Radware Ltd (RDWR) 2024 Q3 法說會逐字稿

Welcome to the Radware Conference Call Discussing Third-Quarter, 2024 Results and thank you all for holding. As a reminder, this conference is being recorded, October 31, 2024. I would now like to turn this call over to Yisca Erez, Director Investor Relations at Radware. Please go ahead.

歡迎參加 Radware 電話會議，討論 2024 年第三季業績，感謝大家的支持。謹此提醒，本次會議的錄音時間為 2024 年 10 月 31 日。我現在想將這個電話轉給 Radware 投資者關係總監 Yisca Erez。請繼續。

Thank you, Operator. Good morning, everyone and welcome to Radware third quarter, 2024 Earnings Conference Call. Joining me today are Roy Zisapel, President and Chief Executive Officer and Guy Avidan, Chief Financial Officer.

謝謝你，接線生。大家早安，歡迎參加 Radware 2024 年第三季財報電話會議。今天與我一起出席的有總裁兼執行長 Roy Zisapel 和財務長 Guy Avidan。

A copy of today's press release and financial statements as well as the Investor kit for the third quarter are available in the Investor Relations section of our website. During today's call we may make projections or other forward-looking statements regarding future events or the future financial performance of the company.

今天的新聞稿和財務報表以及第三季的投資者工具包的副本可在我們網站的投資者關係部分取得。在今天的電話會議中，我們可能會對未來事件或公司未來的財務表現做出預測或其他前瞻性陳述。

The forward looking statements are subject to various risks and uncertainties and actual results could differ materially from current forecast and estimates. Factors that could cause or contribute to such differences include but are not limited to impact from the changing or severe global economic conditions, general business conditions and our ability to address changes in our industry, changes in demand for products, the timing in the amount of orders and other risks detailed from time to time in Radware's filings.

前瞻性陳述受到各種風險和不確定性的影響，實際結果可能與目前的預測和估計有重大差異。可能導致或促成此類差異的因素包括但不限於不斷變化或嚴峻的全球經濟狀況、一般業務狀況和我們應對行業變化的能力、產品需求的變化、 Radware 的文件中不時詳細說明的訂單和其他風險。

We refer you to the documents, the company files and furnishes from time to time in the SEC specifically, the company's last annual report on form 20-F as filed on March 18, 2024. We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date of such statement is made, I will now turn the call to Roy Zisapel.

我們請您參閱本公司不時向 SEC 提交和提供的文件，特別是該公司於 2024 年 3 月 18 日提交的 20-F 表格上的最後一份年度報告。我們不承諾修改或更新任何前瞻性聲明，以反映此類聲明發表之日後發生的事件或情況，我現在將電話轉給羅伊·齊薩佩爾。

Thank you Yisca and thank you all for joining us today. I'm pleased to report another solid quarter which exceeded our guidance. We achieved 13% revenue growth while successfully managing our operating expense.

謝謝伊斯卡，也謝謝大家今天加入我們。我很高興地報告又一個超出我們指導的穩健季度。我們實現了 13% 的收入成長，同時成功管理了營運費用。

Given the strong leverage in our business model, we recorded substantial increase in non-GAAP EPS in the quarter, delivering earnings of $0.23 per share more than triple the EPS recorded in the third quarter of 2023.

鑑於我們業務模式的強大槓桿作用，我們本季的非 GAAP 每股收益大幅成長，每股收益為 0.23 美元，是 2023 年第三季每股收益的三倍多。

These results underscore the significant progress we are making in executing against our strategy, despite the challenging economic environment and cautious spending behavior of our customers. We continue to see strong traction across multiple areas of our business. To start, our cloud security business continues to grow. During the third quarter we added a record number of new cloud customers contributing to 15% year of the real growth in cloud ARR. Our cloud security business represents a significant long term market opportunity and a key growth driver. We are focused on accelerating growth by expanding our channel, expanding our global cloud security network, further broadening our cloud security suite and aligning our organization to support these efforts.

