Alarum (NetNut): 2024-Q2 Early Results

Analyzing Financial Performance and Market Trends for Q2 2024
2024-07-10 · epsilontal · Symbols: ALAR.TA,ALAR.NYSE
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  • Revenue: Estimated at more than $8.8 million, a 6% increase compared to Q1 2024.
  • Operating Cashflow: Approximately $3.1 million, including commission payments for meeting 2023 revenue targets.
  • Cash and Cash Equivalents: Approximately $21.7 million as of June 30, 2024.

My insights summary:

  • The stock recently showed high volatility, providing opportunities to make profits quickly (read attached post).
  • The stock price rose too quickly recently. The valuation was ahead of the company's time, and those who took profits during the past two weeks made a good decision.
  • The quarterly sales growth was lower than expected, or at least not as good as the valuation justified. Given the excessive hype and volatility, it's natural for the market to bring the stock price down. The question now is: how far down will it go?
  • Considering the current growth rate and cash flow, the current market valuation might be reasonable for the future. A 30-35% annual sales growth would justify the current pricing.

NetNut, a subsidiary of Alarum, is a leading IP proxy and data collection company.

Holding, not a recommendation.