Financial Data and Key Metrics Changes - For the fourth quarter of fiscal year 2025, revenue increased by 1% to approximately $205 million, while non-GAAP diluted earnings per share was $0.52, down approximately 5% year over year [7][24] - For the full fiscal year 2025, revenue was approximately $823 million, essentially flat year over year, down less than 1% [8][25] - Non-GAAP EPS for the full fiscal year 2025 was $2.22, a 1% improvement over fiscal year 2024 [8][26] Business Line Data and Key Metrics Changes - Service assurance revenue declined approximately 4% year over year, partially due to the divestiture of the test optimization business [9][27] - Cybersecurity offerings delivered nearly 7% year over year revenue growth, driven by strong momentum within the enterprise customer vertical [11][27] Market Data and Key Metrics Changes - The enterprise customer vertical grew by 7.5%, while the service provider customer vertical revenue decreased by 10.1% [27] - 57% of total revenue came from the enterprise customer vertical, while 43% came from the service provider vertical [27][28] Company Strategy and Development Direction - The company plans to continue investing in innovation and deepen relationships with customers while leveraging mission-critical solutions to support evolving performance, availability, and security needs [14][13] - The long-term strategy remains unchanged, focusing on sustainable long-term success [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding growth in the cybersecurity offerings despite broader economic uncertainty [13][12] - The company expects fiscal year 2026 revenue to be in the range of approximately $825 million to $865 million, with non-GAAP diluted EPS expected between $2.25 and $2.40 [32] Other Important Information - A leadership transition was announced, with the current CEO and CFO retiring effective May 31, 2025, and successors appointed [16][17] - The company ended fiscal year 2025 with $492.5 million in cash and cash equivalents, representing an increase of $68.4 million since the end of fiscal year 2024 [28][29] Q&A Session Summary Question: Impact of tariffs on customer sentiment and guidance - Management noted some delayed sales cycles but indicated that guidance covers uncertainties, with a wait-and-see approach from customers regarding order timing [38][40] Question: Cybersecurity momentum and new product expectations - Management highlighted that the service assurance business is evolving into a broader observability market, which presents opportunities for growth in both service assurance and cybersecurity [41][43] Question: Interest in software-only solutions - Management confirmed a consistent demand for software solutions, with a focus on maintaining high margins despite growth challenges [50] Question: Contribution from government and defense business - Management indicated no significant impact from recent headlines on sales cycles, but noted that the pipeline remains a question mark for future contributions [52]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 14%, reaching $1,540,000,000, with product revenue increasing by 12% to $459,000,000 [14][15] - Total billings grew 14% to $1,600,000,000, driven by 18% growth in unified SaaS and 29% growth in AI-driven SecOps [14][15] - The operating margin reached a record 34%, exceeding the high end of guidance by 320 basis points [17][31] - Free cash flow was a record $783,000,000, representing a margin of 51% [17] Business Line Data and Key Metrics Changes - Unified SaaS billing growth was 18%, accounting for 25% of total business, while secure operations and unified SaaS saw strong growth with security service edge billing growth over 110% [7][14] - Security subscriptions revenue increased by 16%, while support and related service revenues grew by 12% [15][16] - AI-driven security operations accounted for 10% of the business, with a 29% increase in revenue [9][10] Market Data and Key Metrics Changes - EMEA was the best-performing geography with mid-teens growth, particularly in financial services and government sectors, which grew over 20% [24][25][101] - The number of new logos increased by 14% to over 6,300, driven by investments in channel partners [14][15] Company Strategy and Development Direction - The company aims to become the number one player in the SASE market, leveraging its strong SASE strategy and unified operating system [19][20] - Continued investment in AI capabilities is expected to drive growth, with over 500 issued and pending AI patents [10] - The company is focusing on expanding its offerings in OT security and AI as key growth drivers over the next five years [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for cybersecurity solutions despite geopolitical uncertainties, with a growing pipeline and robust close rates [26][27] - The company is maintaining its full-year guidance to account for potential top-line risks associated with the evolving geopolitical environment [29][31] - The management noted that the firewall upgrade cycle is expected to gain momentum in the second half of 2025 [30] Other Important Information - The company announced a transition in CFO roles, with Keith Jensen stepping down and Christiana Ohlgart taking over [3][4] - The company has not seen significant impacts from U.S. tariffs in Q1 and does not expect meaningful impacts in Q2 [27][73] Q&A Session Summary Question: Dynamics behind maintenance and services revenue - Management explained that the slight decline was affected by Q4 having two more days than Q1, impacting daily revenue rates [38][39] Question: Guidance for the next quarter - Management indicated that while there is good momentum, they are being cautious due to geopolitical uncertainties [46][47] Question: Customer hesitancy in purchasing - Management noted that while there is hesitancy, they have not seen delays yet, and positive feedback from channel activities is expected to resolve this [54][55] Question: Large transactions and their drivers - Management confirmed that large transactions are primarily driven by SD WAN deployments, with customers buying additional solutions [67] Question: Impact of tariffs on margins - Management stated that they do not expect significant impacts from tariffs in Q1 or Q2, as only a few products are subject to tariffs [73][75] Question: Changes in channel partner behavior ahead of tariffs - Management reported no specific acceleration of deals due to tariffs, although there were inquiries about potential price increases [77][79] Question: Upcoming refresh cycle assumptions - Management indicated that smaller customers are buying more, while larger customers' strategies vary based on consolidation or upgrading [119][120]

