Radware Ltd (RDWR) 2025 Q2 法說會逐字稿

Welcome to the Radway conference discussing second-quarter 2025 results, and thank you all for holding.

歡迎參加討論 2025 年第二季業績的 Radway 會議，感謝大家的支持。

(Operator Instructions) As a reminder, this conference is being recorded, July 30, 2025. I would now like to turn this call over to Yisca Erez, Director Investor Relations at Radway.

（操作員指示）提醒一下，本次會議正在錄製中，時間為 2025 年 7 月 30 日。現在，我想將這通電話轉給 Radway 投資者關係總監 Yisca Erez。

Please go ahead.

請繼續。

Thank you, operator.

謝謝您，接線生。

Good morning, everyone, and welcome to Radway's second quarter 2025 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 the financial statements, as well as the investor kit for the second quarter, are available in the Investor Relations section of our website.

大家早安，歡迎參加 Radway 2025 年第二季財報電話會議。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。今天的新聞稿和財務報表的副本以及第二季度的投資者工具包可在我們網站的投資者關係部分找到。

During today's call, we may make projections or other forward-looking statement regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risks and uncertainties and actual result could differ materially from Radway's current forecasts 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 product, the timing in the amount of orders, and other risks deterred from time to time in Radway's filing.

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 Radway 目前的預測和估計有重大差異。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、一般商業狀況和我們應對行業變化的能力、產品需求變化、訂單數量的時機以及 Radway 不時在文件中所述的其他風險。

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 28, 2025. 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 2025 年 3 月 28 日提交的 20-F 表上的最新年度報告。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.

謝謝你，Yisca，也謝謝大家今天的參與。

I'm pleased to report another strong quarter, marking our fourth consecutive quarter of double-digit revenue growth. In the second quarter, revenue increased 10% year over year to $74 million. Non-GAAP earnings per share rose 39% year over year to $0.28, highlighting the continued scalability and efficiency of our business model. We also generated $14.5 million in cash flow from operations, further underscoring the strength and resilience of our operations.

我很高興地報告本季又取得強勁成長，這標誌著我們連續第四個季度實現兩位數的營收成長。第二季營收年增10%，達到7,400萬美元。非公認會計準則每股盈餘年增 39% 至 0.28 美元，凸顯了我們業務模式的持續可擴展性和效率。我們也從營運中產生了 1,450 萬美元的現金流，進一步凸顯了我們營運的實力和彈性。

These results reflect the successful and consistent execution of the strategy we've implemented over the past couple of years to become the best-of-breed provider in application and data center security. This strategy is driven by three pillars: gaining significant market share in cloud security, leading with algorithm and AI-driven innovation and automation, and expanding our go to market presence.

這些結果反映了我們在過去幾年中實施的策略的成功和持續執行，即成為應用程式和資料中心安全領域的最佳提供者。此策略由三大支柱驅動：在雲端安全領域獲得顯著的市場份額、引領演算法和人工智慧驅動的創新和自動化、擴大我們的市場影響力。

Cloud security continues to be our primary growth engine. In the second quarter, we accelerated cloud ARR growth from 19% to 21% year over year, reaching $85 million. With that, we surpassed our short-term target of 20% year-over-year growth rate.

雲端安全仍然是我們主要的成長引擎。第二季度，我們的雲端 ARR 成長率從去年同期的 19% 加速至 21%，達到 8,500 萬美元。這樣，我們就超越了 20% 年成長的短期目標。

Total cloud booking and the number of cloud active customers also demonstrated impressive growth last quarter, further validating our strategy and execution. These achievements reflect our strength and competitive position, higher win rates, and increased participation globally.

上個季度，雲端預訂總量和雲端活躍客戶數量也表現出令人矚目的成長，進一步驗證了我們的策略和執行力。這些成就反映了我們的實力和競爭地位、更高的勝率以及全球參與度的提高。

One of the growth drivers for our cloud security business is the increased adoption of our cloud-based API protection solutions. The API security solution uses AI-driven capabilities to secure APIs and business logic in real time.

我們的雲端安全業務的成長動力之一是我們基於雲端的 API 保護解決方案的採用率不斷提高。API 安全解決方案使用 AI 驅動的功能來即時保護 API 和業務邏輯的安全。

What differentiates Radware from our competition is our ability to automatically and continuously map business logic, generate and optimize protection rules, and enforce them in real time. Ultimately, we're helping customers automate protection and respond faster to threats. The market demand for securing API traffic is translating into meaningful wins, including deals with the European government, a major Asian bank, and a global sporting event. Our leadership in this space was recognized in the GigaOM radar for application and API security. In the report, we were named a leader and fast mover for our AI-driven capabilities in vulnerability detection, account takeover protection, and bot management.

