Radware : Q1 2025 Press Release Q1
RDWR
Published on 05/07/2025 at 06:17
Revenue of $72.1 million, an increase of 11% year-over-year
Cloud ARR of $80 million, an increase of 19% year-over-year
Non-GAAP diluted EPS of $0.27 vs. $0.16 in Q1 2024; GAAP diluted EPS of $0.10 vs. $(0.03) in Q1 2024
Cash flow from operations of $22.4 million in Q1 and $72.9 million over the trailing 12 months
TEL AVIV, Israel, May 7, 2025 - Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the first quarter ended March 31, 2025.
"We had a strong start to 2025 with first quarter revenue rising 11% year-over-year, marking our third consecutive quarter of double-digit growth. In addition, our strong non-GAAP EPS growth and cash flow from operations reflect the high leverage in our business model," said Roy Zisapel, Radware's president and CEO.
Revenue for the first quarter of 2025 totaled $72.1 million:
Revenue in the Americas region was $27.4 million for the first quarter of 2025, an increase of 1% from $27.1 million in the first quarter of 2024.
Revenue in the Europe, Middle East, and Africa ("EMEA") region was $28.4 million for the first quarter of 2025, an increase of 25% from $22.7 million in the first quarter of 2024.
Revenue in the Asia-Pacific ("APAC") region was $16.3 million for the first quarter of 2025, an increase of 7% from $15.3 million in the first quarter of 2024.
GAAP net income for the first quarter of 2025 was $4.3 million, or $0.10 per diluted share, compared to GAAP net loss of
$1.2 million, or $(0.03) per diluted share, for the first quarter of 2024.
Non-GAAP net income for the first quarter of 2025 was $11.8 million, or $0.27 per diluted share, compared to non-GAAP net income of $6.8 million, or $0.16 per diluted share, for the first quarter of 2024.
As of March 31, 2025, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $447.9 million. Cash flow from operations was $22.4 million in the first quarter of 2025.
Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company's non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release.
Radware management will host a call today, May 7, 2025, at 8:30 a.m. EDT to discuss its first quarter 2025 results and second quarter 2025 outlook. To participate on the call, please use the following numbers:
U.S. participants call toll free: 1-877-704-4453 International participants call: 1-201-389-0920
A replay will be available for seven days, starting two hours after the end of the call, on telephone number 1-844-512-2921 (US toll-free) or 1-412-317-6671. Access ID 13752770.
The call will be webcast live on the Company's website at: https://http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.
In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware's management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware's ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors.
Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business.
Safe Harbor Statement
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware's plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," and similar expressions or future or conditional verbs such as "will,"
"should," "would," "may," and "could." Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia's military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present
regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and
third-party licenses; complications with the design or implementation of our new enterprise resource planning ("ERP") system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware's Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware's public filings are available from the SEC's website at https://www.sec.gov or may be obtained on Radware's website at https://www.radware.com.
###
About Radware
Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company's cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware's solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.
Radware encourages you to join our community and follow us on Facebook, LinkedIn, Radware Blog, X, and YouTube.
©2025 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.
Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice.
The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.
CONTACTS
Investor Relations:
Yisca Erez, +972-72-3917211, [email protected]
Media Contact:
Gerri Dyrek, [email protected]
Condensed Consolidated Balance Sheets (U.S. Dollars in thousands)
March 31,
2025
December 31,
2024
Assets
(Unaudited)
(Unaudited)
Current assets
Cash and cash equivalents
114,239
98,714
Marketable securities
55,118
72,994
Short-term bank deposits
122,361
104,073
Trade receivables, net
25,036
16,823
Other receivables and prepaid expenses
9,627
14,242
Inventories
13,511
14,030
339,892
320,876
Long-term investments
Marketable securities
31,229
29,523
Long-term bank deposits
124,968
114,354
Other assets
2,203
2,171
158,400
146,048
Property and equipment, net
14,584
15,632
Intangible assets, net
10,758
11,750
Other long-term assets
36,492
37,906
Operating lease right-of-use assets
17,560
18,456
Goodwill
68,008
68,008
Total assets
645,694
618,676
Liabilities and equity
Current liabilities
Trade payables
3,646
5,581
Deferred revenues
119,329
106,303
Operating lease liabilities
4,642
4,750
Other payables and accrued expenses
55,678
51,836
183,295
168,470
Long-term liabilities
Deferred revenues
69,505
64,708
Operating lease liabilities
12,497
13,519
Other long-term liabilities
14,319
14,904
96,321
93,131
Equity
Radware Ltd. equity
Share capital
756
754
Additional paid-in capital
560,833
555,154
Accumulated other comprehensive income (loss)
(140)
1,103
Treasury stock, at cost
(366,588)
(366,588)
