Company Performance - Radware's shares have increased by 11.8% over the past month, reaching a new 52-week high of $27.11 [1] - Year-to-date, Radware has gained 18.1%, outperforming the Zacks Computer and Technology sector's 1.1% and the Zacks Internet - Software industry's 11.2% [1] Earnings and Revenue Expectations - Radware has consistently exceeded earnings estimates, reporting EPS of $0.27 against a consensus estimate of $0.23 in its last earnings report [2] - For the current fiscal year, Radware is projected to achieve earnings of $1.05 per share on revenues of $295.2 million, reflecting a 20.69% increase in EPS and a 7.39% increase in revenues [3] - The next fiscal year is expected to see earnings of $1.13 per share on $314 million in revenues, indicating year-over-year changes of 7.62% and 6.37%, respectively [3] Valuation Metrics - Radware's current trading metrics show a P/E ratio of 25.3X for the current fiscal year, below the peer industry average of 27.4X [7] - On a trailing cash flow basis, Radware trades at 47.5X compared to the peer group's average of 25.5X, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - Radware holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with investment recommendations for stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a combined VGM Score of B [6] Industry Context - The Internet - Software industry ranks in the top 22% of all industries, indicating favorable conditions for both Radware and its peers [11] - Creative Realities, Inc. (CREX), a peer company, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, gaining 62.6% over the past month [9][10]

Core Insights - Skyhawk Security has launched a partner program aimed at enhancing its channel-first strategy, allowing value-added resellers (VARs), managed security service providers (MSSPs), and consultants to meet the growing demand for cloud security solutions [1][2] Partner Program Structure - The partner program is designed to be flexible, accommodating partners of various sizes and business models, enabling them to engage at a level that suits their operations [3] - The program includes different partner types: Referral Partners, Reseller Partners (VARs), and MSSPs, each with tailored benefits and support structures [7] Program Benefits - Partners will benefit from protected deal registration, immediate access to a partner portal with marketing and sales resources, and consultative support from Skyhawk's teams [4] - By Q3 2025, partners will have access to an on-demand training curriculum to enhance sales and technical capabilities [4] Security Solution Features - Skyhawk's platform consolidates visibility into a single view, providing continuous threat detection without disrupting production systems [5] - The platform utilizes a real-time digital twin of each customer's cloud environment to enhance threat detection and reduce alert noise [5] Advanced Capabilities - The recent expansion of AI-driven Autonomous Purple Team capabilities allows for proactive validation of exposure by simulating real-world attacker behavior [6] - This positions partners to offer differentiated security services, increasing customer trust and retention [6] Company Background - Skyhawk Security is recognized as the originator of Cloud Threat Detection and Response (CDR), employing a multi-layer AI approach to preemptively identify and mitigate cloud threats [8]

Core Insights - The report highlights a significant gap in cybersecurity defenses, particularly against AI threats and API vulnerabilities, with only 8% of organizations currently utilizing AI-based protection solutions [3][17] - There is a growing concern regarding business logic attacks, with many organizations lacking adequate training and documentation to effectively mitigate these risks [6][17] Group 1: Cybersecurity Landscape - The weaponization of AI by malicious actors is intensifying cybersecurity threats, leading to increased vulnerabilities in web applications and APIs [4][17] - Organizations are experiencing a surge in API usage, with a 42% increase in 2025 compared to 2023, yet they remain poorly protected against associated risks [17] - Only 29% of security staff are fully trained to handle API business logic attacks, indicating a significant skills gap in the industry [6][17] Group 2: Organizational Preparedness - A lack of confidence in defensive measures is prevalent, with many organizations admitting to major concerns about their cybersecurity readiness [8][17] - On average, only 6% of organizations have full documentation for all their APIs, which complicates risk management [3][17] - Half of the respondents are unaware of the third-party code being used in their applications, raising concerns about data security [6][17] Group 3: Financial Implications - Downtime caused by application DDoS attacks can be costly, averaging $6,100 per minute or $366,000 per hour [17] - Organizations face high compliance pressures, with 54% expressing significant concern regarding various regulations [17]

Core Viewpoint - Radware (RDWR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Radware's Earnings Outlook - For the fiscal year ending December 2025, Radware is expected to earn $1.05 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Radware has increased by 55.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Radware's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Radware has launched new Threat Intelligence Services, including the Telegram Claimed Attacks Report and TLS Fingerprint Reputation Feed, aimed at providing real-time intelligence to combat cyber threats before they occur [1][2][3] Product Features - The Telegram Claimed Attacks Report aggregates claims from hacker groups on Telegram, offering real-time visibility into cyber threats targeting specific regions or industries [3] - The TLS Fingerprint Reputation Feed proactively identifies and blocks malicious TLS fingerprints using advanced analytics and global threat intelligence, enhancing Radware's DDoS Protection [3][6] - The services provide timely insights, proactive threat management, and intuitive dashboards that refresh data every 15 minutes, allowing easy filtering by industry and geography [5][6] Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [4] - The company has received numerous awards and recognitions from industry analysts, highlighting its strong position in the cybersecurity market [3]

Core Insights - Radware recognized Bell Canada and Presidio as its Partners of the Year for their dedication to cybersecurity innovation and customer service excellence [1][2] - The partnership focuses on equipping customers with critical cloud security solutions to mitigate risks and combat cybercrime [2][4] Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [6] - The company's solutions include DDoS protection, application and API security, and are designed to address evolving cybersecurity challenges [6] Partner Contributions - Presidio integrates Radware's application and API security solutions, DDoS protection, and bot management into its cybersecurity offerings, leveraging its expertise in IT foundations and digital transformation [3][4] - Bell Canada provides Radware's full cloud security stack as part of its security-as-a-service offering, enhancing its capability to protect customers from web and application cyber threats [4][5] Awards and Recognition - The Partner of the Year award highlights the exceptional business outcomes achieved by Bell and Presidio through their collaboration with Radware [1][5] - This marks the second consecutive year that Bell has received this award, underscoring the importance of its partnership with Radware in safeguarding customer interests [5]

