Radware Ltd (RDWR) 2025 Q3 法說會逐字稿

Welcome to the Radware conference call discussing third-quarter 2025 results and thank you all for holding. (Operator Instructions) As a reminder, this conference is being recorded today, October 29, 2025.

歡迎參加 Radware 公司 2025 年第三季業績電話會議，感謝各位的耐心等待。（操作員說明）提醒各位，本次會議於2025年10月29日錄製。

I would now like to turn this call over to Yisca Erez, Director, Investor Relations at Radware. Please go ahead.

現在我將把電話轉交給 Radware 的投資者關係總監 Yisca Erez。請繼續。

Thank you, operator. Good morning, everyone and welcome to Radware's third-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 third quarter are available in the Investor Relations section of our website.

謝謝接線生。各位早安，歡迎參加 Radware 2025 年第三季財報電話會議。今天與我一同出席的有總裁兼執行長羅伊·齊薩佩爾，以及財務長蓋伊·阿維丹。今天的新聞稿、財務報表以及第三季投資者資料包可在我們網站的投資者關係部分查閱。

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 results could differ materially from Radware's 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.

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聲明。這些前瞻性聲明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。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的影響、一般商業狀況以及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 Radware 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 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.

我們建議您參閱本公司不時向美國證券交易委員會提交的文件，特別是本公司於 2025 年 3 月 28 日提交的 20-F 表格年度報告。我們不承諾對任何前瞻性聲明進行修訂或更新，以反映該聲明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羅伊·齊薩佩爾。

Thank you, Yisca, and thank you all for joining us today. I'm pleased to share that we delivered another solid quarter with revenue of $75 million, representing 8% year-over-year growth. Non-GAAP earnings per share climbed 22% year over year to $0.28. The quarterly results demonstrate steady progress in delivering on our strategic priorities. We remain focused on expanding our business in cloud security, driving innovation through AI and automation, and strengthening our global go-to-market capabilities. Let's talk a bit about each one of those.

謝謝Yisca，也謝謝大家今天能來參加我們的節目。我很高興地宣布，我們又取得了穩健的季度業績，營收達到 7,500 萬美元，年增 8%。非GAAP每股盈餘年增22%至0.28美元。季度業績表明，我們在實現策略重點方面取得了穩步進展。我們將繼續專注於拓展雲端安全業務，透過人工智慧和自動化推動創新，並加強我們的全球市場拓展能力。我們來逐一談談這些。

Cloud security remained a key growth driver in the third quarter, delivering another exceptional performance. Cloud security ARR climbed to $89 million, up from $72 million in Q3 last year. Our cloud ARR growth trajectory accelerated once again from 21% last quarter to 24% year-over-year growth in Q3.

雲端安全在第三季仍然是關鍵的成長驅動力，再次取得了卓越的業績。雲端安全業務的年度經常性收入 (ARR) 攀升至 8,900 萬美元，高於去年第三季的 7,200 萬美元。我們的雲端業務 ARR 成長軌跡再次加速，從上季的 21% 年成長到第三季的 24%。

We also saw continued double-digit growth in active cloud customers and a strong wave of new logo acquisitions backed by a robust and expanding pipeline. This sustained momentum reflects our strength and competitive edge, the growing demand for our cloud security offerings, and accelerated growth in North America. To meet this growing demand and our expanding customer base, we've continued to scale our global cloud infrastructure and resources. We're adding more R&D, delivery, and sales personnel to support the growth. In the third quarter, we opened two additional cloud security centers, and we plan to open three more in the fourth quarter, bringing the total number of centers open in 2025 to eight. The growth in cloud security ARR was a key contributor to our overall subscription revenue growth, which grew 21% and rose to 52% of total revenue in the third quarter compared to 47% in the same period last year. This shift from a product appliance revenue stream to a subscription revenue model driven by cloud security growth enhances both revenue visibility and long-term business stability.

