Second Quarter 2024 Financial Results and Highlights
- Revenue of $67 million, an increase of 3% year-over-year
- Cloud ARR of $70 million, an increase of 19% year-over-year
-
Non-GAAP operating expenses of $49 million, a decrease of 6% year-over-year
- Non-GAAP diluted EPS of $0.20; GAAP diluted EPS of $0.04
- Cash flow from operations of $23 million
Radware® (NASDAQ: RDWR), a leading provider of
cyber security and application delivery solutions, today announced its
consolidated financial results for the second quarter ended June 30, 2024.
“We are pleased with our second quarter 2024 results, which exceeded the
high-end of our revenue and non-GAAP EPS guidance,” said Roy Zisapel,
Radware’s president and CEO. “We are excited about the launch of Radware
EPIC-AI™ and the accelerated AI and GenAI innovation it represents. Together
with our strong cloud security offering, we are optimistic these factors will
contribute significantly to the second half of 2024.”
Financial Highlights for the Second Quarter 2024
Revenue for the second quarter of 2024 totaled $67.3 million:
-
Revenue in the Americas region was $30.1 million for the second quarter of
2024, an increase of 12% from $26.8 million in the second quarter of 2023.
-
Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $22.8
million for the second quarter of 2024, an increase of 1% from $22.6 million
in the second quarter of 2023.
-
Revenue in the Asia-Pacific (“APAC”) region was $14.4 million for the second
quarter of 2024, a decrease of 11% from $16.2 million in the second quarter
of 2023.
GAAP net income for the second quarter of 2024 was $1.7 million, or $0.04 per
diluted share, compared to GAAP net loss of $5.8 million, or $(0.13) per
diluted share, for the second quarter of 2023.
Non-GAAP net income for the second quarter of 2024 was $8.8 million, or $0.20
per diluted share, compared to non-GAAP net income of $4.5 million, or $0.10
per diluted share, for the second quarter of 2023.
As of June 30, 2024, the Company had cash, cash equivalents, short-term and
long-term bank deposits, and marketable securities of $396.6 million. Cash
flow from operations was $23.0 million in the second quarter of 2024.
Non-GAAP results are calculated excluding, as applicable, the impact of
stock-based compensation expenses, amortization of intangible assets,
litigation costs, acquisition costs, restructuring costs, exchange rate
differences, net on balance sheet items included in financial income, net, and
tax-related adjustments. A reconciliation of each of the Company’s non-GAAP
measures to the most directly comparable GAAP measure is included at the end
of this press release.
Conference Call
Radware management will host a call today, July 31, 2024, at 8:30 a.m. EDT to
discuss its second quarter 2024 results and third quarter 2024 outlook. To
participate on the call, please use the following numbers:
- U.S. participants call toll free: 888-510-2008
- International participants call: 1 646-960-0306
- Conference ID: 1864701
A replay will be available for two days, starting two hours after the end of
the call, on telephone number +1-609-800-9099 or (US toll-free) 800-770-2030.
Passcode 1864701.
The call will be webcast live on the Company’s website at:
http://www.radware.com/IR/. The webcast will
remain available for replay during the next 12 months.
Use of Non-GAAP Financial Information and Key Performance Indicators
In addition to reporting financial results in accordance with generally
accepted accounting principles (GAAP), Radware uses non-GAAP measures of
gross profit, research and development expense, selling and marketing
expense, general and administrative expense, total operating expenses,
operating income, financial income, net, income before taxes on income,
taxes on income, net income and diluted earnings per share, which are
adjustments from results based on GAAP to exclude, as applicable,
stock-based compensation expenses, amortization of intangible assets,
litigation costs, acquisition costs, restructuring costs, exchange rate
differences, net on balance sheet items included in financial income, net,
and tax-related adjustments. Management believes that exclusion of these
charges allows for meaningful comparisons of operating results across
past, present, and future periods. Radware’s management believes the
non-GAAP financial measures provided in this release are useful to
investors for the purpose of understanding and assessing Radware’s ongoing
operations. The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for results
prepared in accordance with GAAP. A reconciliation of each non-GAAP
financial measure to the most directly comparable GAAP financial measure
is included with the financial information contained in this press
release. Management uses both GAAP and non-GAAP financial measures in
evaluating and operating the business and, as such, has determined that it
is important to provide this information to investors.