Radware 與競爭對手的不同之處在於我們能夠自動且持續地繪製業務邏輯、產生和最佳化保護規則並即時執行這些規則。最終，我們幫助客戶實現保護自動化並更快應對威脅。確保 API 流量安全的市場需求正在轉化為有意義的勝利，包括與歐洲政府、亞洲一家主要銀行和一項全球體育賽事的交易。我們在該領域的領導地位得到了 GigaOM 應用程式和 API 安全雷達的認可。報告中，我們因在漏洞檢測、帳戶接管保護和機器人管理方面的人工智慧驅動能力而被評為領導者和快速推動者。

With AI becoming deeply embedded in enterprise workflows, our leadership in agentic infrastructure security continues to position us as a trusted partner. Defending against AI-powered threats demands AI-powered defense, and that's exactly what we continue to build with our EPIC-AI framework. Our AI-powered SOC is a cornerstone of our AI defense strategy, purpose-built to detect and mitigate DDoS attacks in real-time. It continuously analyzes global traffic patterns using behavioral baselines, anomaly detection, and machine learning to identify with high accuracy attacks that escape the security controls. Once detected, SOC X automatically comes with the analysis and specific recommendations how to mitigate the attack in real time, dramatically reducing the mean time to resolve, thus, providing significantly better business outcomes for our customers.

隨著人工智慧深深嵌入企業工作流程，我們在代理基礎設施安全方面的領導地位繼續使我們成為值得信賴的合作夥伴。防禦人工智慧威脅需要人工智慧防禦，這正是我們繼續透過 EPIC-AI 框架建構的。我們的人工智慧 SOC 是我們人工智慧防禦策略的基石，專門用於即時偵測和緩解 DDoS 攻擊。它使用行為基線、異常檢測和機器學習持續分析全球流量模式，以高精度識別逃避安全控制的攻擊。一旦偵測到，SOC X 會自動提供分析並提供如何即時緩解攻擊的具體建議，從而大幅縮短平均解決時間，從而為我們的客戶提供更好的業務成果。

This capability has earned us some major second-quarter wins. For instance, we secured a seven-digit deal with a major global event organization. Based on our proven ability to address current and emerging threats, the organization selected Radware full security stack, including our AI SOC Xpert, to protect their digital infrastructure and applications.

這種能力使我們在第二季度贏得了一些重大勝利。例如，我們與一家大型全球活動組織達成了七位數的交易。基於我們已證實的應對當前和新興威脅的能力，該組織選擇了 Radware 全安全堆疊（包括我們的 AI SOC Xpert）來保護其數位基礎設施和應用程式。

Our AI SOC Xpert was also part of another major cloud deal last quarter. A leading US financial technology company selected our solution as part of its data center consolidation and cloud migration strategy. This deal reflects the customer need to offload manual tasks from its network and security teams, allowing them to focus on driving efficiency and innovation across their broader technology stack. Our cloud platform ability to deliver better protection for core applications while enhancing operational agility was a key differentiator in securing this win.

我們的 AI SOC Xpert 也是上個季度另一項重大雲端交易的一部分。一家領先的美國金融科技公司選擇我們的解決方案作為其資料中心整合和雲端遷移策略的一部分。這筆交易反映了客戶需要從其網路和安全團隊中卸載手動任務，從而使他們能夠專注於推動更廣泛的技術堆疊的效率和創新。我們的雲端平台能夠為核心應用程式提供更好的保護，同時提高營運彈性，這是確保這場勝利的關鍵因素。

In the second quarter, we continued to advance our go-to-market strategy by deepening and expanding our relationship across our partner and channel ecosystem. These efforts contributed to securing multiple major wins, including a seven-digit deal with one of Latin America's largest data center providers. To improve their security, resolve performance and support issues, the customer replaced its existing solution with our hybrid cloud DDoS solution. Our technical edge and strong execution alignment were key to the win.

在第二季度，我們透過深化和擴大與合作夥伴和通路生態系統的關係，繼續推動我們的市場進入策略。這些努力有助於確保獲得多項重大勝利，包括與拉丁美洲最大的資料中心提供者之一達成的七位數交易。為了提高安全性、解決效能和支援問題，客戶用我們的混合雲 DDoS 解決方案取代了其現有的解決方案。我們的技術優勢和強大的執行力是取得勝利的關鍵。

We also closed another seven-digit deal with the European government, a partnership win that will strengthen our presence in the public sector in that country. The hybrid deal spanned multiple solutions and 250 applications. Our cloud platform's unified management, visibility and protection for both cloud and on-prem applications, and our strong partner alignment were key contributors to this competitive takeout.

我們也與歐洲政府達成了另一項七位數的交易，這場合作勝利將加強我們在該國公共部門的地位。此混合交易涉及多種解決方案和 250 個應用程式。我們的雲端平台對雲端和本地應用程式的統一管理、可視性和保護，以及我們強大的合作夥伴聯盟是這一競爭優勢的關鍵因素。

In closing, our second-quarter results underscored the strength of our strategy and disciplined execution across the business. Cloud security remains our primary growth engines, marked by strong cloud ARR momentum and accelerating growth rates.

最後，我們的第二季業績凸顯了我們整個業務的策略實力和嚴格的執行力。雲端安全仍然是我們的主要成長引擎，其特點是強勁的雲端 ARR 勢頭和不斷加快的成長率。

Our AI-driven innovation continues to enhance our platform capabilities and to drive meaningful differentiation in the market. At the same time, deeper engagement with our partners and channel ecosystems is enabling us to scale more efficiently and win new customers. With a growing pipeline, an expanding partner network, and rising global demand for AI-based security solutions, we believe our current momentum and strategic focus position us to pursue long-term growth opportunities and deliver long-term value.