這些結果凸顯了儘管經濟環境充滿挑戰且客戶消費行為謹慎，但我們在執行策略方面取得了重大進展。我們繼續在多個業務領域看到強勁的吸引力。首先，我們的雲端安全業務持續成長。第三季度，我們增加了創紀錄的新雲端客戶數量，為雲端 ARR 的實際成長貢獻了 15% 的年增長率。我們的雲端安全業務代表著重要的長期市場機會和關鍵的成長動力。我們致力於透過擴展我們的管道、擴大我們的全球雲端安全網路、進一步擴大我們的雲端安全套件並調整我們的組織來支持這些努力來加速成長。

One of our key cloud wings is a multi million dollar cloud deals, deal with a major US communication provider, replacing their incumbent vendor. A few years ago after suffering a costly DDoS attack, the customer has turned to a different provider but face service issues and limited traffic blocking granularity. This led them to initially implement an on premise DDoS mitigation with Radware. Last quarter, we expanded the relationship to include cloud DDoS services, consolidating the infrastructure under Radware. In addition to cloud ARR, total subscription revenue also grew double digits and now account for 47% of our total revenue. As a reminder, our subscription revenue is comprised of product subscriptions and cloud subscriptions.

我們的關鍵雲端部門之一是一項價值數百萬美元的雲端交易，與美國一家主要通訊供應商合作，取代了他們現有的供應商。幾年前，在遭受代價高昂的 DDoS 攻擊後，客戶轉向了不同的供應商，但面臨服務問題和有限的流量阻止粒度。這促使他們最初使用 Radware 實施本地 DDoS 緩解措施。上季度，我們擴大了合作關係，將雲端 DDoS 服務納入其中，整合了 Radware 下的基礎架構。除了雲端 ARR 之外，訂閱總收入也實現了兩位數成長，目前占我們總收入的 47%。提醒一下，我們的訂閱收入包括產品訂閱和雲端訂閱。

During the third quarter, we saw significant strength in our security product subscription. This momentum was driven by our DefensePro X refresh which carries more content of software subscriptions. The third quarter was also marked by a strong performance among our OEM partners. Both Cisco and Checkpoint are setting records for total bookings and are on track to achieve record yearly results.

在第三季度，我們看到安全產品訂閱的顯著成長。這一勢頭是由我們的 DefensePro X 更新所推動的，它包含更多的軟體訂閱內容。第三季我們的 OEM 合作夥伴也表現強勁。思科和 Checkpoint 都創下了總預訂量記錄，並有望實現創紀錄的年度業績。

In addition, our cloud application security was added to the Cisco Enterprise Agreement. The expanded agreement will streamline purchasing and licensing for Cisco customers and unlock future growth opportunities for us.

此外，我們的雲端應用安全性已新增至思科企業協定。擴大後的協議將簡化思科客戶的採購和授權流程，並為我們釋放未來的成長機會。

One example of our collaboration with Cisco is a significant deal with a major railway company. Following DDoS attack that bypassed the customer incumbent provider, we demonstrated the superiority of our solutions and secured the cloud security suite deal. This includes DefensePro X for on premise, application and network protection, cloud DDoS service, web DDoSf or layer-7 applications, firewall as-a-service and network analytics. This deal demonstrates the breadth and effectiveness of our platform reinforcing the value and stickiness of our solution.

我們與思科合作的一個例子是與一家大型鐵路公司的重大交易。在繞過客戶現有供應商的 DDoS 攻擊之後，我們展示了我們解決方案的優越性並確保了雲端安全套件交易。這包括用於本地、應用程式和網路保護、雲端 DDoS 服務、Web DDoSf 或第 7 層應用程式、防火牆即服務和網路分析的 DefensePro X。這筆交易展示了我們平台的廣度和有效性，增強了我們解決方案的價值和黏性。

We continue to see more customers upgrading the security posture with DefensePro X. Our AI powered solution stands out in detecting and blocking web deals attacks while ensuring legitimate traffic flows uninterrupted. With less than 20% of our installed base already migrated to DefensePro X, the growth potential of this product cycle is substantial, not to mention additional opportunities with new customers and cross-sell prospects.

