Core Insights - Radware has been recognized as a Strong Performer in The Forrester Wave: Web Application Firewall Solutions, Q1 2025, highlighting its position among the top 10 web application firewall vendors [1][2] Company Performance - Radware achieved the highest scores across six criteria in the Forrester report, including detection models, roadmap, and pricing flexibility and transparency [2] - The company has made significant investments in AI and automation, exemplified by the AI SOC Xpert tool that summarizes incidents and recommends mitigations [2] Product Offerings - Radware's Web Application Firewall (WAF) is part of its Cloud Application Protection Service, which includes bot detection, API protection, client-side protection, and application-layer DDoS protection [2] - The comprehensive solution defends against over 150 known attack vectors, including the OWASP's Top 10 Web Application Security Risks and Top 10 API Security Vulnerabilities [2] Industry Recognition - Radware has received recognition from various industry analysts, including Aite-Novarica Group, Gartner, KuppingerCole, and QKS Group, for its application and network security solutions [3]

Core Viewpoint - Radware has launched a new data center in Lima, Peru, as part of its ongoing investment in its global data center network and to enhance its services in Latin America [1][3]. Company Expansion - The new facility in Peru is part of Radware's network of over 50 data centers, which collectively offer a mitigation capacity of 15 Tbps [1]. - The expansion aims to provide local customers with enhanced cyber protection and support from local experts [3]. Cybersecurity Landscape - According to Radware's 2025 Global Threat Analysis Report, web DDoS attacks increased by 550%, while web application and API attacks rose by 41% from 2023 to 2024 [3]. - The company's services include comprehensive protection against various cyber threats, including DDoS attacks, web application attacks, and bot traffic [5]. Service Offerings - Radware provides a range of cloud protection services, including web application and API protection, bot protection, and mobile application protection [5]. - The company is recognized as a market leader in cybersecurity by industry analysts such as Gartner and Aite-Novarica Group [5]. Operational Efficiency - The global network of data centers allows Radware to mitigate attacks close to their origin, improving application response times and reducing mitigation response times for various cyber threats [4]. - Keeping data local helps organizations comply with strict data privacy regulations [4].

Core Viewpoint - Radware has signed a managed security service provider (MSSP) agreement with CHT Security to enhance application security solutions in response to increasing cyber threats in Taiwan [1][3][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 [7] - CHT Security is a leading MSSP in Taiwan and a subsidiary of Chunghwa Telecom, providing cybersecurity services to over 300 large enterprises and more than 40,000 small and medium-sized enterprises [5] Industry Context - The frequency and intensity of cyber attacks are rising, with recent DDoS attacks targeting over 50 entities in Taiwan, including government and financial institutions [3] - The rapid advancement of network technology is creating security vulnerabilities for enterprise applications, increasing the risk of zero-day attacks and data breaches [3] Product Offerings - Radware's Cloud Application Protection Service includes a web application firewall (WAF), bot detection, API protection, and application-layer DDoS protection, defending against over 150 known attack vectors [4] - The service combines automation, AI algorithms, and 24/7 managed services to address various security risks, including OWASP's Top 10 Web Application Security Risks [4] Strategic Partnership - The partnership aims to leverage CHT Security's expertise and Radware's technology to provide enhanced multi-layered defense services against sophisticated cyber threats [5][6] - Both companies are focused on addressing the challenges faced by security teams in an evolving threat landscape [6]

