Radware Ltd (RDWR) 2024 Q4 法說會逐字稿

Welcome to the Radware conference call discussing fourth quarter and full-year 2024 results. (Operator Instructions)

歡迎參加 Radware 電話會議，討論 2024 年第四季和全年業績。（操作員指令）

As a reminder, this is being recorded, February 12, 2025. I would now like to turn the call over to Yisca Erez, Director, Investor Relations at Radware. Please go ahead.

提醒一下，這是正在錄製的，2025 年 2 月 12 日。現在，我想將電話轉給 Radware 投資者關係總監 Yisca Erez。請繼續。

Thank you, operator. Good morning, everyone, and welcome to Radware's fourth quarter and full-year 2024 earnings conference call. Joining me today are Roy Zisapel, President and Chief Executive Officer; and Guy Avidan, Chief Financial Officer. A copy of today's press release and financial statements as well as the investor kit for the fourth quarter are available in the Investor Relations sector of our website.

謝謝您，接線生。大家早安，歡迎參加 Radware 2024 年第四季和全年財報電話會議。今天與我一起參加的是總裁兼執行長 Roy Zisapel；以及財務長 Guy Avidan。今天的新聞稿和財務報表以及第四季度投資者工具包的副本可在我們網站的投資者關係部門找到。

During today's call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risks and uncertainties, and actual results could differ materially from Radware's current forecast and estimates.

在今天的電話會議中，我們可能會對未來事件或公司未來財務表現做出預測或其他前瞻性陳述。這些前瞻性陳述受各種風險和不確定性的影響，實際結果可能與 Radware 目前的預測和估計有重大差異。

Factors that could cause or contribute to such differences include, but are not limited to, impact from 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 our filings.

可能導致或造成此類差異的因素包括但不限於不斷變化或嚴重的全球經濟狀況、一般商業狀況和我們應對行業變化的能力、產品需求的變化、訂單數量的時間以及我們不時在文件中詳細說明的其他風險。

We refer you to the documents the company files and furnishes from time to time with 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.

我們請您參閱本公司不時向美國證券交易委員會提交和提供的文件，特別是本公司於 2024 年 3 月 18 日提交的 20-F 表最新年度報告。我們不承諾修改或更新任何前瞻性陳述以反映該陳述發布日期之後的事件或情況。

I will now turn the call to Roy Zisapel.

現在我將電話轉給 Roy Zisapel。

Thank you, Yisca, and thank you all for joining us today. I'm pleased to report a strong finish to 2024 with both our top and bottom line exceeding our fourth-quarter guidance. During the first quarter, we achieved 12% year-over-year revenue growth and more than doubled our non-GAAP earnings per share, a strong testament to the high leverage in our business model.

謝謝你，Yisca，也謝謝大家今天的參與。我很高興地報告，2024 年我們的業績表現強勁，營收和淨利潤都超過了第四季的預期。第一季度，我們的營收年增12%，非公認會計準則每股收益成長一倍多，有力證明了我們商業模式的高槓桿率。

A key driver of our growth in the quarter was our cloud security business. I'm pleased to report our focus here continues to pay off. In the fourth quarter, we accelerated cloud ARR growth to 19%, up from 15% in the third quarter of 2024. We also achieved double-digit growth in cloud bookings and customer acquisition and surpassed 1,000 production customers in the cloud.

我們的雲端安全業務是本季成長的關鍵驅動力。我很高興地報告，我們的關注繼續得到回報。第四季度，我們將雲端 ARR 成長率從 2024 年第三季的 15% 加速至 19%。我們的雲端預訂和客戶獲取也實現了兩位數的成長，雲端生產客戶數量超過 1,000 家。

In 2025, we will increase our investment in our cloud security business on multiple fronts. First, we plan to open a record number of new cloud security centers to expand our presence. Second, we intend to invest more in cloud R&D to continue to lead the market by the strength of our security capabilities. And finally, we plan to continue to grow our OEM and MSSP partnerships to accelerate our market share gains in cloud security. Through these combined efforts, we believe we can exceed a 20% ARR growth rate and establish close to $100 million ARR cloud security business by the end of 2025.

2025年，我們將多面向加大對雲端安全業務的投入。首先，我們計劃開設創紀錄數量的新雲端安全中心，以擴大我們的影響力。第二，我們打算在雲端研發方面投入更多資金，以繼續憑藉我們的安全能力引領市場。最後，我們計劃繼續發展我們的 OEM 和 MSSP 合作夥伴關係，以加速我們在雲端安全領域的市場份額成長。透過這些共同努力，我們相信到 2025 年底，我們的 ARR 成長率可以超過 20%，並建立接近 1 億美元的 ARR 雲端安全業務。

Our growth last year was achieved amid a rapidly evolving cybersecurity landscape. 2024 was marked by a sharp escalation in both the frequency and sophistication of cyber attacks. This was driven primarily by major geopolitical tensions and rapid adoption of GenAI by threat actors. Countries like the US, Israel, and Ukraine were among the most targeted nations with attackers leveraging AI-powered tools to automate and enhance the precision of their attacks. AI-powered tools effectively lowered the barrier to entry for attackers while simultaneously raising the urgency for organizations to strengthen the cyber defenses.

