All right. Good morning, everybody. Thank you for those joining us for the second day of TD Securities TMT Conference. My name is Shaul Eyal. I cover the cybersecurity universe here at TD. It is my pleasure to kick off our second day with Eyal Harari, the CEO of Allot. This session will be conducted in a fireside chat mode. Any questions, feel free to raise your hand and keep it as interactive as possible. With that, Eyal, thank you so much for joining us this morning. Thank you, Shaul. Happy to be here. Maybe for the benefit of the audience slightly less familiar with Allot, with the Allot story, can you briefly outline what is it that the company does for a living? Allot is focused on cybersecurity, with communication service providers. The company's core competence is how to make networks smarter and more protected. We have today two product lines. One is security as a service that aimed to protect the customers of the service provider. We are a B2B2C, kind of company. From the other end, we have our network intelligence solutions that help the service provider to manage and protect their own networks. Eventually, we are primarily focused on the CSP market. About 10%-15%, we work directly with enterprises. In the recent years, our main focus is into the cybersecurity, where this is our main growth driver today, and this is where it starts to become a very significant part of our business. Maybe on that front, the company has gone through an impressive turnaround and restructuring process over the course of the past few years. Can we talk about maybe the drivers that are propelling the SECaaS side of the equation as well as the network security? Couple of years ago, we did a strategic process to identify where is really the opportunity and where we want to head. We laid a strategy, we call it internally security first, cybersecurity first company. What we realized is that we have a unique value proposition when we take the network assets and the cybersecurity, as we have networking capabilities that only a handful of company has to work with larger companies in the world, like the Verizons, the Vodafones, the Telefónicas, with millions of customers, with huge amount of data, huge volumes, in a very efficient and reliable way. We have the cyber protection, which is what everyone is looking to have today with increased level of threats. What we realized is that we really need to focus on where those two converge. We decided to turn our previous customers, the CSPs, to be our partners. To take the networking technology and change it from managing the actual network, optimize it and protect it, to use it as a distribution engine to go to the millions of customers of our partners. This is what we call in short the SECaaS, security as a service. What we saw and identified is that while the cybersecurity space is very concentrated about the larger enterprises- Sure. -tons of money is invested by many of the organizations. We identified that the lower market stays underprotected. All of us as consumers, with our families, at our homes, with our kids, and also very small businesses, what we call SOHOs or companies that do not have the means to have their own cybersecurity team. Most of the businesses are smaller, and they cannot afford it like larger enterprises. We saw that there is an untapped opportunity there. For one, in the cyber awareness of these people is increasing. For the other, they don't have good solutions to protect themselves. This was where we took and focused the company, and this drove our security as a service product line to grow over 50% year-over-year for the last two years. We are adding to more than 40% growth also this year. It's really high growth rate, which became, this year, we crossed 1/3 of our revenue coming from this new product line. This starts to drive double-digit growth into the total revenue of the company. On the networking side, this is the area where we still offer solutions for the networking. These solutions are well-received by the carriers. They really like the fact we have a platform that can offer them not only network optimization, analytics, but also cybersecurity protection for themselves and for their customers. We see some stabilization and some modest growth, single-digit growth in this product line as well, which gives some more tailwind for our overall performance. Maybe that very successful restructuring, and given everything you've just outlined, manifested itself into very solid start to 2026. Can you maybe outline some of the metrics? I know you started kind of talking about 2026, but maybe even if we're double-clicking back on OneQ, some of the metrics you shared with us and investors back two weeks ago. Yes. We had a very strong first quarter where, for the third quarter in a row, we managed to show double-digit growth on our total revenues. We scored 40% growth, and this was not only improving in the growth rate, but also in the profitability. We managed to improve in all of our profitability KPIs, from gross margin to operating profit and also free cash flow, which shows that the model work. The model works because the growth engine on the SECaaS is starting to make a bigger impact on the total performance on the company. It shows that we are able to gain profitability as we grow. In the last 12 months or so, we demonstrated about $0.50 on the dollar goes into the bottom line. If we were about breakeven about four quarters ago, we got to a range of 7%-10% EBIT, which is driven by the growth, but also, we do it in a very responsible and profitable way. One of the strong KPI we showed is we start to generate a lot of cash. This is coming both from, obviously, profitability, as we are very efficient organization. It also comes by some of the large projects we announced last year that we won some several multimillion-dollar, and specifically one, as we indicate, tens of millions of dollar project that starts to progress and mature, and we start to hit milestones. We scored over $10 million of free cash flow this quarter, which is way above expectation. This is due to good progress with our customers in meeting the milestones. I think also one of the, at least from where we sit, what we really liked is that improved level of visibility as 2026 unfolds. Yes. What's driving that? We start at 2026. We've given a