Radware Reports Second Quarter 2024 Financial Results
Radware (NASDAQ: RDWR) announced its Q2 2024 financial results. The company reported revenue of $67.3 million, a 3% increase year-over-year. The Cloud ARR reached $70 million, growing by 19% year-over-year. Non-GAAP operating expenses decreased by 6% to $49 million, while non-GAAP diluted EPS was $0.20. GAAP diluted EPS was $0.04. Cash flow from operations stood at $23 million.
By region, the Americas showed strong growth with a 12% increase in revenue, totaling $30.1 million. EMEA revenue was $22.8 million, a slight increase of 1%. However, APAC revenue declined by 11% to $14.4 million.
The company emphasized its launch of Radware EPIC-AI and its potential impact on H2 2024. Radware also reported having $396.6 million in cash and equivalents as of June 30, 2024.
Radware (NASDAQ: RDWR) ha annunciato i risultati finanziari del Q2 2024. L'azienda ha riportato un fatturato di 67,3 milioni di dollari, con un aumento del 3% rispetto all'anno precedente. Il Cloud ARR ha raggiunto i 70 milioni di dollari, con una crescita del 19% anno su anno. Le spese operative non GAAP sono diminuite del 6% fino a 49 milioni di dollari, mentre l'EPS diluito non GAAP è stato di 0,20 dollari. L'EPS diluito GAAP è stato di 0,04 dollari. Il flusso di cassa dalle operazioni è stato di 23 milioni di dollari.
Per regione, le Americhe hanno mostrato una forte crescita con un aumento del 12% nel fatturato, totalizzando 30,1 milioni di dollari. Il fatturato EMEA è stato di 22,8 milioni di dollari, con un leggero aumento dell'1%. Tuttavia, il fatturato APAC è diminuito dell'11% a 14,4 milioni di dollari.
L'azienda ha sottolineato il lancio di Radware EPIC-AI e il suo potenziale impatto nel secondo semestre del 2024. Radware ha inoltre riportato di avere 396,6 milioni di dollari in contante e equivalenti al 30 giugno 2024.
Radware (NASDAQ: RDWR) anunció sus resultados financieros del Q2 2024. La compañía reportó ingresos de 67,3 millones de dólares, un aumento del 3% con respecto al año anterior. El Cloud ARR alcanzó los 70 millones de dólares, creciendo un 19% interanual. Los gastos operativos no GAAP disminuyeron en un 6% hasta 49 millones de dólares, mientras que el EPS diluido no GAAP fue de 0,20 dólares. El EPS diluido GAAP fue de 0,04 dólares. El flujo de efectivo de las operaciones fue de 23 millones de dólares.
Por región, las Américas mostraron un fuerte crecimiento con un aumento del 12% en ingresos, totalizando 30,1 millones de dólares. Los ingresos de EMEA fueron de 22,8 millones de dólares, un ligero aumento del 1%. Sin embargo, los ingresos de APAC cayeron un 11% hasta 14,4 millones de dólares.
La compañía enfatizó el lanzamiento de Radware EPIC-AI y su potencial impacto en el segundo semestre de 2024. Radware también reportó tener 396,6 millones de dólares en efectivo y equivalentes al 30 de junio de 2024.
Radware (NASDAQ: RDWR)는 2024년 2분기 재무 결과를 발표했습니다. 회사는 수익이 6,730만 달러에 달하며, 이는 전년 대비 3% 증가한 수치입니다. Cloud ARR은 7,000만 달러에 도달하며, 전년 대비 19% 성장했습니다. 비-GAAP 운영 비용은 4,900만 달러로 6% 감소했으며, 비-GAAP 희석 EPS는 0.20달러였습니다. GAAP 희석 EPS는 0.04달러였습니다. 운영으로 인한 현금 흐름은 2,300만 달러로 집계되었습니다.
지역별로 살펴보면, 아메리카 대륙은 수익이 12% 증가하여 총 3,010만 달러에 달했습니다. EMEA의 수익은 2,280만 달러로 1%의 소폭 증가를 보였습니다. 그러나 APAC의 수익은 11% 감소하여 1,440만 달러에 그쳤습니다.