我們去年的成長是在網路安全情勢迅速發展的背景下實現的。 2024 年網路攻擊的頻率和複雜度急劇上升。這主要是由於嚴重的地緣政治緊張局勢以及威脅行為者對 GenAI 的快速採用。美國、以色列和烏克蘭等國家是受到攻擊最多的國家，攻擊者利用人工智慧工具來自動化攻擊並提高攻擊的精確度。人工智慧工具有效地降低了攻擊者的進入門檻，同時也提高了組織加強網路防禦的迫切性。

In parallel, throughout 2024, we made significant strides infusing AI across our security offering with our EPIC-AI framework, giving us a distinct advantage in an evolving threat landscape. We are literally fighting AI with AI. The recent release of our AI SOC Xpert is the latest addition to EPIC-AI. The new cloud service offers SOC teams precisely tailored automated remediation plans for data center security incidents. It has already been well received by customers, cutting mean time to resolution by up to 95%. We have a comprehensive set of AI-driven capabilities in our release pipeline for 2025, ensuring our customers stay ahead of emerging threats with the most advanced protection available.

同時，在整個 2024 年，我們透過 EPIC-AI 框架在我們的安全產品中註入人工智慧方面取得了重大進展，使我們在不斷變化的威脅情勢中佔據了獨特的優勢。我們其實是在用人工智慧對抗人工智慧。我們最近發布的 AI SOC Xpert 是 EPIC-AI 的最新成員。新的雲端服務為 SOC 團隊提供了針對資料中心安全事件精確客製化的自動補救計畫。它已經受到客戶的好評，平均解決時間縮短了 95%。我們在 2025 年的發布管道中擁有一套全面的人工智慧驅動功能，確保我們的客戶能夠以最先進的保護措施領先於新興威脅。

Moving to DefensePro X, our DDoS protection solution. I'm happy to report a continuous steady uptake in adoption of DefensePro X by our customers, driven by its exceptional detection and blocking of sophisticated attacks. We recently expanded our DefensePro X portfolio with new platforms complementing the full lineup. We are still in the early stages of DefensePro X refreshes for our existing installed base and see significant growth opportunities in the coming two years.

轉向我們的 DDoS 防護解決方案 DefensePro X。我很高興地報告，由於 DefensePro X 具有出色的檢測和阻止複雜攻擊的能力，我們的客戶對其的採用持續穩步增長。我們最近擴展了 DefensePro X 產品組合，透過新平台補充全系列產品。我們仍處於針對現有安裝基礎的 DefensePro X 更新的早期階段，並在未來兩年內看到巨大的成長機會。

A good example is a seven-digit win in a European Internet service provider. Initially planned for late 2025, this DefensePro X refresh was expedited after a massive cyber attack disrupted access to several of the services and critical customers.

一個很好的例子是歐洲網路服務供應商的七位數獎金。DefensePro X 的更新最初計劃於 2025 年底進行，但在一次大規模網路攻擊導致多項服務和關鍵客戶訪問中斷後，更新速度被加快。

Similarly, we closed a seven-digit deal with a US service provider for a hybrid cloud DDoS deal combining DefensePro X and cloud DDoS protection and completely displacing the incumbent cloud DDoS provider. This win is a great example of the significant competitive advantage we have with hybrid DDoS, which enhances both the customer security posture and network latency.

同樣，我們與一家美國服務提供商達成了一項七位數的交易，該交易結合了 DefensePro X 和雲端 DDoS 保護的混合雲 DDoS 協議，徹底取代了現有的雲端 DDoS 提供者。這次勝利充分體現了我們在混合 DDoS 方面的顯著競爭優勢，它既增強了客戶的安全態勢，也降低了網路延遲。

Collaboration with our OEM partners further amplified our success in 2024. Cisco and Check Point sustained double-digit growth in the fourth quarter, setting a new annual record for total OEM bookings. As we move forward, our recently expanded offering included in Cisco Enterprise agreement will unlock even more new growth opportunities and further streamline purchasing and license management for Cisco-Radware customer.

與我們的 OEM 合作夥伴的合作進一步擴大了我們在 2024 年的成功。思科和Check Point在第四季持續保持兩位數的成長，創下了OEM訂單總額的年度新紀錄。隨著我們不斷前進，思科企業協議中包含的我們最近擴展的產品/服務將釋放更多新的成長機會，並進一步簡化思科-Radware 客戶的採購和授權管理。

These important partnerships produced some notable deals during the fourth quarter. For example, in partnership with Check Point, we closed a seven-digit deal with one of the largest banks in the world. As a long-standing Radware customer, the bank relies on our DDoS solution as a critical line of defense against attacks.

