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]

[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 ...

Core Insights - Radware expanded its agreement with one of Italy's top 5 banks to provide a comprehensive suite of network and application security solutions, including Cloud Application Protection and Cloud DDoS Protection Services [1] - The bank's decision to enhance its cybersecurity measures was driven by a significant increase in Web DDoS attacks, which surged by 265% in the first half of 2024 compared to the second half of 2023 [3] - The expansion of security services is also influenced by the upcoming enforcement of the European Union's Digital Operational Resilience Act (DORA), which mandates improved cybersecurity practices by January 17, 2025 [4] Company Offerings - Radware's Cloud Application Protection Services include a web application firewall (WAF), bot detection and management, API protection, client-side protection, and application-layer DDoS protection, designed to minimize false positives [5] - The Alteon application delivery controller provides embedded security features such as a web application firewall and bot management, defending against various threats including OWASP vulnerabilities and API assaults [6] - Radware's solutions utilize AI-driven algorithms for real-time protection against sophisticated cyber threats, making them suitable for enterprises and carriers facing evolving cybersecurity challenges [8] Industry Context - The financial sector is under pressure to reassess cybersecurity frameworks due to the rise in cyber threats and the need for compliance with new regulations [5] - The increase in Web DDoS attacks highlights the growing importance of robust cybersecurity measures in protecting financial institutions' infrastructure and applications [3] - The enforcement of DORA reflects a broader trend towards stricter regulatory controls in the financial industry, emphasizing the need for enhanced operational resilience [4]