Retained earnings
130,194
125,850
Total Radware Ltd. shareholder's equity
325,055
316,273
Non-controlling interest
41,023
40,802
Total equity
366,078
357,075
Total liabilities and equity
645,694
618,676
March 31,
2025
(Unaudited)
2024
(Unaudited)
Revenues
72,079
65,085
Cost of revenues
13,990
12,812
Gross profit
58,089
52,273
Operating expenses, net:
Research and development, net
18,776
18,896
Selling and marketing
31,281
29,701
General and administrative
6,463
7,339
Total operating expenses, net
56,520
55,936
Operating income (loss)
1,569
(3,663)
Financial income, net
4,875
3,608
Income (loss) before taxes on income
6,444
(55)
Taxes on income
2,100
1,167
Net income (loss)
4,344
(1,222)
Basic net income (loss) per share attributed to
Radware Ltd.'s shareholders 0.10 (0.03)
Weighted average number of shares used to compute basic net income (loss) per share
42,663,787 41,750,203
Diluted net income (loss) per share attributed to
Radware Ltd.'s shareholders 0.10 (0.03)
Weighted average number of shares used to compute diluted net income (loss) per share
44,192,474 41,750,203
Reconciliation of GAAP to Non-GAAP Financial Information (U.S Dollars in thousands, except share and per share data)
For the three months ended March 31,
2025
2024
GAAP gross profit
(Unaudited)
58,089
(Unaudited)
52,273
Share-based compensation
120
79
Amortization of intangible assets
992
992
Non-GAAP gross profit
59,201
53,344
GAAP research and development, net
18,776
18,896
Share-based compensation
1,223
1,722
Non-GAAP Research and development, net
17,553
17,174
GAAP selling and marketing
31,281
29,701
Share-based compensation
3,076
2,551
Non-GAAP selling and marketing
28,205
27,150
GAAP general and administrative
6,463
7,339
Share-based compensation
1,479
2,395
Acquisition costs
153
220
Non-GAAP general and administrative
4,831
4,724
GAAP total operating expenses, net
56,520
55,936
Share-based compensation
5,778
6,668
Acquisition costs
153
220
Non-GAAP total operating expenses, net
50,589
49,048
GAAP operating income (loss)
1,569
(3,663)
Share-based compensation
5,898
6,747
Amortization of intangible assets
992
992
Acquisition costs
153
220
Non-GAAP operating income
8,612
4,296
GAAP financial income, net
4,875
3,608
Exchange rate differences, net on balance sheet items included in financial income, net
492
153
Non-GAAP financial income, net
5,367
3,761
GAAP income (loss) before taxes on income
6,444
(55)
Share-based compensation
5,898
6,747
Amortization of intangible assets
992
992
Acquisition costs
153
220
Exchange rate differences, net on balance sheet items included in financial income, net
492
153
Non-GAAP income before taxes on income
13,979
8,057
GAAP taxes on income
2,100
1,167
Tax related adjustments
62
62
Non-GAAP taxes on income
2,162
1,229
GAAP net income (loss)
4,344
(1,222)
Share-based compensation
5,898
6,747
Amortization of intangible assets
992
992
Acquisition costs
153
220
Exchange rate differences, net on balance sheet items included in financial income, net
492
153
Tax related adjustments
(62)
(62)
Non-GAAP net income
11,817
6,828
GAAP diluted net income (loss) per share
0.10
(0.03)
Share-based compensation
0.14
0.16
Amortization of intangible assets
0.02
0.02
Acquisition costs
0.00
0.01
Exchange rate differences, net on balance sheet items included in financial income, net
0.01
0.00
Tax related adjustments
(0.00)
(0.00)
Non-GAAP diluted net earnings per share
0.27
0.16
Weighted average number of shares used to compute non-GAAP diluted net earnings per share 44,192,474 42,875,058
Condensed Consolidated Statements of Cash Flow (U.S. Dollars in thousands)
For the three months ended
March 31,
2025
2024
(Unaudited)
(Unaudited)
Cash flow from operating activities:
Net income (loss)
4,344
(1,222)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
3,152
2,943
Share-based compensation
5,898
6,747
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net
(161)
(73)
Decrease in accrued interest on bank deposits
(1,790)
(9)
Increase (decrease) in accrued severance pay, net
61
(58)
Increase in trade receivables, net
(8,213)
(219)
Decrease (increase) in other receivables and prepaid expenses and other long-term assets
(186)
605
Decrease in inventories
519
1,004
Increase (decrease) in trade payables
(1,935)
1,406
Increase in deferred revenues
17,823
8,894
Increase in other payables and accrued expenses
3,164
1,483
Operating lease liabilities, net
(234)
(379)
Net cash provided by operating activities
22,442
21,122
Cash flows from investing activities:
Purchase of property and equipment
(1,112)
(1,774)
Proceeds from (investment in) other long-term assets, net
109
(25)
Investment in bank deposits, net
(27,112)
(17,898)
Investment in, redemption of and purchase of marketable securities ,net
16,194
3,502
Proceeds from other deposits
5,000
-
Net cash used in investing activities
(6,921)
(16,195)
Cash flows from financing activities:
Proceeds from exercise of share options
4
-
Repurchase of shares
-
(839)
Net cash provided by (used in) financing activities
4
(839)
Increase in cash and cash equivalents
15,525
4,088
Cash and cash equivalents at the beginning of the period
98,714
70,538
Cash and cash equivalents at the end of the period
114,239
74,626
(Unaudited) (Unaudited) 4,344 (1,222)
Exclude: Financial income, net
(4,875)
(3,608)
Exclude: Depreciation and amortization expense
3,152
2,943
Exclude: Taxes on income
2,100
1,167
EBITDA
4,721
(720)
Share-based compensation
5,898
6,747
Acquisition costs
153
220
Adjusted EBITDA
10,772
6,247
2025
2024
Amortization of intangible assets
992
992
Depreciation
2,160
1,951
3,152
2,943
Disclaimer
Radware Ltd. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 10:15 UTC.