這些重要的合作關係在第四季度產生了一些值得注意的交易。例如，我們與 Check Point 合作，與世界上最大的銀行之一達成了一筆七位數的交易。作為 Radware 的長期客戶，該銀行依靠我們的 DDoS 解決方案作為抵禦攻擊的重要防線。

In partnership with Cisco, we secured new logo win with a US IoT solution provider. After a DDoS attack in October 2024 and dissatisfaction with their incumbent cloud DDoS provider response, the customer sought alternatives. We won the deal by offering the most comprehensive and automated cloud DDoS solution in the market.

透過與思科合作，我們與美國物聯網解決方案供應商贏得了新標誌。在 2024 年 10 月遭受 DDoS 攻擊並且對現任雲端 DDoS 供應商的回應感到不滿之後，客戶尋求替代方案。我們透過提供市場上最全面、最自動化的雲端 DDoS 解決方案贏得了這筆交易。

In addition to customers, industry analysts continue to reinforce our position as a trusted innovator in the cybersecurity space. In the fourth quarter, Radware was named a leader and fast mover in the GigaOm Radar for application and API security. The report highlights our strength in vulnerability detection, account takeover protection, and bot management.

除了客戶之外，產業分析師也不斷鞏固我們作為網路安全領域值得信賴的創新者的地位。第四季度，Radware 在 GigaOm Radar 中被評為應用程式和 API 安全的領導者和快速推動者。該報告強調了我們在漏洞檢測、帳戶接管保護和機器人管理方面的優勢。

In summary, I'm pleased to report a strong fourth quarter and a solid 2024. Last year, we made a significant progress advancing our cloud security business and OEM partnerships, both key drivers of our success. We accelerated our transition to subscription and cloud business model, achieving high levels in bookings, and cash flow from operations.

總而言之，我很高興地報告第四季表現強勁，2024 年業績穩健。去年，我們在雲端安全業務和 OEM 合作夥伴關係方面取得了重大進展，這兩者都是我們成功的關鍵驅動力。我們加快了向訂閱和雲端業務模式的轉型，實現了高水準的預訂量和營運現金流。

Looking ahead to 2025, our focus is on accelerating growth with total ARR growth remaining the leading indicator of our revenue trajectory. We are committed to investing in the expansion of our security business, particularly in cloud security. Additionally, our AI-driven capabilities will fuel innovation and strengthen our security offerings. We are confident in our strategy to deliver strong near-term performance and long-term success, and I'm excited about the opportunities that lie ahead.

展望 2025 年，我們的重點是加速成長，總 ARR 成長仍然是我們營收軌跡的領先指標。我們致力於投資擴展我們的安全業務，特別是雲端安全領域。此外，我們的人工智慧驅動能力將推動創新並增強我們的安全產品。我們對我們的策略充滿信心，相信它能夠在短期內取得強勁業績，並在長期內取得成功，我對未來的機會感到興奮。

Before I close, I want to take this opportunity to thank our employees for their dedication and commitment in making our achievements in 2024 possible.

最後，我想藉此機會感謝我們的員工，他們的奉獻和承諾使我們在 2024 年取得了成就。

With that, I will turn the call over to Guy.

說完這些，我會把電話轉給蓋伊。

Thank you, Roy, and good day, everyone. I'm pleased to provide the analysis of our financial results and business performance for the fourth quarter and the full year of 2024 as well as our outlook for the first quarter of 2025.

謝謝你，羅伊，大家好。我很高興為我們 2024 年第四季和全年的財務表現和業務表現提供分析以及對 2025 年第一季的展望。

Before beginning the financial overview, I would like to remind you that unless otherwise indicated, all financial results are non-GAAP. Full reconciliation of our results on a GAAP to non-GAAP basis is available in the earnings press release issued earlier today and on the Investors section of our website.

在開始財務概覽之前，我想提醒您，除非另有說明，否則所有財務結果均為非 GAAP。我們在 GAAP 和非 GAAP 基礎上的業績完整對帳表可在今天早些時候發布的收益新聞稿中以及我們網站的「投資者」部分中找到。

Revenue for the fourth quarter of 2024 grew 12% year-over-year to $73 million, while full-year 2024 revenue increased by 5% to $275 million. This growth was fueled by the strong momentum in our cloud security business, the successful DefensePro X refresh, and increased contribution from our OEM partnerships.

2024 年第四季營收年增 12% 至 7,300 萬美元，2024 年全年營收成長 5% 至 2.75 億美元。這一成長得益於我們雲端安全業務的強勁發展勢頭、DefensePro X 的成功更新以及我們 OEM 合作夥伴關係的貢獻增加。

Total ARR grew 8% year over year to $227 million with cloud ARR rising 19% to $77.3 million, accelerating from 15% growth in Q3 2024. This ARR growth propelled cloud and subscription revenue to 48% of total revenue in Q4 and 47% for the full year compared to 44% in both period last year. Additionally, the increase is reflected in our recurring revenue which accounted for 78% for the total revenue in the fourth quarter and 80% for the full year of 2024.

