Radware Third Quarter 2024 Financial Results [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Radware reported strong financial results for the third quarter of 2024, featuring a 13% year-over-year revenue increase to **$69.5 million**, a shift from GAAP net loss to a GAAP net income of **$3.1 million**, driven by EMEA growth and subscription revenue success Q3 2024 Key Financial Metrics vs. Q3 2023 | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $69.5 million | $61.6 million | +13% YoY | | **Cloud ARR** | $71.6 million | N/A | +15% YoY | | **GAAP Net Income (Loss)** | $3.1 million | $(6.9) million | Significant Improvement | | **GAAP Diluted EPS** | $0.07 | $(0.16) | Significant Improvement | | **Non-GAAP Net Income** | $10.2 million | $2.9 million | +252% YoY | | **Non-GAAP Diluted EPS** | $0.23 | $0.07 | +229% YoY | | **Cash Flow from Operations** | $14.7 million | $(9.8) million | Significant Improvement | - CEO Roy Zisapel attributed the strong performance to double-digit growth in subscription revenue, robust sales of software subscriptions, and the ongoing success of the DefensePro X product[3](index=3&type=chunk) Q3 2024 Revenue by Geographic Region (in millions) | Region | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Change | | :--- | :--- | :--- | :--- | | **Americas** | $27.7 | $24.9 | +11% | | **EMEA** | $25.2 | $19.3 | +30% | | **APAC** | $16.6 | $17.4 | -5% | - As of September 30, 2024, the company maintained a strong liquidity position with cash, cash equivalents, bank deposits, and marketable securities totaling **$411.7 million**[5](index=5&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Radware's financial position and performance, showing increased total assets, a shift to profitability with a net income of **$3.1 million**, and strong operational cash generation of **$14.7 million** in Q3 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, Radware's total assets grew to **$608.2 million** from **$571.9 million** at year-end 2023, primarily driven by increased cash and cash equivalents, with total equity also rising to **$347.2 million** Balance Sheet Summary (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $365,620 | $375,928 | | **Total assets** | $608,177 | $571,916 | | **Total current liabilities** | $167,235 | $155,015 | | **Total liabilities** | $260,982 | $248,642 | | **Total equity** | $347,195 | $323,274 | | **Total liabilities and equity** | $608,177 | $571,916 | [Condensed Consolidated Statements of Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For Q3 2024, Radware reported revenues of **$69.5 million**, up from **$61.6 million** in Q3 2023, achieving a GAAP net income of **$3.1 million**, a significant improvement from a net loss of **$6.9 million** in the prior-year period Income Statement Highlights - Three Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **Revenues** | $69,488 | $61,612 | | **Gross profit** | $56,096 | $48,774 | | **Total operating expenses, net** | $56,102 | $58,970 | | **Operating loss** | $(6) | $(10,196) | | **Net income (loss)** | $3,144 | $(6,851) | | **Diluted net income (loss) per share** | $0.07 | $(0.16) | [Condensed Consolidated Statements of Cash Flow](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) In Q3 2024, Radware generated **$14.7 million** in cash from operating activities, a substantial improvement from the **$9.8 million** used in Q3 2023, leading to a **$28.6 million** increase in cash and cash equivalents during the quarter Cash Flow Summary - Three Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $14,708 | $(9,783) | | **Net cash provided by investing activities** | $13,906 | $22,272 | | **Net cash used in financing activities** | $0 | $(22,711) | | **Increase (decrease) in cash and cash equivalents** | $28,614 | $(10,222) | | **Cash and cash equivalents at end of period** | $115,416 | $32,422 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Radware provides non-GAAP financial measures to offer a clearer view of its operational performance, with Q3 2024 non-GAAP net income at **$10.2 million** and Adjusted EBITDA at **$9.2 million**, significantly higher than GAAP figures [Reconciliation of GAAP to Non-GAAP Financial Information](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) The reconciliation details adjustments made to GAAP figures, including **$6.1 million** in share-based compensation and **$1.0 million** in amortization of intangible assets, resulting in a non-GAAP operating income of **$7.2 million** and non-GAAP net income of **$10.2 million** for Q3 2024 GAAP vs. Non-GAAP Reconciliation - Q3 2024 (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Gross Profit** | $56,096 | $1,073 | $57,169 | | **Operating Income (Loss)** | $(6) | $7,209 | $7,203 | | **Net Income** | $3,144 | $7,061 | $10,205 | | **Diluted EPS** | $0.07 | $0.16 | $0.23 | [Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20(Loss)%20to%20EBITDA%20and%20Adjusted%20EBITDA) The company reconciles GAAP net income to Adjusted EBITDA, which for Q3 2024 was **$9.2 million**, a significant increase from **$1.6 million** in Q3 2023, primarily driven by higher net income and share-based compensation adjustments Adjusted EBITDA Reconciliation - Three Months Ended Sep 30 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | **GAAP net income (loss)** | $3,144 | $(6,851) | | **EBITDA** | $2,941 | $(7,171) | | **Share-based compensation** | $6,058 | $7,259 | | **Restructuring costs** | $0 | $1,273 | | **Acquisition costs** | $159 | $211 | | **Adjusted EBITDA** | $9,158 | $1,572 | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides additional context for the financial report, including details for the investor conference call, an explanation of non-GAAP financial measures, the definition of Annual Recurring Revenue (ARR), and a Safe Harbor Statement regarding forward-looking statements - Management uses non-GAAP measures to allow for meaningful comparisons of operating results across periods by excluding items like stock-based compensation, amortization, and restructuring costs[11](index=11&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, and is considered a key indicator of the recurring components of the business[12](index=12&type=chunk) - The Safe Harbor Statement outlines various risks and uncertainties that could cause actual results to differ from forward-looking statements, including global economic conditions, competition, and supply chain issues[13](index=13&type=chunk)

