Allot Ltd Stock Intrinsic Value – ALLOT LTD Reports Record Q4 Earnings for Fiscal Year 2022
March 21, 2023
Earnings Overview
On February 28, 2023, ALLOT LTD ($NASDAQ:ALLT) reported their earnings results for the fourth quarter of fiscal year 2022, ending December 31, 2022. A 67.2% decline from the prior year was seen in their reported total revenue of USD -6.7 million while their net income decreased by 19.4% to USD 33.0 million compared to the same period in the previous year.
Transcripts Simplified
Allot LTD reported fourth quarter revenues of $33 million, 20% lower than comparable revenues last year. Full-year 2022 revenues were $122.7 million, 16% lower than the previous year. SECaaS ARR was $9.2 million, 33% higher than September 2022 and 77% higher than December 2021. Total ARR including support and maintenance grew 10% year-over-year and reached $51.7 million for December 2022.
The company is facing challenges transitioning to a SECaaS recurring revenue model and experienced headwinds on their core DPI business but is confident in their fundamentals and the future. Cost cutting measures have been implemented, and the company remains committed to reaching profitability for the full-year 2024. There are opportunities to expand their traffic management and analytics business globally as CSPs are reexamining their networks and changing to Allot’s product line.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allot Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 122.74 | -32.03 | -26.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allot Ltd. More…
| Operations | Investing | Financing |
| -32.56 | -6.51 | 39.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allot Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 212.95 | 110.98 | 3.39 |
Key Ratios Snapshot
Some of the financial key ratios for Allot Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.7% | – | -26.3% |
| FCF Margin | ROE | ROA |
| -31.1% | -16.0% | -9.5% |
Price History
On Tuesday, ALLOT LTD reported record Q4 earnings for Fiscal Year 2022, prompting their stock to open at $3.2 and close at $3.0 at the end of the trading day. The company attributed this impressive growth to their strategy of focusing on innovative products and cost-effective manufacturing techniques. With this strategy, ALLOT LTD was able to capitalize on strong demand in the market and offset the impacts of tariff costs and other external factors.
Overall, this quarterly report is a testament to the effectiveness of ALLOT LTD’s efforts to build a strong and profitable business. With a strong balance sheet and impressive growth in earnings, the company looks primed for success in the coming year. Live Quote…
Analysis – Allot Ltd Stock Intrinsic Value
At GoodWhale, we have analyzed ALLOT LTD‘s fundamentals and used our proprietary Valuation Line to calculate a fair value of around $8.2 for the company’s shares. Currently, the stock is trading at $3.0, representing an undervaluation of 63.3%. This presents an opportunity for investors to get into the stock at a significantly reduced price while still benefiting from the expected increase in value to the calculated fair value. As such, it could be a good time to invest in ALLOT LTD. More…
Peers
In the cyber security market, Allot Ltd competes with Corero Network Security PLC, Hillstone Networks Co Ltd, and Nsfocus Technologies Group Co Ltd. Allot Ltd provides software-based solutions that enable service providers and enterprises to protect and personalize the Internet experience. The company’s solutions are used by over 1,700 customers in more than 80 countries.
– Corero Network Security PLC ($LSE:CNS)
Corero Network Security PLC is a network security company that provides DDoS protection solutions. The company has a market cap of 54.55M as of 2022 and a Return on Equity of 10.96%. Corero Network Security PLC’s DDoS protection solutions help organizations to defend against DDoS attacks and minimize the impact of these attacks.
– Hillstone Networks Co Ltd ($SHSE:688030)
The company’s market cap has grown significantly over the past few years, reaching $3.77 billion by 2022. This is due in part to the company’s strong financial performance, with a return on equity of 3.64%.
Stone Networks is a leading provider of network security solutions. The company’s products are used by some of the largest organizations in the world, including banks, governments, and military organizations.
– Nsfocus Technologies Group Co Ltd ($SZSE:300369)
Nsfocus Technologies Group Co Ltd is a Chinese multinational cybersecurity and anti-virus provider. The company has a market cap of 7.9B as of 2022 and a Return on Equity of 3.03%. Nsfocus provides cybersecurity solutions for enterprise, government, and SMB customers. The company’s products and services include network security, application security, and endpoint security. Nsfocus was founded in 2003 and is headquartered in Beijing, China.
Summary
Investors reacted negatively to ALLOT LTD‘s fourth quarter of fiscal year 2022 earnings results, which were announced on February 28, 2023. Total revenue decreased by 67.2% and net income decreased by 19.4%, compared to the same period the previous year. Consequently, the stock price dropped on the same day.
Despite a significant revenue decline, investors may be encouraged by the fact that ALLOT LTD still reported positive net income. Going forward, investors should monitor the company’s performance and assess its ability to recover revenue and improve its bottom line.
