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Allot Announces First Quarter 2024 Financial Results

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2 years ago

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HOD HASHARON, Israel, May 29, 2024 /PRNewswire/ — Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited first quarter 2024 financial results.

Financial Highlights for the First Quarter

First quarter revenues were $21.9 million, up 4% year-over-year;First quarter gross margins improved year over year by 8.1% to 69.0% on a GAAP basis and by 4.7% to 70.4% on a non-GAAP basis;SECaaS revenues were $3.4 million for Q1 up 51% year-over-year and March 2024 SECaaS ARR* was $13.7 million;Net loss improved and was reduced significantly year over year: on a GAAP basis, net loss reduced by 77.9% to $2.5 million and on a non-GAAP basis, net loss reduced by 88.8% to $0.9 million;

Financial Outlook

For the full year 2024, management reiterates that it expects:

Non-GAAP operating profit and net cash flow breakeven;Continued yearly double-digit growth of SECaaS revenues and ARR;

Management Comment

Eyal Harari, CEO of Allot commented, “We are pleased with the strong progress we have made stabilizing the business and lowering expenses to align our operating costs to current revenue levels. Revenues improved year-over-year, and we lowered our expenses by 26% (on a Non-GAAP basis), significantly reducing our operating and net loss. We are working hard to bring the business back to profitability while maintaining our investment in our long-term growth engine, Security as a Service (SECaaS).”

“I am thrilled with the opportunity to join Allot. I believe we have a bright future, and I am looking forward to working with the Allot team to drive profitable growth,” added Mr. Harari.

Q1 2024 Financial Results Summary

Total revenues for the first quarter of 2024 were $21.9 million, an increase of 4% compared to $21.1 million in the first quarter of 2023.

Gross profit on a GAAP basis for the first quarter of 2024 was $15.1 million (gross margin of 69.0%), a 12% increase compared with $13.5 million (gross margin of 63.8%) in the first quarter of 2023.

Gross profit on a non-GAAP basis for the first quarter of 2024 was $15.4 million (gross margin of 70.4%), an 8% increase compared with $14.2 million (gross margin of 67.2%) in the first quarter of 2023.   

Net loss on a GAAP basis for the first quarter of 2024 was $2.5 million, or $0.07 per basic share, an improvement compared with a net loss of $11.4 million, or $0.30 per basic share, in the first quarter of 2023.

Net loss on a non-GAAP for the first quarter of 2024 was $0.9 million, or $0.03 per basic share an improvement compared with a non-GAAP net loss of $7.7 million, or $0.21 per basic share, in the first quarter of 2023.  

Cash, short-term bank deposits, and investments as of March 31, 2024, totaled $52.6 million, compared to $54.9 million as of December 31, 2023.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its first quarter 2024 earnings results today, May 29, 2024, at 9:00 am ET, 4:00 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-642-5032, UK: 0-800-917-5108, Israel: +972-3-918-0610

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: http://investors.allot.com/index.cfm.

About Allot

Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT) is a provider of leading innovative network intelligence and security solutions for service providers and enterprises worldwide, enhancing value to their customers. Our solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed, and cloud service providers and over 1,000 enterprises. Our industry-leading network-based security as a service solution is already used by many millions of subscribers globally. Allot. See. Control. Secure.

For more information, visit www.allot.com.

Performance Metrics

* Total ARR – Support & Maintenance ARR (measures the current annual run rate of support & maintenance revenues, which is calculated based on the expected revenues for the first quarter of 2024, excluding one-time items, and multiplied by 4) and SECaaS ARR (measures the current annual run rate of SECaaS revenues, which is calculated based on estimated revenues for the month of Mar. 2024 and multiplied by 12).

GAAP to Non-GAAP Reconciliation:

The difference between GAAP and non-GAAP revenues is related to the acquisitions made by the Company and represents revenues adjusted for the impact of the fair value adjustment to acquired deferred revenue related to purchase accounting. Non-GAAP net income is defined as GAAP net income after including deferred revenues related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, deferred tax asset adjustment and changes in taxes-related items.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results is provided in the accompanying Table 2. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.

