Radware(US:RDWR)2025-05-07 13:30Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 11% year over year to $72 million, marking the third consecutive quarter of double-digit revenue growth [4][16] - Non-GAAP earnings per share rose by 60% to $0.27, indicating high leverage in the business model [4] - Cash flow from operations reached $22.4 million, compared to $21.1 million in the same period last year [22] - Net income increased by 73% year over year to $11.8 million [21] Business Line Data and Key Metrics Changes - Cloud Security ARR grew by 19% year over year to $80 million, driven by a significant increase in new cloud application security bookings [5][17] - Total ARR increased by 9% year over year to $230 million, with recurring revenues now accounting for 82% of total revenue [17] Market Data and Key Metrics Changes - Revenue from the Americas increased by 1% year over year to $27.4 million, accounting for 38% of total revenue [17] - EMEA revenue grew by 25% year over year to $28.4 million, representing 39% of total revenue [18] - APAC revenue increased by 7% year over year to $16.3 million, contributing 23% of total revenue [19] Company Strategy and Development Direction - The company aims to win significant market share in cloud security, lead through AI innovation and automation, and enhance its go-to-market footprint [5][14] - Plans to expand cloud security infrastructure include new service centers in Peru, India, and Kenya, with a total of over 50 cloud security service centers worldwide [6][14] - The company is focusing on increasing investments in sales, marketing, and R&D to support growth in cloud security and AI-driven innovation [12][20] Management's Comments on Operating Environment and Future Outlook - Management noted no significant changes in customer buying behavior and expects stable conditions moving into Q2 2025 [25][26] - The leadership team is confident in their ability to drive productivity and growth, with no anticipated disruptions from recent changes [28][29] - The company expects total revenue for Q2 2025 to be in the range of $73 million to $74 million [23] Other Important Information - Gross margin for Q1 2025 was 82.1%, a slight increase from the previous year [19] - The company is proactively adjusting its supply chain in response to recently announced tariffs, expecting minimal impact on operations [22] Q&A Session Summary Question: Did you see any changes in buying behavior from your customers? How was April? - Management indicated no noticeable changes in buying behavior and that conditions remained stable [25][26] Question: Is there any major change in process needed in the US market, and is that accounted for in the Q2 guidance? - Management confirmed that major changes were already implemented and productivity is expected to ramp up without disruption [27][29]