我們的人工智慧驅動的創新不斷增強我們的平台能力並推動市場實現有意義的差異化。同時，與我們的合作夥伴和通路生態系統的更深入合作使我們能夠更有效地擴大規模並贏得新客戶。隨著通路的不斷增長、合作夥伴網路的不斷擴大以及全球對基於人工智慧的安全解決方案的需求不斷增長，我們相信，我們當前的勢頭和戰略重點使我們能夠尋求長期增長機會並實現長期價值。

With that, I'll 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.

謝謝你，羅伊，大家好。

I'll provide an overview of our financial results and business performance for the second quarter, as well as our outlook for the third quarter of 2025. Before beginning 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 a GAAP to non-GAAP basis is available in the earning press release issued earlier today and in the investor section of our website.

我將概述我們第二季的財務表現和業務表現，以及我們對 2025 年第三季的展望。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 得出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。

We delivered solid financial results in the second quarter of 2025, with revenue growing 10% year over year to $74.2 million, driven primarily by continued strength in our cloud security business. Total ARR increased by 8% year over year to $235 million, with cloud ARR growth accelerating from 19% to 21% year over year, reaching $85 million. This momentum reflects the growing demand for our cloud solution and the increase in shifting towards recurring revenue, which now represents 84% of total revenue, up from 82% in Q2 of last year.

我們在 2025 年第二季取得了穩健的財務業績，營收年增 10% 至 7,420 萬美元，這主要得益於我們雲端安全業務的持續強勁成長。總 ARR 年成長 8% 至 2.35 億美元，其中雲端 ARR 成長率從去年同期的 19% 加速至 21%，達到 8,500 萬美元。這一勢頭反映了我們雲端解決方案的需求不斷增長，以及經常性收入的增加，目前經常性收入佔總收入的 84%，高於去年第二季的 82%。

Looking at regional performance, the Americas revenue was stable year over year at $30.1 million, representing 41% of total revenue. On a trailing 12-month basis, the region grew 11%. EMEA delivered strong growth, with Q2 revenue up 22% year over year to $27.8 million, accounting for 37% of total revenue. Trailing 12-month growth was 17%. And APAC revenue increased 30% year over year to $16.3 million, contributing 22% of total revenue. On a trailing 12-month basis, APAC grew 5%.

從區域表現來看，美洲地區收入較去年同期穩定，為 3,010 萬美元，佔總收入的 41%。過去 12 個月，該地區成長了 11%。歐洲、中東和非洲地區成長強勁，第二季營收年增 22% 至 2,780 萬美元，佔總營收的 37%。過去 12 個月的成長率為 17%。亞太地區營收年增 30% 至 1,630 萬美元，佔總營收的 22%。過去 12 個月，亞太地區成長了 5%。

Turning to profitability, gross margin remained strong at 82.2% consistent with the prior year. Operating income grew more than 50% year over year, reaching $9.5 million, up from $6.3 million in Q2 2024.

談到獲利能力，毛利率保持強勁，達到 82.2%，與前一年持平。營業收入年增超過 50%，達到 950 萬美元，高於 2024 年第二季的 630 萬美元。

As we noted last quarter, we are following our plan and increasing investment in sales, marketing, and R&D, particularly in cloud and AI innovation, to capitalize on the robust demand for our leading security offering and the long-term market opportunities. Our recurring business model continues to demonstrate strong leverage, enabling us to fund those growth initiatives.

正如我們上個季度所指出的，我們正在按照計劃增加對銷售、行銷和研發的投資，特別是在雲端和人工智慧創新方面，以利用對我們領先的安全產品的強勁需求和長期市場機會。我們的經常性業務模式持續展現出強大的槓桿作用，使我們能夠為這些成長計畫提供資金。

Radware adjusted EBITDA for the second quarter of 2025 increased by 37% to $11.4 million, compared to $8.3 million in the same period last year. Excluding the Hawks business, adjusted EBITDA was $14.1 million, representing a 19% EBITDA margin, up from $11 million and 16.4% EBITDA margin in Q2 2024, reflecting improved operational efficiency and scale in our core business.

Radware 2025 年第二季調整後 EBITDA 成長 37% 至 1,140 萬美元，去年同期為 830 萬美元。不包括老鷹隊業務，調整後的 EBITDA 為 1,410 萬美元，EBITDA 利潤率為 19%，高於 2024 年第二季的 1,100 萬美元和 16.4%，反映出我們核心業務的營運效率和規模的提高。

Financial income for the quarter was $5.4 million, up from $4.1 million in the same period last year. Our effective tax rate for the quarter was 15.4%, in line with Q2 2024. We expect the effective tax rate to remain approximately at this level in the coming quarter. Net income rose 43% year over year to $12.6 million, compared to $8.8 million in Q2 2024 and diluted earnings per share increased by 39% to $0.28, up from $0.20 in the same period last year.