Safe Harbor Statement

This release contains forward-looking statements, which express the current beliefs and expectations 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 accounts receivables, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on fourth party channel partners for a material portion of our revenues; 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 the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Logo: https://mma.prnewswire.com/media/703889/Allot_Logo.jpg

Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com 

Public Relations Contact:
Seth Greenberg, 
Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com  

 

 

TABLE  – 1

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three Months Ended

March 31,

2024

2023

(Unaudited)

Revenues

$       21,890

$       21,126

Cost of revenues

6,792

7,651

Gross profit  

15,098

13,475

Operating expenses:

Research and development costs, net

7,149

10,494

Sales and marketing

7,790

10,887

General and administrative

2,902

3,960

Total operating expenses

17,841

25,341

Operating loss

(2,743)

(11,866)

Financial and other income, net

540

794

Loss before income tax expenses

(2,203)

(11,072)

Tax expenses

307

290

Net Loss

(2,510)

(11,362)

Basic net loss per share

$         (0.07)

$         (0.30)

Diluted net loss per share

$         (0.07)

$         (0.30)

Weighted average number of shares used in 

computing basic net loss per share

38,411,724

37,421,720

Weighted average number of shares used in 

computing diluted net loss per share

38,411,724

37,421,720

 

 

 

TABLE  – 2

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

March 31,

2024

2023

(Unaudited)

GAAP cost of revenues

$          6,792

$          7,651

 Share-based compensation (1) 

(154)

(531)

 Amortization of intangible assets (2) 

(152)

(193)

Non-GAAP cost of revenues

$          6,486

$          6,927

 GAAP gross profit 

$        15,098

$        13,475

 Gross profit adjustments 

306

724

 Non-GAAP gross profit 

$        15,404

$        14,199

 GAAP operating expenses 

$        17,841

$        25,341

 Share-based compensation (1) 

(1,206)

(2,937)

 Non-GAAP operating expenses 

$        16,635

$        22,404

 GAAP financial and other income 

$             540

$            794

 Expenses related to M&A activities (3) 

–

14

 Exchange rate differences* 

94

(43)

 Non-GAAP Financial and other income 

$             634

$            765

 GAAP taxes on income 

$             307

$            290

 Changes in tax related items 

(44)

(25)

 Non-GAAP taxes on income 

$             263

$            265

 GAAP Net Loss 

$         (2,510)

$      (11,362)

 Share-based compensation (1) 

1,360

3,468

 Amortization of intangible assets (2) 

152

193

 Expenses related to M&A activities (3) 

–

14

 Exchange rate differences* 

94

(43)

 Changes in tax related items 

44

25

 Non-GAAP Net income (loss) 

$            (860)

$        (7,705)

 GAAP Loss per share (diluted) 

$           (0.07)

$          (0.30)

 Share-based compensation 

0.04

0.09

 Amortization of intangible assets

–

–

 Expenses related to M&A activities

–

–

 Exchange rate differences*

–

–

 Changes in tax related items

–

–

 Non-GAAP Net income (loss) per share (diluted) 

$           (0.03)

$          (0.21)

Weighted average number of shares used in 

computing GAAP diluted net loss per share

38,411,724

37,421,720

Weighted average number of shares used in 

computing non-GAAP diluted net loss per share

38,411,724

37,421,720

* Financial income or expenses related to exchange rate differences in connection with revaluation of assets and

 liabilities in non-dollar denominated currencies. 

 ** While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired  

 companies is reflected in the measures and the acquired assets contribute to revenue generation. 

TABLE  – 2 cont.

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

March 31,

2024

2023

(Unaudited)

(1) Share-based compensation:

Cost of revenues

$             154

$            531

Research and development costs, net

498

1,202

Sales and marketing

443

1,037

General and administrative

265

698

$          1,360

$          3,468

 (2) Amortization of intangible assets 

Cost of revenues

$             152

$            193

$             152

$            193

 (3) Expenses related to M&A activities 

Financial income

$               –

$              14

$               –

$              14

 

 

TABLE  – 3

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED  BALANCE  SHEETS

(U.S. dollars in thousands)

March 31,

December 31,

2024

2023

(Unaudited)

(Audited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$                  22,718

$              14,192

Restricted deposit

1,182

1,728

Short-term bank deposits

–

10,000

Available-for-sale marketable securities

28,657

28,853

Trade receivables, net  (net of allowance for credit

losses of $25,363 and $25,253 on March 31, 2024 and

December 31, 2023, respectively)

15,019

14,828

Other receivables and prepaid expenses

6,996

8,437

Inventories

11,707

11,874

Total current assets

86,279

89,912

NON-CURRENT ASSETS:

