead to increasing demand for our solutions, allowing the need for the long run, focus on maintaining a steady focus on sustained growth and profitability. I will now turn the call over to Shai for a review of the financials. Shai, go ahead.

Thank you, Shachar, and hello, everyone. Over the past quarters, the company has achieved impressive growth, improved its margins, and has become a profitable cash-generating company. This gives us the flexibility and resources to invest in the areas that will drive our future growth. I will summarize the main financial results of the second quarter and first half of 2024. Comparing them to our second quarter and first half 2023 results, respectively, unless otherwise stated. All figures were rounded for [indiscernible]. Also, today is the first time that we are providing quarterly guidance in parallel to the quarterly results announcement. I will provide guidance for Q3 2024 as we aim to enhance transparency for investors. Let's move on to the numbers. Revenue for the second quarter of 2024 increased to $8.9 million, up 27.2% from $7 million in the second quarter of 2023. The NetNut portion was to $8.7 million in Q2 2024, up 72% from $5 million in Q2 2023, while reaching a 6-month record of $16.8 million, almost double the $8.4 million NetNut revenues recorded in the first half of 2023. Non-IFRS gross margin for the second quarter of 2024 increased to 78.5%, up from 71% in Q2 2023. The year-over-year increase in gross profit and gross margins was primarily driven by the increase in revenues. We've structured our network in a way that allows us to generate higher revenues while maintaining essentially the same level of fixed costs. This enables us to achieve higher gross margins as revenues increase. Operating expenses in Q2 2024 were down to $4.2 million from $12.8 million in Q2 2023. The Q2 2023 operating expenses included $8.5 million attributed to goodwill and intangible assets impairment from n CyberKick, our consumer Internet access business, which we have been scaling down since Q3 last year. In Q2 2024, we recorded net cost finance expenses of $2.5 million resulting from fair value increase of warrants issued in 2019 to 2020 related to the increase in the company's share price, the vast majority of the warrants are due to expire in 2025. As a result, we recorded a $0.4 million IFRS net loss for the second quarter of 2024 compared to a net loss of $7.7 million in Q2 2023. Excluding these finance expenses and other noncash costs, our adjusted EBITDA for the second quarter of 2024 was $3.4 million, 3x higher than the $1.1 million adjusted EBITDA in the first quarter of 2023. Due to 2024 non-IFRS basic earnings per share was $0.04 per share or $0.41 per ADS compared to $0.04 basic earnings per share of $0.45 per ADS in Q2 2023. As of June 30, 2024, the company's shareholders' equity totaled $20.4 million, up from $13.2 million on December 31, 2023. The increase in net profit, combined with warrants and option exercises contributed to this $6.8 million increase. The company's cash and cash equivalents balance at the end of Q2 2024 was $21.6 million, up from $10.9 million as of December 31, 2023, as we have successfully been generating cash flow from operations. Moving on to the guidance. We are expecting Q3 2024 revenue to demonstrate year-over-year growth with an estimated revenue range of $7 million plus minus 3%. As a reminder, the NetNut portion of our revenues in Q3 2023 was $6.1 million. Q3 2024 adjusted EBITDA is expected to range between $0.8 million to $1 million. To summarize my part before I turn the call back to Shachar. Operating results and cash generation achieved over the past quarters have resulted in improved profitability metrics and a positive adjusted EBITDA as well as a solid cash balance. All of which are outstanding for a company of our size, and they provide us with the flexibility and resources to invest in the areas that will drive the company's future growth. With that, I'll turn the call back over to Shachar.

Thank you, Shai. In Q2, 2024 Alarum once again delivered solid results. As a long runner, Alarum focus on expanding its customer base and investing in technological innovation. We are confident that these investments will yield benefits for the company and its various stakeholders. The expansion of our networks enables us to serve more and more customers to drive scalable and profitable growth across various verticals today and in the future. We intend to continue and release new products designed to meet evolving market requirements. We will continue to embark on our strategy by adding data insight and AI capabilities to our existing products, ensuring that we stay at the forefront of the industry. We have a clear vision of where we want to go, and we are executing our plan with discipline and focus. We are laying the foundation for future success as a leader in the global data collection market through innovation, strategic investments, and a determined focus on execution. We will now open the call for Q&A session. Operator?

[Operator Instructions] Our first question is from the line of Brian Kinstlinger with Alliance Global Partners.

With your revenue being all subscriptions for the most part and therefore recurring, the net retention revenue was 1.66 in the first quarter and 1.59 in the second quarter, reconcile those, if you could, with the major drop in revenue sequentially.

