[Radware Q4 and Full Year 2024 Financial Results](index=1&type=section&id=Radware%20Reports%20Fourth%20Quarter%20and%20Full%20Year%202024%20Financial%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights%20for%20the%20Fourth%20Quarter%20and%20Full%20Year%202024) Radware reported strong growth in Q4 2024 with a 12% year-over-year revenue increase to $73.0 million and a significant jump in non-GAAP EPS to $0.27 For the full year 2024, revenue grew 5% to $274.9 million, driven by a 19% increase in Cloud ARR to $77.3 million and a substantial improvement in cash flow from operations to $71.6 million Q4 2024 Financial Highlights (YoY) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $73.0M | $65.0M | +12% | | Non-GAAP Diluted EPS | $0.27 | $0.13 | +108% | | GAAP Diluted EPS | $0.06 | $(0.14) | N/A | Full Year 2024 Financial Highlights (YoY) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $274.9M | $261.3M | +5% | | Cloud ARR | $77.3M | N/A | +19% | | Non-GAAP Diluted EPS | $0.87 | $0.43 | +102% | | GAAP Diluted EPS | $0.14 | $(0.50) | N/A | | Cash Flow from Operations | $71.6M | $(3.5)M | N/A | [CEO Commentary and Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Outlook) The CEO attributed the strong 2024 performance to accelerated cloud ARR growth, the success of the DefensePro X DDoS protection refresh, and robust OEM partnerships Looking forward, the company plans to increase investment to accelerate its cloud security growth by enhancing AI-enabled security capabilities, opening new cloud security service centers, and expanding cloud channels - Key drivers for 2024 success included **19% growth in cloud ARR**, the DefensePro X DDoS protection refresh, and strong performance from OEM partnerships[3](index=3&type=chunk) - Future strategy focuses on accelerating cloud security growth through increased investment in AI capabilities, new cloud security service centers, and expanded cloud channels[3](index=3&type=chunk) [Revenue by Geographic Region](index=1&type=section&id=Revenue%20by%20Geographic%20Region) For the full year 2024, the Americas region was the primary growth driver with a 14% increase in revenue to $117.7 million The APAC region also grew by 3%, while the EMEA region experienced a slight 2% decline In Q4, the Americas showed strong 33% YoY growth Revenue by Region (YoY % Change) | Region | Q4 2024 Revenue | Q4 YoY Change | FY 2024 Revenue | FY YoY Change | | :--- | :--- | :--- | :--- | :--- | | Americas | $32.8M | +33% | $117.7M | +14% | | EMEA | $23.3M | -6% | $94.1M | -2% | | APAC | $16.9M | +8% | $63.1M | +3% | [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, Radware's total assets increased to $618.7 million from $571.9 million in the prior year The company maintained a strong liquidity position with total cash, cash equivalents, bank deposits, and marketable securities amounting to $419.7 million Total equity grew to $357.1 million from $323.3 million Key Balance Sheet Items (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total cash, deposits & marketable securities** | **$419,658** | **$363,719** | | Total Assets | $618,676 | $571,916 | | Total Liabilities | $261,601 | $248,642 | | Total Equity | $357,075 | $323,274 | [Condensed Consolidated Statements of Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) For the full year 2024, Radware successfully returned to profitability, posting a GAAP net income of $6.0 million, a significant turnaround from a $21.6 million net loss in 2023 This was achieved on revenues of $274.9 million (up 5% YoY) and a 6.5% reduction in total operating expenses Full Year Income Statement Highlights (in thousands, except per share data) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Revenues | $274,880 | $261,292 | | Gross Profit | $221,628 | $209,582 | | Total Operating Expenses | $225,515 | $241,262 | | Operating Income (Loss) | $(3,887) | $(31,680) | | Net Income (Loss) | $6,038 | $(21,590) | | Diluted Net Income (Loss) per Share | $0.14 | $(0.50) | [Condensed Consolidated Statements of Cash Flow](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) The company demonstrated a dramatic improvement in cash generation, with net cash provided by operating activities reaching $71.6 million for the full year 2024, compared to a $3.5 million cash usage in 2023 Net cash used in investing was $39.5 million, and financing activities used $3.9 million, resulting in a net increase in cash and cash equivalents of $28.2 million for the year Full Year Cash Flow Summary (in thousands) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $71,609 | $(3,500) | | Net cash provided by (used in) investing activities | $(39,520) | $92,779 | | Net cash used in financing activities | $(3,913) | $(64,926) | | **Increase in cash and cash equivalents** | **$28,176** | **$24,353** | [GAAP to Non-GAAP Reconciliation](index=7&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) [Reconciliation of GAAP to Non-GAAP Financial Information](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) For the full year 2024, Radware's non-GAAP net income was $37.7 million ($0.87 per diluted share), substantially higher than the GAAP net income of $6.0 million ($0.14 per diluted share) The primary adjustments reconciling GAAP to non-GAAP results were the exclusion of share-based compensation ($26.0 million) and amortization of intangible assets ($4.0 million) Full Year 2024 GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income** | **$6,038** | | Share-based compensation | $26,027 | | Amortization of intangible assets | $3,968 | | Acquisition costs | $701 | | Exchange rate differences, net | $1,232 | | Tax related adjustments | $(246) | | **Non-GAAP net income** | **$37,720** | [Reconciliation to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20EBITDA%20and%20Adjusted%20EBITDA) For the full year 2024, Adjusted EBITDA nearly doubled to $34.7 million from $17.6 million in 2023 The calculation starts with GAAP net income and adds back taxes, financial income, depreciation & amortization, share-based compensation, and other non-recurring costs Full Year EBITDA and Adjusted EBITDA (in thousands) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | GAAP net income (loss) | $6,038 | $(21,590) | | EBITDA | $7,949 | $(19,436) | | **Adjusted EBITDA** | **$34,677** | **$17,565** | [Other Information](index=3&type=section&id=Other%20Information) [Use of Non-GAAP Financial Information and KPIs](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information%20and%20Key%20Performance%20Indicators) Radware utilizes non-GAAP financial measures to exclude items like stock-based compensation and amortization, which management believes allows for more meaningful comparisons of operational results The company also defines and uses Annual Recurring Revenue (ARR) as a key performance indicator to measure the value of its recurring business components - Management uses non-GAAP measures to exclude charges such as stock-based compensation, amortization of intangibles, and litigation costs to better assess ongoing operations[12](index=12&type=chunk) - Annual Recurring Revenue (ARR) is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts[13](index=13&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) The press release includes forward-looking statements subject to various risks and uncertainties The company cautions that actual results could differ materially from current forecasts due to factors such as global economic conditions, the war in Israel, supply chain disruptions, intense market competition, and cybersecurity risks - The report contains forward-looking statements about plans and outlook, which are not guarantees of future performance[14](index=14&type=chunk) - Significant risks that could affect results include the impact of global economic conditions, the war in Israel, supply chain shortages, competition, and potential defects or vulnerabilities in its solutions[14](index=14&type=chunk)