회사는 Radware EPIC-AI의 출시와 2024년 하반기에 미칠 잠재적 영향에 대해 강조했습니다. 또한 Radware는 2024년 6월 30일 기준으로 3억 9,660만 달러의 현금 및 현금성 자산을 보유하고 있다고 보고했습니다.
Radware (NASDAQ: RDWR) a annoncé ses résultats financiers du Q2 2024. La société a enregistré un chiffre d'affaires de 67,3 millions de dollars, soit une augmentation de 3% par rapport à l'année précédente. Le Cloud ARR a atteint 70 millions de dollars, avec une croissance de 19% d'une année sur l'autre. Les dépenses opérationnelles non GAAP ont diminué de 6% pour atteindre 49 millions de dollars, tandis que le BPA dilué non GAAP était de 0,20 dollar. Le BPA dilué GAAP était de 0,04 dollar. Les flux de trésorerie provenant des opérations s'élevaient à 23 millions de dollars.
Par région, les Amériques ont présenté une forte croissance avec une augmentation de 12% des revenus, totalisant 30,1 millions de dollars. Les revenus de la région EMEA ont atteint 22,8 millions de dollars, enregistrant une légère augmentation de 1%. En revanche, les revenus de la région APAC ont diminué de 11% pour atteindre 14,4 millions de dollars.
La société a souligné le lancement de Radware EPIC-AI et son impact potentiel pour le second semestre 2024. Radware a également rapporté disposer de 396,6 millions de dollars en liquidités et équivalents au 30 juin 2024.
Radware (NASDAQ: RDWR) kündigte seine Finanzergebnisse für das Q2 2024 an. Das Unternehmen berichtete von einem Umsatz von 67,3 Millionen Dollar, was einem 3% Anstieg im Vergleich zum Vorjahr entspricht. Der Cloud ARR erreichte 70 Millionen Dollar und wuchs um 19% verglichen mit dem Vorjahr. Die nicht-GAAP Betriebskosten sanken um 6% auf 49 Millionen Dollar, während das nicht-GAAP verwässerte EPS bei 0,20 Dollar lag. Das GAAP verwässerte EPS betrug 0,04 Dollar. Der Cashflow aus operativer Tätigkeit belief sich auf 23 Millionen Dollar.
Nach Region zeigte Amerika ein starkes Wachstum mit einem 12% Anstieg des Umsatzes, insgesamt 30,1 Millionen Dollar. Der Umsatz in EMEA lag bei 22,8 Millionen Dollar, ein leichter Anstieg von 1%. Der Umsatz in APAC hingegen fiel um 11% auf 14,4 Millionen Dollar.
Das Unternehmen betonte die Einführung von Radware EPIC-AI und dessen potenzielle Auswirkungen für das zweite Halbjahr 2024. Radware berichtete zudem, dass sie zum 30. Juni 2024 396,6 Millionen Dollar in bar und liquiden Mitteln hatten.
- Revenue increased by 3% year-over-year to $67.3 million
- Cloud ARR grew by 19% year-over-year to $70 million
- Non-GAAP operating expenses decreased by 6% to $49 million
- Non-GAAP diluted EPS increased to $0.20 from $0.10
- GAAP net income was $1.7 million compared to a loss of $5.8 million in Q2 2023
- Cash flow from operations was $23 million
- APAC region revenue decreased by 11% year-over-year to $14.4 million
Insights
Radware's Q2 2024 results show promising growth and improved profitability. Revenue increased by
Profitability improved significantly, with non-GAAP EPS of
Regional performance was mixed, with the Americas showing robust
The launch of Radware EPIC-AI™ and the company's focus on AI and GenAI innovation could be significant catalysts for future growth, particularly in the second half of 2024. However, investors should remain cautious and watch for concrete results from these initiatives in the coming quarters.
Radware's Q2 2024 results highlight the company's strategic focus on cloud security and AI-driven solutions. The impressive
The launch of Radware EPIC-AI™ is a significant development that positions the company at the forefront of AI-driven cybersecurity. This platform likely leverages advanced machine learning algorithms to enhance threat detection and response capabilities. As cyber threats become more sophisticated, AI-powered solutions are becoming important for real-time threat analysis and mitigation.