So Brian, can you repeat the last part of your question?

I'm curious with revenues recurring and your retention rate has been suggesting your existing customers' usage is much higher, why in the third quarter would revenue drop so steeply? What's causing that?

Okay. So just to refresh the audience and our new memory. So the NRR indicators that we are using and not only us, it's an industry standard is basically make 4 measurements. It compares 4 quarters to the previous 4 quarters, then moving 1 quarter back doing the same and another 2x, meaning it takes the big data into the calculations. So till now, you remember it Brian?

Yes.

Okay. So even if you see a drop or a dip of sequential quarters or quarter-over-quarter, it doesn't say that you will see the impact directly in the NRR because the NRR is, as I mentioned, measuring 4x, four quarters versus 4 quarters 4x. Now for the second part of your question. So as I mentioned in my speech just a few minutes ago, in the third quarter, we experienced a kind of slowdown for some of our customers, which basically made -- as we just mentioned, made the revenues to go a little bit back from Q2 to Q3. But on the other side, after we saw this slowdown in May, it's only in June, we started to see the positive growth trends of the company going back directly on track. And in July, we see a growth versus June. And we projected August, we see that August is going and we are about to finish August in a few days, it's going to show also a growth comparing to July. But it didn't come back to the same point that May was. I hope it answers your question.

A little bit. So I want to make sure I understand, first, have you lost any customers? And second, if I'm understanding what you're saying is several of your existing customers are expecting to have significantly less usage, so they're going to be paying less. Is that what you're saying?

No, no, no. Okay. So for your question, if we lost customers. So I cannot -- formally, I can't say that we lost customers because losing a customer meaning we announced or we let you know that is terminating the agreement, stop the usage going back leaving you for a competitor, or something like this. It's not the case here. If you remember, our model is based on duration and consumption. So in the middle of Q3, some of our customers slowed down their usage. And that's what we call a drop or a kind of a dip that made them to renew or not to renew in the next months, meaning in June, for example or in July, even if they renewed, they bought much smaller packages from a bandwidth perspective. And this is why you see these revenues are going back. On the other side, the other customer, which is the major portion of our customers continue to show consistency, growth, and that's why we see a growth from July to June and then from August to [indiscernible].

Okay. I'm wondering if you could share any customer concentration metrics, for example, what percentage of the total revenue in the first half of the year came from the top 5, 10, or 20 customers?

Okay. So basically, by right, I don't have this data or these calculations in front of my eyes but I want to be more specific. So if we will talk about May versus June, so in May versus June, you can see that it's not MRL, it's MR, let's call it, the monthly revenues due to this slowdown or scale down of their usage, you can see around 20% of the monthly revenues decreased from May to June or sorry -- in June, comparing to May. And then we start to go back from this 20% level going back to go up and to grow again to July and August.

Okay. Just a follow-up. Is your top 20 customers more than half of your revenue?

Top 20 customers?

Up 20. Are they more than half of your monthly revenue or quarterly revenue?

Okay. So we also discussed about it. I can tell you what we see now, okay, for the first half of the 2024, okay? So what we see now, this is the -- one second, okay. So for the first half of 2024, we have the pyramid, okay, that in this pyramid, we have around more than 400 customers that we are measuring all of the customers that are performing more than $100. And from this pyramid, you can see that 5 customers generated more than $500,000 in the first half of 2024, the aggregate number of $6.8 million, meaning an average of 8.3% per each customer for these 5 customers. The next level -- I will give you just the next level is 38 customers that generated between $50,000 to $500,000, aggregate number of $7.2 million, and each customer generated in average 1.15% of the revenues of the company in the first 2 quarters of 2024. So an aggregate number of $14 million in the first half of 2024, generated by a total amount of 43 customers of the company. Hope it give you some light on the...

Last question for me -- that's very helpful. Last question for me. You mentioned -- you made a comment, I didn't quite get it, what were the over $2 million of expenses on other expenses? You said something about finance. What -- and are those cash costs, all of it?

Brian, you mean the finance expenses?

Yes. Yes, below the line you have over $2 million of expenses.

Yes. $2.5 million of finance expenses, these are -- actually, we discussed it probably I remember on the first quarter, these are expenses that are related to the valuation of old warrants from 2019 and 2020 that according to accounting standards are classified as a liability, and therefore, we need to evaluate them each quarter end, and it is based on the share price. The higher the share price...