本季財務收入為 540 萬美元，高於去年同期的 410 萬美元。本季的有效稅率為 15.4%，與 2024 年第二季一致。我們預計下一季有效稅率將維持在這個水準左右。淨收入年增 43% 至 1,260 萬美元，而 2024 年第二季為 880 萬美元，每股攤薄收益成長 39% 至 0.28 美元，高於去年同期的 0.20 美元。

Turning to the cash flow and balance sheet, cash flow from operations in Q2 2025 was $14.5 million, compared to $23 million in the same quarter last year. We ended the quarter with a strong balance sheet, holding approximately $459 million in cash, cash equivalent, bank deposit, and marketable securities, providing us with the flexibility to continue to invest according to our plans in cloud security and AI innovation.

談到現金流和資產負債表，2025 年第二季的營運現金流量為 1,450 萬美元，而去年同期為 2,300 萬美元。我們以強勁的資產負債表結束了本季度，持有約 4.59 億美元的現金、現金等價物、銀行存款和有價證券，這使我們能夠靈活地繼續按照計劃在雲端安全和人工智慧創新方面進行投資。

Looking ahead, we remain focused on growing our cloud ARR and gradually accelerating it beyond the current 21% year-over-year growth. This goal is supported by continued investment in cloud security innovation, the integration of AI-driven capabilities in our solution, and the expansion of our go-to-market strategy. These initiatives are designed to unlock new growth opportunities and support a longer-term trajectory in cloud ARR performance.

展望未來，我們仍將專注於提高雲端 ARR，並逐步使其超越目前 21% 的年成長率。這一目標得到了對雲端安全創新的持續投資、在我們的解決方案中整合人工智慧驅動功能以及擴展我們的行銷策略的支持。這些舉措旨在釋放新的成長機會並支持雲端 ARR 性能的長期發展軌跡。

And now to the guidance, we expect total revenue for the third quarter of 2025 to be in the range of $74.5 to $75.5 million. We expect Q3 2025 non-GAAP operating expenses to be between $51.5 million to $52.5 million. And we expect Q3 2025 non-GAAP diluted net earnings per share to be between $0.26 and $0.27.

現在談到指引，我們預計 2025 年第三季的總營收將在 7,450 萬美元至 7,550 萬美元之間。我們預計 2025 年第三季非 GAAP 營運費用將在 5,150 萬美元至 5,250 萬美元之間。我們預計 2025 年第三季非 GAAP 稀釋每股淨收益將在 0.26 美元至 0.27 美元之間。

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

我現在將電話轉給接線員以回答問題。接線員，請說。

(Operator Instructions) George Notter, Wolfe Research.

（操作員指示）喬治·諾特（George Notter），沃爾夫研究公司。

Hi, guys. Thanks very much.

嗨，大家好。非常感謝。

I guess I was curious about sort of what you're seeing in terms of early returns from the sales and marketing investments. I think you added 30 people in the North American selling organization. I'm just wondering if you're seeing signs of progress, are you seeing improved pipeline? How are you feeling about your investment and sales another three months along?

我想我很好奇您從銷售和行銷投資的早期回報方面看到了什麼。我認為您在北美銷售組織中增加了 30 名員工。我只是想知道您是否看到了進步的跡象，是否看到了改進的管道？您對未來三個月的投資和銷售有何感受？

Thanks.

謝謝。

Okay, hi, George, welcome back.

好的，嗨，喬治，歡迎回來。

I think the investment we've done last year in North America is paying off for us. We're definitely seeing good traction in the market. We're starting to see stronger pipeline, better engagement with existing and new customers, nice wins starting to shape up. Our forecast for the coming quarters is becoming better. So overall, I think the first wave of investments that we've done and the alignment has shaped up pretty well.

我認為我們去年在北美所做的投資正在獲得回報。我們確實看到了市場的良好發展勢頭。我們開始看到更強大的管道、與現有和新客戶的更好的互動、以及開始形成的良好勝利。我們對未來幾季的預測正在變得更好。所以總的來說，我認為我們進行的第一波投資和協調進展得相當順利。

As we noted last quarter, we are increasing investments. Across the business and specifically North America, we increased our executive bench there and we are planning to further increase. We started it last quarter and I think also some of what Guy mentioned in the OpEx is a result of that. We are going to further increase our investments in that market. We think it's a great opportunity for us.

正如我們上個季度所指出的，我們正在增加投資。在整個業務範圍內，特別是在北美，我們增加了那裡的高階主管人數，我們計劃進一步增加。我們從上個季度就開始了，我認為 Guy 在 OpEx 中提到的一些內容也是由此產生的。我們將進一步增加對該市場的投資。我們認為這對我們來說是一個很好的機會。

Got it, okay.

知道了，好的。

And then, I know there was also bifurcation of the selling organization. I think you moved folks from kind of overall model to a hunters and gatherers model. Are you seeing benefits there? What does that look like? Any insights would be great.

然後，我知道銷售組織也出現了分裂。我認為您將人們從整體模型轉變為獵人和採集模型。您看到那裡有好處嗎？那是什麼樣子的？任何見解都很好。

Yeah.

是的。

So when I said the alignment, I was actually referring to that. So that's played to more acquisition-oriented teams and more account management and farming teams.