However, the tech landscape is highly competitive, with numerous players investing heavily in AI and cloud security. Radware will need to demonstrate clear differentiation and tangible benefits from its EPIC-AI™ platform to maintain its growth trajectory. The company's ability to integrate AI capabilities across its product portfolio and deliver measurable improvements in security outcomes will be critical factors to watch in the coming quarters.
The regional disparity in performance, particularly the decline in APAC, suggests that Radware may need to adapt its go-to-market strategy or product offerings to better address the unique challenges and requirements of different geographic markets. This could involve tailoring solutions for specific regulatory environments or investing in local partnerships to enhance market penetration.
Second Quarter 2024 Financial Results and Highlights
- Revenue of $67 million, an increase of 3% year-over-year
- Cloud ARR of $70 million, an increase of 19% year-over-year
- Non-GAAP operating expenses of
$49 million , a decrease of6% year-over-year - Non-GAAP diluted EPS of
$0. 20; GAAP diluted EPS of $0.04 - Cash flow from operations of $23 million
TEL AVIV, Israel, July 31, 2024 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the second quarter ended June 30, 2024.
“We are pleased with our second quarter 2024 results, which exceeded the high-end of our revenue and non-GAAP EPS guidance,” said Roy Zisapel, Radware’s president and CEO. “We are excited about the launch of Radware EPIC-AI™ and the accelerated AI and GenAI innovation it represents. Together with our strong cloud security offering, we are optimistic these factors will contribute significantly to the second half of 2024.”
Financial Highlights for the Second Quarter 2024
Revenue for the second quarter of 2024 totaled
- Revenue in the Americas region was
$30.1 million for the second quarter of 2024, an increase of12% from$26.8 million in the second quarter of 2023. - Revenue in the Europe, Middle East, and Africa (“EMEA”) region was
$22.8 million for the second quarter of 2024, an increase of1% from$22.6 million in the second quarter of 2023. - Revenue in the Asia-Pacific (“APAC”) region was
$14.4 million for the second quarter of 2024, a decrease of11% from$16.2 million in the second quarter of 2023.
GAAP net income for the second quarter of 2024 was
Non-GAAP net income for the second quarter of 2024 was
As of June 30, 2024, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of
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.
Conference Call
Radware management will host a call today, July 31, 2024, at 8:30 a.m. EDT to discuss its second quarter 2024 results and third quarter 2024 outlook. To participate on the call, please use the following numbers:
U.S. participants call toll free: 888-510-2008
International participants call: 1 646-960-0306
Conference ID: 1864701
A replay will be available for two days, starting two hours after the end of the call, on telephone number +1-609-800-9099 or (US toll-free) 800-770-2030. Passcode 1864701.
The call will be webcast live on the Company’s website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months.
Use of Non-GAAP Financial Information and Key Performance Indicators
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, and the tensions between China and Taiwan; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; a shortage of components or manufacturing capacity could cause a delay in our ability to fulfill orders or increase our manufacturing costs; 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 cyber security 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, 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; 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, such as the COVID-19 pandemic; our net losses in the past two years and possibility we may incur losses in the future; a slowdown in the growth of the cyber security 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; 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 www.sec.gov or may be obtained on Radware’s website at 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, YouTube, and Radware Mobile for iOS.
