Radware Ltd. (NASDAQ:RDWR) Q4 2023 Earnings Conference Call February 7, 2024 8:30 AM ET Company Participants Yisca Erez - Director, IR Roy Zisapel - President and CEO Guy Avidan - CFO Conference Call Participants Alex Henderson - Needham & Company Chris Reimer - Barclays Operator Welcome to the Radware Conference Call discussing Fourth Quarter and Full Year 2023 Results, and thank you all for holding. As a reminder, this conference is being recorded February 7, 2024. I would now like to turn this call over ...

$19M $23M $34M $44M $53M $65M Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 +27% $145M $155M $174M $190M $202M $211M Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 +8% $138M $148M $169M $185M $197M $211M Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 +9% Total ARR ($M) Total ARR Excluding Customer ($M) Q4 2023 Financial Data Technology Excellence Reduce TCO With Fully Managed Services Take the Burden Off Your Shoulders Market Leaders in Customer Recognition WORLD'S ECOMMERCE COMPANIES ``: radware * Tota ...

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20for%20the%20Fourth%20Quarter%20and%20Full%20Year%202023) Radware reported Q4 and full-year revenue declines, but strong cloud security ARR growth and CEO optimism for 2024 - The CEO highlighted a **22% year-over-year growth in cloud security ARR**, closing 2023 on a positive note, with the company cautiously optimistic for 2024, focusing on cloud security, partner channels, and cost discipline to achieve revenue growth and improved profitability[3](index=3&type=chunk) Key Financial Metrics | Metric | Q4 2023 (Millions $) | Full Year 2023 (Millions $) | | :--- | :--- | :--- | | Revenue | $65.0 (-12% YoY) | $261.3 (-11% YoY) | | Cloud ARR | $64.9 (+22% YoY) | N/A | | GAAP Net Loss per Share ($) | $(0.14) | $(0.50) | | Non-GAAP EPS ($) | $0.13 | $0.43 | [Revenue by Geographic Region](index=1&type=section&id=Revenue%20by%20Geographic%20Region) Full-year 2023 revenues declined across all regions, with Americas seeing the largest drop, while Q4 saw EMEA growth Revenue by Geographic Region | Region | Q4 2023 Revenue (Millions $) | YoY Change | Full Year 2023 Revenue (Millions $) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Americas | $24.6 | -23% | $103.4 | -17% | | EMEA | $24.9 | +2% | $96.5 | -7% | | APAC | $15.5 | -13% | $61.4 | -6% | [Profitability and Cash Position](index=2&type=section&id=Profitability%20and%20Cash%20Position) Profitability declined in 2023 with widened GAAP net loss and reduced non-GAAP net income, despite a strong cash position Profitability Metrics | Metric | Full Year 2023 (Millions $) | Full Year 2022 (Millions $) | | :--- | :--- | :--- | | GAAP Net Loss | $(21.6) | $(0.2) | | GAAP Diluted EPS ($) | $(0.50) | $0.00 | | Non-GAAP Net Income | $18.9 | $31.3 | | Non-GAAP Diluted EPS ($) | $0.43 | $0.68 | - As of December 31, 2023, the company held **$363.7 million** in cash, cash equivalents, short-term bank deposits, and marketable securities[8](index=8&type=chunk) - Cash flow from operating activities was **$2.7 million** in Q4 2023 but was negative at **$3.5 million** for the full year 2023[8](index=8&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements reflect a challenging year with decreased assets and equity, increased net loss, and negative operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $572.3 million, total liabilities to $249.0 million, and total equity to $323.3 million by year-end 2023 Condensed Consolidated Balance Sheets | Balance Sheet Item (Thousands $) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash, cash equivalents, deposits & marketable securities | $363,719 | $385,772 | | Total Assets | $572,288 | $643,588 | | Total Liabilities | $249,014 | $275,145 | | Total Equity | $323,274 | $368,443 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Full-year 2023 revenues declined to $261.3 million, resulting in a gross profit decrease and a significant operating loss of $31.7 million Condensed Consolidated Statements of Income | Income Statement Item (Thousands $) | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | | Revenues | $261,292 | $293,426 | | Gross Profit | $209,582 | $239,542 | | Operating Loss | $(31,680) | $(3,339) | | Net Loss | $(21,590) | $(166) | | Diluted Net Loss Per Share ($) | $(0.50) | $(0.00) | [Reconciliation of GAAP to Non-GAAP Financial Information](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) Non-GAAP operating income declined to $9.3 million and non-GAAP net income to $18.9 million in 2023 after adjustments Reconciliation of GAAP to Non-GAAP Financial Information | Reconciliation to Non-GAAP (Thousands $) | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | | GAAP Operating Loss | $(31,680) | $(3,339) | | Share-based compensation | $34,022 | $27,353 | | Amortization of intangible assets | $3,968 | $3,704 | | **Non-GAAP Operating Income** | **$9,289** | **$29,679** | | GAAP Net Loss | $(21,590) | $(166) | | Total Adjustments | $40,516 | $31,471 | | **Non-GAAP Net Income** | **$18,926** | **$31,305** | [Reconciliation to EBITDA and Adjusted EBITDA](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20EBITDA%20AND%20ADJUSTED%20EBITDA%20(NON-GAAP)) Adjusted EBITDA for full year 2023 decreased sharply to $17.6 million from $37.7 million in 2022 Reconciliation to EBITDA and Adjusted EBITDA (Non-GAAP) | Reconciliation to Adjusted EBITDA (Thousands $) | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | | GAAP Net Loss | $(21,590) | $(166) | | EBITDA | $(19,436) | $8,353 | | Share-based compensation | $34,022 | $27,353 | | Restructuring costs | $1,851 | - | | Acquisition costs | $1,128 | $1,961 | | **Adjusted EBITDA** | **$17,565** | **$37,667** | [Condensed Consolidated Statements of Cash Flow](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Full-year 2023 saw net cash used in operating activities of $3.5 million, a downturn from 2022, with significant share repurchases Condensed Consolidated Statements of Cash Flow | Cash Flow Item (Thousands $) | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(3,500) | $32,148 | | Net cash provided by (used in) investing activities | $92,779 | $(56,018) | | Net cash used in financing activities | $(64,926) | $(22,458) | | **Increase (decrease) in cash and cash equivalents** | **$24,353** | **$(46,328)** | [Supporting Information](index=3&type=section&id=Supporting%20Information) This section clarifies non-GAAP measures, defines ARR, and includes a Safe Harbor statement outlining risks to forward-looking statements - The company uses non-GAAP financial measures, excluding items like stock-based compensation and amortization, to provide what it believes are more meaningful comparisons of operating results[12](index=12&type=chunk) - Annual Recurring Revenue (ARR) is defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts, serving as a key indicator of the value of the company's recurring business[13](index=13&type=chunk) - The report contains forward-looking statements that are subject to risks including global economic conditions, the war between Israel and Hamas, supply chain shortages, and intense market competition[14](index=14&type=chunk)