Core Viewpoint - Radware is hosting its Hackers Challenge on March 13, 2025, in Lima, Peru, aimed at addressing pressing cybersecurity issues through collaboration and innovation among global security and technology experts [1][2]. Group 1: Event Details - The Hackers Challenge will feature live demonstrations where hackers attempt to breach protected web applications, allowing the audience to learn about effective defense strategies [2]. - Participants will gain insights into using artificial intelligence to manage security vulnerabilities across corporate networks [3]. Group 2: Company Commitment and Regional Presence - Radware emphasizes its commitment to cybersecurity innovation in Latin America, where it has operated for nearly 20 years, and plans to strengthen cybersecurity capabilities in the region [4]. - The company has a significant presence in Latin America, with operations in multiple countries and cloud security service centers in Chile and Brazil, contributing to a global network of over 50 centers with a combined mitigation capacity of 15 Tbps [4]. Group 3: Company Overview - Radware is recognized as 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 released its 2025 Global Threat Analysis Report, highlighting significant changes in the threat landscape driven by geopolitical conflicts, complex threat surfaces, and the impact of AI on cyberattacks [1][3] Threat Landscape Overview - The report indicates that multiple factors contributed to the escalation of cyber threats in 2024, including geopolitical tensions and the accessibility of sophisticated attack tools [3] - AI has lowered barriers to entry for cybercriminals, increasing the number of adversaries and enabling novice actors to launch successful attacks [3] DDoS Attack Trends - Layer 7 (L7) Web DDoS attacks surged, primarily linked to hacktivist groups motivated by geopolitical issues [4] - The volume, frequency, and duration of network DDoS attacks more than doubled since 2022, indicating a significant escalation in threat levels [4] - Total Web DDoS attacks increased by 550% compared to 2023, with EMEA accounting for 78% of global incidents [6] Industry-Specific Impacts - The financial sector experienced a nearly 400% year-over-year growth in DDoS attack volume, with telecommunications and transportation also facing significant increases [5][6] - North America faced 66% of web application and API attacks, highlighting a concentrated threat in this region [5][7] Attack Characteristics - The average duration of network DDoS attacks increased by 37% over 2023, with the average mitigated attack volume rising by 120% [6] - Hacktivist claims rose by 20% globally, with government institutions being the top targets [5][14] Vulnerability Exploitation - Attackers are increasingly exploiting known vulnerabilities in web applications and APIs, with vulnerability exploitation comprising over one-third of all malicious requests [8][14] - The financial sector accounted for 44% of total L7 DNS attack activity, indicating a targeted approach by cybercriminals [7][14]

Core Insights - Radware released its 2025 Global Threat Analysis Report, highlighting significant changes in the cybersecurity landscape driven by geopolitical conflicts, complex threat surfaces, and the impact of AI on cyber threats [1][3]. Threat Landscape - The report indicates that multiple factors contributed to a "threat revolution" in 2024, including geopolitical tensions and the accessibility of sophisticated tools for cybercriminals [3]. - AI has lowered barriers to entry for malicious actors, increasing the number of adversaries and enabling novice actors to launch successful attacks [3]. DDoS Attack Trends - Layer 7 (L7) Web DDoS attacks surged, primarily linked to hacktivist groups motivated by geopolitical issues [4]. - Total Web DDoS attacks increased by 550% compared to 2023, with the average mitigated attack volume rising by 120% [6]. - The average duration of network DDoS attacks increased by 37% over 2023 [5][6]. Geographic and Industry Targets - EMEA accounted for 78% of global DDoS incidents, with North America facing 66% of web application and API attacks [6][7]. - The telecommunications sector experienced 43% of global network DDoS attack volume, followed by finance at 30% [6][14]. - Ukraine was the most targeted nation with 2,052 claimed attacks, followed by Israel and the United States [7][14]. Hacktivism and Attack Dynamics - Hacktivist campaigns intensified, with a 20% increase in claims globally, targeting government institutions primarily [5][14]. - The financial sector accounted for 44% of total L7 DNS attack activity, with healthcare and telecom following [7][14]. - Vulnerability exploitation remained the most prominent attack type, comprising over one-third of all malicious requests [14].

