Radware Ltd (RDWR) 2025 Q1 法說會逐字稿

Welcome to the Radware, conference call discussing first quarter 2025 results. (Operator Instructions)

歡迎參加 Radware 電話會議，討論 2025 年第一季業績。（操作員指示）

As a reminder, this conference is being recorded on May 7, 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，本次會議將於 2025 年 5 月 7 日錄製。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 first quarter, 2025 earnings conference call. Joining me today are Roy Zisapel, President and Chief Executive Officer, and Guy Avidan, Chief Financial Officer.

謝謝您，接線生。大家早安，歡迎參加 Radware 2025 年第一季財報電話會議。今天與我一起出席的還有總裁兼執行長 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 first 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一季投資者工具包的副本可在我們網站的投資者關係部分找到。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。

The forward-looking statements are subject to various risks and uncertainties, and actual results could differ materially from what's current forecast and estimates.

前瞻性陳述受各種風險和不確定性的影響，實際結果可能與目前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 the changing or severe global economic conditions, general business conditions and our ability to address changes in our industry.

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峻的全球經濟狀況、一般商業狀況以及我們應對行業變化的能力的影響。

Changes in demand for products, the timing and the amount of orders, and other risks differ from time to time in [Worth's] filing.

產品需求的變化、訂單的時間和數量以及其他風險在[Worth's]的備案中不時有所不同。

We refer you to the documents that the company files and furnishes from time to time with the SEC, specifically the company's last annual report on form 20 as filed on March 28, 2025. We undertake no commitments 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 2025 年 3 月 28 日提交的 20 號表格上一份年度報告。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.

現在我將把電話轉給 Roy Zisapel。

Thank you, Yisca, and thank you all for joining us today. I'm pleased to report a strong start to 2025 exceeding our guidance. Our first quarter revenue increased 11% of the $0 to $72 million. This is the third quarter in a row of double-digit revenue growth. Our non-gap earning per share rose 69% to $0.27, demonstrating the high leverage in our business model. And finally, cash flow from operations of $22 million. A major driver of our success is attributed to our cloud security business, which continues to grow in scale and potential. Cloud security ARR increased by 19% of the year-over-year to $80 million.

謝謝你，Yisca，也謝謝大家今天的參與。我很高興地報告，2025 年開局強勁，超出了我們的預期。我們第一季的營收成長了 11%，達到 7,200 萬美元。這是連續第三個季度實現兩位數的收入成長。我們的每股非差距收益成長 69% 至 0.27 美元，顯示我們的商業模式具有高槓桿率。最後，經營活動現金流為 2,200 萬美元。我們成功的一個主要驅動力是我們的雲端安全業務，該業務的規模和潛力都在不斷增長。雲端安全ARR年增19%，達到8,000萬美元。

We also achieved double digit growth in our total number of cloud customers driven primarily by a rapid increase in new cloud application security bookings. Given these strong metrics, we continue to believe that focus on an investment in this business will position us to exceed a 20% ARR growth rate and achieve close to $100 million in cloud security ARR by the end of this year.

我們的雲端客戶總數也實現了兩位數成長，這主要得益於新的雲端應用安全訂單的快速成長。鑑於這些強勁的指標，我們仍然相信，專注於這項業務的投資將使我們的 ARR 成長率超過 20%，並在今年年底前實現近 1 億美元的雲端安全 ARR。