| --- | --- | --- | --- | --- | --- | |------------------------|-------|-------|-------|-------|-------| | | | | | | | | Investor Presentation | | | | | | | November 2023 | | | | | | Radware Complete Mitigation Suite 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-lookin ...

Radware Ltd. (NASDAQ:RDWR) Q3 2023 Earnings Conference Call November 1, 2023 8:30 AM ET Company Participants Yisca Erez - Director, IR Roy Zisapel - President and CEO Guy Avidan - CFO Conference Call Participants George Notter - Jefferies Chris Reimer - Barclays Alex Henderson - Needham & Company Operator Welcome to the Radware conference call discussing Third Quarter 2023 Results, and thank you all for holding. As a reminder, this conference is being recorded, November 1, 2023. [Operator Instructions] I wo ...

Financial Performance - Revenue for Q3 2023 totaled $61.6 million, down 13% year-over-year[5] - GAAP net loss for Q3 2023 was $6.9 million, or $(0.16) per diluted share, compared to a net loss of $3.0 million, or $(0.07) per diluted share in Q3 2022[3] - Non-GAAP net income for Q3 2023 was $2.9 million, or $0.07 per diluted share, down from $6.7 million, or $0.15 per diluted share in Q3 2022[4] - GAAP gross profit for Q3 2023 was $48,774 thousand, down 15.1% from $57,383 thousand in Q3 2022[23] - GAAP operating loss for Q3 2023 was $(10,196) thousand, compared to a loss of $(3,394) thousand in Q3 2022[23] - Adjusted EBITDA for Q3 2023 was $1,572 thousand, down 78.6% from $7,334 thousand in Q3 2022[27] Regional Revenue Breakdown - Revenue in the Americas region was $24.9 million, a decrease of 24% from $32.9 million in Q3 2022[6] - Revenue in the EMEA region was $19.3 million, down 13% from $22.2 million in Q3 2022[6] - Revenue in the APAC region was $17.4 million, an increase of 12% from $15.5 million in Q3 2022[6] Cash Flow and Liquidity - Cash flow from operations was negative $9.8 million in Q3 2023[4] - Cash flow from operating activities for Q3 2023 was $(9,783) thousand, compared to $1,516 thousand in Q3 2022[26] - The company reported a decrease in cash and cash equivalents to $32,422 thousand at the end of Q3 2023, down from $42,469 thousand at the end of Q3 2022[26] - As of September 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $371.6 million[4] - The company made a payment of $(2,063) thousand for the business acquisition of SecurityDAM Ltd. during Q3 2023[26] Strategic Focus - The company plans to focus on growing the cloud security business while managing costs prudently[3] Non-GAAP Metrics - Non-GAAP gross profit for the nine months ended September 30, 2023, was $160,753 thousand, a decrease of 12.0% compared to $182,375 thousand in the same period of 2022[23] - Non-GAAP operating income for the nine months ended September 30, 2023, was $5,892 thousand, down 74.8% from $23,318 thousand in the same period of 2022[23] - Non-GAAP net income for the nine months ended September 30, 2023, was $13,474 thousand, a decrease of 42.9% from $23,608 thousand in the same period of 2022[24] - Cloud ARR grew to $62.5 million, representing a 25% increase year-over-year[5]

Exhibit 99.1 Radware Reports Second Quarter 2023 Financial Results Second Quarter 2023 Financial Results and Highlights TEL AVIV, Israel, August 2, 2023 - Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the second quarter ended June 30, 2023. "During the second quarter of 2023, we continued to execute on our cloud security strategy, accelerating our cloud ARR growth 23% year-over- year," said Roy Zisapel ...

Radware Ltd. (NASDAQ:RDWR) Q1 2023 Earnings Conference Call May 3, 2023 8:30 AM ET Company Participants Yisca Erez - Director, IR Roy Zisapel - President & CEO Guy Avidan - CFO Conference Call Participants Alex Henderson - Needham & Company George Notter - Jefferies Chris Reimer - Barclays Operator Ladies and gentlemen, welcome to the Radware Conference Call discussing First Quarter 2023 Results and thank you all for holding. Today's conference is being recorded, and all lines have been placed on mute to pr ...

Exhibit 99.1 Radware Reports First Quarter 2023 Financial Results First Quarter 2023 Financial Results and Highlights TEL AVIV, Israel, May 3, 2023 - Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the first quarter ended March 31, 2023. "Despite the increasing challenges in the macro environment, our cloud security business performed well in the first quarter of 2023 and our cloud ARR grew over 20% year ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 ...