總 ARR 年成長 8% 至 2.27 億美元，其中雲端 ARR 成長 19% 至 7,730 萬美元，高於 2024 年第三季 15% 的增幅。這項 ARR 成長推動雲端和訂閱營收在第四季佔總營收的 48%，全年佔 47%，而去年同期均為 44%。此外，這一增長也反映在我們的經常性收入中，該收入佔第四季度總收入的 78%，佔 2024 年全年總收入的 80%。

In the fourth quarter of 2024, our original performance highlighted strong growth in the Americas, where revenue increased 33% year-over-year to $32.8 million, accounting for 45% of total revenue. Throughout 2024, the Americas demonstrated steady progress, achieving a 14% year-over-year growth to $117.7 million.

2024 年第四季度，我們原來的業績突顯了美洲地區的強勁成長，該地區營收年增 33% 至 3,280 萬美元，佔總營收的 45%。整個 2024 年，美洲地區穩定發展，年增 14%，達到 1.177 億美元。

In EMEA, Q4 revenue came in at $23.3 million, a 6% year-over-year decline contributing 32% of total revenue. Full-year revenue for EMEA was $94.1 million, down 2% from previous year. In APAC, Q4 revenue increased 8% year-over-year to $16.9 million, contributing 23% of total revenue, and for the full year, APAC revenue grew 3% to $63.1 million.

在歐洲、中東和非洲地區，第四季營收為 2,330 萬美元，年減 6%，佔總營收的 32%。歐洲、中東和非洲地區全年營收為 9,410 萬美元，較前一年下降 2%。在亞太地區，第四季營收年增 8% 至 1,690 萬美元，佔總營收的 23%，全年亞太地區營收成長 3% 至 6,310 萬美元。

I'll now discuss profit and expenses. Gross margin in Q4 2024 was 82.4%, an expansion of 40 basis points compared to Q4 2023. For the full year of 2024, gross margin was 82.2% compared to 81.9% in 2023. Operating income nearly tripled in the fourth quarter of 2024 to $9 million compared to $3.4 million in the same period of last year. For the full year of 2024, operating income also nearly tripled to $26.8 million compared to $9.3 million for 2023, a testament to our operational efficiency and cost discipline.

我現在來討論利潤和支出。2024 年第四季的毛利率為 82.4%，較 2023 年第四季擴大 40 個基點。2024 年全年毛利率為 82.2%，而 2023 年為 81.9%。2024 年第四季的營業收入較去年同期的 340 萬美元成長了近三倍，達到 900 萬美元。2024 年全年的營業收入也從 2023 年的 930 萬美元成長了近兩倍，達到 2,680 萬美元，證明了我們的營運效率和成本控制。

Throughout 2024, we maintained a disciplined approach to managing expenses, focusing on reducing operating costs while driving revenue growth. This strategy has enabled us to leverage existing resources efficiency, fueling top-line growth, and enhancing profitability. Looking ahead, we remain committed to this disciplined approach with targeted investment to support continued growth, especially in cloud security. Radware's adjusted EBITDA for the fourth quarter of 2024 doubled to $11 million compared to $5.4 million in the same period of last year. Radware's adjusted EBITDA excluding the Hawks business for the fourth quarter of 2024 was $13.7 million compared to $8.2 million in the same period of last year. Radware's adjusted EBITDA for the full year of 2024 nearly doubled to $34.7 million compared to $17.6 million in 2023. Radware's adjusted EBITDA for the full year of 2024 excluding the Hawks business, was $45.6 million compared to $28.4 million in 2023. Radware's core adjusted EBITDA margin, excluding the Hawks business were 18.8% and 16.6% and for the fourth quarter and the full year of 2024, respectively.

在整個 2024 年，我們保持了嚴謹的費用管理方法，專注於降低營運成本，同時推動營收成長。這項策略使我們能夠充分利用現有資源，促進營收成長，提高獲利能力。展望未來，我們將繼續致力於這種嚴謹的方法，透過有針對性的投資來支持持續成長，特別是在雲端安全領域。Radware 2024 年第四季的調整後 EBITDA 較去年同期的 540 萬美元翻了一番，達到 1,100 萬美元。Radware 2024 年第四季不包括 Hawks 業務的調整後 EBITDA 為 1,370 萬美元，而去年同期為 820 萬美元。Radware 2024 年全年調整後 EBITDA 較 2023 年的 1,760 萬美元成長近一倍，達到 3,470 萬美元。Radware 2024 年全年調整後 EBITDA（不包括 Hawks 業務）為 4560 萬美元，而 2023 年為 2840 萬美元。不包括 Hawks 業務，Radware 的核心調整後 EBITDA 利潤率在第四季和 2024 年全年分別為 18.8% 和 16.6%。

Financial income was $5 million and $17.8 million in the fourth quarter and full year of 2024, respectively, compared to $3.8 million and $13.7 million in the fourth quarter and full year of 2023, respectively. The tax rate for the fourth quarter of 2024 was 15.4% compared to 24.3% in the same period of last year. For the full year of 2024, tax rate was also 15.4% compared to 17.7% in the same period of last year. We expect the tax rate to remain approximately the same next quarter.

