Radware(US:RDWR)2025-10-29 13:32Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $75 million, representing an 8% year-over-year growth [4][12] - Non-GAAP earnings per share increased by 22% year-over-year to $0.28 [4][18] - Total ARR rose to $240 million, up 8% year-over-year [14][18] - Gross margin remained strong at 82.2%, consistent with Q3 2024 [15][18] - Operating income grew 34% year-over-year to $9.6 million [16] - Net income increased by 24% year-over-year to $12.6 million [18] Business Line Data and Key Metrics Changes - Cloud Security ARR climbed to $89 million, up from $72 million in Q3 last year, with a growth trajectory of 24% year-over-year [4][13] - Subscription revenue grew 21%, accounting for 52% of total revenue compared to 47% in the same period last year [6] - DefensePro X refresh cycle grew approximately 40% year-over-year [9] Market Data and Key Metrics Changes - Revenue in the Americas rose 28% year-over-year to $35.4 million, representing 47% of total revenue [15] - EMEA revenue decreased by 10% year-over-year to $22.8 million, accounting for 30% of total revenue [15] - APAC revenue increased by 3% year-over-year to $17.1 million, contributing 23% of total revenue [15] Company Strategy and Development Direction - The company is focused on expanding its business in cloud security, driving innovation through AI and automation, and strengthening global Go-to-Market capabilities [4][10] - The company plans to open additional cloud security centers to meet growing demand [5] - API security is identified as the third wave in the cloud security growth strategy, with significant potential for 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, indicating strong momentum going into Q4 [28] - The company expects total revenue for Q4 2025 to be in the range of $78 million to $79 million [19] - Management highlighted the importance of ARR as a guiding indicator for future revenue growth [29] Other Important Information - Cash flow from operations in Q3 2025 was -$4.2 million, primarily due to an increase in accounts receivable [18] - The company ended the quarter with approximately $455 million in cash and marketable securities [19] Q&A Session Summary Question: How are operations going in North America? - Management indicated plans to ramp investments further in North America due to strong momentum and opportunities in cloud security [24] Question: What is the competitive position in the market? - Management emphasized the strength of their algorithmic-based security capabilities and fully managed services as key differentiators [25] Question: How did demand compare to Q2? - Management noted that demand remained stable and expressed encouragement regarding guidance for Q4 [28] Question: Will billing follow the same trajectory as RPO? - Management expects billing and cash collection to be stronger in Q4, anticipating a return to positive cash flow from operations [31]