Kingsley Crane's questions to Alarum Technologies (ALAR) leadership • Q2 2025
Question
Kingsley Crane of Canaccord Genuity asked about the changing customer base and its potential to increase long-term customer value despite a lower NRR. He also inquired about the large strategic customer, asking if they were a long-standing client, their impact on Q2 results, the visibility into the projected $3 million Q3 revenue contribution, and the expected gross margin trajectory in subsequent quarters.
Answer
CEO Shachar Daniel clarified that the current NRR calculation is skewed by a strategic shift away from legacy verticals toward high-growth AI clients, and a quarter-over-quarter view would show significant growth. He confirmed the large deal is an upsell with an existing customer who was already ramping up in Q2. Daniel expressed high confidence in the $3 million Q3 revenue figure, as two-thirds of the quarter has passed, but noted future predictability is challenging in the dynamic AI market. He stated future gross margins will depend on the business mix, but the company is strategically investing in infrastructure to capture the massive opportunity, even at the cost of short-term margins.