2024 年第四季和全年財務收入分別為 500 萬美元和 1,780 萬美元，而 2023 年第四季和全年分別為 380 萬美元和 1,370 萬美元。2024年第四季的稅率為15.4%，而去年同期為24.3%。2024年全年稅率也為15.4%，去年同期為17.7%。我們預計下個季度稅率將保持大致相同。

Net income in the fourth quarter more than doubled to $11.9 million compared to $5.5 million in the same period last year. For the full year, net income for 2024 doubled to $37.7 million compared to $18.9 million in 2023. Diluted earnings per share for Q4 2024 increased to $0.27 compared to the $0.13 we had in Q4 2023. For the full year, diluted earnings per share doubled to $0.87 from $0.43 in 2023.

第四季淨收入較去年同期的 550 萬美元成長一倍多，達到 1,190 萬美元。就全年而言，2024 年淨收入將比 2023 年的 1,890 萬美元翻一番，達到 3,770 萬美元。2024 年第四季每股攤薄收益從 2023 年第四季的 0.13 美元增至 0.27 美元。全年每股攤薄收益從 2023 年的 0.43 美元翻倍至 0.87 美元。

Turning to the cash flow statement and the balance sheet. Cash flow from operation in Q4 2024 reached $12.7 million compared to $2.7 million in the same period last year. Cash flow from operation for 2024 was $71.6 million compared to the negative cash flow from operations of $3.5 million in 2023. We ended the fourth quarter with approximately $420 million in cash, cash equivalents, bank deposits and marketable securities.

轉向現金流量表和資產負債表。2024 年第四季的營業現金流達到 1,270 萬美元，去年同期為 270 萬美元。2024 年經營現金流為 7,160 萬美元，而 2023 年經營現金流為負 350 萬美元。截至第四季度，我們持有約 4.2 億美元的現金、現金等價物、銀行存款和有價證券。

Before concluding with our guidance, I would like to highlight that we are entering 2025 with a strong RPO of $350 million representing 13% year-over-year growth and underscoring our solid future revenue commitment. Our focus remains on driving top line growth through strategic investments that support long-term expansion, predominantly in high potential areas like cloud security and AI-driven solutions.

在結束我們的指導之前，我想強調一下，我們將以 3.5 億美元的強勁 RPO 進入 2025 年，同比增長 13%，並強調了我們堅實的未來收入承諾。我們的重點仍然是透過支持長期擴張的策略投資來推動營收成長，主要是在雲端安全和人工智慧驅動的解決方案等高潛力領域。

While prioritizing revenue growth, we remain disciplined with our expenses ensuring OpEx align with top line performance, all while maintaining our strong commitment to profitability and operational excellence.

在優先考慮收入成長的同時，我們嚴格控制支出，確保營運支出與營收表現保持一致，同時堅定致力於獲利能力和卓越營運。

And now I'll move to guidance. We expect total revenue for the first quarter of 2025 to be in the range of $70 million to $71 million. We expect Q1 2025 non-GAAP operating expenses to be between $50.5 million to $51.5 million. And we expect Q1 2025 non-GAAP diluted net earnings per share to be between $0.22 and $0.23.

現在我將轉向指導。我們預計 2025 年第一季的總營收將在 7,000 萬美元至 7,100 萬美元之間。我們預計 2025 年第一季非 GAAP 營業費用在 5,050 萬美元至 5,150 萬美元之間。我們預計 2025 年第一季非 GAAP 稀釋每股淨收益在 0.22 美元至 0.23 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以便回答問題。接線員，請說。

(Operator Instructions) Chris Reimer, Barclays.

（操作員指示）巴克萊銀行的克里斯·賴默 (Chris Reimer)。

Congratulations on a solid quarter. I was wondering if you could describe the environment in the different regions. Just, for example, looking at the Americas, you've had some strong growth there over the last three quarters. I was wondering if you could describe maybe some of the customer behavior and how we should be looking at different regions going forward, what's impacting them, how are they making the decisions, especially versus maybe some of the behaviors you were seeing, let's say, two years ago.

恭喜您本季業績穩健。我想知道您是否可以描述一下不同地區的環境。舉例來說，看看美洲，過去三個季度那裡實現了強勁成長。我想知道您是否可以描述一些客戶行為，以及我們應該如何看待未來不同的地區，什麼會影響他們，他們如何做出決策，特別是與您兩年前看到的一些行為相比。

Okay. Thanks a lot, Chris. So first, I think what we're seeing across the world was still some cautious spending by the large enterprise customers. With that, the cyber activity and the cyber attacks are consistently rising in sophistication and in the critical impact on these enterprises.