我們也看到活躍雲端客戶數量持續兩位數成長，並且在強勁且不斷擴大的業務管道的支持下，迎來了一波強勁的新客戶獲取浪潮。這一持續成長動能反映了我們的實力和競爭優勢、市場對我們雲端安全產品日益增長的需求，以及我們在北美地區的加速成長。為了滿足不斷增長的需求和擴大的客戶群，我們持續擴展全球雲端基礎設施和資源。為了支援業務成長，我們正在增加研發、交付和銷售人員。第三季度，我們新增了兩個雲端安全中心，並計劃在第四季再新增三個，到 2025 年，中心總數將達到八個。雲端安全 ARR 的成長是我們整體訂閱營收成長的關鍵因素，第三季訂閱營收成長了 21%，佔總營收的 52%，而去年同期為 47%。從產品設備收入模式轉向受雲端安全成長驅動的訂閱收入模式的轉變，提高了收入可見度和長期業務穩定性。

One of the cloud deals we closed in the third quarter was a competitive displacement in the US healthcare sector. The customer selected Radware Cloud DDoS protection to replace their incumbent cloud-based solution. We secured this win through a combination of trusted relationship, Radware best-of-bread DDoS technology, and world-class support.

我們在第三季完成的雲端交易之一是在美國醫療保健領域進行的競爭性替換。客戶選擇 Radware Cloud DDoS 防護來取代其現有的基於雲端的解決方案。我們憑藉著值得信賴的合作關係、Radware 一流的 DDoS 技術和世界一流的支持，成功贏得了這場勝利。

As part of our broader cloud application security portfolio, Radware continues to drive innovation in API security. With APIs now central to modern application and application layer attack surging, our AI-powered protection dynamically adapts to evolving threats, mapping business logic, and defending against complex multi-endpoint attacks. Complementing this, our API analytics capabilities provide deep insights into API behavior, empowering teams to detect anomalies, understand business logic sequences, and optimize performance with actionable intelligence. Following our success in cloud DDoS protection and cloud application security, we see API security as the third wave in our cloud security growth strategy and believe it has a significant potential for 2026.

作為我們更廣泛的雲端應用安全產品組合的一部分，Radware 將繼續推動 API 安全領域的創新。隨著 API 成為現代應用程式的核心，應用程式層攻擊也隨之激增，我們基於人工智慧的保護措施能夠動態適應不斷變化的威脅，映射業務邏輯，並防禦複雜的多端點攻擊。此外，我們的 API 分析功能可深入了解 API 行為，使團隊能夠偵測異常情況、了解業務邏輯序列，並透過可操作的情報優化效能。繼我們在雲端 DDoS 防護和雲端應用安全方面取得成功之後，我們認為 API 安全是我們雲端安全成長策略的第三波浪潮，並相信它在 2026 年具有巨大的潛力。

Radware leadership in application security continues to be recognized. We were named The Leader in the 2025 SPARK Matrix for web application firewall and bot management, and an Overall Leader in the 2025 KuppingerCole Leadership Compass Report for Web Application and API Protection. These honors reflect our commitment for delivering intelligent, scalable, and multi-layered security, including web application firewall, API protection, bot management, and DDoS mitigation across modern cloud environments.

Radware 在應用安全領域的領先地位持續得到認可。我們在 2025 年 SPARK Matrix 中被評為 Web 應用程式防火牆和機器人管理領域的領導者，並在 2025 年 KuppingerCole Leadership Compass 報告中被評為 Web 應用程式和 API 保護領域的整體領導者。這些榮譽體現了我們致力於在現代雲端環境中提供智慧、可擴展和多層安全保障的承諾，包括 Web 應用程式防火牆、API 保護、機器人管理和 DDoS 緩解。

Our go-to-market strategy continued to gain momentum this quarter. In North America, the team is now fully ramped, as reflected in a 28% year-over-year revenue growth in the Americas and 15% growth over the trailing 12 months.

本季度，我們的市場推廣策略持續取得進展。在北美，該團隊目前已全面投入運營，這體現在美洲地區同比增長 28% 的收入和過去 12 個月增長 15%。

We recorded solid business with our OEM partners, making our second-best quarter ever. This continued successful collaboration reflects the growing demand for our integrated solution and the strength of our joint value proposition. One example of this is a strategic win in EMEA through Cisco with a telecom provider. Seeking to transition from a legacy DDoS competitor, the customer required a more advanced and future-ready solution to support its expanding infrastructure and services. Our technical leadership and responsiveness to the customer evolving needs helped to build trust and position Cisco and Radware as a long-term strategic partner.