Financial Data and Key Metrics Changes - Fortinet reported a revenue growth of 14% year-over-year, reaching $1,540,000,000 in Q1 2025, with product revenue increasing by 12% to $459,000,000 [12][14] - The operating margin reached a record 34%, reflecting strong gross margins and cost efficiencies [16][30] - Free cash flow was a record $783,000,000, with a margin of 51%, up six points from the previous year [16] Business Line Data and Key Metrics Changes - Unified SaaS billing grew by 18%, driven by a 110% increase in security service edge billing, accounting for 25% of the business [6][13] - AI-driven security operations revenue increased by 29%, representing 10% of total business [9][10] - Security subscriptions revenue grew by 16%, while support and related service revenues increased by 12% [15] Market Data and Key Metrics Changes - EMEA was the best-performing geography with mid-teens growth, particularly in financial services and government sectors, which grew over 20% [24][95] - The number of new logos increased by 14% to over 6,300, driven by investments in channel partners [13][14] - Large enterprise customers showed a growth of around 30%, with an increase in deals greater than $1,000,000 [23] Company Strategy and Development Direction - Fortinet aims to maintain its leadership in the firewall market and expand its presence in the SASE and OT security markets [6][10] - The company is focusing on integrating AI capabilities into its products, holding over 500 AI patents, and enhancing its SASE strategy [10][11] - Fortinet is also investing in Sovereign SASE solutions for large enterprises and service providers, ensuring compliance with local regulations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued adoption of Fortinet solutions despite macroeconomic uncertainties, citing strong customer demand [18][25] - The company is cautious in its guidance due to potential risks from geopolitical factors but remains optimistic about achieving growth targets [28][30] - The upcoming firewall upgrade cycle is expected to gain momentum in the second half of 2025 [29] Other Important Information - The company announced the FortiGate 700 series, a high-performance firewall aimed at mid-sized businesses, which is expected to enhance market share [11] - Infrastructure investments decreased to $67,000,000, reflecting a lower level of real estate investment [17] Q&A Session Summary Question: Dynamics behind maintenance and services revenue - Management explained that the slight decline in service revenue was affected by fewer days in Q1 compared to Q4, impacting daily revenue rates [36][38] Question: Lightness in guidance for the next quarter - Management acknowledged some uncertainty in customer purchasing decisions due to geopolitical factors but noted strong close rates and sales momentum [44][45] Question: Conversations with customers regarding hesitancy to commit - Management indicated that while there is hesitancy due to macro news, they have not seen delays in deals yet [50][51] Question: Impact of tariffs on hardware sales - Management stated that tariffs are not expected to have a significant impact on operating margins, as only a few components are subject to tariff charges [68][70] Question: Large transactions and their representation of the Fortinet platform - Management confirmed that large transactions are primarily driven by SD WAN deployments, with customers expanding into the Fortinet security fabric [63][64] Question: Service revenue downtick and customer refresh dynamics - Management noted that the service revenue decline was partly due to customers refreshing appliances without adding new subscriptions [84][91]