Third Quarter 2024 Financial Results and Highlights Revenue of $69.5 million, an increase of 13% year-over-year Cloud ARR of $71.6 million, an increase of 15% year-over-year Non-GAAP diluted EPS of $0.23 vs. $0.07 in Q3 2023; GAAP diluted EPS of $0.07 vs. $(0.16) in Q3 2023 Cash flow from operations of $14.7 million and $58.9 million year-to-date TEL AVIV, Israel, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announc ...

Core Viewpoint - Radware held its Annual General Meeting of Shareholders on October 10, 2024, where three proposals were presented, with one proposal regarding equity-based awards for the CEO not being adopted [1]. 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 [2]. - The company's solutions are designed to help enterprises and carriers address evolving cybersecurity challenges while reducing operational costs [2]. Shareholder Meeting Outcomes - Out of the three proposals presented at the Annual General Meeting, two were adopted by the requisite shareholder vote, while the proposal for equity-based awards to the President and CEO was not approved [1].

MAHWAH, N.J., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today introduced a new Threat Intelligence Service designed to help security operation center (SOC) teams, threat researchers, and incident responders enhance threat detection, identify compromised systems, and ultimately lower MTTR. The service, which is an expansion of Radware's cloud security platform, offers them unique, real-time intellige ...

TEL AVIV, Israel, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, will announce its third quarter 2024 financial results on Thursday, October 31, 2024. Conference Call Details Radware management will host a call on Thursday, October 31, 2024, at 8:30 a.m. EDT to discuss its third quarter 2024 results and outlook for the fourth quarter of 2024. Participants are advised to join the call approximately 15 min ...

MAHWAH, N.J., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced it closed a multimillion-dollar expansion deal with a leading European stock exchange. The multinational leader upgraded its Radware DDoS Protection Services to include Radware's recently released DefensePro® X and Cyber Controller as well as its Emergency Response Team (ERT) managed services. The international financial exchan ...

MAHWAH, N.J., Sept. 17, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, has been named a major player in the IDC MarketScape: Worldwide Web Application and API Protection (WAAP) Enterprise Platforms 2024 Vendor Assessment (doc #US51795524, September 2024). The report noted, "Behavior-based detections and multiple machine learning models are powering threat detection for better detection accuracy, especially with z ...

TEL AVIV, Israel, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), is a global leader in application security and delivery solutions for multi-cloud environments, today announced that its 2024 Annual General Meeting of Shareholders will be held on Thursday, October 10, 2024, at 3:00 p.m. (Israel time), at the offices of the Company, 22 Raoul Wallenberg Street, Tel Aviv, Israel. The record date for the Annual General Meeting is September 6, 2024. The agenda of the Annual General Meeting is as foll ...

Worldwide geopolitical tensions drive attacks with emphasis on the application infrastructure News Highlights In the first half of 2024: Application-Layer DNS DDoS attack activity quadruples compared to the first half of 2023 North American online applications and APIs shoulder 66% of web attacks EMEA organizations face more than 90% of web DDoS attacks Finance organizations experience 44% of network-layer DDoS attacks The average number of Pro-Russian attacks targeting Ukraine doubles compared to the avera ...

Radware (RDWR) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 17.65%. A quarter ago, it was expected that this network management software maker would post earnings of $0.14 per share when it actually produced earnings of $0.16, delivering a surprise of 14.29%. Over the last four qua ...