我們與 OEM 合作夥伴的業務合作取得了穩健的業績，實現了有史以來第二好的季度業績。這種持續成功的合作反映了市場對我們整合解決方案日益增長的需求，以及我們共同價值主張的強大實力。其中一個例子是思科透過與一家電信業者合作，在歐洲、中東和非洲地區取得的策略性勝利。為了從傳統的 DDoS 攻擊解決方案轉型，客戶需要一個更先進、面向未來的解決方案來支援其不斷擴展的基礎設施和服務。我們在技術上的領先地位以及對客戶不斷變化的需求的快速回應，幫助建立了信任，並將思科和 Radware 定位為長期策略合作夥伴。

Another win with Cisco was with a large US healthcare system. Facing increasing threats and limited internal resources, the organization sought comprehensive protection across web applications, API, and bot traffic. After evaluating multiple vendors, they selected our solution for its broad coverage and operational efficiency and our ability to align with their evolving needs.

思科取得的另一個成功案例是與一家大型美國醫療保健系統合作。面對日益增長的威脅和有限的內部資源，該組織尋求對 Web 應用程式、API 和機器人流量進行全面保護。在評估了多家供應商之後，他們選擇了我們的解決方案，因為它覆蓋範圍廣、營運效率高，並且能夠滿足他們不斷變化的需求。

Third quarter performance was also fueled by a strong DefensePro X refresh cycle, which grew approximately 40% year over year, alongside successful competitive displacement in DDoS that doubled during the quarter. As previously noted, the DefensePro X refresh opportunity remains substantial, with less than 50% of our end-of-sale install base upgraded to date. During the quarter, we secured several seven-digit DefensePro X refresh deals, including a deal with one of the largest telecom companies in the US, a deal with a European financial service provider, and with a leading European bank, among others.

第三季業績也得益於DefensePro X的強勁更新周期，年增約40%，同時DDoS攻擊的成功替代也使該季度銷量翻了一番。如前所述，DefensePro X 的更新機會仍然很大，迄今為止，我們停售安裝基數中只有不到 50% 進行了升級。本季度，我們達成了數筆價值七位數的 DefensePro X 更新交易，其中包括與美國最大的電信公司之一、一家歐洲金融服務提供商以及一家歐洲領先銀行的交易。

In closing, our third quarter performance highlights the steady progress we're making against our strategic plan. Cloud security continues to be our strong and growth driver, with robust ARR expansion and accelerating momentum. We're seeing the benefits of deeper collaboration across our partners and channel ecosystem, which is helping us scale efficiently and reach new customers. At the same time, our continued investment in AI-powered innovation is enhancing our platform and reinforcing our competitive edge. With a healthy cloud security business, a growing global partner base, and increasing demand for our security solutions, we believe in our ability to sustain our momentum and capture long-term growth opportunities.

總之，我們第三季的業績凸顯了我們在實現策略計畫方面取得的穩定進展。雲端安全仍然是我們強勁的成長動力，實現了穩健的年度經常性收入成長和加速發展勢頭。我們看到了與合作夥伴和通路生態系統進行更深入合作的好處，這有助於我們有效率地擴大規模並觸及新客戶。同時，我們對人工智慧驅動的創新持續投入，正在增強我們的平台並鞏固我們的競爭優勢。憑藉健康的雲端安全業務、不斷增長的全球合作夥伴基礎以及對我們安全解決方案日益增長的需求，我們相信我們有能力保持發展勢頭並抓住長期成長機會。

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

接下來，我將把電話交給蓋伊。

Thank you, Roy, and good day, everyone. I will provide an overview of our financial results and business performance for the third quarter, as well as our outlook for the fourth 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 earnings press release issued earlier today and in the Investors section of our website.