Fourth Quarter 2024 Financial Results and Highlights Revenue of $73 million, an increase of 12% year-over-yearNon-GAAP diluted EPS of $0.27 vs. $0.13 in Q4 2023; GAAP diluted EPS of $0.06 vs. $(0.14) in Q4 2023 Full Year 2024 Financial Results and Highlights Revenue of $275 million, an increase of 5% year-over-yearCloud ARR of $77.3 million, an increase of 19% year-over-yearNon-GAAP diluted EPS of $0.87 vs. $0.43 in 2023; GAAP diluted EPS of $0.14 vs. $(0.50) in 2023Cash flow from operations of $71.6 millio ...

Company Overview - Radware is a global leader in application security and delivery solutions for multi-cloud environments, offering AI-driven protection against sophisticated web, application, and DDoS attacks [6] - The company provides cloud application, infrastructure, and API security solutions, helping enterprises and carriers address evolving cybersecurity challenges [6] - Radware has received numerous awards for its DDoS mitigation, application and API protection, web application firewall, and bot detection and management solutions [5] Partnership Expansion - Radware expanded its relationship with TelemaxX Telekommunikation GmbH, leveraging its AI-powered DefensePro® X DDoS Protection to enhance network and application security services [1] - TelemaxX, a leading regional provider of integrated IT solutions, operates five high-security data centers in Germany's Karlsruhe Technology Region [2] - The partnership aims to scale services and help customers stay ahead of emerging threats, including protection against Web DDoS Tsunami attacks [3] Market Trends and Threats - Web DDoS attacks surged globally by 265% during the first six months of 2024 compared to the second half of 2023, according to Radware's H1 2024 Global Threat Analysis Report [3] - The demand for state-of-the-art AI-driven protection is increasing as the number and sophistication of DDoS attacks grow exponentially [4] - DefensePro X provides automated, adaptive DDoS protection against fast-moving, high-volume, encrypted, or zero-day threats, including IoT-based, Burst, DNS, and TLS/SSL attacks [4] Industry Recognition - Radware is recognized as a market leader in cybersecurity by industry analysts such as Aite-Novarica Group, Gartner, GigaOm, IDC, KuppingerCole, and QKS Group [5]

Core Insights - Radware has expanded its partnership with TelemaxX to enhance network and application security services using AI-powered DefensePro X DDoS Protection [1][3] - TelemaxX operates five high-security data centers in Germany and specializes in integrated IT solutions, including telecommunications and cloud services [2] - Web DDoS attacks have surged globally by 265% in the first half of 2024 compared to the second half of 2023, highlighting the increasing threat landscape [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] - The company has received multiple awards for its DDoS mitigation and application protection solutions, recognized by industry analysts as a market leader in cybersecurity [5] Industry Context - The demand for advanced AI-driven DDoS protection is rising due to the exponential increase in the number and sophistication of DDoS attacks [4] - DefensePro X offers automated, adaptive protection against various cyber threats, including IoT-based attacks and ransom DDoS campaigns [4]

TEL AVIV, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, will announce its fourth quarter and full year 2024 financial results on Wednesday, February 12, 2025. Conference Call DetailsRadware management will host a call on Wednesday, February 12, 2025, at 8:30 a.m. EST to discuss its fourth quarter and full year 2024 results and outlook for the first quarter of 2025. Participants are advised to jo ...

Radware (NASDAQ: RDWR ) is a leading player in the cybersecurity space, adopting AI to tackle the growing threats in the industry. The company has limited analyst coverage and no investor events beyond its quarterly earningsAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally ...

MAHWAH, N.J., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ:RDWR), a global leader in application security and delivery solutions for multi-cloud environments, announced it expanded its agreement with one of Italy's top 5 banks. Based on the agreement, the financial institution will use Radware's end-to-end suite of network and application security and application delivery solutions. This includes Radware's Cloud Application Protection and Cloud DDoS Protection Services as well as its Alteon® applicati ...

LAS VEGAS, Dec. 02, 2024 (GLOBE NEWSWIRE) -- AWS re:Invent 2024 - Skyhawk Security, the originator of cloud threat detection and response (CDR), is adding an Interactive Cloud Threat Detection and Response capability to its groundbreaking platform. The new capability adds real-time user interaction to verify suspicious activity of both human and non-human identities (NHIs) that are the root cause of an alert. This closes context gaps between SOCs, cloud teams and identity owners, which reduces the load on t ...

Investors might want to bet on Radware (RDWR) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.Analysts' growing optimism on the earnings prospects of this network management software maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in e ...

MAHWAH, N.J., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced it signed an agreement with a top 10 airport in India. The airport plans to leverage Radware’s Cloud DDoS Protection and Cloud Application Protection Services and work with Radware’s Emergency Response Team in response to a rise in cyber attacks. The cyber investment marks an expansion in the airport’s existing relationship with ...