©2024 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, ir@radware.com
Media Contact:
Gerri Dyrek, gerri.dyrek@radware.com
| Radware Ltd. | |||
| Condensed Consolidated Balance Sheets | |||
| (U.S. Dollars in thousands) | |||
| June 30, | December 31, | ||
| 2024 | 2023 | ||
| (Unaudited) | (Unaudited) | ||
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 86,802 | 70,538 | |
| Marketable securities | 122,310 | 86,372 | |
| Short-term bank deposits | 169,376 | 173,678 | |
| Trade receivables, net | 25,499 | 20,267 | |
| Other receivables and prepaid expenses | 9,187 | 9,529 | |
| Inventories | 13,796 | 15,544 | |
| 426,970 | 375,928 | ||
| Long-term investments | |||
| Marketable securities | 8,096 | 33,131 | |
| Long-term bank deposits | 10,007 | - | |
| Other assets | 2,033 | 2,166 | |
| 20,136 | 35,297 | ||
| Property and equipment, net | 17,042 | 18,221 | |
| Intangible assets, net | 13,734 | 15,718 | |
| Other long-term assets | 36,506 | 37,967 | |
| Operating lease right-of-use assets | 19,142 | 20,777 | |
| Goodwill | 68,008 | 68,008 | |
| Total assets | 601,538 | 571,916 | |
| Liabilities and equity | |||
| Current liabilities | |||
| Trade payables | 4,077 | 4,298 | |
| Deferred revenues | 111,680 | 105,012 | |
| Operating lease liabilities | 4,533 | 4,684 | |
| Other payables and accrued expenses | 45,576 | 41,021 | |
| 165,866 | 155,015 | ||
| Long-term liabilities | |||
| Deferred revenues | 70,219 | 60,499 | |
| Operating lease liabilities | 13,919 | 16,020 | |
| Other long-term liabilities | 14,547 | 17,108 | |
| 98,685 | 93,627 | ||
| Equity | |||
| Radware Ltd. equity | |||
| Share capital | 748 | 742 | |
| Additional paid-in capital | 542,643 | 529,209 | |
| Accumulated other comprehensive income (loss) | (413) | 77 | |
| Treasury stock, at cost | (366,588) | (365,749) | |
| Retained earnings | 120,254 | 119,812 | |
| Total Radware Ltd. shareholder's equity | 296,644 | 284,091 | |
| Non–controlling interest | 40,343 | 39,183 | |
| Total equity | 336,987 | 323,274 | |
| Total liabilities and equity | 601,538 | 571,916 | |
| Radware Ltd. | |||||||
| Condensed Consolidated Statements of Income | |||||||
| (U.S Dollars in thousands, except share and per share data) | |||||||
| For the three months ended | For the six months ended | ||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Revenues | 67,276 | 65,607 | 132,361 | 134,648 | |||
| Cost of revenues | 13,056 | 12,742 | 25,868 | 26,048 | |||
| Gross profit | 54,220 | 52,865 | 106,493 | 108,600 | |||
| Operating expenses, net: | |||||||
| Research and development, net | 18,701 | 21,141 | 37,597 | 42,291 | |||
| Selling and marketing | 29,744 | 31,917 | 59,445 | 63,836 | |||
| General and administrative | 6,984 | 8,307 | 14,323 | 16,554 | |||
| Total operating expenses, net | 55,429 | 61,365 | 111,365 | 122,681 | |||
| Operating loss | (1,209) | (8,500) | (4,872) | (14,081) | |||
| Financial income, net | 4,417 | 3,419 | 8,025 | 6,910 | |||
| Income (loss) before taxes on income | 3,208 | (5,081) | 3,153 | (7,171) | |||
| Taxes on income | 1,544 | 727 | 2,711 | 1,718 | |||
| Net income (loss) | 1,664 | (5,808) | 442 | (8,889) | |||
| Basic net income (loss) per share attributed to Radware Ltd.'s shareholders | 0.04 | (0.13) | 0.01 | (0.20) | |||
| Weighted average number of shares used to compute basic net income (loss) per share | 41,857,259 | 43,400,635 | 41,803,638 | 43,725,443 | |||
| Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders | 0.04 | (0.13) | 0.01 | (0.20) | |||
| Weighted average number of shares used to compute diluted net income (loss) per share | 43,148,129 | 43,400,635 | 43,011,501 | 43,725,443 | |||
| Radware Ltd. | |||||||
| Reconciliation of GAAP to Non-GAAP Financial Information | |||||||
| (U.S Dollars in thousands, except share and per share data) | |||||||
