Fourth Quarter 2024 Financial Results and Highlights

  • Revenue of $ 73 million , a n in crease of 1 2 % year - over - year
  • Non-GAAP dilute d EPS of $0. 27 vs. $0 . 13 in Q 4 2023 ; GAAP diluted EPS of $ 0. 0 6 vs. $ ( 0. 14 ) in Q 4 2023

Full Year 2024 Financial Results and Highlights

  • Revenue of $ 275 million , an increase of 5 % year-over-year
  • Cloud ARR of $ 77.3 million, an increase of 1 9 % year-over-year
  • Non-GAAP diluted EPS of $ 0.87 vs. $0. 43 in 2023 ; GAAP diluted EPS of $ 0. 14 vs. $(0. 50 ) in 2023
  • C ash flow from operations of $ 71. 6 million compared to $(3.5) million last year

TEL AVIV, Israel, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Radware ® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced its consolidated financial results for the fourth quarter ended December 31, 2024.

“We are pleased to report a strong finish to 2024, growing revenue 12% year-over-year and more than doubling non-GAAP EPS to $0.27 in the fourth quarter. Our full year results were driven by accelerated cloud ARR growth of 19%, the success of our DefensePro X DDoS protection refresh, and strong performance from our OEM partnerships,” said Roy Zisapel, Radware’s president and CEO. “Looking ahead, we plan to increase investment in and accelerate our cloud security growth by further expanding our market leading AI enabled security capabilities, opening new cloud security service centers and expanding our cloud channels. We are confident in our strategy, excited about the opportunities ahead, and believe in our ability to deliver long-term success.”

Financial Highlights for the Fourth Q uarter and Full Year 2024

Revenue for the fourth quarter and full year of 2024 totaled $73.0 million and $274.9 million, respectively:

  • Revenue in the Americas region was $32.8 million for the fourth quarter of 2024, an increase of 33% from $24.6 million in the fourth quarter of 2023. Revenue in the Americas region for the full year of 2024 was $117.7 million, an increase of 14% from $103.4 million in the full year of 2023.
  • Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $23.3 million for the fourth quarter of 2024, a decrease of 6% from $24.9 million in the fourth quarter of 2023. Revenue in the Europe, Middle East, and Africa (“EMEA”) region for the full year of 2024 was $94.1 million, a decrease of 2% from $96.5 million in the full year of 2023.
  • Revenue in the Asia-Pacific (“APAC”) region was $16.9 million for the fourth quarter of 2024, an increase of 8% from $15.5 million in the fourth quarter of 2023. Revenue in the Asia-Pacific (“APAC”) region for the full year of 2024 was $63.1 million, an increase of 3% from $61.4 million in the full year of 2023.

GAAP net income for the fourth quarter of 2024 was $2.5 million, or $0.06 per diluted share, compared to GAAP net loss of $5.9 million, or $(0.14) per diluted share, for the fourth quarter of 2023. GAAP net income for the full year of 2024 was $6.0 million, or $0.14 per diluted share, compared to GAAP net loss of $21.6 million, or $(0.50) per diluted share, for the full year of 2023.

Non-GAAP net income for the fourth quarter of 2024 was $11.9 million, or $0.27 per diluted share, compared to non-GAAP net income of $5.5 million, or $0.13 per diluted share, for the fourth quarter of 2023. Non-GAAP net income for the full year of 2024 was $37.7 million, or $0.87 per diluted share, compared to non-GAAP net income of $18.9 million, or $0.43 per diluted share, for the full year of 2023.

As of December 31, 2024, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $419.7 million. Cash flow from operations was $12.7 million and $71.6 million in the fourth quarter and full year of 2024, respectively.

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, February 12, 2025, at 8:30 a.m. EST to discuss its fourth quarter and full year 2024 results and first 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 13750817.

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 financ ial income , net, and tax - related adjustment s . 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 fourth parties; laws, regulations, and industry standards affecting our business; compliance with open source and fourth -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 .