So they're non cash. It's not a cash expense.

No, it's only noncash expenses. It has nothing to do to our operating cash flow of the company. It goes both ways. And because the share will go up, this would be -- okay?

Yes, not material.

Our next question is from the line of Kingsley Crane with Canaccord Genuity.

Congrats on the strong results. So I would like to dive just a bit deeper into the ADCL market opportunity. I'm curious how you're thinking about your data collection capabilities and feature set outside of text-based web scraping and just more on the product roadmap in that regard.

Okay. Just to clarify your question, you're talking about outside of data scraping, what do you mean outside of data spacing?

Rather just the total picture of data collection, whether that includes text or images or video, or other forms of alternative data as well.

Okay. Okay. So I will do a very short brief. So the market -- the stake of the market basically is assembled from 3 pillars. One is the infrastructure for data collection, which is the IP proxy network, which basically is our product. And it allows you to collect data not to be blocked to get the transparent well and accurate data. This is our major product. This is the IP proxy network. The next stage in the stack is the data collection and labeling, meaning data collectors, scrapers, and other products that allows you basically to collect data and basically to convert data from unstructured to structured data. And we are working now, as I mentioned, we are progressing tremendously in our AI collector, which according to now and according to our best knowledge, should be one of or maybe the most innovative product in the market. The second product that will be released even before the AI data collector is our web unblocker. As I mentioned, this product basically is fighting against websites that are trying to block you, of course, trying to block you technology perspective, trying to block you from coming in and transparent public available data. So this product is tested by few experts. They found it as the most innovative and [ progress ] product in the market. And as we see now, the demand is amazing because companies and customers cannot find a suitable solution. And hopefully, as it goes out, we are now in the scale stage of this product. Hopefully, as it goes out the production mode, it can be a huge success. The next stage, which also I mentioned is the stage you know. So I let you come in, now you collect the data, now you have the data structure but now you want the insights and the recommendations and the projections. So basically, this is which some of our customers basically AI companies that with their AI algorithms knows how to analyze to get the data in adjacent file, for example, and it is the input and the output is the analyzing and provide recommendations in each and every space and it can be in e-commerce, it can be in many, many other stages -- in many, many other verticals, and this basically is closing the loop. I will let you come in, you will collect the data, you will get the insights to it and you close the loop. So this is how we see the market. As I mentioned, we are just now in the stage of data collection and labeling. We established an internal committee, and we are now investigating deep the next stage of the insight and AI stage. And hopefully, in 2025, it will be our major task and innovative solution.

Okay. That was really helpful. And so this one is probably more for Shai, but again, I really appreciate some of the additional metrics you provided and also understand that this is the first quarter that you provided quarterly guidance. So I think the market is still figuring out some of that philosophy. But with respect to that, I'm curious on the $7 million target with plus or minus 3%. Should we think of that as something like a 95% confidence interval? Or how much certainty would you say is around that range of guidance? I'm just kind of curious how much revenue could come in, in the final months of the quarter? Just trying to get a sense of the upside here.

Well, we quoted the number of $7 million because we feel this is the most likely number we are aiming for. And the plus minus 3% give you the range that we are positive that will be in probably 90% or more.

Our next question is from the line of Yi Fu Lee with Cantor Fitzgerald.

In terms of like moving up market, we see some wins on the Fortune 100 and you guys landing larger with customers spending $400,000 and more. I was wondering if you could discuss any changes in the go-to-market sales strategy to help Alarum penetrate the upper market and lending larger?

Yes. Okay. So it was part if you go back and you will see our presentations and the statements in the last 1 year, as we felt that we built the network. It's all about performance and network. As we felt that we have built a network that can serve the quality level and the scalability level of these customers, we target our team and ourselves that it's going to be one of our special strategic vision or targets for this year and for the future to start and scale up for this huge customer Fortune or other huge customers because we have the level of confidence that we will go into a POC, a proof-of-concept, and we will meet all their requirements also from a financial perspective, not only as technology-wise. So yes, now we are aiming some of our sales reps that basically have more skills or experience in enterprise sales, which is a little bit different skills than online sales, and we are starting to target these customers. And I can say very -- I am proud and I'm happy to say that some of them even and we want them by inbound, meaning they approached us. So it shows us the level of awareness and the level of performance our brand and the place that we have now.

Okay. And then a follow-up to Shai. Like on the AI data collection from the last question is, I understand it's probably more of a next-year opportunity. Was wondering what are some of the enhancements you're thinking of making here? And what are the M&A targets you guys have an interest in?