guidance on about 13% at the midpoint of revenue growth. When we went and execute Q1, we actually did quite well on many of the fronts, and we overachieved on our Security as a Service solution. When we offer our cybersecurity solution, it's a multi-step process. First, we need to engage with those partners that want to offer this service to their customers. Second, they need to launch those services, and then they have a process of go to market to their customers. If we are working with companies like Verizon, they implement the service, and then they start to offer to their millions of customer security protection. It's a marketing process that is not in our direct control. Yeah. The benefit, it's not on our dime. They are doing it on their expense. What we saw in Q1, that most of our larger accounts were driving good performance of adoption of the service. I believe that, I'm sure we'll talk about it later, that awareness of the need for cybersecurity by consumers and small businesses is increasing due to the threats of AI. Yeah. The awareness is getting higher, and we see CSPs are putting more marketing budgets on campaigns to make their customer aware, and we see good performance in the field by higher attach rates and better conversion of our services. This added with a good execution on the networking side, as we mentioned, we call it the Smart product line. We did good execution there. We managed to score another significant multimillion-dollar deal of customer that decide to upgrade to our latest platform, which called Tera III, which allow us to already indicate that we have better visibility for the year. We crossed 67% of recurring revenue. This is really something big for the company. One of the challenges for the company a few years back was it was fluctuating a lot because most of the revenue were not recurring. Yeah. All the revenue, or almost all of the revenue from our security as a service is ARR-based, which is more than one-third. We have about one-third coming from the Smart recurring revenue side, and we see this continue to increase quarter-over-quarter, which obviously improve the visibility. Good execution on the SECaaS, good progress with the networking and getting to the very high level of recurring revenue allow us to already guide that we will be on the upper level of our guidance for the year. You've mentioned that SECaaS strong performance, maybe also seeing some early indications of AI tailwinds. That's on the one hand. The other side of that, you also mentioned customers' awareness. My question is, what are your customers, and I know it's end customers of your partners, what are they indicating what they're saying about it? That's kind of number one. Number two, in that respect, is the AI implication. Maybe think about it another way around. Are we at some sort of an inflection point that you're seeing on that front? Our biggest constraint today is how to increase the demand of, as you said, the end customer, all of us as consumers, small businesses. What we see today, that vast majority of the people, and you can ask yourself and your friends and your colleagues, are unprotected. People believe it will be okay. They don't need to be protected. What everyone realized on the larger organization, this is already clear that you need to be well-protected with many tools. In the consumer market, we are still in the naive phase. What happened and what we see, and we all read the news, there is enormous amount of fraud that is AI-driven, and the ability to attack organizations and people is becoming commoditized. Attackers are always faster and smarter as they have bigger motivation. We see that impersonation, smart phishing attempts, social engineering, as well as smart targeted attacks are becoming more and more aware, and we see it in the media. All of us are fed from the media, and we see a trend of increased awareness. In latest service we did in some of our customers, cybersecurity protection becomes in the top- Priority. -requirements and priority of the consumer. This is something new. It's not something that was years ago. More specifically, people are aware that all the automation and AI that is added to our environment create a very large risk, because in order to really utilize the value of AI, you share a lot of your personal information. You share your email, you share your credentials, you share your bank account in some cases. You share a lot about yourself, and this must be protected. We are looking and continue to evolve our products to see how we can better have automated ways to help people be more safe in this environment, because we all want to adopt this new technology. I am calling it, we are now in the naive phase. We use it uncarefully, but we start to hear about people losing a lot of their life savings, their credentials, and this becomes a bigger and bigger issue. One of the most, I was surprised, but it makes sense, new threat that we see, people are being hijacked for their tokens. You go and you do a, I don't know, a Claude Pro for $20 or $200 account, and suddenly you don't realize, but someone is abusing you and using all your tokens. When you do it in a large scale with, I don't know, 10,000, 100,000 people, you start to have a lot of value. In a way, it's like in the days of the Bitcoin- Yeah. -that people hijack your PC in order to mine Bitcoin and use your electricity. Those are evolving, and we believe that the only way to protect from that, you need something that is always on from the network that is allowing you to do it in a seamless way, which is exactly where we come into play. Still sticking with the AI topic, are you at Allot, are you using AI tools internally? Maybe what's the productivity levels or productivity gains that you have been seeing over the course of the past few quarters? I assume, like many companies, we are bothered how we can leverage the AI. AI has a lot of potential and threat, we want to be on the potential side. We, as a company, decided to run three different tracks of AI transformation. The first one is how we should change our products, as we are into cybersecurity, how we can better protect our customers and introduce new products, leveraging the AI in order to better protect them. Either protect them from the new threat I mentioned that they are facing now, also how to