所以當我說對齊時，我實際上指的是這個。因此，這對更多以收購為導向的團隊以及更多的帳戶管理和農業團隊來說都起到了作用。

I think played pretty well. I actually already seeing much better coverage of the existing customers. I think we're seeing that in more upgrades and cross-selling activity in the existing customers and very successful hunting motion in new accounts.

我認為打得相當好。我實際上已經看到現有客戶的覆蓋率大大提高。我認為，我們看到現有客戶中出現了更多的升級和交叉銷售活動，新客戶的尋找行動也非常成功。

I'm actually excited about the pipeline we've built that -- the early wins we already saw in Q2, the first wins. But I think there's much better news ahead of us and I'm looking forward to that. I'm very excited of that organization.

我實際上對我們建立的管道感到非常興奮——我們在第二季度已經看到了早期的勝利，這是第一批勝利。但我認為我們前面會有更好的消息，我對此充滿期待。我對這個組織感到非常興奮。

Great. That's terrific.

偉大的。太棒了。

And then I also want to just ask about the DefensePro X progress. I'm just curious if you could give us a sense for how much of your sales mix on hardware is now DPX. And then, I know that business pulls along more subscription with it. I'm kind of wondering what that looks like as well.

然後我也想問 DefensePro X 的進展。我只是好奇，您能否告訴我們現在您的硬體銷售組合中有多少是 DPX。然後，我知道業務會隨之帶來更多的訂閱。我也有點好奇它是什麼樣子的。

And that's my last question, thank you.

這是我的最後一個問題，謝謝。

Right.

正確的。

So I think on the end, on-premise DDoS mitigation, everything now 100% is in Q3 will be a Defense Pro X. As a matter of fact, we just announced the end of sales for the last DefensePro 8 platform last quarter, which, by the way, brings us a whole additional layer of install base to refresh in the coming 24 months.

因此，我認為最終，內部部署 DDoS 緩解，現在 100% 在第三季實現的一切都將是 Defense Pro X。事實上，我們上個季度剛剛宣布了最後一款 DefensePro 8 平台的銷售結束，順便說一句，這為我們帶來了未來 24 個月內需要更新的額外安裝基礎。

So all our new sales are now a Defense Pro X. We believe it's by far the strongest DDoS mitigator. We put all our latest and greatest algorithms there. Customer feedback is very good. I think also, this quarter, I was just told we won a large new SaaS provider competitive displacement with DPX, and based on the specific new attack mitigations, it can mitigate.

因此，我們現在所有新銷售的產品都是 Defense Pro X。我們相信它是迄今為止最強大的 DDoS 緩解器。我們將所有最新、最出色的演算法都放在那裡。顧客回饋非常好。我還認為，本季度，我剛剛被告知我們透過 DPX 贏得了一個大型新 SaaS 提供者競爭置換，並且基於特定的新攻擊緩解措施，它可以緩解。

So I think here we have a strong refresh cycle. We're still early there, but both for existing customers and new customers. I think we have a very, very strong platform.

所以我認為我們有一個強大的更新周期。我們還處於早期階段，但對於現有客戶和新客戶而言都是如此。我認為我們有一個非常非常強大的平台。

Very good.

非常好。

Thank you very much.

非常感謝。

Chris Reimer, Barclays.

巴克萊銀行的克里斯雷默 (Chris Reimer)。

Hi. Thanks for taking my question and congratulations on the strong results.

你好。感謝您回答我的問題，並祝賀您取得如此優異的成績。

I was wondering if you could comment maybe on the dynamics in the carrier segment, which showed an uptick this quarter. And can you give any color around the dynamics just in general in the US not related to your investment or expansion? I was thinking more around customer behavior and in any kind of increased spending environment, or could you characterize any behavior that's changed versus the last year?

我想知道您是否可以評論一下本季度呈現上升趨勢的運營商領域的動態。您能否介紹一下與您的投資或擴張無關的美國整體動態？我更多地考慮的是客戶行為以及任何增加支出的環境，或者您能否描述一下與去年相比發生了哪些變化的行為？

Okay. Thanks, Chris.

好的。謝謝，克里斯。

So first on the carrier segment, we're seeing several major applications we're selling to. One is selling them equipment that they can use to protect their own network. Second is them using our solutions, sometimes clouds, sometimes appliances to build an MSSP business. And third is the more traditional ADC business.

首先在運營商領域，我們看到了我們正在銷售的幾種主要應用程式。一是向他們出售可以用來保護自己網路的設備。第二，他們使用我們的解決方案（有時是雲，有時是設備）來建立 MSSP 業務。第三是更傳統的 ADC 業務。

I think in general, I'm not seeing carriers as increasing their investment significantly. However, I think we're seeing more and more opportunities. And I think that's actually a good opportunity for the future to partner with carriers on their MSSP business and actually leveraging our cloud solutions to protect their customers better. So we will track it in the coming quarters, our progress in that area, but that's a place that globally, I think, we're seeing good opportunities.