謝謝你，羅伊，大家今天愉快。我將概述我們第三季的財務表現和業務表現，以及我們對 2025 年第四季的展望。在開始財務概覽之前，我想提醒各位，除非另有說明，所有財務結果均為非GAAP財務結果。我們今天早些時候發布的盈利新聞稿以及我們網站的投資者關係部分提供了我們按 GAAP 和非 GAAP 計算的業績的完整調節表。

In the third quarter, revenue grew 8% year over year to $75.3 million, fueled by sustained demand in our Cloud Security business. Our cloud ARR growth accelerated from 21% in Q2 2025 to 24% year over year reaching $89 million, a clear validation to our strategy. This momentum reflects the growing demand for our cloud solution and underscore the strength of our transition to our recurring cloud-first business model. This recurring revenue base is a cornerstone of our long-term growth.

第三季度，受雲端安全業務持續成長的需求推動，營收年增 8% 至 7,530 萬美元。我們的雲端業務 ARR 成長率從 2025 年第二季的 21% 加速成長至 24%，年成長 8,900 萬美元，這清楚地驗證了我們的策略。這一勢頭反映了市場對我們雲端解決方案日益增長的需求，並凸顯了我們向持續的雲端優先業務模式轉型的強勁勢頭。這種經常性收入基礎是我們長期成長的基石。

Total ARR rose to $240 million, up 8% year over year, reflecting the momentum behind our revenue growth. Total ARR is serving as a strong indicator of our overall revenue trajectory. As our Cloud Security business continues to scale at a faster pace, we expect it to drive total ARR growth higher, and as a result, drive faster company revenue growth.

年度經常性收入總額增至 2.4 億美元，年增 8%，反映了我們收入成長的強勁勢頭。總年度經常性收入 (ARR) 是我們整體收入走勢的一個有力指標。隨著我們的雲端安全業務持續快速擴張，我們預計這將推動總 ARR 成長更高，從而推動公司收入更快成長。

Looking at regional performance. In Q3, the Americas lead the growth rate, with revenue rising 28% year over year to $35.4 million, representing 47% of our total revenue, up from 40% in the same period of last year. On a trailing 12-month basis, the region grew by 15%. EMEA revenue was $22.8 million, representing a 10% decrease in year over year and accounting for 30% of total revenue. Trailing 12-month growth was 7%. APAC posted modest growth, with revenue up 3% year over year to $17.1 million, contributing 23% of total revenue. On a trailing 12-month basis, APAC grew by 8%.

考察區域表現。第三季度，美洲地區引領成長，營收年增 28% 至 3,540 萬美元，佔總營收的 47%，高於去年同期的 40%。過去 12 個月，該地區增長了 15%。歐洲、中東和非洲地區的收入為 2,280 萬美元，年減 10%，佔總收入的 30%。過去 12 個月的成長率為 7%。亞太地區實現了溫和成長，營收年增 3% 至 1,710 萬美元，佔總收入的 23%。過去 12 個月，亞太地區成長了 8%。

Turning to profitability. Gross margin remains strong at 82.2%, similar to that of Q3 2024, underscoring the efficiency of our operations. Operating income grew 34% year over year to $9.6 million, up from $7.2 million in Q3 2024. This growth is achieved alongside continued investment in cloud initiatives, highlighting the scalability and resilience of our business model. We are executing a strategy of scaling our go-to-market and R&D capabilities. These investments are designed to capture rising demand and position Radware as a leader in cloud and AI-driven security.

轉向盈利。毛利率維持在 82.2% 的強勁水平，與 2024 年第三季的情況類似，凸顯了我們營運的效率。營業收入年增 34%，達到 960 萬美元，高於 2024 年第三季的 720 萬美元。這一成長是在持續投資雲端計畫的基礎上實現的，凸顯了我們業務模式的可擴展性和彈性。我們正在執行一項策略，旨在擴大我們的市場推廣和研發能力。這些投資旨在抓住不斷增長的需求，並將 Radware 定位為雲端和人工智慧驅動的安全領域的領導者。

Adjusted EBITDA for the third quarter of 2025 increased by 25% to $11.4 million, compared to $9.2 million in the same period last year. Excluding the Hawks' business, adjusted EBITDA was $14.4 million, representing a 19.1% EBITDA margin, up from $11.9 million and a 17.2% EBITDA margin in Q3 2024, a testament to the operational leverage in our core business.