leverage AI for that. This is one area we are investing. The second one is in the development. Obviously, we are in a process of high adoption, we use specifically Claude Code, that accelerate our software development process. What we are mainly focused these days is how we can make much more with the team we have. As a company and as evolving demands, we have a lot of ideas and a lot of things we want to introduce, and we want to get from our team 10x, 5x of productivity. It's still not there. We are progressing to this direction, but we already have most of our teams are in the day-to-day coding with AI. Some of them shared with me they stopped coding at all. It's all AI code. We take it and push it very aggressively. The third area is more the operation and efficiency, internal operation and efficiency. Areas like customer support, that we are building autonomous processes, sales pipeline management, forecasting, even finance and legal. We have a third track that is how we can evolve and improve our organization, to have AI help us internally. Both development, new products, and AI efficiency, I still believe we have a lot to improve and a lot to evolve, as we are not a startup. We are an established company with processes, so it's a day-to-day progress, and I think there is still a lot to improve ahead of us. Heading in the right direction, nevertheless. From time to time, we'll get this question about the linearity between revenue and ARR, and I know you mentioned ARR in the SECaaS example. Can you maybe outline to us how those dynamics intertwine? Overall, we see very high correlation between ARR and revenue. We are very strict in our calculation of ARR. I know some companies have different methods, but for us, ARR is only if we have commitment for this revenue to reoccur, and/or very high visibility. In general, we take the monthly revenue, the last month, if we are now, reported the Q1, March revenue from the specific services, and the portion of those services that are committed, and we have the very high visibility they will reoccur for the next 12 months, this is what we consider as ARR. If we have one-time revenue or, in some cases, we have catch-ups as people are renewing in delay, or they have some updates on the numbers, maybe just as a side comment, we are relied on our customer reporting to know our ARR. If I'm selling to a CSP, and he's selling to his consumers, my recurring revenue is based on how many consumers are on the service. We need the consolidation of the data, and then we can report it. In some area, they have delays, or they update us that they had more than they initially foresee. All of these, we don't take as recurring. We are very strict what is in the last months of the quarter, of the year, and so on, that we have very high visibility that it will continue for the next 12 months. In general, what we see is that in our case, there is very high correlation between the two. Obviously, one of the things that if we grow within the quarter, sometimes the ARR is higher. Yeah. We do see when we sometimes have step function when we have a large customer that is doing a campaign or a large customer that is launching a service with some minimum commitment. This might increase their revenue within the quarter. Because the last month is what we take for the ARR, this gives good indication for the investor what to expect. Got it. Let's maybe switch gears, talk about some of the product and product introductions, and maybe thinking out loud, the entire product roadmap for the next several years. Can you discuss that and maybe double-click on some of the recent announcements? If we go to the basics, first of all, we build an ecosystem of partners, the CSPs that have a reach to the end customers, and we have a platform that, based on the network, is enabling the distribution of the cybersecurity engines. On top of that, we want to now offer more value to the end customers. We are classifying our customer into two categories. One is the consumers, and the second is the small businesses. Consumers are more about, what we see and as we discuss with AI, more about fraud prevention. They are not so worried about an attack of intruders. They are more afraid to keep their personal data safe, their credentials, their bank account, their social security. On the businesses side, it's a bit more sophisticated because even if you're a small businesses, you have more to lose. You might be targeted. Usually, it's still bigger pockets, so the attackers start to go after those organizations, and they have usually multiple employees that require different level of access, and one of their issues is that they need the reputation of the business to remain, and they want business continuity. Because if the business is not working, they're losing money, which is a bit different from the consumer environment. What we are now building is a robust enhancement of our cyber protection. Now, we don't need to reinvent many of the things. What we are looking is what is the trends that are happening in the enterprise space. Areas like network firewalls evolve into ZTNA and SASE, which is a commodity now in the enterprise, they are still not available for small businesses. Awesome. Yeah. We are taking concepts that are invented into the enterprise space and make them autonomous and simple and affordable into the small business area. On the consumer side, we are mainly focused today on how to help prevent fraud. We started from the network protection, like viruses, malware, botnets. We evolve into phishing, family protection, like child protection. We are working now on protection elderly population. This is something new that becomes very important for our end customers. If in the past, people were worried how I can make sure my child will not be exposed to unwanted content or I want to create a safe environment, this is becoming very popular these days. You want to limit the hours of the day people are on the phone. You don't want them to be on the TikTok every time, and so on. This is a known solution for quite a while, but what we see lately that we want to take care of our parents. A lot of our parents or grandparents are exposed to the technology. For them, it's sometimes more complicated. They have more to lose, and they are very much prone to fraud. There are a lot of