我們不斷看到越來越多的客戶使用 DefensePro X 升級安全態勢。我們只有不到 20% 的安裝基礎已經遷移到 DefensePro X，該產品週期的成長潛力巨大，更不用說獲得新客戶和交叉銷售前景的額外機會。

In the third quarter, we closed several significant DefensePro X deals including a multi million dollar agreement with a leading financial group, building on a successful cloud expansion in the first quarter. Similarly, we secured the DefensePro X and web application firewall deal with a major internet and telephony provider in EMEA, demonstrating our technical leadership.

在第三季度，我們在第一季成功的雲端擴展的基礎上完成了幾項重要的 DefensePro X 交易，包括與一家領先的金融集團達成的數百萬美元的協議。同樣，我們與歐洲、中東和非洲地區的一家主要互聯網和電話提供商達成了 DefensePro X 和 Web 應用程式防火牆協議，展示了我們的技術領先地位。

During the third quarter our solution continued to earn us recognition by industry analysts. For the fourth consecutive year Quadrant Knowledge Solutions named a technology leader in the SPARK Matrix analysis for the web application firewall market. We received the highest rating in technology excellence.

第三季度，我們的解決方案繼續贏得行業分析師的認可。Quadrant Knowledge Solutions 連續第四年被評為 Web 應用防火牆市場 SPARK 矩陣分析的技術領導者。我們在技術卓越方面獲得了最高評價。

Additionally, we were named a leader in the 2024 SPARK Matrix for bot management, ranking strongest in both technology excellence and customer impact. On the product front one of our strategic initiatives is to continue to broaden our cloud security platform. In the last quarter, we introduced a new cloud service, the Threat Intelligence Service. With this new service, we are opening the door for customers to access the high value attack data lake that we use internally. SOC teams can use the real time intelligence and preemptive warning about potential attacks and attack sources to make more informed decisions about application and data center threats.

此外，我們在 2024 年 SPARK 機器人管理矩陣中被評為領導者，在技術卓越性和客戶影響力方面均排名最強。在產品方面，我們的策略性舉措之一是繼續擴大我們的雲端安全平台。在上個季度，我們推出了一項新的雲端服務，即威脅情報服務。透過這項新服務，我們為客戶打開了存取我們內部使用的高價值攻擊資料湖的大門。SOC 團隊可以利用潛在攻擊和攻擊來源的即時情報和預先警告，針對應用程式和資料中心威脅做出更明智的決策。

Additionally, we're launching our AI SOC expert for DDoS services following last quarter EPIC-AI release, which integrates advanced AI and generative AI algorithms in our cloud security stack. The new AI SOC expert automatically detects unmitigated attacks and creates the remediation and mitigation plans significantly reducing response time. We're excited about the opportunities this framework presents to us and our customers and the impact it will bring going forward.

此外，繼上季發布 EPIC-AI 之後，我們將推出針對 DDoS 服務的 AI SOC 專家，該專家將先進的 AI 和生成式 AI 演算法整合到我們的雲端安全堆疊中。新的 AI SOC 專家可自動偵測未緩解的攻擊並建立補救和緩解計劃，從而顯著縮短回應時間。我們對該框架為我們和我們的客戶帶來的機會及其未來帶來的影響感到興奮。

In summary, we are pleased with our third quarter results, continue the ARR growth and double digit revenue gains despite the current business environment. Our cloud security business remains robust and the strong momentum behind DefensePro X with its high subscription component continues to drive double digit growth in subscription revenue, now nearly 50% of total revenues. As we close out the year, we remain focused on executing our strategy to sustain growth and position ourselves for long term success. With that, I will turn the call over to Guy.

總而言之，我們對第三季的業績感到滿意，儘管當前的商業環境如此，但我們仍然保持了 ARR 成長和兩位數的營收成長。我們的雲端安全業務依然強勁，DefensePro X 背後的強勁勢頭及其高訂閱組件繼續推動訂閱收入實現兩位數增長，目前已佔總收入的近 50%。在這一年即將結束之際，我們仍然專注於執行我們的策略，以維持成長並為長期成功做好準備。這樣，我就把電話轉給蓋伊。

Thank you Roy and good day everyone. I'm pleased to provide the analysis of our financial results and business performance for the third quarter of 2024 as well as our outlook for the fourth quarter of 2024.