Our results also highlight the solid progress we've made against our strategy to lead us the best of great providers in application and data center security. Our growth strategy continues to be centered around three pillars: win significant market share ing cloud security, leads through AI innovation and automation and enhance our go-to-market footprint. As we highlighted last quarter, we are expanding our cloud security infrastructure in order to further scale our business. Recently, we opened new cloud service centers in Peru, India and Kenya, and have plans to expand in other regions in the near future. Today, we support a network of over 50 cloud security service centers worldwide with a mitigation capacity of up to 15 terabytes. This network enables customers to keep applications and data within their borders to meet strict data privacy regulations and provide excellent performance for local users. Our hybrid cloud security offering is another important business enabler for our customers. This offering has become a major competitive differentiator for us translated into continued strong ARR growth. While some customers may favor cloud-only models which we offer, many larger enterprises clearly have a requirement for hybrid security across all their assets - those that are located in the cloud and those that are located in the private data centers, and our pipeline proves it. We continue to see steady, healthy demand that includes our Defense Pro X refresh. With the push towards vendor consolidation, Radware’s hybrid approach for DDoS and application security, which offers both cloud services and on-prem solutions with integrated and consistent security capabilities, is giving us a clear edge.

我們的業績也凸顯了我們在策略方面取得的堅實進展，即引領我們成為應用程式和資料中心安全領域中最優秀的供應商。我們的成長策略持續圍繞著三大支柱：透過雲端安全贏得顯著的市場份額、透過人工智慧創新和自動化引領市場以及增強我們的市場影響力。正如我們在上個季度所強調的那樣，我們正在擴展我們的雲端安全基礎設施，以進一步擴大我們的業務。最近，我們在秘魯、印度和肯亞開設了新的雲端服務中心，並計劃在不久的將來擴展到其他地區。如今，我們支援全球超過 50 個雲端安全服務中心的網絡，緩解能力高達 15 TB。該網路使客戶能夠將應用程式和資料保留在其境內，以滿足嚴格的資料隱私法規，並為本地用戶提供出色的效能。我們的混合雲安全產品是客戶的另一個重要業務推動因素。該產品已成為我們的主要競爭優勢，轉化為持續強勁的 ARR 成長。雖然有些客戶可能更喜歡我們提供的純雲端模型，但許多大型企業顯然需要對其所有資產（位於雲端中的資產和位於私有資料中心的資產）實施混合安全，我們的管道證明了這一點。我們繼續看到穩定、健康的需求，其中包括我們的 Defense Pro X 更新。隨著供應商整合的推動，Radware 針對 DDoS 和應用程式安全的混合方法為我們帶來了明顯的優勢，該方法同時提供具有整合和一致安全功能的雲端服務和內部部署解決方案。

I'm pleased to report that our AI innovation efforts are also proving to be a competitive advantage. Our advanced AI-based algorithms, and algorithms first approach to security, are delivering market leading detection and mitigation results for our customers, making our solutions the preferred choice for many. We're seeing this first hand as we continue to replace the competition in bigger ticket deals. Between the fourth quarter of 2024 and first quarter of this year, the total contract value of our competitive takeout doubled. For example, we took out two competitors with our DDoS protection and web application firewall to close a 7-digit deal with the government IT company in Asia Pacific. The win provides another proof point of the strength of our security offering and web application security and DDoS mitigation under a unified SecOps platform.

我很高興地報告，我們的人工智慧創新努力也被證明是一種競爭優勢。我們先進的基於人工智慧的演算法和演算法優先的安全方法為我們的客戶提供了市場領先的檢測和緩解結果，使我們的解決方案成為許多人的首選。當我們繼續在更大額的交易中取代競爭對手時，我們親眼目睹了這一點。2024年第四季至今年第一季期間，我們競爭性外送的合約總價值翻了一番。例如，我們利用 DDoS 保護和 Web 應用程式防火牆擊敗了兩家競爭對手，與亞太地區的政府 IT 公司達成了一項 7 位數的交易。這次勝利再次證明了我們在統一 SecOps 平台下的安全產品和 Web 應用程式安全性以及 DDoS 緩解功能的強大。

Last quarter we won our largest cloud security agreement to date. The multi-year 8-digit deal broadened our relationship with the US Fortune 500 financial services and payments company. They are significantly expanding with our full suite of cloud DDoS and application protection services to safeguard thousands of applications and billions of digital transactions. Our OEM channel also produced some major wins and continues to play an important role in our growth strategy.