2025 年第三季調整後 EBITDA 成長 25% 至 1,140 萬美元，去年同期為 920 萬美元。剔除老鷹隊業務後，調整後的 EBITDA 為 1,440 萬美元，EBITDA 利潤率為 19.1%，高於 2024 年第三季的 1,190 萬美元和 17.2% EBITDA 利潤率，這證明了我們核心業務的營運槓桿作用。

Financial income for the quarter was $5.3 million, up from $4.9 million in the same period last year. Due to decrease in interest rates, we expect slightly lower financial income in the fourth quarter. Our effective tax rate for the quarter was 15.5%, the same as in Q3 2024. We expect the effective tax rate to remain approximately at the same level in the coming quarter. Net income rose 24% year over year to $12.6 million, compared to $10.2 million in Q3 2024, and diluted earnings per share increased by 22% to $0.28, up from $0.23 in the same period last year.

本季財務收入為 530 萬美元，高於去年同期的 490 萬美元。由於利率下降，我們預計第四季金融收入將略有下降。本季實際稅率為 15.5%，與 2024 年第三季相同。我們預計下一季實際稅率將基本保持不變。淨利潤年增 24% 至 1,260 萬美元，而 2024 年第三季為 1,020 萬美元；稀釋後每股收益成長 22% 至 0.28 美元，高於去年同期的 0.23 美元。

Turning to cash flow and balance sheet. Cash flow for our operation in Q3 2025 was negative $4.2 million compared to positive $14.7 million in the same quarter of last year. The decline was primarily driven by an increase in account receivables due to timing of cash collection from several large deals and a decrease in deferred revenue. Looking ahead, we expect RPO at year-end to exceed the level at the end of 2024 and anticipate a return to positive cash flow from operations in Q4 2025. We ended the quarter with a strong balance sheet holding approximately $455 million in cash, cash equivalent, bank deposits, and marketable securities.

接下來分析現金流量表和資產負債表。2025 年第三季度，我們的營運現金流為負 420 萬美元，去年同期為正 1,470 萬美元。此次下滑主要是由於幾筆大額交易的現金回收時間導致應收帳款增加，以及遞延收入減少所致。展望未來，我們預計年底的 RPO 將超過 2024 年底的水平，並預計在 2025 年第四季恢復正的營運現金流。本季末，我們的資產負債表穩健，持有約 4.55 億美元的現金、現金等價物、銀行存款和有價證券。

And now to the guidance. We expect total revenue from the fourth quarter of 2025 to be in the range of $78 million to $79 million. We expect Q4 2025 non-GAAP operating expenses to be between $52.5 million to $53.5 million. We expect Q4 2025 non-GAAP diluted net earnings per share to be between $0.29 and $0.30 cents.

接下來是指導意見。我們預計 2025 年第四季總營收將在 7,800 萬美元至 7,900 萬美元之間。我們預計 2025 年第四季非 GAAP 營運費用將在 5,250 萬美元至 5,350 萬美元之間。我們預計 2025 年第四季非 GAAP 稀釋後每股淨收益將在 0.29 美元至 0.30 美元之間。

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

現在我將把電話轉交給接線員，回答大家的問題。接線員，請說。

(Operator Instructions) Chris Reimer, Barclays.

（操作說明）克里斯·雷默，巴克萊銀行。

Hi. Thanks for taking my questions and congratulations on the strong results. First off, I was wondering if you could talk about how you feel your operations are doing, now you mentioned that North America fully ramped and the two centers open plus another three. Going forward, do you think there'll be any other areas that you want to reorganize, or are you satisfied with the level you're at now?