我認為總體而言，我並沒有看到營運商大幅增加投資。然而，我認為我們看到了越來越多的機會。我認為這實際上是一個很好的機會，未來可以與營運商在 MSSP 業務上合作，並利用我們的雲端解決方案來更好地保護他們的客戶。因此，我們將在未來幾季追蹤我們在該領域的進展，但我認為，在全球範圍內，我們都看到了良好的機會。

As it relates to North America specifically, I think on the enterprise market, we are still seeing, especially on the large enterprise, long sales cycles. More budget concerns, long cycles, more attention to spend, et cetera, I think we were able to, or we are able now and hopefully in the coming quarters, even to do better than that, to accommodate that simply by increasing our pipelines, and increasing our customer engagements, and the investments that we've done together with the critical nature of our cloud security platform.

具體到北美，我認為在企業市場上，我們仍然看到，特別是大型企業的銷售週期很長。更多的預算問題、更長的周期、對支出的更多關注等等，我認為我們能夠，或者我們現在能夠並且希望在未來幾個季度做得更好，只需通過增加我們的渠道、增加我們的客戶參與度以及我們與雲安全平台的關鍵性質一起進行的投資就可以適應這些情況。

So I don't think the market is in an excellent situation, but not in a bad either. So somewhere in the middle, not a lot of change versus last quarter, budget constraints, but still investments in critical security, in AI security continues.

因此我認為市場狀況不是很好，但也不是很糟。因此，在中間某個地方，與上一季相比沒有太大變化，預算限制，但對關鍵安全和人工智慧安全的投資仍在繼續。

Got it.

知道了。

Thanks. That's great color.

謝謝。顏色真棒。

That's it for me.

對我來說就是這樣。

Ryan Koontz, Needham and Company.

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

Great. Thanks for the question.

偉大的。謝謝你的提問。

Question on -- you talk about AI as a tool for attackers, but I wondered if the implementation of agentic AI by your enterprise customers is changing their attack surface much on the APIs yet, or is it still too early to see that?

問題—您談到人工智慧是攻擊者的工具，但我想知道您的企業客戶實施的代理人工智慧是否已經在很大程度上改變了他們在 API 上的攻擊面，或者現在還為時過早？

It's a great question.

這是一個很好的問題。

I think it changes dramatically. The attack surface and the enablement of applications, I think we're starting to see early signs of that. I don't think it's yet a center to the enterprise applications, but we're definitely very focused on that. I think it's another possible wave of growth for our cloud security. We're highly investing in these directions, both for AI applications, for APIs, and so on. So early, but it's going to be very critical because the nature of attacks, the sophistication of attacks is very different.

我認為它發生了巨大變化。攻擊面和應用程式的啟用，我認為我們已經開始看到這方面的早期跡象。我認為它還不是企業應用的中心，但我們肯定非常關注這一點。我認為這是我們雲端安全的另一個可能的成長浪潮。我們在這些方向上投入了大量資金，包括人工智慧應用、API 等等。雖然還為時過早，但這將是非常關鍵的，因為攻擊的性質、攻擊的複雜程度都非常不同。

That's great, really appreciate that.

太棒了，真的很感激。

Your comment around MSSPs, sounds like some increased activity there. Are you seeing any changes in MSSP business models in terms of their product portfolios and offerings, or is that a pretty static environment today?

您對 MSSP 的評論聽起來好像那裡的活動有所增加。您是否看到 MSSP 業務模式在產品組合和產品方面發生了任何變化，還是說目前的環境相當靜態？

I think it starts to change because there's a strong demand from customers, so I think the customer expectations from their providers are increasing, even from the basic need of compliance. We're seeing more and more compliance requirements that those customers must adhere to, and they are turning to their providers to fulfill them.

我認為這種情況開始改變是因為客戶的需求強勁，所以我認為客戶對其供應商的期望正在增加，甚至滿足了合規的基本需求。我們看到客戶必須遵守的合規性要求越來越多，他們正在轉向供應商來滿足這些要求。

So I think the more applications they put online, whether it' is in private cloud or public cloud, the more AI tools they're using, the more APIs they're using, the more compliance regulation is being developed by governments around the world, so the evolution of the MSSP portfolio must keep pace with.

因此，我認為他們上線的應用程式越多，無論是在私有雲還是公有雲，他們使用的人工智慧工具就越多，他們使用的 API 就越多，世界各國政府制定的合規法規就越多，因此 MSSP 產品組合的發展必須跟上腳步。

And as a result, I think that, for example, cloud application security that in the past was not part, in large, of an MSSP portfolio, they were more focused on scene, manage scene, manage SOC, manage EDR, manage firewall, I would say the more fundamental network and end user-centric security with the rise of the criticality of the applications, I think there's a shift that starts. And we are definitely seeing that again as an opportunity to leverage our cloud platform. It's very easy to partner with us in that regard and follow that trend.

因此，我認為，例如，雲端應用程式安全性在過去並不是 MSSP 產品組合的重要組成部分，他們更注重場景、管理場景、管理 SOC、管理 EDR、管理防火牆，我想說，隨著應用程式關鍵性的上升，更基礎的網路和以最終用戶為中心的安全，我認為正在開始轉變。我們無疑地再次將此視為利用我們的雲端平台的機會。在這方面與我們合作並順應這一趨勢非常容易。

Super interesting.