好的。非常感謝，克里斯。首先，我認為我們在世界各地看到的是大型企業客戶仍然在謹慎支出。同時，網路活動和網路攻擊的複雜程度不斷上升，對這些企業的影響也愈發嚴重。

So we are seeing those enterprise moving on -- in cloud security and cybersecurity purchases. And I want to remind, we are protecting the mission-critical applications and data centers, so we are really protecting the crown jewels of our customers.

因此，我們看到這些企業在雲端安全和網路安全採購方面正在不斷進步。我想提醒的是，我們正在保護關鍵任務應用程式和資料中心，所以我們實際上是在保護客戶的寶貴資產。

We are seeing them moving because of design necessity. So sometimes they need to allocate immediate budget if there's incidence or threats. And sometimes, they simply need to make sure they are ahead of the threat landscape. So I think this is really driving the behavior of our markets, sometimes even not correlated to IT budgets or even security budgets, to some extent, as we are dealing with the real-time protection all the time.

我們看到它們因為設計的需要而移動。因此，如果發生事件或威脅，他們有時需要立即分配預算。有時，他們只是需要確保自己能夠領先於威脅情勢。所以我認為這確實推動了我們市場的行為，有時甚至與 IT 預算或安全預算無關，因為我們一直在處理即時保護。

Now we've seen strong market potential in North America, and we continue to invest in that market. We think there's huge opportunity for us for growth. At the same time, in the international market, we do believe as we are leveraging the OEM partners, the MSSP, some of the points I've mentioned in my remarks, we can translate that to revenue growth.

現在我們看到了北美強大的市場潛力，我們將繼續對該市場進行投資。我們認為我們面臨巨大的成長機會。同時，在國際市場上，我們確實相信，透過利用 OEM 合作夥伴、MSSP 以及我在評論中提到的一些觀點，我們可以將其轉化為收入成長。

In the booking side, we saw some good performance, I would say, in the international market in second half and specifically in Q4. It would flow into revenues. As Guy mentioned, the RPO are high, et cetera. It would flow in the coming year also into the revenue recognition.

在預訂方面，我想說，我們在下半年，特別是第四季度的國際市場上看到了一些良好的表現。它將轉化為收入。正如 Guy 所提到的，RPO 很高，等等。它也將在來年流入收入確認。

Great. That's good color. Just referring to your comments about your intention to increase investment, especially in R&D and new centers. Should we be looking at increased R&D from the levels of this year? Or would that be kind of offset by other OpEx savings?

偉大的。這顏色真好。只要參考您關於增加投資意願的評論，特別是在研發和新中心的投資。我們是否應該從今年的水準來考慮增加研發？或者這會被其他營運支出節省所抵消嗎？

Yeah. So I think in general, we will look for investments above the current levels. Other investments we would make across the business, we would do through reallocation of resources and expenses internally. But for cloud specifically and given that we're seeing accelerated growth and higher potential for growth, we want to invest a bit more in R&D and also in centers as well as in the go-to market. I think some of the -- we can do more with our OEM partners, we can do more with MSSPs. So cloud security specifically, we're going to put more investment, and we believe it would also match revenue growth as well.

是的。因此我認為總體而言，我們將尋求高於當前水準的投資。我們將在整個業務範圍內進行其他投資，透過內部重新分配資源和費用來進行。但具體到雲端運算，鑑於我們看到了加速的成長和更高的成長潛力，我們希望在研發、中心和目標市場方面投入更多。我認為我們可以與 OEM 合作夥伴做更多的事情，我們可以與 MSSP 做更多的事情。因此，具體來說，我們將在雲端安全方面投入更多資金，我們相信它也會與收入成長相符。

Ryan Koontz, Needham & Company.

瑞安·孔茨 (Ryan Koontz)，Needham & Company。

Very nice quarter. Nice to see the cloud ARR reaccelerating here. Is this specifically related to some of the changes you made to go to market in the Americas? And -- or is this more maybe related to channels and efforts you've had underway for some time?

非常好的季度。很高興看到雲端 ARR 在這裡重新加速。這是否與您進軍美洲市場所做的一些改變具體相關？或者這可能與您一段時間以來一直在進行的管道和努力有關？

Yeah. Thank you. So I think it was broad-based. Some of that came from North America, obviously, some of it came from international. I mentioned some of the wins we had with Check Point and Cisco. I highlighted only a couple of large ones, but we had very strong activity with the OEMs and our channel partners in cloud.