©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]

Radware Ltd.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31, December 31,
2024 2023
(Unaudited) (Unaudited)
Assets
Current assets
Cash and cash equivalents 98,714 70,538
Marketable securities 72,994 86,372
Short-term bank deposits 104,073 173,678
Trade receivables, net 16,823 20,267
Other receivables and prepaid expenses 14,242 9,529
Inventories 14,030 15,544
320,876 375,928
Long-term investments
Marketable securities 29,523 33,131
Long-term bank deposits 114,354 -
Other assets 2,171 2,166
146,048 35,297
Property and equipment, net 15,632 18,221
Intangible assets, net 11,750 15,718
Other long-term assets 37,906 37,967
Operating lease right-of-use assets 18,456 20,777
Goodwill 68,008 68,008
Total assets 618,676 571,916
Liabilities and equity
Current liabilities
Trade payables 5,581 4,298
Deferred revenues 106,303 105,012
Operating lease liabilities 4,750 4,684
Other payables and accrued expenses 51,836 41,021
168,470 155,015
Long-term liabilities
Deferred revenues 64,708 60,499
Operating lease liabilities 13,519 16,020
Other long-term liabilities 14,904 17,108
93,131 93,627
Equity
Radware Ltd. equity
Share capital 754 742
Additional paid-in capital 555,154 529,209
Accumulated other comprehensive income 1,103 77
Treasury stock, at cost (366,588) (365,749)
Retained earnings 125,850 119,812
Total Radware Ltd. shareholder's equity 316,273 284,091
Non–controlling interest 40,802 39,183
Total equity 357,075 323,274
Total liabilities and equity 618,676 571,916



Radware Ltd.
Condensed Consolidated Statements of Income (Loss)
(U.S Dollars in thousands, except share and per share data)
For the three months ended For the twelve months ended
December 31, December 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 73,031 65,032 274,880 261,292
Cost of revenues 13,992 12,824 53,252 51,710
Gross profit 59,039 52,208 221,628 209,582
Operating expenses, net:
Research and development, net 18,472 19,712 74,723 82,617
Selling and marketing 32,505 31,869 122,450 126,237
General and administrative 7,071 8,030 28,342 32,408
Total operating expenses, net 58,048 59,611 225,515 241,262
Operating income (loss) 991 (7,403) (3,887) (31,680)
Financial income, net 3,570 3,239 16,552 13,927
Income (loss) before taxes on income 4,561 (4,164) 12,665 (17,753)
Taxes on income 2,109 1,686 6,627 3,837
Net income (loss) 2,452 (5,850) 6,038 (21,590)
Basic net income (loss) per share attributed to Radware Ltd.'s shareholders 0.06 (0.14) 0.14 (0.50)
Weighted average number of shares used to compute basic net income (loss) per share 42,238,469 41,806,042 41,982,851 42,871,770
Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders 0.06 (0.14) 0.14 (0.50)
Weighted average number of shares used to compute diluted net income (loss) per share 43,725,803 41,806,042 43,362,906 42,871,770