Okay. So M&A target is, as you know, is something that as you get into the process, so you are starting to be more specific in M&A. But I will tell you exactly what I told last time, and until it will not change. But basically, it will stay the same. M&A, yes, for sure, it's something positive for each and every company and also for Alarum, it's a great rate of scale. We can leverage -- the fact that we are generating cash and we can leverage our brand and we can go into the panel very fast and basically to accelerate our progress. On the other side -- so where we are in case we will go deep and we'll find ourselves looking specifically for M&A targets. So yes, it should be the next stages in our space. As I mentioned before, it's going to the data collection and labeling or jumping to the next stage, which is data insight, which is basically AI companies, ventures that are analyzing data, it's all on data analyzing data and providing insight recommendations and projections. So in high level, as we will start to be more aggressive about M&A, that we take the decision, that M&A is really the next stage, that will be our target. For now, we established a committee. As I mentioned, we mentioned to the market a few quarters ago. We brought one of the leaders in Israel to lead our committee and we are investigating all the opportunities, including internal development, potential M&A, potential combination of M&A, internal development. Everything is on the table, everything looks good but we will let to take the best decision for the company.

And just one last question, it's small macro in general. I understood like there were some slowdowns in consumption during the end of the quarter but it sounds like the commentary in July, it starts to pick up back again in terms of the assumption. I understand you guys don't have a crystal ball. But in terms of the rest of the year, how should we think about the, I guess, volatilities in the consumption aspect of the usage in this market? And that's it for me.

Okay. Good. So just to make you understand your question, are you asking if you're looking a little bit more to the future for Q4, for example, what...

For the rest of this year. Like and any slowdowns you're expecting? Like what would trigger the slowdown? Like what are you seeing in the pipe, I guess?

Okay. So to be honest, we did not release guidance for Q4. We are growing. And every time we are increasing the level of transparency but we did not release guidance for Q4. But on the other side, by the way, that's what we do internally all the time, we are measuring indicators that are showing us the trend. Of course, it's not 100%. Everything is not 100% for the future but it showed the trends. So as I mentioned in the call, a few indicators are very positive. First, and very important is after there was a kind of a one-time drop in May to June, then in June, we get back on track for growth, meaning the current customers plus new customers showed great retention and new customers that came in and the growth went back, came back after less than for 1 month, and then it came back and then we kept the growth from June to July and then to August. Second is the indicator of new customers. Our business basically is built from the retention of current but from new customers that are coming in and starting to generate revenue. So first of all, we see a very strong growth between Q2 to Q1. And these Q2 new customers that generated in their first month $400,000 support according to our model to generate in the next 2.5 years, 15x winning around between $6 million to $7 million in the next quarter. So the combination of the retention and the growth that came back from June to July, July to August, and the greater retention sorry -- the growth of the current -- of the new customers from Q2 to Q1 increase as it give us the level of confidence that we are growing. We are on a growth trend. And you can take a look by yourself and make your own calculations but this is something that I can now talk free and exposed. I hope it gave you some light.

Our next question is from the line of Shahar Cohen with Lucid Capital.

A few things. What was the main cause to publish the focus right now? Why now, A? B, some people say that you have some business related to the U.S. election, can you say loud and clear....

Sorry, I didn't hear you. Can you repeat the second question, some people say?

You have your revenue, maybe not measurable revenue from the U.S. election, maybe they don't portray themselves as you know, parties, they can come under cover. But can you say loud and clear that you have no business related to the U.S. election?

Who is talking?

Shahar Cohen from Lucid Capital.

Okay. So for your first question, if you track our company in the last 2 years or 1.5 years, we took a decision that as part of our maturity and growth, we will start to expose more in both indicators, KPIs, and data to the market in order to increase transparency. So we did it in the last quarters. This time, we decided to release a few more indicators. A few of them are the KPIs. One of them is the projection for the coming quarter. And there is great transparency, I think it's a good sign. And second to the U.S. election, to be honest, it's the first time I hear about it from someone. So the answer is no.

So you don't have business related to the U.S. election as far as you know?

The answer is for my best knowledge. I don't have any business related to the U.S. election. Maybe I don't know but you can tell us.

Thank you. At this time, I will hand the call back to management for further remarks.

Okay. Thank you, operator. Thank you all for your time today. We look forward to hosting you on Alarum Technologies Q3 2024 results call. Thank you.

Thank you. This will conclude today's call. You may disconnect your lines at this time. Thank you for your participation.