是的。謝謝。所以我認為它是廣泛的。其中一些顯然來自北美，有些則來自國際。我提到了我們與 Check Point 和 Cisco 合作的一些成果。我只強調了幾個大型的公司，但我們與雲端運算領域的 OEM 和通路合作夥伴有著非常密切的合作。

In general, we're seeing more and more of our channels and more of our sales teams and geographies embedded in cloud security and not only appliances. So we're definitely seeing quarter over quarter more and more pipeline growth, more -- I mentioned double-digit bookings, double-digit customer growth.

總體而言，我們看到越來越多的管道、越來越多的銷售團隊和地區嵌入雲端安全，而不僅僅是設備。因此，我們確實看到每個季度的管道成長越來越多，更多——我提到了兩位數的預訂量，兩位數的客戶成長。

So a lot of the indicators in cloud were actually pointing in the right direction. I think we still have runway both with our channels and our internal organization with the current capacity to have everyone even more engaged in cloud security sales. And that's obviously our plan for 2025.

因此，雲中的許多指標實際上指向正確的方向。我認為我們的管道和內部組織仍然有足夠的能力讓每個人都更參與雲端安全銷售。這顯然是我們 2025 年的計畫。

That's really great, and it sounds very logical. On the competitive front then, are you seeing kind of any further differentiation? What's the competitive environment like now compared to, say, a year ago for you?

這確實很棒，而且聽起來非常合乎邏輯。那麼，在競爭方面，您是否看到了進一步的差異化？與一年前相比，現在的競爭環境如何？

So I think in cloud security for the applications and data centers, our position, and you see it also from the analyst ratings -- industry analyst ratings and so on is that we are really excelling in the security, in the level of security, the automation, the algorithms, et cetera. In that respect, I think we had a very good year in 2024.

因此，我認為在應用程式和資料中心的雲端安全方面，我們的地位以及您可以從分析師評級、行業分析師評級等中看到這一點，我們在安全性、安全性、自動化、演算法等方面確實表現出色。從這個方面來看，我認為 2024 年是我們非常好的一年。

We released many new algorithms, next-generation algorithms. Some of them are AI and gen AI based on LLMs for APIs and for DDoS and this AI SOC expert I mentioned. Some are other mathematical algorithms. So I think in that respect, we really strengthened our competitive advantage leading with security or best security this market.

我們發布了許多新的演算法、下一代演算法。其中一些是基於用於 API 和 DDoS 的 LLM 的 AI 和 gen AI，以及我提到的 AI SOC 專家。有些是其他數學演算法。因此我認為從這個方面來說，我們確實增強了我們在安全性或最佳安全性方面的競爭優勢。

We have very good competitors, Cloudflare and Akamai. But I think as you can see, we're doing well. I've mentioned we are putting our eye towards close to $100 million ARR by end of this year. So we feel very good about our competitive positioning.

我們有非常好的競爭對手，Cloudflare 和 Akamai。但我想正如你所看到的，我們做得很好。我提到過，我們的目標是在今年年底實現接近 1 億美元的 ARR。因此，我們對自己的競爭定位感到非常滿意。

That's great commentary. Thank you. And in terms of your broader ecosystem that you're selling into with your customers, are there any integrations you're delivering to market that are maybe helping you in terms of partners or [Northbound] interfaces at all that you're working on?

這是很棒的評論。謝謝。就您與客戶共同銷售的更廣泛的生態系統而言，您是否向市場提供了任何可能對您在合作夥伴或[北向]接口方面有所幫助的整合？

Yeah. So first, with our existing set of partners, we are constantly enhancing the integration. I've mentioned some stuff on Cisco, but same with Check Point. We're constantly enhancing the use cases with Cisco into the routing platforms and so on and so forth. And then we have a whole set of, for example, integration to SIEM systems. So we released integration from our cloud security both for AWS and Azure and SIEM to Splunk and so on.

是的。首先，我們正與現有的合作夥伴不斷加強整合。我曾經提到過一些關於思科的內容，但 Check Point 也是如此。我們不斷與思科合作，增強其在路由平台等方面的用例。然後我們有一整套系統，例如與 SIEM 系統的整合。因此，我們發布了針對 AWS 和 Azure 的雲端安全性以及針對 SIEM 和 Splunk 等的整合。

So we are constantly integrating our systems into the broader security ecosystem. A lot of it is, by the way, through specific requests by our customers. It's very -- our large customers are telling us, what you're doing is really great and we really need your threat intelligence or your application protection as part of our complete system.

因此，我們不斷將我們的系統整合到更廣泛的安全生態系統中。順便說一下，很多都是透過我們客戶的具體要求來實現的。這非常——我們的大客戶告訴我們，你們所做的事情真的很棒，我們確實需要你們的威脅情報或應用程式保護作為我們完整系統的一部分。

And obviously, we welcome that. It makes us more strategic. It makes us more sticky. And we do see our large customers also pointing and enjoying these capabilities. So definitely, that's something we continue to work on.

顯然，我們對此表示歡迎。它使我們更具戰略性。它使我們更加有黏性。我們確實看到我們的大客戶也指出並享受這些功能。所以毫無疑問我們會繼續努力。

(Operator Instructions) Tim Horan, Oppenheimer.

