Alarum Technologies, a company specializing in internet access and web data collection solutions, has been experiencing rapid growth. Their recent Q1 2024 earnings call showcased impressive results, with a 139% year-over-year revenue growth for their NetNut division and a remarkable net retention rate (NRR) of 166%. While these figures are undoubtedly impressive, a subtle hint within the transcript suggests a potential growth driver that could be even more significant.

CEO Shachar Daniel emphasized the upcoming launch of their AI Data Collector, a product designed to disrupt traditional web data collection methods. This product aims to effortlessly generate data collection from any source within minutes, eliminating the need for manual adjustments. This, combined with NetNut's proprietary unblocking technology, promises uninterrupted data collection at scale.

What makes this development particularly intriguing is Daniel's statement that the AI Data Collector will enable Alarum to "automatically develop and create dozens or even hundreds of new scrapers." This seemingly minor detail has significant implications, pointing towards an exponential increase in their data collection capabilities.

Traditional data collection methods, which involve manual scraper creation and maintenance, are labor-intensive and limited in scale. Alarum's AI-powered solution automates this process, potentially allowing them to offer a larger and more diverse data catalog than competitors.

Furthermore, the demand for real-time data is surging, driven by the AI revolution. Numerous AI-based products entering the market require massive amounts of accurate, up-to-the-minute data for training and functionality. Alarum's AI Data Collector positions them to capitalize on this explosive demand.

Alarum's Data Factory: A Hypothesis

Alarum's vision extends beyond creating a superior scraper; they are building a data factory. By harnessing AI, they aim to create a self-sustaining data ecosystem that can generate and collect data at an unprecedented scale. This could propel them beyond their current niche and make them a major player in the broader data market.

Potential Revenue Growth

Consider a scenario where Alarum's AI Data Collector generates 100 new scrapers every quarter, each yielding $10,000 in quarterly revenue. This translates to an additional $1 million in quarterly revenue, a significant boost even considering their current growth trajectory. If they can generate 500 or even 1,000 scrapers per quarter, the potential for exponential revenue growth becomes evident.

Revenue Growth Trajectory

The following chart illustrates the potential revenue growth assuming different scraper generation rates:

However, success is not guaranteed. Developing and implementing a robust AI data collection system is complex, and challenges are inevitable. Nevertheless, the potential rewards are substantial. If Alarum successfully executes their plan, their AI Data Collector could become the driving force that positions them at the forefront of the data revolution.

"Alarum Technologies, originally known as Safe-T Group Ltd., underwent a name change in January 2023. This rebranding reflects their strategic shift towards a data-centric approach, signifying their ambition to expand beyond internet access and become a key player in the burgeoning data market."