Alarum Technologies’ Stock Earns Bullish Bias From 2023 Revenues That Already Exceed Entire 2022 Totals ($ALAR)

Alarum Technologies' Stock Earns Bullish Bias From 2023 Revenues That Already Exceed Entire 2022 Totals ($ALAR)

Alarum Technologies (NASDAQ: ALAR) (TASE: ALAR) has earned investors' attention, pushing ALAR's share price higher by over 61% since the start of the year. And if markets remain steady, that gain could be the precursor to even higher levels, a presumption supported by ALAR revenues already eclipsing in nine months what it took twelve to do in 2022. (*share price change calculated from the opening price on 01/03/23 – 11/13/23, $2.41 - $3.90, Yahoo! Finance, 4:00 PM EST)

Frankly, continued gains in ALAR stock may not be market direction dependent. Investors are always looking for winners, and considering Alarum is advancing a winning formula to grow bigger faster, weak markets may have little to no impact in slowing the rally's momentum. Like all small and microcaps, there's a speculative nature surrounding investment. However, news, data, and tangible growth do plenty to support mitigating downside risk. And ALAR is delivering all three. 

That makes investment consideration in ALAR, despite its already 61% YTD gain, more than warranted; it's justified. In fact, with the stock completing some consolidation at the $3.83 level, the path of least resistance for ALAR stock is more likely than not higher. 

NetNut Is Leading The Value-Creating Charge

Feeding that narrative is the increasing revenue contributions from NetNut, part of its Enterprise Internet Access arm. It continues earning user traction among current and new clients for its ability to provide some of the most advanced, fastest, and secured hybrid proxy networks. That's only a subset of its value to clients. An equally impressive attribute of NetNut platform technology is that it enables customers to collect data anonymously at any scale from public sources over the web by leveraging the strength of hundreds of servers at ISP partners worldwide to exploit the value inherent to its proprietary reflection technology. 

In that sense, further supported by a list of comprehensive and accretive solutions, NetNut stands out in its market, particularly attracting new business by providing service differences that are more than unique; they provide clients competitive advantages. But, more than ALAR, NetNut and its clients benefit from the value presented by its technology. Because it's all under the ALAR umbrella, investors will likely continue to benefit as well. In fact, they could quickly push ALAR stock closer to and even past its 52-week high of $6.00. Considering ALAR and its subsidiary are better positioned today than when it scored that level, re-claiming that mark, 53% higher than its current price, could happen sooner rather than later. 

That assumption is not based on blinded speculation. Instead, it's a bullish sentiment based on tangible results, including strong revenue growth, assets that drive revenues higher, and a management team that understands its market opportunities and is directing efforts towards capitalizing on its asset's strength rather than broad-based potential opportunities. That's led to ALAR firing on all revenue-generating cylinders and, better still, better positioned than ever to accelerate strategic initiatives to expedite reaching additional near-term milestones. 

Being in that position is no coincidence. Instead, it results from ALAR proving its products and services value to customers through a robust network solutions infrastructure optimally designed to protect privacy, quality, stability, and speed. Those differences, combined with the contributions from other portfolio assets, are doing what they should- distinguish ALAR in the competitive landscape and, importantly, from an investor's perspective, support the presumption that the path of least resistance for ALAR shares, based on performance, is higher. 

Alarum Stock Is No Stranger To Higher Prices

Know this: ALAR stock is no stranger to higher prices. The stock traded as high as $6.00 during the past 52 weeks, 53% higher than its current $3.90 price. Ironically, ALAR is a much stronger company today than when it scored that high, fortified by revenue-generating acquisitions that are being met with significantly lower cash burn. Add that to ALAR selling the right products at the right time; maximizing market opportunities is more than ambition; it's in progress.

Proving that point, ALAR provided preliminary financials and guidance for the nine months ended September 30, 2023, expecting accumulated revenues from the beginning of 2023 until the end of Q3 to reach $19.3 million. That figure would exceed the entire revenues of 2022. But equally as important, that increase represents 45% growth compared to the same nine-month period last year. It's also impressive on a Q over Q-basis, with ALAR guiding for Q3 revenues to reach $6.6 million, a 37% increase over the $4.8 million in the same period last year. 

Another standout item is that ALAR achieved over $1.5 million in positive cash flow from operating activities during Q3, compared to a negative cash flow of $1.4 million in Q3/2022. Heading into Q4, ALAR has guided investors to expect the good news to continue. And they have the capital on hand to support the optimism.