Severance pay fund

389

395

Restricted deposit

–

158

Operating lease right-of-use assets

2,505

3,057

Other assets 

1,091

704

Property and equipment, net

10,403

11,189

Intangible assets, net

763

915

Goodwill

31,833

31,833

Total non-current assets

46,984

48,251

Total assets

$                  133,263

$              138,163

LIABILITIES AND SHAREHOLDERS’

EQUITY

CURRENT LIABILITIES:

Trade payables

$                        709

$                     969

Deferred revenues

15,168

14,892

Short-term operating lease liabilities

1,494

1,453

Other payables and accrued expenses

18,075

22,094

Total current liabilities

35,446

39,408

LONG-TERM LIABILITIES:

Deferred revenues

8,531

7,437

Long-term operating lease liabilities

202

702

Accrued severance pay

1,016

1,080

Convertible debt

39,823

39,773

Total long-term liabilities

49,572

48,992

SHAREHOLDERS’ EQUITY

48,245

49,763

Total liabilities and shareholders’ equity

$                  133,263

$              138,163

 

 

TABLE  – 4

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

(U.S. dollars in thousands)

Three Months Ended

March 31,

2024

2023

(Unaudited)

Cash flows from operating activities:

Net Loss

$        (2,510)

$    (11,362)

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation

1,215

1,320

Stock-based compensation

1,360

3,468

Amortization of intangible assets

152

276

Increase (Decrease) in accrued severance pay, net

(58)

60

Decrease in other assets, other receivables and prepaid expenses

717

499

Decrease (Increase) in accrued interest and  amortization of premium/discount on marketable securities 

(372)

19

Decrease in operating leases liability

(459)

(1,105)

Decrease in operating lease right-of-use asset

552

722

Decrease (Increase) in trade receivables

(191)

4,486

Decrease (Increase) in inventories

167

(3,453)

Increase (Decrease) in trade payables

(262)

739

Decrease in employees and payroll accruals

(3,486)

(1,452)

Increase (Decrease) in deferred revenues

1,370

(2,169)

Decrease in other payables, accrued expenses and other long term liabilities

(554)

(901)

Amortization of issuance costs of Convertible debt

50

49

Net cash used in operating activities

(2,309)

(8,804)

Cash flows from investing activities:

Decrease in restricted deposit

704

–

Investment in short-term bank deposits

–

(15,900)

Withdrawal of short-term bank deposits

10,000

32,900

Purchase of property and equipment

(429)

(270)

Investment in marketable securities

(24,275)

(8,983)

Proceeds from redemption or sale of marketable securities

24,835

3,370

Net cash provided by investing activities

10,835

11,117

Cash flows from financing activities:

Proceeds from exercise of stock options

–

–

Issuance of convertible debt

–

–

Net cash provided by financing activities

–

–

Increase in cash and cash equivalents

8,526

2,313

Cash and cash equivalents at the beginning of the period

14,192

12,295

Cash and cash equivalents at the end of the period

$        22,718

$     14,608

 

 

 

Other financial metrics (Unaudited)

U.S. dollars in millions, except number of full time employees, top 10 customers as a

% of revenues and number of shares

Q1-2024

FY 2023

FY 2022

Revenues geographic breakdown

Americas

4.3

20 %

16.6

18 %

21.8

18 %

EMEA

12.5

57 %

56.1

60 %

71.2

58 %

Asia Pacific

5.1

23 %

20.5

22 %

29.7

24 %

21.9

100 %

93.2

100 %

122.7

100 %

Revenue breakdown by type

Products

7.4

34 %

37.6

40 %

61.1

50 %

Professional Services

3.0

14 %

6.1

7 %

11.6

9 %

SECaaS (Security as a Service)

3.4

16 %

10.6

11 %

7.2

6 %

Support & Maintenance

8.1

36 %

38.9

42 %

42.8

35 %

21.9

100 %

93.2

100 %

122.7

100 %

Revenues per customer type

CSP

17.3

79 %

75.1

81 %

98.3

80 %

Enterprise

4.6

21 %

18.1

19 %

24.4

20 %

21.9

100 %

93.2

100 %

122.7

100 %

Top 10 customers as a % of revenues

47 %

47 %

44 %

Total number of full time employees 

505

559

749

(end of period)

Non-GAAP Weighted average number of basic shares  (in

 millions)

38.4

37.9

37.0

Non-GAAP weighted average number of fully diluted

shares  (in millions)

42.1

40.3

39.5

SECaaS (Security as a Service) revenues– U.S. dollars in millions (Unaudited)

Q1-2024:

3.4

Q4-2023:

3.2

Q3-2023:

2.8

Q2-2023:

2.4

Q1-2023:

2.3

SECaaS ARR* (annualized recurring revenues)- U.S. dollars in millions (Unaudited)

Mar. 2024:

13.7

Dec. 2023:

12.7

Dec. 2022:

9.2

Dec. 2021:

5.2

*ARR: annualized recurring SECaaS revenues, calculated based on the monthly revenues multiplied by 12

 

View original content:https://www.prnewswire.com/news-releases/allot-announces-first-quarter-2024-financial-results-302157723.html

SOURCE Allot Ltd.