超有趣。

Maybe one last one, if I could squeeze it in. Any commentary around the competitive environment globally?

如果我能擠出時間的話，也許這是最後一個。對全球競爭環境有何評論？

I don't have a lot much to say about that. I don't see any big changes in the vendors.

關於這一點我沒什麼好說的。我沒有看到供應商有任何重大變化。

I can tell you that we are seeing an increase in our win ratio in our cloud platform. So I think the innovation we're bringing, and I continue to report almost every call on another analyst firm that positioned us as a leader and -- this quarter I mentioned API security. I know a week ago we published another analyst that positioned us as a leader in DDoS.

我可以告訴你們，我們的雲端平台的獲勝率正在提高。所以我認為我們帶來的創新，以及我幾乎每次與另一家將我們定位為領導者的分析公司的通話，我都提到了 API 安全性。我知道一週前我們發表了另一位分析師的文章，將我們定位為 DDoS 領域的領導者。

So the continuous innovation on one hand and coupled that with more channel activity, and more partner activity, and OEM activity by Cisco and Check Point, I think all of that together is actually increasing our win probabilities. So we feel comfortable with the current competitive climate and we plan to continue to push forward our differentiation.

因此，一方面是持續的創新，再加上更多的通路活動、更多的合作夥伴活動以及思科和 Check Point 的 OEM 活動，我認為所有這些實際上增加了我們獲勝的機率。因此，我們對當前的競爭環境感到滿意，並計劃繼續推動我們的差異化。

You're not seeing any new entrants on the competitive landscape?

您沒有看到競爭格局中出現任何新進者嗎？

New entrants -- can you repeat, please? I didn't hear you well.

新進者－您能再說一次嗎？我沒聽清楚你的話。

Sorry about that.

很抱歉。

Are you not -- you're not seeing any new entrants in your DDoS and your various partners?

您沒有看到任何新進入您的 DDoS 領域的人和您的各種合作夥伴嗎？

No. No, we don't.

不。不，我們不知道。

I think the market will devolve to AI applications, for example. I'm sure there will be a host of new startups there. I think our position with the comprehensive platform that really covers your web applications, your mobile applications, your APIs, and your AI-based applications and in each one of them not only delivering an integrated solution but really in each domain providing best-of- breed, yet, everything integrated and backed by AI fully managed service. I think this market position is a very strong one and I think we can compete very effectively. But I'm sure that on the AI front, there would be some new entrants dedicated to that segment.

例如，我認為市場將轉向人工智慧應用。我確信那裡將會有大量的新興創業公司。我認為我們的綜合平台真正涵蓋了您的 Web 應用程式、行動應用程式、API 和基於 AI 的應用程序，並且在每個應用程式中不僅提供整合解決方案，而且在每個領域提供最佳的解決方案，但一切都整合並由 AI 完全託管服務支援。我認為這個市場地位非常強大，而且我認為我們可以非常有效地競爭。但我確信，在人工智慧領域，會有一些新進入者致力於這一領域。

Makes sense.

有道理。

Thanks so much for the insights. Appreciate it.

非常感謝您的見解。非常感謝。

Joseph Gallo, Jefferies.

約瑟夫‧加洛，傑富瑞集團。

Hi, this is Anjali Papadopoulos on for Joseph Gallo at Jefferies.

大家好，我是 Jefferies 的 Joseph Gallo 的 Anjali Papadopoulos。

Thanks for taking the time and congrats on the strong results. It's really good to see your cloud ARR progressing along nicely. And so, I guess, speaking on that, how should we think about cloud ARR growth and its profile going forward?

感謝您抽出時間並祝賀您取得的優異成績。很高興看到您的雲端 ARR 進展順利。那麼，我想，談到這一點，我們應該如何看待雲端 ARR 的成長及其未來的前景？

Yeah, very good question.

是的，非常好的問題。

So first, our short-term result was 20% and we plan to continue to stay above that. In our long-term model, we were targeting 25%. I think that would be the next goal we will put to ourselves. I'm not sure we'll hit it immediately, but we're definitely seeing the potential to continue not only to grow ARR, but accelerate ARR. We're very focused on this opportunity and that's what we are planning to achieve.

首先，我們的短期業績是 20%，我們計劃繼續保持在這一水平之上。在我們的長期模型中，我們的目標是 25%。我認為這將是我們為自己設定的下一個目標。我不確定我們是否會立即實現這一目標，但我們確實看到了不僅繼續增加 ARR，而且加速 ARR 的潛力。我們非常重視這個機會，這也是我們計劃要實現的目標。

Sounds good, thanks for that.

聽起來不錯，謝謝。

And then -- so circling back to a prior question on your strength, and win rates, and competition, so with your new API security solution, what existing competitors, if any, did you come across in the marketplace? So who currently competes in the space? And can you talk more about what you see those vendors are lacking and how Radware continues to win that space?

然後——回到之前關於您的實力、勝率和競爭的問題，那麼對於您的新 API 安全解決方案，您在市場上遇到了哪些現有競爭對手（如果有的話）？那麼目前誰在該領域競爭？您能否詳細談談您認為這些供應商缺少什麼以及 Radware 如何繼續贏得這一領域？

Thanks.