謝謝羅伊，大家美好的一天。我很高興提供 2024 年第三季財務業績和業務績效的分析以及 2024 年第四季的展望。

Before beginning the financial overview, I would like to remind you that unless otherwise indicated, all financial results are non-GAAP.

在開始財務概述之前，我想提醒您，除非另有說明，否則所有財務結果均為非公認會計原則。

A full reconciliation of our results on a GAAP to non-GAAP basis is available in the earning press release issued earlier today and on the Investor section of our website. Revenue for the third quarter of 2024 reached $69.5 million up from $61.6 million in the same period last year, representing 13% year-over-year growth. This growth was driven primarily by the expansion of our cloud security business, the DefensePro X refresh and increase revenue from OEM Partnership. Total ARR increased by 9% year-over-year to $223.6 million. The cloud ARR rising 15% to $71.6 million. This growth boosted recurring revenue to 83% up from 79% in Q3 of last year. On a regional breakdown revenue in the America in the third quarter of 2024 grew 11% year-over-year to $27.7 million and accounted for 40% of total revenue. On a 12-month trailing basis, America's revenue decreased 1% year over year.

我們在今天早些時候發布的盈利新聞稿和我們網站的投資者部分中提供了按公認會計原則與非公認會計原則計算的業績的全面核對。2024年第三季營收達6,950萬美元，高於去年同期的6,160萬美元，較去年同期成長13%。這一成長主要得益於我們雲端安全業務的擴展、DefensePro X 的更新以及 OEM 合作夥伴收入的增加。總 ARR 年增 9%，達到 2.236 億美元。雲端 ARR 成長 15%，達到 7,160 萬美元。這一成長將經常性收入從去年第三季的 79% 提高到 83%。按地區劃分，2024 年第三季美洲地區營收年增 11%，達到 2,770 萬美元，佔總營收的 40%。從過去 12 個月的數據來看，美國的營收年減了 1%。

EMEA revenue in the third quarter of 2024 increased 30% year over year to $25.2 million and accounted for 36% of total revenue. On a 12-month trailing basis EMEA revenue was flat year-over-year.

2024年第三季歐洲、中東和非洲地區營收年增30%至2,520萬美元，佔總營收的36%。從過去 12 個月的數據來看，歐洲、中東和非洲地區的營收與去年同期持平。

APAC revenue in the third quarter of 2024 was $16.6 million which represent a decrease of 5% year-over-year and accounted for 24% of total revenue. On a 12-month trailing basis APAC revenue decreased 3% year over year.

2024年第三季亞太地區營收為1,660萬美元，年減5%，佔總營收的24%。過去 12 個月，亞太地區營收年減 3%。

I'll now discuss profits and expenses. Gross margin in Q3, 2024 was 82.3%, an expansion of 120 basis points from Q3, 2023. Operating income reached $7.2 million compared to operating loss of $0.5 million we had in the same period last year. we successfully grew our revenue while keeping operating expenses just below $50 million.

我現在將討論利潤和費用。2024 年第三季毛利率為 82.3%，較 2023 年第三季成長 120 個基點。營業收入達 720 萬美元，而去年同期的營業虧損為 50 萬美元。我們成功增加了收入，同時將營運費用保持在 5000 萬美元以下。

We were pleased with our progress in leveraging our existing assets and resources to accelerate top line growth and enhance profitability. We remain committed to this approach, selectively increasing R&D investment to strengthen our offering and drive further growth in cloud security.

我們對利用現有資產和資源加速營收成長和提高獲利能力方面取得的進展感到高興。我們仍然致力於這種方法，有選擇地增加研發投資，以加強我們的產品並推動雲端安全的進一步成長。

We tend to increase our go to market investment to capitalize on new opportunities in the cyber security market. By strengthening our sales and marketing capabilities, expanding our partner ecosystem and enhancing customer engagement, we believe that we are positioning ourselves to accelerate growth and extend our market reach. This strategic investment will enable us to better serve existing customers and we expect to capture market share in high growth areas.