Core Insights - Fortinet reported strong financial results for Q1 2025, with a non-GAAP operating margin of 34%, up 570 basis points year over year, and billings growth of 14% year over year [3][5][6]. Financial Performance - Total revenue reached $1.54 billion, reflecting a 14% increase from $1.35 billion in Q1 2024 [5][6]. - Product revenue was $459 million, up 12% from $408.9 million in the same quarter last year [5][6]. - Service revenue amounted to $1.08 billion, a 14.4% increase compared to $944.4 million in Q1 2024 [6]. - Total billings were $1.60 billion, marking a 13.5% increase from $1.41 billion in Q1 2024 [6]. - Remaining performance obligations stood at $6.49 billion, up 11.7% year over year, with an expected revenue recognition of approximately $3.38 billion over the next 12 months [6]. Growth Areas - Unified SASE Annual Recurring Revenue (ARR) increased by 26% to $1.15 billion, while Security Operations ARR grew by 30% to $434.5 million [5][6]. - The company continues to invest in Unified SASE and Security Operations markets, aiming to strengthen its leadership in Secure Networking [3]. Profitability Metrics - GAAP operating income was $453.8 million, with a GAAP operating margin of 29.5%, compared to 23.7% in Q1 2024 [6][29]. - Non-GAAP operating income reached $526.2 million, resulting in a non-GAAP operating margin of 34.2%, up from 28.5% in the previous year [6][32]. - GAAP net income was $433.4 million, with diluted net income per share of $0.56, compared to $299.3 million and $0.39 per share in Q1 2024 [6][29][32]. Cash Flow and Liquidity - Cash flow from operations was a record $863 million, compared to $830.4 million in Q1 2024 [5][12]. - Free cash flow also set a record at $783 million, up from $608.5 million in the same quarter last year [12][35]. Guidance - For Q2 2025, Fortinet expects revenue between $1.590 billion and $1.650 billion, and billings between $1.685 billion and $1.765 billion [12]. - For the full fiscal year 2025, revenue is projected to be in the range of $6.650 billion to $6.850 billion [12].

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Radware (RDWR) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Yisca Erez - Director of Investor RelationsRoy Zisapel - Co-Founder, CEO, President & DirectorGuy Avidan - Chief Financial OfficerJoseph Gallo - Senior Vice President Operator Welcome to the Radware Conference Call discussing First Quarter twenty twenty five Results. Thank you all for holding. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As ...

Core Viewpoint - CrowdStrike plans to lay off nearly 500 employees, approximately 5% of its global workforce, as part of a strategic initiative to significantly enhance operational efficiency while continuing to hire in key strategic areas [1][2] Group 1: Strategic Plan and Financial Performance - The company announced a strategic plan aimed at advancing operational transformation to significantly improve operational efficiency [1] - CrowdStrike aims to achieve an annual recurring revenue (ARR) target of $10 billion [1] - The financial performance for the first quarter of fiscal year 2026 is expected to align with or exceed the guidance provided in the fourth quarter results announced on March 4 [1] - The company reaffirmed its performance guidance for fiscal year 2026 [1] Group 2: Costs Associated with Layoffs - The estimated costs related to the strategic plan are projected to be between $36 million and $53 million, with approximately $7 million expected to be recognized in the first quarter of fiscal year 2026 [1] - The majority of the remaining costs will be incurred in the second quarter of fiscal year 2026 [1] - These costs primarily include future cash expenditures for severance, employee benefits, and related expenses, estimated between $19 million and $26 million, as well as stock-based non-cash compensation expenses estimated between $10 million and $20 million [1]

Radware (RDWR) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Welcome to the Radware Conference Call discussing First Quarter twenty twenty five Results. Thank you all for holding. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded on 05/07/2025. I would now like to turn the call over to Yiska Erez, Director, Investor Relations at Radware. Please go ahead. Speaker1 Thank ...

Investor Presentation May 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 similar exp ...