Core Viewpoint - Investors are encouraged to consider Radware (RDWR) due to solid improvements in earnings estimates and positive short-term price momentum [1][2] Earnings Estimate Revisions - Analysts are increasingly optimistic about Radware's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The current quarter's earnings estimate is projected at $0.23 per share, reflecting a year-over-year increase of +43.75% and a 112.5% rise in consensus estimates over the last 30 days [4] - For the full year, earnings are expected to be $0.95 per share, indicating a year-over-year change of +9.2%, with a 46.94% increase in consensus estimates over the past month [5] Zacks Rank and Performance - Radware has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential outperformance compared to the S&P 500 [6] - Historically, Zacks 1 (Strong Buy) and 2 (Buy) stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6] Stock Performance - Radware shares have increased by 7.2% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [7]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 grew 12% year-over-year to $73 million, while full year 2024 revenue increased by 5% to $275 million [25] - Total ARR grew 8% year-over-year to $227 million, with cloud ARR rising 19% to $77.3 million, accelerating from 15% growth in Q3 2024 [26] - Net income in Q4 more than doubled to $11.9 million compared to $5.5 million in the same period last year, and for the full year, net income for 2024 doubled to $37.7 million compared to $18.9 million in 2023 [32] Business Line Data and Key Metrics Changes - The cloud security business was a key driver of growth, with cloud ARR growth accelerating to 19% [8] - Cloud and subscription revenue accounted for 48% of total revenue in Q4 and 47% for the full year compared to 44% in both periods last year [26] - DefensePro X, the DDoS protection solution, saw continuous adoption and significant growth opportunities, including notable deals with service providers [14][16] Market Data and Key Metrics Changes - Revenue in the Americas increased 33% year-over-year to $32.8 million, accounting for 45% of total revenue [26] - EMEA revenue in Q4 was $23.3 million, a 6% year-over-year decline, while APAC revenue increased 8% year-over-year to $16.9 million [27] Company Strategy and Development Direction - The company plans to increase investment in cloud security, including opening new cloud security centers and enhancing R&D [9][22] - The focus remains on accelerating growth, particularly in cloud security and AI-driven solutions, with a target of close to $100 million ARR by the end of 2025 [10][22] Management's Comments on Operating Environment and Future Outlook - Management noted cautious spending by large enterprise customers due to rising cyber threats, driving demand for cloud security solutions [40] - The company is optimistic about growth opportunities in North America and plans to leverage OEM partnerships for revenue growth [42] Other Important Information - The company achieved a gross margin of 82.4% in Q4 2024, an expansion of 40 basis points compared to Q4 2023 [28] - Cash flow from operations in Q4 2024 reached $12.7 million compared to $2.7 million in the same period last year [33] Q&A Session Summary Question: Can you describe the environment in the different regions? - Management indicated cautious spending by large enterprises due to rising cyber threats, leading to increased cloud security purchases [40] Question: Should we expect increased R&D investment? - Management confirmed plans for increased investment in R&D and cloud security centers, reallocating resources internally [46] Question: Is the cloud ARR reacceleration related to changes in the go-to-market strategy? - Management stated that the growth was broad-based, with strong activity from both North America and international markets [52] Question: What is the competitive environment like now compared to a year ago? - Management highlighted a strong competitive position in cloud security, emphasizing advancements in security algorithms and AI capabilities [56] Question: Are there any integrations helping with partners or northbound interfaces? - Management confirmed ongoing enhancements in integrations with existing partners, including Cisco and Check Point, to improve customer offerings [60] Question: What is the trend regarding platformization in the market? - Management acknowledged the trend towards integrated solutions in the security market, with a focus on application and data center protection [68]

Investor Presentation February 2025 Safe Harbor This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware's plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," and simila ...

Company Performance - Radware reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.13 per share a year ago, representing an earnings surprise of 12.50% [1] - The company posted revenues of $73.03 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.07%, compared to year-ago revenues of $65.03 million [2] - Over the last four quarters, Radware has consistently surpassed consensus EPS estimates and revenue estimates [2] Future Outlook - The sustainability of Radware's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $69.4 million, and for the current fiscal year, it is $0.94 on revenues of $291.1 million [7] - The estimate revisions trend for Radware is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Software industry, to which Radware belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]