上個季度，我們贏得了迄今為止最大的雲端安全協議。這項為期多年的八位數交易拓寬了我們與美國財富 500 強金融服務和支付公司的合作關係。他們正在透過我們全套的雲端 DDoS 和應用程式保護服務大幅擴展業務，以保護數千個應用程式和數十億個數位交易。我們的 OEM 管道也取得了一些重大勝利，並繼續在我們的成長策略中發揮重要作用。

During the first quarter, our partnership with Cisco and Checkpoint once again generated strong results, both growing more than 20% year-over-year. Together with Cisco, we won a million dollars five-year cloud deal with a UK retailer. At the end of 2024, the retailer was the target of a series of cyberattacks that disrupted its primary data centers and operations. Following emergency onboarding onto our cloud DDoS protection service, we successfully mitigated the attacks. With successful cross-selling, we expanded the deal to include our Threat Intelligence services, as well as our web application and API protection. So really a great platform.

第一季度，我們與思科和 Checkpoint 的合作再次取得了強勁的業績，年成長均超過 20%。我們與思科合作，與一家英國零售商贏得了價值百萬美元的五年期雲端運算協議。2024 年底，該零售商遭受了一系列網路攻擊，導致其主要資料中心和營運中斷。在緊急加入我們的雲端 DDoS 防護服務後，我們成功緩解了攻擊。透過成功的交叉銷售，我們擴大了交易範圍，包括我們的威脅情報服務以及我們的 Web 應用程式和 API 保護。這確實是一個很棒的平台。

In another part we worked with Checkpoint to close a DDoS protection and application protection deal with a central bank in Latin America. Our win was based on our superior need of technology, strong SLAs, and solid relationships. Given our double-digit growth over the past three quarters, strong demand for our security offerings and market opportunities ahead, particularly in cloud security, we plan to increase investments in sales, marketing, and R&D. These efforts will focus on scaling our cloud security business, accelerating AI-driven innovation, and strengthening our presence in North America. This morning, we announced plans to accelerate our expansion in the US market, led by new leadership team with deep experience in driving a ARR for SaaS companies. We are confident this team has the expertise to deliver meaningful results for our cloud business.

另一方面，我們與 Checkpoint 合作，與拉丁美洲的中央銀行達成了 DDoS 保護和應用程式保護協議。我們的勝利是基於我們對科技的卓越需求、強大的 SLA 和穩固的關係。鑑於我們過去三個季度的兩位數成長、對我們的安全產品的強勁需求以及未來的市場機會（特別是在雲端安全領域），我們計劃增加對銷售、行銷和研發的投資。這些努力將集中在擴大我們的雲端安全業務，加速人工智慧驅動的創新，並加強我們在北美的影響力。今天上午，我們宣布了加速美國市場擴張的計劃，由在推動 SaaS 公司 ARR 方面擁有豐富經驗的新領導團隊領導。我們相信，這個團隊擁有專業知識，能為我們的雲端業務帶來有意義的成果。

In summary, in the first quarter of 2025, we demonstrated steady execution with progress across all financial parameters. In addition, we continue to scale our cloud security business, win marquee accounts, and drive cloud ARR which is now at $80 million.

總而言之，在 2025 年第一季度，我們展現了穩定的執行力，所有財務參數都取得了進展。此外，我們繼續擴大我們的雲端安全業務，贏得大客戶，並推動雲端 ARR 達到 8,000 萬美元。

Looking forward, we intend to accelerate our cloud ARR growth by securing new logos, collaborating with our OEMs and channel partners, and driving AI innovation and automation. Additionally, by strengthening our presence in the U.S .market, we believe we will be well positioned to gain additional market share and accelerate our overall growth and consequently, our profitability.

展望未來，我們打算透過獲得新標誌、與我們的 OEM 和通路合作夥伴合作以及推動人工智慧創新和自動化來加速我們的雲端 ARR 成長。此外，透過加強我們在美國市場的影響力，我們相信我們將能夠獲得更多的市場份額，加速我們的整體成長，從而提高我們的獲利能力。

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'll provide an overview of our financial results and business performance for the first quarter, as well as our outlook for the second quarter of 2025.