（操作員指示）蒂姆·霍蘭，奧本海默。

With Cloudflare and Akamai being -- to your primary competitors. They're very focused on bundling with CDN and other networking and compute. Do you think that's a trend that customers are looking for? Or do they want more best-in-class kind of a la carte at a high level? And then could you elaborate on specifically what you did with the go-to-market on direct sales or how well you can improve it from here?

Cloudflare 和 Akamai 是您的主要競爭對手。他們非常注重與 CDN 以及其他網路和運算的捆綁。您認為這是顧客所尋求的趨勢嗎？還是他們想要更多更高等級的一流點菜服務？然後，您能否具體闡述您在直銷市場方面做了哪些工作，或者您可以從現在開始進行哪些改進？

So definitely, we see the trend of platformization or integrated solution in the broader security market. And we are delivering the same in what we believe is the niche that we should target, which is the application and data center protection. So it's the web application firewall, the DDoS, the API, and bot. And we've integrated into our cloud appsec CDN capabilities, load balancing as a service, DNS, network analytics. So everything you need in order to deliver the application, it's already bundled in our solution.

因此，我們確實看到更廣泛的安全市場中平台化或整合解決方案的趨勢。我們在我們認為應該瞄準的領域提供相同的服務，即應用程式和資料中心保護。所以它是 Web 應用程式防火牆、DDoS、API 和機器人。我們已將 CDN 功能、負載平衡即服務、DNS 和網路分析整合到我們的雲端應用安全中。所以，您交付應用程式所需的一切都已捆綁在我們的解決方案中。

And we actually have a field approach. It's not a la carte, what we sell. It's really a standard, advanced and complete packages of this platform. And then based on the number of applications and the scale of capacity that you need, that's how pricing is being set.

我們實際上採取了一種現場方法。我們賣的不是單點菜。這確實是該平台的標準、先進和完整的套件。然後根據您所需的應用程式數量和容量規模來確定價格。

So we're definitely there. And since we've added each and every quarter in the last, I think, six quarters, those additional capabilities, we're actually seeing customers purchasing the firewall as a service, the network analytics and using it as part of these packages.

所以我們肯定在那裡。而且由於我們在過去的每個季度（我想是六個季度）都添加了這些附加功能，我們實際上看到客戶購買防火牆即服務、網路分析並將其作為這些軟體包的一部分使用。

What we don't do, we don't cross the line to compute. We feel compute is still or should rely with the public cloud providers or on the same side with large enterprises in the private cloud or regular data centers. So everything about delivering and mainly securing the application with the core being security, that's what we do in the platform.

我們不做的事情，就不會越過界限去計算。我們認為運算仍然或應該依賴公有雲供應商，或與私有雲或常規資料中心中的大型企業站在同一邊。因此，我們在平台上所做的一切都是關於交付和主要保護應用程序，核心是安全。

And we are targeting very large enterprises and service provider where security is key. It's not nice to have. In our customers, good enough is not good at all in security. And that's where we are excelling -- and over there, we don't see the need to bundle compute. They're all set in that regard. So that's for the first question.

我們的目標是大型企業和服務供應商，安全是關鍵。擁有它並不好。對於我們的客戶來說，安全性「夠好」並不意味著「好」。這正是我們的優勢所在——我們認為沒有必要捆綁計算。他們在這方面都已做好準備。這是第一個問題。

Regarding the go-to-market approach, we are a channel organization. We do have direct touch, a sales motion across the world. We did strengthen that especially in North America on both hunting and farming go-to-market approaches. And together with that, we are putting more and more efforts into OEMs, into MSSPs to scale channels in general, to scale the business.

就市場進入方式而言，我們是一個通路組織。我們確實有直接接觸，有遍佈全球的銷售活動。我們確實加強了這一點，特別是在北美，在狩獵和農業進入市場方面都加強了這一點。同時，我們正在向 OEM 和 MSSP 投入越來越多的精力，以擴大通路規模和業務規模。

And I think at least in the OEMs and MSSPs, some channels, we are seeing that scale, as mentioned, OEM being a record year, by the way, record for all and records for each one separately as well. So we are seeing that start of the scale through channels, MSSPs and OEMs taking effect.

我認為至少在 OEM 和 MSSP 等一些管道中，我們看到了這種規模，正如前面提到的，OEM 是創紀錄的一年，順便說一下，所有人都創下了紀錄，每個人也分別創下了紀錄。因此，我們看到透過通路、MSSP 和 OEM 開始擴大規模並產生效果。

There are no further questions in queue at this time. I would like to turn the call back to management for closing comments.

目前隊列中沒有其他問題。我想將電話轉回給管理階層，請他們發表最後評論。

Thank you, everyone, for attending, and have a great day.

感謝大家的參加，祝大家有個愉快的一天。

This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與，祝您有愉快的一天。