| For the three months ended | For the six months ended | ||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| GAAP gross profit | 54,220 | 52,865 | 106,493 | 108,600 | |||
| Share-based compensation | 80 | 113 | 159 | 226 | |||
| Amortization of intangible assets | 992 | 992 | 1,984 | 1,984 | |||
| Non-GAAP gross profit | 55,292 | 53,970 | 108,636 | 110,810 | |||
| GAAP research and development, net | 18,701 | 21,141 | 37,597 | 42,291 | |||
| Share-based compensation | 1,536 | 2,177 | 3,258 | 4,136 | |||
| Non-GAAP Research and development, net | 17,165 | 18,964 | 34,339 | 38,155 | |||
| GAAP selling and marketing | 29,744 | 31,917 | 59,445 | 63,836 | |||
| Share-based compensation | 2,609 | 3,537 | 5,160 | 6,931 | |||
| Non-GAAP selling and marketing | 27,135 | 28,380 | 54,285 | 56,905 | |||
| GAAP general and administrative | 6,984 | 8,307 | 14,323 | 16,554 | |||
| Share-based compensation | 2,077 | 3,068 | 4,472 | 6,599 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Non-GAAP general and administrative | 4,715 | 4,694 | 9,439 | 9,397 | |||
| GAAP total operating expenses, net | 55,429 | 61,365 | 111,365 | 122,681 | |||
| Share-based compensation | 6,222 | 8,782 | 12,890 | 17,666 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Non-GAAP total operating expenses, net | 49,015 | 52,038 | 98,063 | 104,457 | |||
| GAAP operating loss | (1,209) | (8,500) | (4,872) | (14,081) | |||
| Share-based compensation | 6,302 | 8,895 | 13,049 | 17,892 | |||
| Amortization of intangible assets | 992 | 992 | 1,984 | 1,984 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Non-GAAP operating income | 6,277 | 1,932 | 10,573 | 6,353 | |||
| GAAP financial income, net | 4,417 | 3,419 | 8,025 | 6,910 | |||
| Exchange rate differences, net on balance sheet items included in financial income, net | (298) | (32) | (145) | (807) | |||
| Non-GAAP financial income, net | 4,119 | 3,387 | 7,880 | 6,103 | |||
| GAAP income (loss) before taxes on income | 3,208 | (5,081) | 3,153 | (7,171) | |||
| Share-based compensation | 6,302 | 8,895 | 13,049 | 17,892 | |||
| Amortization of intangible assets | 992 | 992 | 1,984 | 1,984 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Exchange rate differences, net on balance sheet items included in financial income, net | (298) | (32) | (145) | (807) | |||
| Non-GAAP income before taxes on income | 10,396 | 5,319 | 18,453 | 12,456 | |||
| GAAP taxes on income | 1,544 | 727 | 2,711 | 1,718 | |||
| Tax related adjustments | 61 | 61 | 123 | 123 | |||
| Non-GAAP taxes on income | 1,605 | 788 | 2,834 | 1,841 | |||
| GAAP net income (loss) | 1,664 | (5,808) | 442 | (8,889) | |||
| Share-based compensation | 6,302 | 8,895 | 13,049 | 17,892 | |||
| Amortization of intangible assets | 992 | 992 | 1,984 | 1,984 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Exchange rate differences, net on balance sheet items included in financial income, net | (298) | (32) | (145) | (807) | |||
| Tax related adjustments | (61) | (61) | (123) | (123) | |||
| Non-GAAP net income | 8,791 | 4,531 | 15,619 | 10,615 | |||
| GAAP diluted net income (loss) per share | 0.04 | (0.13) | 0.01 | (0.20) | |||
| Share-based compensation | 0.15 | 0.20 | 0.30 | 0.40 | |||
| Amortization of intangible assets | 0.02 | 0.02 | 0.04 | 0.05 | |||
| Acquisition costs | 0.00 | 0.01 | 0.01 | 0.01 | |||
| Exchange rate differences, net on balance sheet items included in financial income, net | (0.01) | (0.00) | (0.00) | (0.02) | |||
| Tax related adjustments | (0.00) | (0.00) | (0.00) | (0.00) | |||
| Non-GAAP diluted net earnings per share | 0.20 | 0.10 | 0.36 | 0.24 | |||
| Weighted average number of shares used to compute non-GAAP diluted net earnings per share | 43,148,129 | 44,268,786 | 43,011,501 | 44,513,899 | |||