我們傾向於增加市場投資，以抓住網路安全市場的新機會。透過加強我們的銷售和行銷能力、擴大我們的合作夥伴生態系統和增強客戶參與度，我們相信我們能夠加速成長並擴大我們的市場覆蓋範圍。這項策略投資將使我們能夠更好地服務現有客戶，並期望在高成長領域佔領市場份額。

Radware's adjusted EBIDA for the third quarter, increased to $9.2 million or $11.9 million excluding the Hawk's business, compared to $1.6 million or $4.2 million excluding the Hawk's business in the same period of last year.

Radware第三季調整後的EBIDA增至920萬美元或1,190萬美元（不含Hawk業務），去年同期為1,60萬美元或420萬美元（不含Hawk業務）。

Financial income was $4.9 million in the third quarter and tax rate for the third quarter of 2024 was 15.5% compared to 14.8% in the same period of last year. We expect the tax rate to remain approximately the same next quarter. Net income in the third quarter, more than tripled to $10.2 million as compared to $2.9 million in the same period last year. Diluted earning per share for Q3 2024 increased to $0.23 compared to $0.07 we had in Q3 2023.

第三季財務收入為490萬美元，2024年第三季稅率為15.5%，去年同期為14.8%。我們預計下個季度稅率將大致保持不變。第三季淨利為 1,020 萬美元，較去年同期的 290 萬美元成長兩倍多。2024 年第三季的稀釋每股收益增至 0.23 美元，而 2023 年第三季的稀釋每股收益為 0.07 美元。

Turning to the cash flow statement and the balance sheet. Cash flow from operations in Q3 2024 reached $14.7 million compared to the negative cash flow of $9.8 million in the same period last year. Year-to-date cash flow from operation now totalled $58.9 million and free cash flow was $54.6 million.

轉向現金流量表和資產負債表。2024 年第三季營運現金流達 1,470 萬美元，去年同期為負現金流 980 萬美元。年初至今，營運現金流總計 5,890 萬美元，自由現金流為 5,460 萬美元。

We ended the third quarter with approximately $412 million in cash, cash equivalent, bank deposits and marketable securities.

第三季末，我們擁有約 4.12 億美元的現金、現金等價物、銀行存款和有價證券。

I'll conclude my remarks with guidance. We expect total revenue for the fourth quarter of 2024 to be in the range of $71 million to $72 million. We expect Q4 2024 non-GAAP operating expenses to be between $50.5 million to $51.5 million. We expect Q4 2024 non-GAAP diluted net earning per share to be between $0.23 and $0.24.

我將在指導下結束我的發言。我們預計 2024 年第四季的總營收將在 7,100 萬美元至 7,200 萬美元之間。我們預計 2024 年第四季非 GAAP 營運費用將在 5,050 萬美元至 5,150 萬美元之間。我們預計 2024 年第四季非 GAAP 稀釋後每股淨利潤將在 0.23 美元至 0.24 美元之間。

I'll now turn the call over to the operator for questions. Operator, please.

我現在將把電話轉給接線員詢問問題。接線員，請說。

(Operator Instructions)

（操作員說明）

George Notter, Jefferies.

喬治諾特，傑弗里斯。

Hi, guys. Thanks very much. Nice to see the good results here. I guess I was curious about kind of the DefensePro X upgrade. You mentioned that only 20% of the installed base of DefensePro has been upgraded. Could you tell us a bit more about current shipments? I'm just curious about what mix you're currently shipping in terms of DefensePro versus DefensePro X.

嗨，大家好。非常感謝。很高興在這裡看到良好的結果。我想我對 DefensePro X 的升級感到好奇。您提到只有 20% 的 DefensePro 安裝基數已升級。您能否告訴我們更多有關當前發貨情況的資訊？我只是好奇你們目前推出的 DefensePro 與 DefensePro X 的組合是什麼。

And then also, I was just curious about kind of looking forward in the transition, is there a date out in the future when you guys would end of sale or end of life the DefensePro platform? I would imagine that would be a leverage point in terms of driving DefensePro X adoption. Thanks a lot.