謝謝你，羅伊，大家好。我將概述我們第一季的財務表現和業務表現，以及 2025 年第二季的展望。

Before beginning with the financial overview, I would like to remind you that unless otherwise indicated, all financial results are non-GAAP. A full reconciliation of our results on the GAAP to non-GAAP basis is available in the earning press release issued earlier today and in the investor 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。我們根據 GAAP 和非 GAAP 計算的業績的完整對照組可在今天早些時候發布的收益新聞稿和我們網站的投資者部分中找到。

Revenue for the first quarter of 2025 grew 11% year-over-year to $72 million driven mainly by another solid performance of our cloud security business and good contribution from our OEM partnerships. Total ARR increased 9% year-over-year to $230 million with cloud ARR growing 19% to $80 million. Furthermore, recurring revenues grew to 82% of total revenue in the first quarter of 2025 compared to 79% and 78% in Q1 2024 and Q4 2024 respectively. In the first quarter of 2025, our regional performance showed growth across all regions. The Americas increased by 1% year-over-year to $27.4 million accounting for 38% of total revenue. For the 12 trailing months, America's revenue grew 14% year-over-year.

2025 年第一季的營收年增 11% 至 7,200 萬美元，這主要得益於我們的雲端安全業務再次表現強勁以及我們的 OEM 合作夥伴關係的良好貢獻。總 ARR 年增 9% 至 2.3 億美元，其中雲端 ARR 成長 19% 至 8,000 萬美元。此外，2025 年第一季經常性收入佔總營收的比例成長至 82%，而 2024 年第一季和第四季分別為 79% 和 78%。2025年第一季度，我們的區域業績在所有地區呈現成長。美洲地區年增 1% 至 2,740 萬美元，佔總營收的 38%。過去 12 個月，美國的營收年增 14%。

EMEA revenue in Q1 2025 increased 25% year-over-year to $28.4 million and accounted for 39% of total revenue. For the 12 trailing months, EMEA revenue grew 11% year-over-year.

2025 年第一季度，歐洲、中東和非洲地區營收年增 25% 至 2,840 萬美元，佔總營收的 39%。過去 12 個月，EMEA 地區營收年增 11%。

And APAC revenue increased 7% year-over-year to $16.3 million contributing 23% of dollar revenue. And for the 12th trailing month, APAC revenue was flat year-over-year.

亞太地區營收年增 7%，達到 1,630 萬美元，貢獻美元收入的 23%。連續第 12 個月，亞太地區營收與去年同期持平。

I'll now discuss profits and expenses. Gross margin in Q1 2025 was 82.1%, a slight increase from 82% gross margin that was recorded in Q1 2024. Operating income doubled in the first quarter of 2025 to $8.6 million compared to $4.3 million in the same period of last year.

我現在來討論利潤和支出。2025 年第一季的毛利率為 82.1%，較 2024 年第一季的 82% 毛利率略有增加。2025 年第一季營業收入翻了一番，達到 860 萬美元，去年同期為 430 萬美元。

As Roy highlighted in his preferred remarks, in response to a strong demand for our security offering and the market opportunities ahead, mainly in cloud security. We plan to increase investment in sales, marketing, and R&D. This investment will focus on branding and expanding our cloud security business, accelerating AI-driven innovation, and strengthening our presence in North America.

正如 Roy 在他的首選評論中所強調的那樣，為了滿足對我們的安全產品的強勁需求以及未來的市場機遇，主要是在雲端安全領域。我們計劃增加對銷售、行銷和研發的投資。這項投資將專注於品牌建立和擴大我們的雲端安全業務，加速人工智慧驅動的創新，並加強我們在北美的影響力。

Our strong leverage in our business model allows us to increase investment that will support our ability to further drive topline growth in the future while improving profitability. Radware’s adjusted EBITDA for the first quarter of 2025, increased by 72% to $10.8 million compared to $6.8 million in the same period of last year.