Fueled To Accelerate Growth In 2024 

ALAR started Q4 with cash and cash equivalents of roughly $7.7 million, positioning them well to capitalize on market opportunities and, importantly, increase positive cash flow from cost-cutting initiatives to facilitate revenues to fall faster toward its bottom line. That should result from ALAR shifting operational focus to scale-down investments into the consumer segment and instead optimize opportunities in play through its enterprise business. That decision is proving good, evidenced by the pace of NetNut's increasing revenue-generating traction. 

That, too, is no coincidence. It results from NetNut uniquely providing a global web data collection cloud service based on proprietary traffic optimization, routing, and network technology. Moreover, it's an asset that continues to improve, demonstrated by doubling its network's infrastructure since 2022, enabling it to support and process billions of client requests. That scaleup in capabilities and function results from onboarding several strategic customers and network by partnerships with other Internet Service Providers. More contributes to the ALAR value proposition.

Last month, ALAR launched its most advanced NetNut product to date, a Search Engine Results Page ("SERP") and Scraper Application Programming Interface ("API"). The product debut marks NetNut's entrance into the data collection and labeling market, putting ALAR in a potentially lucrative space at the right time to target revenue-generating potential from an estimated $2.22 billion market opportunity. 

That market is growing and is forecast to compound at an annual growth rate of 28.9%, increasing the market potential to $17.1 billion by 2030. Of course, ALAR wants its share of that potential. And they are likely to earn an appreciable piece, particularly through SERP Scraper's ability to provide clients a next-generation data collection solution serving the complex needs of enterprise customers worldwide. Keep in mind that while search engines are a valuable resource to virtually any situation for their obvious capabilities, it's also critical to point toward their enormous value related to data extraction and how that data gets used relative to SERP. 

In that area, NetNut's new product can generate significant client interest and new revenue streams from outperforming competing products by providing users a way to overcome the tedious task of manually extracting massive amounts of data. Moreover, its SERP Scraper API allows businesses to automatically obtain SERP data from search engines in real-time from global search engines tailored to enterprises' needs. 

At The Forefront Of Shifting Technology

Those differences matter. For platform users, they help embed competitive advantages by offering automated retrieval and analysis of SERP data for search engine optimization and market research. It's also scalable with unparalleled speeds that seamlessly access all search engines to gather real-time SERP data and keyword rankings. Those are excellent value-adding features. However, its most significant advantage and value to users is that it's compatible with multiple devices, emphasizing compliance that provides search results from any location, language, and device. Good for clients is excellent for ALAR. 

ALAR's subsidiary's deep dive into web scraping can help it capitalize on a massive market opportunity, an intent fitting seamlessly into ALAR's commitment to providing cutting-edge solutions to data market clients. Don't under-appreciate the potential in play. SERP Scraper is at the forefront of shifting technology, leveraging an API-led approach to data delivery that empowers businesses with seamless access to Search Engine Results Page data, enabling them to enhance their products with reliable, accurate, and real-time data. 

As they should, those distinctions generate increasing demand for the product, which, as revenue growth shows, can lead to accelerating topline growth and a strengthened bottom line. More simply said, NetNut's robust network provides a win-win-win proposition, allowing customers to efficiently handle vast amounts of information and facilitate cross-referencing data from many databases without the need to develop complex data collection solutions, generating value for ALAR and, likely, its investors.

A Bullish Proposition Exposed By Tangibles

All told, ALAR's sum of its parts supports the bullish thesis. In fact, combining intrinsic value with inherent potential, an excellent case supports the premise that the over 61% YTD gain in ALAR stock is just the precursor to higher highs. That assumption is supported by ALAR's surging revenues that are met with reduced overhead and a management team that can capitalize on and maximize refined target market opportunities. Checking those boxes allows ALAR revenues to fall faster to its bottom line. 

Thus, investors have plenty of reasons to consider seizing on what could be viewed as a wide valuation disconnect between ALAR's share price, IP, technology assets, and increasing revenues. Moreover, better positioned than ever to create sustainable shareholder value, the initial mission to re-claim its 52-week high of $6.00 may be a target already in the crosshairs. It's an appreciable increase; however, comparing ALAR in 2022 to what it's grown into in 2023, reaching that level is already justified. 

In fact, with expected announcements likely in the queue, including an expected continued run higher in revenues, re-claiming $6.00 is not only justified; it could happen sooner rather than later.

 

 

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