Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 65

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 5
Chunk 65
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iance on Large Customers

We
work continuously to increase our customer base, in order to reduce reliance on large customers. During 2024, approximately 41% of our
data collection revenue derived from 42 customers who purchased services in amounts ranging between $100,000 and $1,000,000, and approximately
16.0% of our revenue was generated from 152 customers who bought services at amounts range between $10,000 and $100,000. We had 7 customers
that purchased services in amounts greater than $1,000,000, and they generated together approximately 39% of the total data collection
business revenues. To the extent any of our significant customers reduce their purchases of services, our revenues would be adversely
impacted; however, an alteration in customer composition could strengthen the Company’s market position and support more sustainable
growth.

Expansion from Existing Customers

Our
large customer base of customers represents a significant opportunity for further sales expansion. When customers have purchased subscriptions
from us, we have achieved significant expansion with them over time as they add additional features, geographic coverage, users, and digital
intelligence solutions. We believe the increased spending from our customers is an indication of the value we provide them with over time.

An
indication of our success to increase spending from existing customers in the data collection business is our net dollar-based retention
rate, or NRR, which compares our Annual Recurring Revenue, or ARR, from the same set of customers as of a certain point in time, relative
to the same point in time in the previous year ago period. We calculate our NRR as of a period end by starting with the ARR from the cohort
of all customers as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers
as of the current period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition
over the last 12 months but excludes ARR from new customers in the current period. We then divide the Current Period ARR by the Prior
Period ARR to arrive at the point-in-time NRR. We then calculate the average of the trailing four quarter point-in-time NRRs to arrive
at the NRR. As of December 31, 2024, our NRR was 1.27. This, compared to an NRR of 1.53 as of December 31, 2023.

Our NRR may fluct