你好。感謝您解答我的問題，並祝賀您取得優異的成績。首先，我想請您談談您覺得貴公司目前的營運狀況如何。您提到北美地區已經全面恢復運營，兩個中心已經開放，另外還有三個中心也已投入使用。展望未來，您認為是否還有其他領域需要重組，還是對目前的水準感到滿意？

Thanks, Chris. So, I think given our progress in North America, we actually would like to ramp our investments further. We see the potential. I think we've discussed this last quarter that given the momentum in cloud and the opportunities we see, we are planning to continue to increase there. I think still we will see that with good output on profitability, but we're definitely very optimistic about North America and about us actually investing more for growth. That's on the sales and go-to-market side. And with that, across the world, we are continuing to expand the cloud security platform, the R&D investments there, and we really feel there's a big opportunity.

謝謝你，克里斯。所以，鑑於我們在北美取得的進展，我認為我們實際上希望進一步加強投資。我們看到了它的潛力。我認為我們在上個季度已經討論過，鑑於雲端運算的發展勢頭和我們看到的機遇，我們計劃繼續加大在該領域的投資。我認為我們仍然會看到獲利能力方面的良好表現，但我們對北美市場以及我們為實現成長而加大投資力度，絕對充滿信心。這是關於銷售和市場推廣方面的內容。因此，我們將在全球範圍內繼續擴大雲端安全平台，加大研發投入，我們真切地感受到這是一個巨大的機會。

Got it. Yeah, that's helpful. And how would you describe your competitive position in the market now? Are you seeing any new players? What would you say is the most important thing the customer is saying when they make their decision?

知道了。是的，這很有幫助。那麼，您如何描述您目前在市場中的競爭地位？你看到有新玩家嗎？您認為顧客在做決定時最重視的是什麼？

I think overall in the market, and we are competing in multiple areas, but in cloud security specifically, I think we are known for the strength of our security capabilities. And specifically on the fact that we are very, very algorithmic based. A lot of our protections have a very strong algorithmic support and that makes us unique versus our competitors that I would say are more reliant on policies, rules, databases and so on.

我認為，總體而言，我們在市場上，雖然在多個領域競爭，但在雲端安全領域，我認為我們以強大的安全能力而聞名。尤其值得一提的是，我們非常非常依賴演算法。我們的許多保護措施都得到了非常強大的演算法支持，這使我們與競爭對手相比獨樹一幟，我們的競爭對手更依賴政策、規則、資料庫等等。

The second thing that we are very strong is in the fully managed service that we provide as part of our offering. And we are able to do that not because we deploy or we have such a big amount of people, but because of the algorithms and the automation. So we actually use the technology to create a very strong advantage in the fully managed solution. So customers, large customers that have the need, and I think the majority are, to have augmentation to their capabilities 24/7, global expertise in application security or DDoS, this is a major advantage. And I think you see that in our growth and the accelerated growth.

我們第二個優勢在於我們提供的全託管服務。我們之所以能夠做到這一點，不是因為我們部署了大量的人力，而是因為我們擁有演算法和自動化技術。因此，我們實際上利用這項技術在全託管解決方案中創造了非常強大的優勢。因此，對於那些需要全天候增強自身能力、擁有全球應用安全或 DDoS 專業知識的大客戶而言（我認為大多數客戶都是如此），這是一個巨大的優勢。我認為這一點可以從我們的成長和加速成長中看出。

Joseph Gallo, Jeffreys.

約瑟夫·加洛，杰弗里斯。

Hey guys, thanks for the question. Can you just talk through the demand environment that you saw in the quarter? How did it compare to 2Q and what assumptions you're baking into your 4Q guide?

大家好，謝謝你們的提問。您能否簡要介紹本季的市場需求環境？與第二季相比如何？您在第四季業績指引中做出了哪些假設？

Okay, I think the demand across enterprise and carriers across the world was solid. I don't think it improved or degraded from previous quarters. We do see strong environment going into Q4. We're actually very encouraged with what we are seeing.

我認為全球企業和營運商的需求都很強勁。我認為它與前幾個季度相比既沒有改善也沒有惡化。我們預計第四季市場環境將保持強勁。我們對目前的情況感到非常鼓舞。

As it relates to guidance, I think Guy mentioned it, and I'll let him talk about it more. But we see the ARR, the total ARR growth we're seeing as our guiding indicator for future revenue growth, and having that at 8%, that's how we're guiding forward. Of course, we have additional appliance deals and CapEx deals that can take it higher, but overall, short-term guidance is based on our total ARR goals.