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Qued Partners with Don Hummer Trucking to Bring AI-Powered Smart Appointments to a Family Fleet Trusted for More Than 70 Years

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49 minutes ago

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July 21, 2026

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Family-owned Iowa truckload carrier has confirmed more than 10,000 appointments through Qued, with email scheduling handled at a 98.8% success rate

BROADLANDS, Va., July 21, 2026 /PRNewswire-PRWeb/ — Qued, a leader in developing sophisticated, automated appointment scheduling solutions for supply chain and logistics companies, today announced a strategic partnership with Don Hummer Trucking Corporation, a family-owned interstate truckload carrier trusted by some of the nation’s most recognizable brands. Don Hummer Trucking has deployed Qued’s Smart Appointments platform to automate appointment scheduling across its operations, taking manual booking work off the desks of the people who keep its trucks moving.

Every load delivered safely and on time carries the opportunity to earn our customer’s trust. Qued took a job that used to eat hours of our team’s day and quietly handles it in the background.

The numbers behind the announcement:

More than 10,000 appointments confirmed through Qued94.2% confirmation rate98.8% success rate on email-based scheduling

Qued’s platform selects the best appointment slots in real time, weighing ETAs, facility capacity, historical performance, and the specific requirements of each location. It connects directly to the transportation management system a carrier already runs, and it works on every channel a facility can require: web portals, email, and AI-powered voice calls. At Don Hummer Trucking, email scheduling has been the standout, with Qued handling email-based appointment requests at a 98.8% success rate.

“Don Hummer Trucking is the kind of company this industry is built on. The president holds a CDL and delivers loads. The family name rides on every trailer,” said Tom Curee, President of Qued. “When a three-generation fleet with that much on the line trusts Qued with its appointments, we take it seriously. Hummer’s confirmation numbers show what disciplined operators get when real automation goes to work on scheduling.”

“Every load delivered safely and on time carries the opportunity to earn our customer’s trust. Qued took a job that used to eat hours of our team’s day and quietly handles it in the background. Confirmations happen, trucks keep moving, and our people stay focused on drivers and customers,” said Jake Von Feldt, Vice President of Finance at Don Hummer Trucking.

Don Hummer Trucking joins a growing roster of asset-based carriers on Qued, from family fleets to some of the largest carriers in North America.

About Qued:

Qued is a cloud-based, AI-powered smart workflow automation platform transforming load appointment scheduling for brokers, 3PLs, and carriers. By automating the scheduling process, Qued eliminates manual work, simplifies multi-stop load appointments, and ensures seamless coordination across the supply chain, improving both operational efficiency and customer satisfaction. For more information, visit www.qued.com or contact us at contact.us@qued.com.

About Don Hummer Trucking:

Don Hummer Trucking Corporation is a family-owned and operated, for-hire interstate truckload carrier headquartered in Cedar Rapids, Iowa, with terminal operations in Homestead, Iowa. The Hummer name has been trusted in freight transportation for more than 70 years, and the company today serves many of the largest shippers in the country. For more information, visit www.donhummertrucking.com.

Media Contact

Adam Robinson, The Robinson Agency, 1 2148720780, adam@the-robinson-agency.com, The Robinson Agency 

View original content to download multimedia:https://www.prweb.com/releases/qued-partners-with-don-hummer-trucking-to-bring-ai-powered-smart-appointments-to-a-family-fleet-trusted-for-more-than-70-years-302830398.html

SOURCE Qued

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Bank of America Enhances EricaAssist with Generative AI to Help Employees Resolve Client Needs Faster

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49 minutes ago

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July 21, 2026

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New AI capabilities deliver relevant insights in seconds, helping employees provide more personalized client service in real-time

Key takeaways

More than 18,000 employees use EricaAssist as a human-assisted AI agent to help serve clients.
New Generative AI (Gen AI) capabilities deliver contextual guidance in under three seconds, helping resolve client needs faster and supporting decision making by customer service representatives.
EricaAssist reduces average call times by nearly one minute per interaction, improving efficiency and client experience.