我們商業模式的強大槓桿作用使我們能夠增加投資，從而支持我們在未來進一步推動營收成長並提高獲利能力。Radware 2025 年第一季調整後 EBITDA 達到 1,080 萬美元，較去年同期的 680 萬美元成長 72%。

Radware’s adjusted EBITDA excluding the Hawks Business for the first quarter of 2025 was $13.4 million and 18.6% margin. Compared to $8.9 million and 13.7% margin in the same period of last year. Financial income was $5.4 million in the first quarter of 2025 compared to $3.8 million in the first quarter of 2024. The tax rate for the first quarter of 2025 was 15.5% compared to 15.3% in the same period of last year. We expect the tax rate to remain approximately the same in the next quarter.

Radware 2025 年第一季不包括 Hawks 業務的調整後 EBITDA 為 1,340 萬美元，利潤率為 18.6%。相比之下，去年同期的利潤率為 890 萬美元和 13.7%。2025 年第一季的財務收入為 540 萬美元，而 2024 年第一季的財務收入為 380 萬美元。2025年第一季的稅率為15.5%，而去年同期為15.3%。我們預計下一季稅率將保持大致相同。

Net income in the first quarter of 2025 increased 73% year-over-year to $11.8 million compared to $6.8 million in the same period last year. Diluted earning per share for Q1 2025 increased 69% year-over-year to $0.27 compared to the $0.16 we had in Q1 2024.

2025 年第一季淨收入年增 73% 至 1,180 萬美元，去年同期為 680 萬美元。2025 年第一季每股攤薄收益為 0.27 美元，較 2024 年第一季的 0.16 美元年增 69%。

Turning to the cash flow statement and the balance sheet. Cash flow from operations in Q1 2025 reached $22.4 million compared to $21.1 million in the same period last year. We ended the first quarter with approximately $448 million in cash, cash equivalent, bank deposit and marketable securities.

轉向現金流量表和資產負債表。2025 年第一季的經營現金流達到 2,240 萬美元，而去年同期為 2,110 萬美元。截至第一季末，我們擁有約 4.48 億美元的現金、現金等價物、銀行存款和有價證券。

Before we move to guidance, I would like to address the recently announced tariffs and the potential impact on Radware. We expect the effect on our business to be minimal. We are proactively adjusting our supply chain to further reduce any potential cost pressure, and currently, we do not anticipate any material impact on our operation or financial performance. And now for the guidance. We expect total revenue for the second quarter of 2025 to be in the range of $73 million to $74 million. We expect Q2 2025 non-GAAP operating expenses to be between $51 million to $52 million.

在我們轉向指導之前，我想談談最近宣布的關稅及其對 Radware 的潛在影響。我們預計這對我們業務的影響將微乎其微。我們正在積極調整我們的供應鏈，以進一步降低任何潛在的成本壓力，目前，我們預計不會對我們的營運或財務表現產生任何重大影響。現在來談談指引。我們預計 2025 年第二季的總營收將在 7,300 萬美元至 7,400 萬美元之間。我們預計 2025 年第二季非 GAAP 營運費用將在 5,100 萬美元至 5,200 萬美元之間。

We expect Q2 2025, non-GAAP net earning per share to be between $0.26 and $0.27.

我們預計 2025 年第二季非 GAAP 每股淨收益將在 0.26 美元至 0.27 美元之間。

I'll now turn the call over to the operators, please.

我現在將電話轉給接線生。

(Operator Instructions)

（操作員指示）

Joseph Gallo from Jefferies.

傑富瑞的約瑟夫·加洛。

Hey guys, thanks for the question. Nice job on the quarter. I appreciate the tariff color just regarding macro. Did you see any changes in buying behavior from your customers? How was April and what's embedded in your Q2 guidance?