關於指導方面，我想蓋伊已經提過了，我會讓他再詳細談談。但我們將 ARR（年度經常性收入）總成長率視為未來營收成長的指導指標，目前 ARR 成長率為 8%，這就是我們未來的發展方向。當然，我們還有其他家電交易和資本支出交易可以進一步提高業績，但總體而言，短期業績指引是基於我們的年度經常性收入 (ARR) 總目標。

As Roy already mentioned, we have a pretty good visibility since currently around 82% of our business is based on recurring. ARR is a very good indicator for guidance. But we also have now, after one month into the quarter, pretty good visibility about demand, which we feel pretty good. We posted 24% growth on cloud ARR, and we're back to the levels we used to see, let's say, two years ago, and we always mentioned going to 25%, but we're not saying 25% is the ceiling. So we think this is the main growth engine for us, and it will continue to grow.

正如 Roy 已經提到的，我們對業務的可見度相當高，因為目前我們約 82% 的業務都是基於經常性收入。平均會計收益率（ARR）是一個非常好的指導指標。但經過一個月的時間，我們現在對市場需求也有了相當清晰的了解，我們對此感到非常滿意。我們的雲端業務 ARR 成長了 24%，回到了兩年前的水平。我們一直說要達到 25%，但我們並不是說 25% 是上限。所以我們認為這是我們主要的成長引擎，而且它將繼續成長。

That's helpful. And maybe just as a follow up. So ARR growth was super impressive, and that's definitely the north star for revenue growth going forward, but just on the billing side, and the free cash flow weakness. You mentioned RPO will rebound. Will billings follow that same trajectory and was there anything unusual to call out in 3Q relating to the timing of billing?

那很有幫助。或許可以作為後續補充。因此，ARR 成長非常令人印象深刻，這無疑是未來營收成長的北極星，但就計費方面而言，自由現金流卻很疲軟。你提到RPO會反彈。帳單金額是否會遵循相同的趨勢？第三季帳單結算時間方面是否有任何異常情況需要指出？

First, yes, we expect billing and cash collection to be stronger this quarter and we mentioned it's going to be positive cash from operation. We also alluded to the fact that we expect backlog represented by RPO to be higher than the numbers we mentioned in December last year. We're talking -- we're mentioning the 8% because of ARR. We're looking at, let's say, high single-digit year-over-year RPO growth. So all the KPIs or, let's say, the negative cash flow operation or the decrease in cash balances this quarter, we're planning to be positive in Q4.

首先，是的，我們預計本季的帳單和現金回收情況會更好，我們也提到過，本季將實現正的經營現金流。我們也提到，我們預計以 RPO 表示的積壓訂單將高於我們去年 12 月提到的數字。我們正在討論——我們提到 8% 是因為 ARR。我們預計 RPO 的年增長率將達到個位數高點。因此，所有關鍵績效指標，或本季的負現金流營運或現金餘額減少，我們計劃在第四季實現正成長。

Ryan Koontz, Needham & Company.

Ryan Koontz，Needham & Company。

This is Jeff Hopson on for Ryan Koontz from Needham. Congrats on the strong performance in North America. Kind of talking about the competitive landscape like you were earlier, some of your large competitors have been focus on other things besides security like cloud computing. So I was just curious if this kind of presents an opportunity for you to gain more customers who may be focused on just security and not some of these other offerings at that.

這裡是來自尼德姆的傑夫‧霍普森，替瑞恩‧昆茨為您報道。恭喜你們在北美市場取得優異成績。就像你之前談到的競爭格局一樣，你們的一些大型競爭對手除了安全之外，還專注於雲端運算等其他領域。所以我很好奇，這是否為你們提供了一個機會，可以獲得更多只專注於安全而不是其他服務的客戶。

Yeah. I think it's a great question, and that's exactly what we are talking with customers. Actually, while some of our larger competitors are, I would say, broadening their offering, and by that not necessarily staying as focused on application and application API, data center security, we're actually double down on that. And the reason is we see more complicated attacks, more AI-based attacks, more challenges, and it's an extremely critical area for our customers.