謝謝。

Yeah, so I think in our prepared remarks this quarter and last quarter, I mentioned some areas that were using AI as part of our complete solution, what we call the EPIC-AI framework, and we're infusing AI to each and every layer of our solution. So already from the protection engines themselves, meaning the algorithms we use to detect and mitigate, I was talking about how we are detecting and mitigating business logic attacks.

是的，所以我認為在本季度和上個季度的準備好的發言中，我提到了一些使用 AI 作為我們完整解決方案的一部分的領域，我們稱之為 EPIC-AI 框架，並且我們將 AI 注入到我們解決方案的每一層。因此，從保護引擎本身（即我們用來檢測和緩解的演算法）開始，我正在談論我們如何檢測和緩解業務邏輯攻擊。

We're leveraging the AI. Our competition over here is very manual. You need to define a lot of rules, your business logic, changes as application change while we can really build in real time an LLM dedicated to your application, dedicated to your traffic. It provides significantly different results in configuration, in onboarding, in detection, in mitigation. That's one example of how do we use AI in that protection engine to differentiate.

我們正在利用人工智慧。我們這裡的競爭非常手動。您需要定義許多規則、業務邏輯，並隨著應用程式的變化而變化，而我們可以真正即時建立專用於您的應用程式、專用於您的流量的 LLM。它在配置、入職、檢測和緩解方面提供了顯著不同的結果。這是我們如何在保護引擎中使用人工智慧進行區分的一個例子。

Then I mentioned in today's comments another layer, which is the SOCX AI. We've built on top of our platforms AI agents. And as far as I know, the competition does not have it today, especially not in GA.

然後我在今天的評論中提到了另外一層，就是SOCX AI。我們在平台上建構了人工智慧代理。據我所知，今天的競爭對手還沒有做到這一點，尤其是在 GA 中。

And those AI agents are sitting on top of the platform and watching your traffic. If they detect a suspicion that an attack has passed the controls, we would automatically -- the AI agent would do an analysis of your traffic, would come to a conclusion whether it's really the case that the attack is leaked or maybe a flash crowd coming to your website. And if it's an attack, we'll automatically come with your recommendations: what to change in order to mitigate the attack.

這些人工智慧代理位於平台頂部，監視您的流量。如果他們檢測到攻擊可能已經通過了控制，我們將自動 - 人工智慧代理將對您的流量進行分析，並得出結論，確定攻擊是否真的被洩露，或者可能是一股閃電攻擊湧入您的網站。如果是攻擊，我們會自動向您提出建議：需要做出哪些改變才能減輕攻擊。

In our competition, all these, and also until, I think, six months ago for Radware, all these activities were done by SOC people, by humans, and only collecting the information, analyzing that, getting into recommendations, testing them. This is a long cycle. It can take from, I don't know, half an hour to days.

在我們的競爭中，所有這些，直到六個月前對 Radware 來說，所有這些活動都是由 SOC 人員、由人類完成的，他們只負責收集資訊、進行分析、提出建議並進行測試。這是一個漫長的周期。我不知道這可能需要半小時到幾天的時間。

We are shrinking that time frame to seconds and minutes, delivering significantly better meantime to resolve for our customers, which mean less downtime, less risk, less exposure, significantly better business outcomes. So this is, again, a big differentiator for us, and as I've mentioned, it won us several customers, both displacements and new.

我們正在將這個時間範圍縮短到幾秒鐘甚至幾分鐘，從而為我們的客戶提供更好的解決問題的時間，這意味著更少的停機時間、更低的風險、更少的暴露，以及更好的業務成果。所以，這對我們來說又是一個很大的差異化因素，正如我所提到的，它為我們贏得了多個客戶，包括舊款和新款。

And last but not least, there is the whole area of protecting AI applications, which we started to discuss in this call, which is another area that's early. I cannot talk yet about competitive advantages. Let's see in the coming months who comes with what solution, but we feel very strong based on our heritage in algorithms, based on our experience in AI security for years, that we will be very strong there as well. So that's in a nutshell how we use AI to differentiate in the market of application security and details.

最後但同樣重要的是，我們在這次電話會議上開始討論保護人工智慧應用的整個領域，這是另一個處於早期階段的領域。我還不能談競爭優勢。讓我們看看未來幾個月誰會提出什麼解決方案，但基於我們在演算法方面的傳統，基於我們多年來在人工智慧安全方面的經驗，我們感到非常強大，我們在那裡也會非常強大。簡而言之，這就是我們如何使用人工智慧在應用程式安全和細節市場中實現差異化。

Thank you. That was very helpful.

謝謝。這非常有幫助。

Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Roy Zisapel, the CEO, for the closing comments.

女士們、先生們，由於沒有其他問題，我現在想將會議交給執行長 Roy Zisapel 作結束語。

Thank you, everyone, and have a great day.

謝謝大家，祝大家有個愉快的一天。

Ladies and gentlemen, the conference of Radware has now concluded.

女士們、先生們，Radware 大會現已結束。

Thank you for your participation. You may now disconnect your lines.

感謝您的參與。現在您可以斷開線路了。