嘿夥計們，謝謝你的提問。本季表現不錯。我很欣賞宏觀的關稅顏色。您是否發現客戶的購買行為有任何改變？四月的情況如何？您的第二季業績指引包含哪些內容？

Okay. Hi. We didn't see a noticeable change, in the last several months and also starting Q2 things are relatively the same, meaning not accelerating, not decelerating. And we didn't see anything specific to tariffs in the beginning, we saw many questions. Some distributors were asking actually to accelerate shipments, but this has calmed down and after a week or so when the tariffs or the majority of them were put on hold. So we didn't see anything specific. And as I mentioned, as we focus more and more on the cloud business in North America, that is a bit isolated from the old hardware portion of our business.

好的。你好。我們沒有看到明顯的變化，在過去的幾個月以及從第二季度開始情況相對相同，這意味著沒有加速，也沒有減速。我們一開始並沒有看到任何有關關稅的具體內容，我們看到的只是很多疑問。一些分銷商實際上要求加快發貨，但這種情況已經平靜下來，大約一周後，大多數關稅都被擱置。所以我們沒有看到任何具體的東西。正如我所提到的，隨著我們越來越關注北美的雲端業務，這與我們業務的舊硬體部分有點脫節。

That makes sense. Thank you for that. And then just as a follow up, can you double click on some of those US market changes, a lot of new senior leadership, which is great, but that can also result in a couple quarters of disruption. So, is there any major change in process needed in the US market and is that accounted for in the Q2 guide? Thank you.

這很有道理。謝謝你。然後作為後續問題，您能否雙擊一些美國市場的變化，許多新的高級領導層，這很好，但也可能導致幾個季度的混亂。那麼，美國市場是否需要進行重大的流程變革？第二季指南是否考慮到了這一點？謝謝。

Yeah, so great question. Actually, our announcement is after all those, all this infrastructure is already in place. So Randy, the head lead, I think, is now going into his third quarter, like nine months into the company. A lot of the individual sales heads, were joining us between three to six months ago, so we're actually now expecting more and more productivity ramp up from them. And I think the newest addition, Connie, our Chief Growth Officer, she's like a month now into the company.

是的，這個問題問得真好。實際上，我們宣布這些之後，所有這些基礎設施都已經到位。所以我認為，首席負責人蘭迪現在已經進入第三季度，也就是在公司任職九個月了。許多銷售主管都是在三到六個月前加入我們的，因此我們現在實際上期待他們的生產力能持續提升。我認為最新加入的首席成長長康妮 (Connie) 已經加入公司一個月了。

So, a lot of the major changes were already done actually last quarter, I think, and a quarter before we already started to see. The fruits of that and we are a very strong believers that the future is brighter and we can grow forward from here and add and that's what we announced that we're going to add even more resources as we go forward.

所以，我認為，實際上上個季度就已經完成了許多重大變革，而上個季度之前我們就已經開始看到這些變革了。由此產生的成果讓我們堅信未來會更加光明，我們可以從現在開始向前發展，這就是我們所宣告的，我們將在未來投入更多的資源。

So, and we think we have a strong leadership team in place that's already, executed several quarters and gets more and more productive as time passes now. We don't see any disruption. We are after that, so to Speak.

因此，我們認為我們已經擁有一支強大的領導團隊，該團隊已經執行了幾季的任務，隨著時間的推移，其效率越來越高。我們沒有看到任何中斷。可以這麼說，我們追求的就是這個。

Great to hear. Thank you.

很高興聽到這個消息。謝謝。

There are no further questions at this time. I would like to turn the floor back over to Roy Zisapel for closing comments.

目前沒有其他問題。我想把發言權交還給 Roy Zisapel 來做最後評論。

Okay, thank you very much and have a great day.

好的，非常感謝您，祝您有愉快的一天。

This concludes today's teleconference. You may disconnect your lines at this time.

今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation.

感謝您的參與。