attempts, phishing, impersonation, and both on the digital side, on the voice calling, and with the deep fake that is available today, they need tools to help them to protect themselves. These are the area we are investing today in consumer, and our idea is to add more and more value-added cybersecurity engines that will allow us to be competitive, first of all, in the space. Also, it's an upsell, cross-sell opportunity because if we have a CSP that is already offering for millions of subscribers our service today. If we have now a new application, this is usually an easy upsell. Either they are updating their package price and increasing their price, and in this case, our portion, our revenue, or they are enabling new value that help them to sell into more customers. This is driving us to have growth already from our existing customers, even without going into a new partnership and new parts of the network. This is what we are focusing and there is, I believe, a lot more will come, as we said, as AI is creating more and more threats on all of us. Understood. Questions from the audience. You. Thanks for taking the question. First, what is the reason for your strength in Europe, your weight in Europe? As soon as the housekeeping. My main question is, if you look at the way you grow revenue, as you mentioned before, there are some parts that are not under your control, right? You talk about winning CSPs, bringing them, expanding within that to different divisions. The piece you mentioned that you don't have control of is their marketing to their customers. Then you get control again in the end because you have new cybersecurity offerings to add to your portfolio. Okay? Of those four places, the very first piece about winning the CSPs, how do you do that? Then sort of tacking on at the end, how is that different from how you approach enterprises? Okay. First, Allot has been around for a while. We started our journey with our networking product. As a company that headquartered in Israel, there was more focus, it was easier to win in Europe. We have a lot of the European larger customers as our customers for over a decade in many of the areas. This allows us to be successful because when we come into the cybersecurity offering, we actually take our customers and turn them into our partners. Obviously we can go and build new partnerships, it's easier, this is our advantage as company that is known in the CSP space, if we can create partnerships with our former customers or existing customers, that they already know us, they trust us, and they understand the technology for one hand, they understand the ability to execute of the company. We look into growth, we have four drivers. One is going after new customers, as you mentioned, which is, I call it's like hunting elephants. Eventually, we are targeting mostly the Tier 1s, the larger organizations, as every customer we win is exposing us a new addressable market. If we win a customer with many millions of customers, the potential is larger and therefore, we try to create those partnerships. Second is where the cyber awareness is higher. We know today that in North America and west of Europe, the awareness for cybersecurity is higher. We start to see that the awareness is getting into other parts, more of even to developing countries. In the last call, I mentioned we start to see some demand also for cyber protection in countries in Africa, in developing countries in the Far East. Cybersecurity become a thing globally, and it's part of showing that the market is evolving. Part of the change we did for the company is we created a regional go-to-market approach. We used to have separate teams going into separate products. Today, we are very regionally focused, and our sales director are offering all of our products. When you work with CSP globally, you have few customers in every country. Our approach, my approach, and I think it's created a very good effect on the results, is that most important is the relationship that we build locally and less the technology and the sales skills. We have very talented and high-end sales directors. We are dealing with very large organization, with very large customers, and therefore, by this change, we manage to increase the number of people that are engaged on those campaigns. Those obviously are long processes, as you need to build a business case, the ROI, the trust, and we have more people today working to build more partnerships like that. A lot of our growth is coming from already the partnerships that we have. We have three drivers for growth. One is as mentioned, which is not directly in our control, which is the go-to-market, that they go to their customers. We have a team that they are like train the trainers. We are working with them, bringing the best practices from around the globe. What work for one carrier in Europe maybe will be helping a carrier in Asia, and what help for a carrier in Asia might help a carrier in the U.S. We give them a lot of supporting materials, and by that, we are trying to indirectly influence, and we are there to support them because their success is our success. Last is, as you also pointed, we are working to expand with more products that will help us both go into more customers. If we are, for example, we worked with Verizon on the FWA, which is a niche service that serves about, I don't know, two, three million customers. We went into the mobile business customer that is like 30 million, 35 million customers. Once we introduce new services, we are expanding our addressable market with this specific partner, and then we add more innovation, as we spoke about the product roadmap. We launch a new product that is off-net protection. We launch a new autonomous firewall. We are launching now a DDoS protection. All of those are ways for us to influence and drive the growth. All of those four verticals, new partnerships, secure more parts of the network, more services, increase the attach rates, and create more value to the same customers are working in parallel, this is the beauty of that. This is what's driving us to see already very high growth in the last few years and potential to continue to grow in the same pace in the next years. With that, Eyal, thank you so much. We're at time. Thank you, everybody, for joining us. Appreciate it. Thank you. All right.