另外，我只是對過渡過程中的某種期待感到好奇，將來有沒有一個日期，你們會停止銷售或終止 DefensePro 平台的生命週期？我認為這將成為推動 DefensePro X 採用的槓桿點。多謝。

Thanks, George. So we are -- we don't have any shortage of shipment, if that was what you alluded to, but it's a process, especially with the large customers, this migration to the new platform in production and so on. DefensePro X brings with it significant advantages in terms of security. First, we've added a lot of new algorithms against most current attacks like the web DDoS or the Layer 7 application attacks, the DNS sophisticated attacks. So a lot of AI and machine learning, additional algorithms that needs stronger platforms, stronger CPUs. That's what we have in DefensePro X.

謝謝，喬治。所以我們 - 我們沒有任何發貨短缺，如果這是你提到的，但這是一個過程，特別是對於大客戶，遷移到新的生產平台等等。DefensePro X 在安全性方面帶來了顯著的優勢。首先，我們添加了許多新演算法來應對大多數當前的攻擊，例如 Web DDoS 或第 7 層應用程式攻擊、DNS 複雜攻擊。因此，大量的人工智慧和機器學習、額外的演算法需要更強大的平台、更強大的 CPU。這就是我們在 DefensePro X 中所擁有的。

In addition, it's our next-generation FPGA that's built into the platform. We've completely revamped that layer, giving us between 3x to 5x performance across many, many different performance metrics in security. So very significant host power capabilities. And we rounded it up with a new generation of the management, analytics and automation system, which we call cyber controller. And that's why we have way more, what I said, subscription content with it. So it's important to note that, that for the same $100 of sales of a product with, let's say, content of one year, the DPX comes with more subscriptions.

此外，該平台還內建了我們的下一代 FPGA。我們徹底修改了該層，在許多不同的安全性能指標上為我們提供了 3 到 5 倍的性能。所以主機的供電能力非常重要。我們用新一代的管理、分析和自動化系統將其整合起來，我們稱之為網路控制器。這就是為什麼我們有更多的訂閱內容。因此，值得注意的是，對於同樣具有 100 美元銷售額（假設內容為一年）的產品，DPX 會帶來更多的訂閱。

Now regarding your second question about the end of sale, I think roughly 60% to 70% of the current DefensePro line was announced end of sale in the last, I would say, 90 to 180 days. We still have some platforms on the DefensePro line that will go end of sale, probably Q1, Q2 next year.

現在關於你關於終止銷售的第二個問題，我認為目前 DefensePro 系列中大約 60% 到 70% 的產品在過去（我想說的是 90 到 180 天）內宣布終止銷售。我們的 DefensePro 系列上仍有一些平台將停止銷售，可能是明年第一季、第二季。

But we definitely saw the impact once we announced end of sale in the last two quarters, there's a significant ramp in the move to DPX. And I think also our view for this quarter is strong regarding that.

但在我們宣布過去兩個季度停止銷售後，我們確實看到了影響，轉向 DPX 的趨勢顯著增加。我認為我們對本季的看法也很強烈。

Got it. So would you say it's more than half of the hardware sales at this point? Is that, is that fair to say.

知道了。那麼您認為目前它佔硬體銷售額的一半以上嗎？是這樣嗎，公平地說。

Of the lineup of DP, yes.

DP的陣容中，是的。

Got it. Okay. I guess I was just asking about sales.

知道了。好的。我想我只是想問一下銷售狀況。

Yes. George, also, I want to note that some of the customers without their platform end of sale are upgrading as well because of the security needs and content. So absolutely, end of sale is a trigger. But the biggest trigger, I must tell you is the security coverage and capabilities.

是的。喬治，我還想指出，由於安全需求和內容，一些沒有平台銷售終端的客戶也在升級。所以絕對，銷售結束是一個觸發因素。但我必須告訴你，最大的觸發因素是安全覆蓋範圍和功能。

Got it. Okay. That's great. And then one last one. Obviously, you guys have built out this global cloud services model with scrubbing centers and PoPs. Obviously, I think going back, the installed base of devices in those locations with DefensePros. I mean are you also going back and upgrading those cloud scrubbing centers? And then does that drive incremental revenue for you? Or is that just a straight-up replacement of CapEx costs that you've invested historically?

