Radware(US:RDWR)2024-11-02 13:14Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached $69.5 million, up from $61.6 million in the same period last year, representing a 13% year-over-year growth [18] - Non-GAAP EPS for Q3 2024 was $0.23, more than triple the EPS recorded in Q3 2023 [5][22] - Total ARR increased by 9% year-over-year to $223.6 million, with cloud ARR rising 15% to $71.6 million [18] - Gross margin in Q3 2024 was 82.3%, an expansion of 120 basis points from Q3 2023 [20] - Net income in Q3 2024 more than tripled to $10.2 million compared to $2.9 million in the same period last year [22] Business Line Data and Key Metrics Changes - Cloud security business grew with a record number of new cloud customers, contributing to 15% year-over-year growth in cloud ARR [6] - Total subscription revenue grew double-digits and now accounts for 47% of total revenue [8] - Significant strength in security product subscriptions driven by the DefensePro X refresh [8] Market Data and Key Metrics Changes - Revenue in the Americas grew 11% year-over-year to $27.7 million, accounting for 40% of total revenue [19] - EMEA revenue increased 30% year-over-year to $25.2 million, accounting for 36% of total revenue [19] - APAC revenue was $16.6 million, representing a decrease of 5% year-over-year [19] Company Strategy and Development Direction - The company is focused on accelerating growth in cloud security by expanding its channel and global cloud security network [6] - Strategic initiatives include broadening the cloud security platform and launching new services like Threat Intelligence Service and AI SOC expert for DDoS services [13][14] - The company aims to strengthen sales and marketing capabilities to capture market share in high-growth areas [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite a challenging economic environment and cautious spending behavior from customers [5] - The company expects total revenue for Q4 2024 to be in the range of $71 million to $72 million [24] - Management highlighted the potential for growth in North America, particularly in the security MSSP and 5G deployment sectors [34] Other Important Information - The company ended Q3 2024 with approximately $412 million in cash, cash equivalents, bank deposits, and marketable securities [23] - Adjusted EBITDA for Q3 increased to $9.2 million compared to $1.6 million in the same period last year [22] Q&A Session Summary Question: Inquiry about DefensePro X upgrade and current shipments - Management indicated that the migration to DefensePro X is a process, especially with large customers, and noted significant advantages in security with the new platform [26] Question: Clarification on subscription revenue percentage - Management confirmed that 47% of total revenues in Q3 were from subscriptions, with 46% year-to-date [31] Question: Discussion on EMEA market performance - Management expressed satisfaction with EMEA performance, highlighting strong cloud deals and cooperation with partners like Cisco and Check Point [32] Question: Concerns about softer performance in the Americas - Management acknowledged weaker service provider spending in North America but maintained high expectations for future growth [34]