ALAR Stock Forecast & Price Target

Alarum Technologies Ltd demonstrated a strong cash position, ending Q2 with $25 million in total cash, equivalents, and liquid investments, reflecting a positive increase from $21.6 million in the same period the prior year. The company is primarily focused on the web data collection market and benefits from secure and anonymous IP proxy solutions, which cater to a growing demand for privacy and data collection services across various regions, particularly the United Arab Emirates. Additionally, despite some challenges in certain segments, the performance of its AI vertical presents a significant opportunity for growth, hinting at potential revenue expansion if the company can maintain a trajectory of strong sequential growth.

Alarum Technologies Ltd has reported a decline in adjusted EBITDA, with figures of $1.0 million for the quarter and $2.3 million for the first half, indicating a weakening performance compared to previous periods. The company also experienced a significant decrease in net retention rate, falling to 98% in Q2 from mid-110s, attributed to an ongoing shift in customer segments that has adversely affected revenue. Additionally, anticipated revenue growth of $3 million to service a particular customer is expected to come with a substantially lower gross margin, further complicating the company’s profitability prospects amid reduced consumption by large customers.