知道了。好的。那太棒了。然後是最後一張。顯然，你們已經建立了帶有清理中心和 PoP 的全球雲端服務模式。顯然，我認為回過頭來看，那些具有 DefensePros 的地點的設備安裝基礎。我的意思是，您是否也回去升級那些雲端清理中心？那麼這會為您帶來增量收入嗎？或者這只是您歷史上投資的資本支出成本的直接替代品？

Of course, we are upgrading our cloud. Our cloud runs always the latest and greatest algorithms. Sometimes even we have it on AB testing and so on, leveraging the power of the cloud and the flexibility it brings us. So definitely, we are putting all our new generation stuff into those clouds. It's a replacement of our CapEx investments. You're right.

當然，我們正在升級我們的雲端。我們的雲端始終運行最新、最好的演算法。有時我們甚至可以利用雲端的力量及其為我們帶來的靈活性進行 AB 測試等。因此，我們肯定會將所有新一代產品放入這些雲中。它取代了我們的資本支出投資。你說得對。

But in turn, the additional capabilities, the stronger efficacy I've mentioned here in my notes, some of the customers we've displaced incumbents. For example, the communication provider, I referred to that was a very large cloud contract, probably close to $1 million ARR. And that was done based on our significant capabilities in blocking VoIP attacks, SIP, UDP, randomized attacks, all of that. And that's squarely based on these algorithms and capabilities.

但反過來，我在筆記中提到的額外功能、更強的功效，以及我們取代了現有客戶的一些客戶。例如，我提到的通訊供應商是一份非常大的雲端合同，可能接近 100 萬美元的 ARR。這是基於我們在阻止 VoIP 攻擊、SIP、UDP、隨機攻擊等方面的強大能力而完成的。這完全基於這些演算法和功能。

Great. Super. Thanks very much. Appreciate it.

偉大的。極好的。非常感謝。欣賞它。

Thank you.

謝謝。

Chris Reimer, Barclays.

克里斯·雷默，巴克萊銀行。

Hi. Thanks for taking my questions and congratulations on the strong results. You mentioned the 47% of total revenues being subscriptions. Wondering if that was a quarterly number or if that's a cumulative year-to-date number? Anything on that?

你好。感謝您回答我的問題並祝賀我們取得了優異的成績。您提到總收入的 47% 來自訂閱。想知道這是季度數字還是年初至今的累積數字？有什麼關於那個的嗎？

Yes. The 46% is a year-to-date number.

是的。46% 是今年迄今的數字。

47%, quarter, 46% year-to-date.

本季為 47%，年初至今為 46%。

47% on the quarter and 46% year-to-date. Got it.

本季成長 47%，年初至今成長 46%。知道了。

Subscription revenue in the last 9 months, that's 46%.

過去 9 個月的訂閱收入為 46%。

Got it. Okay. And can you talk maybe about what's driving the strong traction in EMEA? You mentioned last quarter, there was a large deal. I'm just wondering what kind of clients you're seeing now and what the behavior is like in that region?

知道了。好的。您能談談是什麼推動了歐洲、中東和非洲地區的強勁發展嗎？您提到上個季度發生了一件大事。我只是想知道您現在見到的客戶是什麼樣的以及該地區的行為是什麼樣的？

Yes. I think we're relatively content with our performance in EMEA. We have many of the main markets executing well in a very diversified manner. We do see strong cloud deals there, and I've mentioned some of the key wins in my remarks. We do see very good cooperation with both Cisco and Check Point in the region. So I think it's our best region for that globally. And we do see a lot of also the large on-prem in carrier, government deals as well. So it's really a very healthy mix of our business with strong growth in cloud, strong OEM execution. And I think it shows in the consistent results.

是的。我認為我們對歐洲、中東和非洲地區的表現相對滿意。我們的許多主要市場都以非常多元化的方式運作良好。我們確實在那裡看到了強勁的雲端交易，我在演講中提到了一些關鍵的勝利。我們確實看到了與思科和 Check Point 在該地區的良好合作。所以我認為這是我們在全球範圍內最好的地區。我們也確實看到了營運商和政府交易中的許多大型本地部署。因此，這確實是我們的業務與雲端運算的強勁成長和強大的 OEM 執行力的一個非常健康的組合。我認為這體現在一致的結果中。

Got it. Yes, that's great color. Thanks. That's it for me.

