Financial Data and Key Metrics Changes - Revenue increased by 10% year over year to $74 million, marking the fourth consecutive quarter of double-digit revenue growth [5][15] - Non-GAAP earnings per share rose by 39% year over year to $0.28, reflecting the scalability and efficiency of the business model [5][20] - Cash flow from operations was $14.5 million, down from $23 million in the same quarter last year [20] - Net income increased by 43% year over year to $12.6 million compared to $8.8 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - Cloud ARR growth accelerated from 19% to 21% year over year, reaching $85 million [6][16] - Total ARR increased by 8% year over year to $235 million, with recurring revenue now representing 84% of total revenue, up from 82% in Q2 2024 [16] - Operating income grew more than 50% year over year to $9.5 million [18] Market Data and Key Metrics Changes - Americas revenue remained stable year over year at $30.1 million, accounting for 41% of total revenue [16] - EMEA revenue increased by 22% year over year to $27.8 million, representing 37% of total revenue [16] - APAC revenue grew by 30% year over year to $16.3 million, contributing 22% of total revenue [17] Company Strategy and Development Direction - The company focuses on three strategic pillars: gaining market share in cloud security, leading with AI-driven innovation, and expanding market presence [6][14] - The cloud security business is identified as the primary growth engine, with significant wins in API protection solutions and partnerships with major organizations [7][13] - Continued investment in sales, marketing, and R&D is planned to capitalize on robust demand for security offerings [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current momentum and strategic focus, anticipating long-term growth opportunities [14][21] - The operating environment is characterized by budget constraints and long sales cycles, particularly in the enterprise market [40] - The company expects total revenue for 2025 to be in the range of $74.5 million to $75.5 million [21] Other Important Information - The company has been recognized as a leader in application and API security by GigaOM, highlighting its competitive position [8] - The effective tax rate for the quarter was 15.4%, consistent with the previous year [20] Q&A Session Summary Question: Early returns from sales and marketing investments - Management noted that investments in North America are paying off, with stronger pipeline and better customer engagement [26][28] Question: Progress on DefensePro X - All on-premise DDoS mitigation sales are now from DefensePro X, which is expected to drive subscription revenue [33] Question: Dynamics in the carrier segment - Management observed opportunities in the carrier segment, particularly in MSSP business partnerships [39] Question: Changes in MSSP business models - There is a shift in MSSP portfolios to meet increasing customer compliance demands [46] Question: Competitive environment - Management reported an increase in win ratios and confidence in their competitive position, with no significant new entrants noted [48][50]