Radware(US:RDWR)2025-05-07 13:32Financial Data and Key Metrics Changes - First quarter revenue increased by 11% year over year to $72 million, marking the third consecutive quarter of double-digit revenue growth [5][16] - Non-GAAP earnings per share rose by 60% to $0.27, indicating high leverage in the business model [5] - Cash flow from operations reached $22.4 million, compared to $21.1 million in the same period last year [21] - Total ARR increased by 9% year over year to $230 million, with Cloud ARR growing by 19% to $80 million [17][19] - Gross margin for Q1 was 82.1%, slightly up from 82% in Q1 of the previous year [18] Business Line Data and Key Metrics Changes - Cloud Security business was a major driver of success, with ARR increasing by 19% year over year [6] - The hybrid cloud security offering has become a significant competitive differentiator, contributing to strong ARR growth [8] - OEM partnerships, particularly with Cisco and Check Point, generated strong results, both growing more than 20% year over year [11] 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 [17] - APAC revenue increased by 7% year over year to $16.3 million, contributing 23% of total revenue [18] Company Strategy and Development Direction - The growth strategy focuses on three pillars: winning significant market share in cloud security, leading through AI innovation and automation, and enhancing the go-to-market footprint [6] - Plans to expand cloud security infrastructure include new service centers in Peru, India, and Kenya, with a total of over 50 centers worldwide [7] - Increased investments in sales, marketing, and R&D are planned to support cloud security business scaling and AI-driven innovation [12][19] Management's Comments on Operating Environment and Future Outlook - Management did not observe any noticeable changes in customer buying behavior despite macroeconomic conditions [25] - The leadership team is expected to enhance productivity without causing disruption, as major changes were implemented in previous quarters [29] - The company is confident in its ability to grow and gain market share, particularly in the U.S. market [13][29] Other Important Information - The tax rate for Q1 was 15.5%, slightly up from 15.3% in the same period last year [20] - The company expects minimal impact from recently announced tariffs and is proactively adjusting its supply chain [21] Q&A Session Summary Question: Did you see any changes in buying behavior from your customers? How was April? - Management reported no noticeable changes in buying behavior and indicated that conditions remained stable [25] Question: Can you elaborate on changes in the U.S. market and if that is accounted for in the Q2 guidance? - Management stated that major changes were already implemented, and they expect increased productivity from the leadership team without disruption [29]