Annual recurring revenue ("ARR") is a key performance indicator defined
as the annualized value of booked orders for term-based cloud services,
subscription licenses, and maintenance contracts that are in effect at the
end of a reporting period. ARR should be viewed independently of revenue
and deferred revenue and is not intended to be combined with or to replace
either of those items. ARR is not a forecast of future revenue, which can
be impacted by contract start and end dates and renewal rates and does not
include revenue reported as perpetual license or professional services
revenue in our consolidated statement of operations. We consider ARR a key
performance indicator of the value of the recurring components of our
business.
Safe Harbor Statement
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements made herein that are not statements of historical fact,
including statements about Radware’s plans, outlook, beliefs, or opinions,
are forward-looking statements. Generally, forward-looking statements may
be identified by words such as “believes,” “expects,” “anticipates,”
“intends,” “estimates,” “plans,” and similar expressions or future or
conditional verbs such as “will,” “should,” “would,” “may,” and “could.”
Because such statements deal with future events, they are subject to
various risks and uncertainties, and actual results, expressed or implied
by such forward-looking statements, could differ materially from Radware’s
current forecasts and estimates. Factors that could cause or contribute to
such differences include, but are not limited to: the impact of global
economic conditions, including as a result of the state of war declared in
Israel in October 2023 and instability in the Middle East, the war in
Ukraine, and the tensions between China and Taiwan; our dependence on
independent distributors to sell our products; our ability to manage our
anticipated growth effectively; a shortage of components or manufacturing
capacity could cause a delay in our ability to fulfill orders or increase
our manufacturing costs; our business may be affected by sanctions, export
controls, and similar measures, targeting Russia and other countries and
territories, as well as other responses to Russia’s military conflict in
Ukraine, including indefinite suspension of operations in Russia and
dealings with Russian entities by many multi-national businesses across a
variety of industries; the ability of vendors to provide our hardware
platforms and components for the manufacture of our products; our ability
to attract, train, and retain highly qualified personnel; intense
competition in the market for cyber security and application delivery
solutions and in our industry in general, and changes in the competitive
landscape; our ability to develop new solutions and enhance existing
solutions; the impact to our reputation and business in the event of real
or perceived shortcomings, defects, or vulnerabilities in our solutions,
if our end-users experience security breaches, if our information
technology systems and data, or those of our service providers and other
contractors, are compromised by cyber-attackers or other malicious actors,
or by a critical system failure; outages, interruptions, or delays in
hosting services; the risks associated with our global operations, such as
difficulties and costs of staffing and managing foreign operations,
compliance costs arising from host country laws or regulations, partial or
total expropriation, export duties and quotas, local tax exposure,
economic or political instability, including as a result of insurrection,
war, natural disasters, and major environmental, climate, or public health
concerns, such as the COVID-19 pandemic; our net losses in the past two
years and possibility we may incur losses in the future; a slowdown in the
growth of the cyber security and application delivery solutions market or
in the development of the market for our cloud-based solutions; long sales
cycles for our solutions; risks and uncertainties relating to acquisitions
or other investments; risks associated with doing business in countries
with a history of corruption or with foreign governments; changes in
foreign currency exchange rates; risks associated with undetected defects
or errors in our products; our ability to protect our proprietary
technology; intellectual property infringement claims made by third
parties; laws, regulations, and industry standards affecting our business;
compliance with open source and third-party licenses; and other factors
and risks over which we may have little or no control. This list is
intended to identify only certain of the principal factors that could
cause actual results to differ. For a more detailed description of the
risks and uncertainties affecting Radware, refer to Radware’s Annual
Report on Form 20-F, filed with the Securities and Exchange Commission
(SEC), and the other risk factors discussed from time to time by Radware
in reports filed with, or furnished to, the SEC. Forward-looking
statements speak only as of the date on which they are made and, except as
required by applicable law, Radware undertakes no commitment to revise or
update any forward-looking statement in order to reflect events or
circumstances after the date any such statement is made. Radware’s public
filings are available from the SEC’s website at www.sec.gov or may be
obtained on Radware’s website at
www.radware.com.
About Radware
Radware® (NASDAQ: RDWR) is a global leader in
application security and delivery solutions for multi-cloud environments. The
company’s cloud application, infrastructure, and API security solutions use
AI-driven algorithms for precise, hands-free, real-time protection from the
most sophisticated web, application, and DDoS attacks, API abuse, and bad
bots. Enterprises and carriers worldwide rely on Radware’s solutions to
address evolving cybersecurity challenges and protect their brands and
business operations while reducing costs. For more information, please visit
the Radware website.
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