Core Viewpoint - Glass Lewis, an independent proxy advisory firm, has recommended that stockholders vote "FOR" the compensation proposal for Radware's president and CEO at the upcoming Extraordinary General Meeting [1][2] Group 1: Compensation Proposal - The annual bonus and long-term equity incentives for Radware's president and CEO are found to be appropriately aligned with performance and market practices [2] - The compensation structure has been modified to enhance the alignment of pay and performance, benefiting shareholders [3] Group 2: Meeting Details - The Extraordinary General Meeting will take place on May 29, 2025, at 8:00 a.m. (EDT) at Radware's offices in Mahwah, N.J. [3] - The record date for the Meeting is April 25, 2025 [3] Group 3: Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [6]

Core Insights - Radware has been recognized as a Leader and Fast Mover in the GigaOm Radar for Application and API Security, highlighting its position among the top application and API security solutions [1][2] - The report emphasizes the increasing reliance of organizations on web applications and APIs, making security a critical and challenging aspect of business operations [2][7] Company Strengths - Radware's strengths include vulnerability detection, account takeover protection, and bot management, which are essential for modern cybersecurity [2][7] - The company's Cloud Application Protection Service offers comprehensive features such as bot detection, API protection, web application firewall (WAF), client-side protection, and application-layer DDoS protection [2][4] - Advanced AI and machine learning technologies are utilized for real-time protection, reducing false positives and enhancing overall security [2][4] Industry Recognition - Radware has received accolades from various industry analysts, including Aite-Novarica Group, Forrester, Gartner, KuppingerCole, and QKS Group, further solidifying its reputation in the cybersecurity market [3][4] Technological Advancements - The company employs a multilayered strategy for security, including preemptive protection, AI-powered behavioral detection, and advanced mitigation techniques [7] - Radware's system features machine learning-based anomaly detection that identifies threats and automatically implements real-time signatures to counteract attacks [7]

Core Insights - Radware and MAIRE have expanded their partnership to include Radware's AI-powered Cloud Application Protection Services in MAIRE's managed services portfolio, enhancing security offerings for global customers [1][2][3] - MAIRE operates in 50 countries with a workforce of over 9,800 employees, supported by approximately 50,000 professionals involved in various projects worldwide [2][6] - Radware's Cloud Application Protection Service includes a web application firewall, bot detection and management, and application-layer DDoS protection, defending against over 150 known attack vectors [3][5] Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, utilizing AI-driven algorithms for real-time protection against sophisticated cyber threats [7] - MAIRE is focused on advancing the Energy Transition, providing integrated engineering and construction solutions across three business lines: Sustainable Fertilizers, Low-Carbon Energy Vectors, and Circular Solutions [6] Industry Context - The increasing frequency of cyberattacks and the shortage of skilled security personnel are driving companies to adopt managed security services as part of their security strategies [5] - Radware's solutions have received recognition from industry analysts, establishing the company as a market leader in cybersecurity [5]

Financial Data and Key Metrics Changes - First quarter revenue increased by 11% year over year to $72 million, marking the third consecutive quarter of double-digit revenue growth [5][16] - Non-GAAP earnings per share rose by 60% to $0.27, indicating high leverage in the business model [5] - Cash flow from operations reached $22.4 million, compared to $21.1 million in the same period last year [21] - Total ARR increased by 9% year over year to $230 million, with Cloud ARR growing by 19% to $80 million [17][19] - Gross margin for Q1 was 82.1%, slightly up from 82% in Q1 of the previous year [18] Business Line Data and Key Metrics Changes - Cloud Security business was a major driver of success, with ARR increasing by 19% year over year [6] - The hybrid cloud security offering has become a significant competitive differentiator, contributing to strong ARR growth [8] - OEM partnerships, particularly with Cisco and Check Point, generated strong results, both growing more than 20% year over year [11] Market Data and Key Metrics Changes - Revenue from the Americas increased by 1% year over year to $27.4 million, accounting for 38% of total revenue [17] - EMEA revenue grew by 25% year over year to $28.4 million, representing 39% of total revenue [17] - APAC revenue increased by 7% year over year to $16.3 million, contributing 23% of total revenue [18] Company Strategy and Development Direction - The growth strategy focuses on three pillars: winning significant market share in cloud security, leading through AI innovation and automation, and enhancing the go-to-market footprint [6] - Plans to expand cloud security infrastructure include new service centers in Peru, India, and Kenya, with a total of over 50 centers worldwide [7] - Increased investments in sales, marketing, and R&D are planned to support cloud security business scaling and AI-driven innovation [12][19] Management's Comments on Operating Environment and Future Outlook - Management did not observe any noticeable changes in customer buying behavior despite macroeconomic conditions [25] - The leadership team is expected to enhance productivity without causing disruption, as major changes were implemented in previous quarters [29] - The company is confident in its ability to grow and gain market share, particularly in the U.S. market [13][29] Other Important Information - The tax rate for Q1 was 15.5%, slightly up from 15.3% in the same period last year [20] - The company expects minimal impact from recently announced tariffs and is proactively adjusting its supply chain [21] Q&A Session Summary Question: Did you see any changes in buying behavior from your customers? How was April? - Management reported no noticeable changes in buying behavior and indicated that conditions remained stable [25] Question: Can you elaborate on changes in the U.S. market and if that is accounted for in the Q2 guidance? - Management stated that major changes were already implemented, and they expect increased productivity from the leadership team without disruption [29]