| Radware Ltd. | |||||||
| Condensed Consolidated Statements of Cash Flow | |||||||
| (U.S. Dollars in thousands) | |||||||
| For the three months ended | For the six months ended | ||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| Cash flow from operating activities: | |||||||
| Net income (loss) | 1,664 | (5,808) | 442 | (8,889) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 3,028 | 3,113 | 5,971 | 6,191 | |||
| Share-based compensation | 6,302 | 8,895 | 13,049 | 17,892 | |||
| Amortization of premium, accretion of discounts and accrued interest on marketable securities, net | 80 | 718 | 7 | 955 | |||
| Loss (gain) related to securities, net | - | (1) | - | 244 | |||
| Increase (decrease) in accrued interest on bank deposits | 5,468 | 229 | 5,459 | (1,525) | |||
| Increase (decrease) in accrued severance pay, net | 17 | (36) | (41) | (105) | |||
| Decrease (increase) in trade receivables, net | (5,013) | 1,937 | (5,232) | 932 | |||
| Decrease (increase) in other receivables and prepaid expenses and other long-term assets | (199) | 532 | 406 | (2,326) | |||
| Decrease (increase) in inventories | 744 | (1,044) | 1,748 | (895) | |||
| Increase (decrease) in trade payables | (1,627) | 3,020 | (221) | 1,383 | |||
| Increase in deferred revenues | 7,494 | 470 | 16,388 | 1,216 | |||
| Increase (decrease) in other payables and accrued expenses | 5,310 | (6,944) | 6,793 | (11,442) | |||
| Operating lease liabilities, net | (238) | (215) | (617) | (1) | |||
| Net cash provided by operating activities | 23,030 | 4,866 | 44,152 | 3,630 | |||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment | (1,034) | (1,595) | (2,808) | (3,363) | |||
| Proceeds from (investment in) other long-term assets, net | 19 | 1 | (6) | 48 | |||
| Proceeds from (investment in) bank deposits, net | 6,734 | 21,000 | (11,164) | 30,200 | |||
| Investment in, redemption of and purchase of marketable securities, net | (13,499) | (3,857) | (9,997) | (1,881) | |||
| Net cash provided by (used in) investing activities | (7,780) | 15,549 | (23,975) | 25,004 | |||
| Cash flows from financing activities: | |||||||
| Proceeds from exercise of share options | 3 | 88 | 3 | 308 | |||
| Repurchase of shares | - | (19,741) | (839) | (32,483) | |||
| Payment of contingent consideration related to acquisition | (3,077) | - | (3,077) | - | |||
| Net cash used in financing activities | (3,074) | (19,653) | (3,913) | (32,175) | |||
| Increase (decrease) in cash and cash equivalents | 12,176 | 762 | 16,264 | (3,541) | |||
| Cash and cash equivalents at the beginning of the period | 74,626 | 41,882 | 70,538 | 46,185 | |||
| Cash and cash equivalents at the end of the period | 86,802 | 42,644 | 86,802 | 42,644 | |||
| Radware Ltd. | |||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) | |||||||
| (U.S Dollars in thousands) | |||||||
| For the three months ended | For the six months ended | ||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||
| GAAP net income (loss) | 1,664 | (5,808) | 442 | (8,889) | |||
| Exclude: Financial income, net | (4,417) | (3,419) | (8,025) | (6,910) | |||
| Exclude: Depreciation and amortization expense | 3,028 | 3,113 | 5,971 | 6,191 | |||
| Exclude: Taxes on income | 1,544 | 727 | 2,711 | 1,718 | |||
| EBITDA | 1,819 | (5,387) | 1,099 | (7,890) | |||
| Share-based compensation | 6,302 | 8,895 | 13,049 | 17,892 | |||
| Acquisition costs | 192 | 545 | 412 | 558 | |||
| Adjusted EBITDA | 8,313 | 4,053 | 14,560 | 10,560 | |||
| For the three months ended | For the six months ended | ||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Amortization of intangible assets | 992 | 992 | 1,984 | 1,984 | |||
| Depreciation | 2,036 | 2,121 | 3,987 | 4,207 | |||
| 3,028 | 3,113 | 5,971 | 6,191 | ||||
FAQ
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