CHARLOTTE, N.C., July 21, 2026 /PRNewswire/ — Bank of America (BofA) today announced enhancements to EricaAssist, its human assisted AI agent that supports employees during client conversations, delivering real time insights that help resolve client needs faster while keeping the employee at the center of the experience.

Used by more than 18,000 customer service representatives, EricaAssist works alongside employees during calls – summarizing and surfacing relevant guidance in real time – so employees can focus on listening to and understanding clients, explaining solutions, and building stronger relationships. The enhancements are making our human agents better and providing our customers with an improved and more efficient experience.

“EricaAssist reflects our high tech, high touch approach,” said Ashley Ross, Head of Consumer Client Experience and Business Transformation at Bank of America. “By combining human judgment with real time AI guidance, we’re helping employees navigate complex topics more easily and serve clients more effectively in the moments that matter most.”

Bank of America customer service representatives use generative AI capabilities within EricaAssist to summarize why a client is calling, pull together relevant information, and recommend next steps based on the employee’s role and the client’s relationship with the bank – all without interrupting the flow of the conversation.

“This technology helps our teammates deliver relevant insights in seconds, while operating with strong governance, transparency, and accountability,” said Tom Ellis, Chief Information Officer and Head of Consumer Technology at Bank of America.

Later this year, Bank of America plans to expand EricaAssist to support additional servicing scenarios and business lines.

Frequently asked questions

Question: Why enhance EricaAssist with GenAI capabilities?

Answer: Enhancing EricaAssist reflects the bank’s focus on continuously improving how employees access and deliver personalized guidance and resolve client needs faster.

Question: How do EricaAssist enhancements reflect Bank of America’s broader investments in technology?

Answer: Bank of America spends $14 billion annually on technology, of which more than $4 billion is allocated to new initiatives, including AI. These ongoing investments, combined with our high-tech, high-touch approach, continue to enhance our client experiences across all channels and to drive operational efficiencies across the company.

Question: Why blend AI with employee decision making?

Answer: Our responsible AI strategy ensures human oversight, transparency, and accountability for all outcomes. By leveraging AI at scale across our global operations, we are optimizing performance and improving client experiences. EricaAssist works alongside employees, supporting their decision-making and service. Employees ensure clients receive thoughtful guidance, with AI operating within established governance and oversight.

Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact
Catherine Page, Bank of America
Phone: 1.704.519.7314
catherine.page@bofa.com

Don Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com

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SOURCE Bank of America Corporation

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Sonilo and fal Launch Sound Effects 1.0 for Realistic Sound Effects from Video and Text

Published

49 minutes ago

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July 21, 2026

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Exclusive API co-launch brings Video-to-Sound Effects and Text-to-Sound Effects generation to developers through fal

SAN FRANCISCO, July 21, 2026 /PRNewswire/ — Sonilo, a generative audio company building video-native sound and music models, and fal, the generative media platform for developers and enterprises, today announced the launch of Sonilo Sound Effects 1.0, a new model that generates highly realistic sound effects from video or text.

With video input, Sound Effects 1.0 analyzes what is happening on screen and generates one finished audio track synced to the motion, timing and scene. With text input, developers and creators can describe a specific sound effect and generate it directly.

fal will serve as the model’s exclusive API launch partner during its initial launch period, providing developers with day zero access through fal’s production-ready infrastructure.

Sound Effects 1.0 is designed to address one of the most persistent gaps in AI video production: footage can look complete while still requiring significant manual work before it sounds complete.

When given a video, the model analyzes on-screen motion, scene context, environments, and timing before generating audio that follows what is happening on screen.

Instead of returning a collection of disconnected audio assets that still need to be placed and aligned one by one, Sound Effects 1.0 can produce a synchronized audio track that is ready to review, refine and add to the edit.

“Sound effects only work when they feel like they belong in the scene,” said Trista Hong, Co-Founder of Sonilo. “Sound Effects 1.0 was built around that complete problem: understanding the footage, generating realistic audio, and synchronizing it automatically. We’re excited to launch it together with fal and bring video-native sound into real production workflows.”

A Sound Model Built Around the Video

Traditional sound-design workflows typically begin outside the footage. Editors search sound libraries, preview multiple assets, place them on a timeline, align each effect to the appropriate frame, adjust levels and repeat the process across every action in the scene.