知道了。是的，那是很棒的顏色。謝謝。對我來說就是這樣。

Ryan Koontz, Needham & Company.

瑞恩‧孔茨 (Ryan Koontz)，李約瑟公司。

Thanks. Most of my questions have been answered here, but on the Americas, it looks like that was a little soft. Is that mostly coming from kind of a weaker service provider spending environment, I assume. And any pipeline indications if you think that can inflect to higher growth going forward?

謝謝。我的大部分問題都在這裡得到了解答，但在美洲，這似乎有點軟弱。我認為這主要是來自較弱的服務提供者支出環境。如果您認為這可以推動未來更高的成長，那麼有任何管道跡象嗎？

Yes. So, you're right, service provider was weak in North America. Although we have high expectations, both on the security MSSP and securing their networks and securing 5G deployment. So although this quarter and this year so far was not good, I would not write it off at all. We do have high expectations for the future. North America for us is an area of investment. And I think we are putting a lot of effort. We see huge potential. We have marquee wins there, and we need to scale that. I think that's significant upside to our current performance, and we look forward to report on progress in the coming quarters.

是的。所以，你是對的，北美的服務提供者很弱。儘管我們對 MSSP 安全、網路安全和 5G 部署的安全性抱有很高的期望。因此，儘管本季度和今年到目前為止表現不佳，但我根本不會將其註銷。我們確實對未來抱持著很高的期望。北美對我們來說是一個投資地區。我認為我們正在付出很多努力。我們看到了巨大的潛力。我們在那裡取得了巨大的勝利，我們需要擴大規模。我認為這對我們目前的業績有顯著的提升，我們期待在未來幾季報告進展。

That's great. It sounds like you're optimistic. And in terms of modeling, in terms of OpEx and what you're doing on the go-to-market side, do you think you can continue to grow top line here? And how much investment you need to make on the sales and marketing side to sustain that kind of growth? I know you've done some changes in go-to-market of late. Can you maybe expand on your thoughts on that?

那太棒了。聽起來你很樂觀。在建模方面，在營運支出方面以及您在進入市場方面所做的事情方面，您認為您可以在這裡繼續成長收入嗎？您需要在銷售和行銷方面進行多少投資才能維持這種成長？我知道您最近在上市方面做了一些改變。您能否詳細闡述您對此的想法？

Yes. So I think it's a mix. I think there's some more leverage and efficiency we can get from the current OpEx, but given the size of opportunities and their global distribution, we are going to make investments also on the go-to-market, specifically as it relates to our cloud security. So I think it's a mix. It's a profitable growth, what we're looking for, continued leverage, but we are at the point that we would like to start investing again for stronger growth.

是的。所以我認為這是一個混合體。我認為我們可以從當前的營運支出中獲得更多的槓桿作用和效率，但考慮到機會的規模及其全球分佈，我們還將在進入市場方面進行投資，特別是因為它與我們的雲端安全相關。所以我認為這是一個混合體。這是我們正在尋找的獲利成長，持續的槓桿作用，但我們現在希望再次開始投資以實現更強勁的成長。

And in terms of number, we said that we are growing. We will continue to grow. We were shy of 50 overall OpEx, and we said it's -- we expect around $1 million more in Q4, predominantly from sales and marketing and Roy already alluded US.

就數量而言，我們說我們正在成長。我們將繼續成長。我們的整體營運支出低於 50，我們預計第四季將增加約 100 萬美元，主要來自銷售和行銷，Roy 已經提到了美國。

Right. Great. Thanks for the questions. Appreciate it,

正確的。偉大的。感謝您的提問。欣賞它，

There are no more questions. I will now turn the conference back over to Roy Zisapel for closing remarks.

沒有更多問題了。現在，我將把會議轉交羅伊·齊薩佩爾 (Roy Zisapel) 致閉幕詞。

Thank you, everyone and have a great day.

謝謝大家，祝您有美好的一天。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。