是的。我認為這是一個很好的問題，而這正是我們正在與客戶討論的內容。事實上，雖然我們的一些大型競爭對手正在擴大他們的產品範圍，因此不一定像我們一樣專注於應用程式和應用程式 API、資料中心安全，但我們實際上卻在這方面加倍投入。原因是我們看到攻擊更加複雜，基於人工智慧的攻擊更多，挑戰也更大，這對我們的客戶來說是一個極其關鍵的領域。

So we continue to broaden the algorithmic mode that we're building. We continue to broaden the competitive advantages and therefore we feel very good about the competitive positioning and the long-term strategy that we have. So we see huge amounts of opportunities. The market is, the TAM and the SAM is huge for us versus our current revenues, and therefore we continue to focus there. Double down on security. I've mentioned API now as the third wave of growth. That's where we are investing.

因此，我們將繼續拓展我們正在建構的演算法模式。我們不斷擴大競爭優勢，因此我們對自身的競爭地位和長期策略感到非常滿意。因此，我們看到了大量的機會。就我們目前的收入而言，市場規模（TAM 和 SAM）對我們來說非常巨大，因此我們將繼續專注於此。加強安保措施。我之前提到過 API，它是第三波成長浪潮。這就是我們投資的方向。

Thank you. And maybe just to follow up on the AI piece, you've been adding capabilities to SOC-X. You announced the vulnerability you guys found in ChatGPT. Just kind of curious where we are with AI and is it still just driving conversations or is it getting to that point of driving production and your AI offering SOC-X could start to meaningfully contribute?

謝謝。或許可以補充人工智慧方面的內容，你們一直在為 SOC-X 添加功能。你們公佈了在 ChatGPT 中發現的漏洞。我很好奇人工智慧目前發展到了什麼階段，它是否仍然只是推動對話，還是正在發展到推動生產的階段，而你們的人工智慧產品 SOC-X 是否可以開始做出有意義的貢獻？

Yeah, so I think we're using AI today on the general availability capabilities, mainly to improve the security we provide to our customers. So like you mentioned, SOC-X is our agentic AI on the platform that automatically detects and mitigates for our customers' attacks by detecting early and providing recommendations or automatic modification to the security posture. In that sense, our customers are enjoying faster time to resolution. They are able also, in a conversational way, talk to our platform and understand exactly what's happening and what the recommendations are.

是的，所以我認為我們目前在通用功能中使用人工智慧，主要是為了提高我們為客戶提供的安全保障。正如您所提到的，SOC-X 是我們平台上的智慧型 AI，它能夠透過及早發現並提供建議或自動修改安全態勢，自動偵測和緩解客戶的攻擊。從這個意義上講，我們的客戶享受了更快的解決方案解決速度。他們還可以透過對話的方式與我們的平台進行交流，以準確了解正在發生的事情以及提出的建議。

So, to summarize, we're using a lot of AI and Gen AI in the platform to improve the security we provide to the customer. I do believe there might be also good opportunities in protecting the AI systems of our customers. To that end, you mentioned that we uncovered a major vulnerability in open AI agents, and we're working on these problems, and I'm sure we will update you in the coming quarters on our progress there as well.

總而言之，我們在平台中使用了大量的人工智慧和世代人工智慧，以提高我們為客戶提供的安全保障。我認為，在保護客戶的人工智慧系統方面，也可能有很好的機會。為此，您提到我們發現了開源人工智慧代理的一個重大漏洞，我們正在努力解決這些問題，我相信在接下來的幾個季度裡，我們也會向您報告這方面的進展。

We have reached the end of our question-and-answer session, and I would now like to hand the call back over to Roy Zisapel for any closing comments.

我們的問答環節到此結束，現在我想把電話交還給羅伊·齊薩佩爾，請他作最後的總結發言。

Thank you, everyone, and have a great day.

謝謝大家，祝大家今天過得愉快。

Thank you ladies and gentlemen. This does now conclude today's conference call. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝各位女士、先生。今天的電話會議到此結束。感謝您的參與。您可以在此時斷開線路。祝您今天餘下的時間愉快。