Sound Effects 1.0 begins with the video itself.

The model uses the footage as both a source of semantic information and the timing foundation for the generated audio. It determines what is happening in the scene, what sounds are appropriate for those events and when those sounds should occur.

This video-native approach is particularly useful for scenes containing multiple actions, transitions, impacts and environmental details. Rather than requiring creators to build the sound layer one asset at a time, the model can generate audio around the structure of the footage as a whole.

Sound Effects 1.0 supports video inputs of up to three minutes, making it suitable for short-form content, advertisements, gaming footage, product videos and longer narrative scenes.

Automatic Generation When Speed Matters, Prompt Control When Direction Matters

Sound Effects 1.0 supports two complementary generation workflows.

Video-to-Sound-Effects analyzes uploaded footage and generates sound effects matched to its visible actions, environments and timing.

Text-to-Sound-Effects generates specific standalone sounds from written descriptions, giving creators and developers direct control when they need a particular audio asset.

Prompts are optional in the video workflow. Users can allow the model to interpret footage automatically or provide a prompt requesting a particular sound, emphasis or creative direction.

The prompt helps shape what the model generates, while the video continues to determine when the sound should occur.

This gives users two practical modes of working: automatic sound generation when speed and coverage are the priority, and prompt-guided generation when a scene requires more precise creative control.

Bringing Video-Native Sound Generation to Developers through fal

The co-launch gives developers access to Sound Effects 1.0 through fal’s generative media infrastructure, allowing video-conditioned sound generation to be incorporated directly into products and production workflows.

Developers can use the model to build synchronized sound generation into:

AI video editors and generation platforms;Short-form and social video tools;Advertising and branded-content workflows;Game prototypes, gameplay videos and cinematics;Film and narrative-production pipelines; andMultimodal creator products that combine video, music and sound.

“We’re entering a new era where AI applications don’t just generate assets, they produce complete experiences,” said Tina Sang, Head of Marketing at fal. “Sound is fundamental to making those experiences believable. Sonilo Sound Effects 1.0 helps developers generate context-aware, synchronized audio that matches what’s happening on screen, and we’re very excited to bring it to fal, day zero.”

The integration is designed to let teams move from initial testing to product deployment without building and operating a separate model-serving stack. Developers can access the model through fal’s API and developer tooling while keeping sound generation inside the same environment as their broader generative media workflows.

Expanding the Sonilo and fal Partnership

The launch expands an existing relationship between Sonilo and fal.

Sonilo Music v1.1 is already available through fal, giving developers access to both Video-to-Music and Text-to-Music generation. Sound Effects 1.0 extends that integration from generated music into highly realistic, video-conditioned sound effects.

Using the same source footage, creators and developers can generate sound effects around visible actions and environments, then generate music informed by the video’s pacing, scene changes, mood and timing.

This creates a broader video-first audio workflow in which a single video can serve as the timing foundation for both sound design and music. Sound effects can follow what happens on screen, while music can follow the emotional and structural movement of the edit.

By connecting both layers around the source footage, Sonilo aims to reduce manual synchronization, repetitive asset placement and unnecessary switching between separate audio tools.

Built for Real Production Workflows

For AI video creators, Sound Effects 1.0 can add action cues, environmental details, movement and transitions to generated footage that otherwise arrives without usable audio.

For high-volume creators and gaming channels, the model can reduce repetitive timeline work across content requiring dense sound design, including impacts, interface sounds, room tone and movement.

For filmmakers and narrative teams, it can generate scene-level elements such as footsteps, doors, physical interactions and ambience directly from an edit.

For brands and advertising teams, it can produce precisely timed audio around product interactions, camera transitions, packaging moments and visual reveals.

For platforms and API products, it provides a way to add video-conditioned sound generation without requiring users to leave the product and assemble audio in a separate editing workflow.

About Sonilo

Sonilo builds video-native generative audio models for creators, developers and media platforms. Its technology generates music and sound effects directly from footage or text, helping teams bring audio into the video-creation workflow and reduce manual timeline work. Sonilo is headquartered in San Francisco and backed by B Capital.

Learn more at https://sonilo.com/.

About fal

fal is a generative media platform that provides developers with access to the world’s best generative image, video, and audio models through a unified API. Trusted by over 2.5 million developers and leading companies, fal offers the fastest inference engine for diffusion models, on-demand serverless GPUs, and dedicated compute clusters for frontier research. Learn more at fal.ai.

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SOURCE Sonilo

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