(NASDAQ & TASE: ALLT)
1

Forward Looking Statements
This presentation contains forward-looking statements, which express the current beliefs andexpectations of Company management. Such statements involve a number of known and unknown
risks and uncertainties that could cause our future results, performance or achievements to differ
significantly from the results, performance or achievements set forth in such forward-looking
statements. Important factors that could cause or contribute to such differences include risks relating
to: our ability to compete successfully with other companies offering competing technologies; the lossof one or more significant customers; the impact of government regulation on demand for ourproducts; our failure to increase the functionality and features of our products; our ability to keep pacewith advances in technology and to add new features and value-added services; the failure of ourproducts adversely impacting customers’ networks; managing lengthy sales cycles; greater operationalrisk associated with large projects; our dependence on third party channel partners for a material
portion of our revenues; our failure to comply with regulatory requirements; our dependence on
traffic management systems and network management application suites for the substantial majorityof our revenues; the loss of rights to use third-party solutions integrated into our products; undetected
errors in our products; our dependence on a single third-party subcontractor for a significant portionof our products; and other factors discussed under the heading "Risk Factors" in the Company's
annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking
statements in this release are made pursuant to the safe harbor provisions contained in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of thedate hereof, and the Company undertakes no obligation to update or revise the forward-lookingstatements, whether as a result of new information, future events or otherwise.
2

•••
•

3

Allot Smart
TechnologyHeritage• Deployed at hundreds of CSPs
worldwide• Telco grade solutions• Nationwide deployments• On-prem, virtual, cloud native• Powered by AI/ML

Allot Secure CSP Customers

Global56

Consumer & SMB Cyberthreats
Exponentially Growing
16000000• Border between office and work has blurred• COVID accelerated this change• 5G will accelerate it further

Total Malware (Millions)Phishing Attacks

14000000
12000000

1,313

1,3432021

2022

1,139
10000000

1,002
857

8000000
6000000
4000000
2000000
Phishing Blocks
0

2018
Increase of Allot Blocked Phishing Attacks in Europe H2 2022-H1 2023
Source: Allot Customer Data2019

2020

Global Increase in Malware 2018-2022
Source: AV-Test - Malware Statistics & Trends Report | AV-TEST, April 5, 2022

7

Security Apps Don’t
Protect the Mass MarketConsumers don’t
want to implement
security apps on all
their devices

Up to 5% ofconsumers
actually download
security apps

The opportunity fortelecom providers tooffer a simple, clear
package of cybersecurity
protections for homes
and families appears
significant

Security apps
do not solve
the problem

TAG Cyber, March 2022

Consumers and SMBs cannot be their Own CISO!

89Consumers are Aware ofThreats and Expect CSPs
to Provide Solutions

Based on survey of 8,000 global participants in Consumer Security Survey,
conducted by Coleman Parkes Research, London, January 2022

1070%

68%

63%of consumers expect the CSP toprovide a security solution toprotect them from malware attacks

of US consumers worry about
being a victim of identity theftof US consumers worry about
unauthorized access into their bankaccounts

MOBILE USERS

FIXED BROADBAND USERS

9093%
of US consumers are wilingto pay for a security
application that protects all
their mobile devices

63%
38%
Of US consumers are willingto pay for a security
application that protects
their broadband connections

76%
46%

%

excess of $3 a monthminimum of $2 a month

excess of $5 a monthminimum of $4 a month

Based on survey of 4,000 global participants in Consumer Security Survey, conducted by Coleman Parkes Research, London, April 2020

11

12

Network-Based
Cybersecurity is the“Next Big Differentiator”
for CSPs
Coverage, Speed, Quality
are commoditized
Value #1

Value #2

Value #3

Brandrecognition

Newrevenues

Churnreduction

1313

14

•
•
•

15

•
•
•

•
•

16

17

18

Consumer Take Up Rate
Sample EU Markets(1)
70.0%
60.0%

Penetration rate

Extraordinary
Take Up Rateby Consumers& SMBs*

50.0%
40.0%
30.0%20.0%
10.0%
0.0%
13579111315171921232527 from29 3133 35Monthslaunch

373941434547495153555759

Months from launch

SMB Penetration - EU Market(2)45.0%* Examples of existing customers(1) Data from several Tier 1 CSPs in EU(2) Data from a Tier 1 CSP in EU* Figures out of the TAM

Penetration rate

40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1

357911 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Months from launch

19Simple on-boarding provides a key factor
as customers are happy to receive
immediate protection with no hassle.
Allot contributes to a higher NPS andboost to our brand.

We are facing attach rates of up to80% of new customers.
Martin Westhoff
Strategy and Marketing Homeat Hutchison Drei Osterreich

Jason King
Telenor Bulgaria CEO

We see the huge potential of
Telefónica to achieve very highpenetration rates with this type ofservice.

This offering paves the way for a network-based
security portfolio that will simplify the customer
experience and help provide peace of mind intoday’s ever evolving cybersecurity landscapeJose Luis Gilperez
Executive Director Public Administrations, Defenseand Security, Telefónica España

Steve Szabo
VP Business Products, Verizon

20

21

4 Growth Vectors to the Future

Increase # of CSPs
that launch consumer& SMB security

Increase # ofconsumers & SMBs that
subscribe to the service

Increase the value
we give (protection,privacy, etc.)

22

Protect the 5G networkThreats to consumers & SMBs are growing

Consumers & SMBs are vulnerable, existing
solutions are not enoughSeizing theOpportunity

Customers are aware, look to CSPs forsolutions and are willing to pay for them

Allot is revolutionizing consumer cybersecurity
with a network-based security service offering

Huge revenue generation opportunity for
CSPs and for Allot
23

FinancialOverview

24

SECaaS Revenues$10.6M

$7M
$4M
$2M

2020

2021

2022
252023

Recurring Revenue

$50M
$42M
$33M

$34M

$32M

26

$50M

2019

2020

2021

2022

2023 *Q2 2024

Revenues

110

136

146

123

93

22

Gross Margin

70%

71%

70%

69%

60%

71%

OPEX

85

100

108

108

111

17Operating Profit (Loss)

(8)

(3)

(5)

(23)

(55)

(1)

SECaaS revenues

0.2

1.9

4.1

7.2

10.6

3.7

SECaaS ARR (last month run-rate)

0.5

2.7

5.2

9.2

12.7

14.6

$M

Non-GAAP

H2 2024 targets non-GAAP operating profit at around breakeven and net cash position to not decrease.
* Including credit loss provision of $23M27