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 twelve months ended
December 31, December 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP gross profit 59,039 52,208 221,628 209,582
Share-based compensation 126 112 366 515
Amortization of intangible assets 992 992 3,968 3,968
Non-GAAP gross profit 60,157 53,312 225,962 214,065
GAAP research and development, net 18,472 19,712 74,723 82,617
Share-based compensation 1,434 2,305 6,113 8,505
Non-GAAP Research and development, net 17,038 17,407 68,610 74,112
GAAP selling and marketing 32,505 31,869 122,450 126,237
Share-based compensation 3,173 3,489 10,881 12,554
Restructuring costs - 578 - 1,851
Non-GAAP selling and marketing 29,332 27,802 111,569 111,832
GAAP general and administrative 7,071 8,030 28,342 32,408
Share-based compensation 2,187 2,965 8,667 12,448
Acquisition costs 130 359 701 1,128
Non-GAAP general and administrative 4,754 4,706 18,974 18,832
GAAP total operating expenses, net 58,048 59,611 225,515 241,262
Share-based compensation 6,794 8,759 25,661 33,507
Acquisition costs 130 359 701 1,128
Restructuring costs - 578 - 1,851
Non-GAAP total operating expenses, net 51,124 49,915 199,153 204,776
GAAP operating income (loss) 991 (7,403) (3,887) (31,680)
Share-based compensation 6,920 8,871 26,027 34,022
Amortization of intangible assets 992 992 3,968 3,968
Acquisition costs 130 359 701 1,128
Restructuring costs - 578 - 1,851
Non-GAAP operating income 9,033 3,397 26,809 9,289
GAAP financial income, net 3,570 3,239 16,552 13,927
Exchange rate differences, net on balance sheet items included in financial income, net 1,463 563 1,232 (207)
Non-GAAP financial income, net 5,033 3,802 17,784 13,720
GAAP income (loss) before taxes on income 4,561 (4,164) 12,665 (17,753)
Share-based compensation 6,920 8,871 26,027 34,022
Amortization of intangible assets 992 992 3,968 3,968
Acquisition costs 130 359 701 1,128
Restructuring costs - 578 - 1,851
Exchange rate differences, net on balance sheet items included in financial income, net 1,463 563 1,232 (207)
Non-GAAP income before taxes on income 14,066 7,199 44,593 23,009
GAAP taxes on income 2,109 1,686 6,627 3,837
Tax related adjustments 61 61 246 246
Non-GAAP taxes on income 2,170 1,747 6,873 4,083
GAAP net income (loss) 2,452 (5,850) 6,038 (21,590)
Share-based compensation 6,920 8,871 26,027 34,022
Amortization of intangible assets 992 992 3,968 3,968
Acquisition costs 130 359 701 1,128
Restructuring costs - 578 - 1,851
Exchange rate differences, net on balance sheet items included in financial income, net 1,463 563 1,232 (207)
Tax related adjustments (61) (61) (246) (246)
Non-GAAP net income 11,896 5,452 37,720 18,926
GAAP diluted net income (loss) per share 0.06 (0.14) 0.14 (0.50)
Share-based compensation 0.16 0.21 0.60 0.78
Amortization of intangible assets 0.02 0.02 0.09 0.09
Acquisition costs 0.00 0.01 0.02 0.03
Restructuring costs 0.00 0.02 0.00 0.04
Exchange rate differences, net on balance sheet items included in financial income, net 0.03 0.01 0.03 0.00
Tax related adjustments (0.00) (0.00) (0.01) (0.01)
Non-GAAP diluted net earnings per share 0.27 0.13 0.87 0.43
Weighted average number of shares used to compute non-GAAP diluted net earnings per share 43,725,803 42,462,751 43,362,906 43,655,555



Radware Ltd.
Condensed Consolidated Statements of Cash Flow
(U.S. Dollars in thousands)
For the three months ended For the twelve months ended
December 31, December 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash flow from operating activities:
Net income (loss) 2,452 (5,850) 6,038 (21,590)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 2,918 3,028 11,836 12,244
Share-based compensation 6,920 8,871 26,027 34,022
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net (190) 638 (417) 1,754
Loss (income) related to securities, net - (1) - 243
Increase (decrease) in accrued interest on bank deposits (1,279) 549 3,366 (3,265)
Increase (decrease) in accrued severance pay, net (151) 207 (45) (299)
Decrease (increase) in trade receivables, net 3,140 (7,895) 3,444 (2,515)
Decrease (increase) in other receivables and prepaid expenses and other long-term assets (1,252) 2,236 (97) (305)
Decrease (increase) in inventories (487) (2,550) 1,514 (4,116)
Increase (decrease) in trade payables (970) (1,771) 1,283 (2,166)
Increase (decrease) in deferred revenues (4,829) (3,856) 5,500 (14,951)
Increase (decrease) in other payables and accrued expenses 6,222 9,383 13,274 (1,415)
Operating lease liabilities, net 255 (336) (114) (1,141)
Net cash provided by (used in) operating activities 12,749 2,653 71,609 (3,500)
Cash flows from investing activities:
Purchase of property and equipment (1,059) (936) (5,279) (5,429)
Proceeds from other long-term assets, net 41 (11) 81 66
Proceeds from (investment in) bank deposits, net (46,682) 29,686 (48,115) 81,031
Investment in, redemption of and purchase of marketable securities ,net 23,249 16,764 18,793 17,111
Investment in other deposits (5,000) - (5,000) -
Net cash provided by (used in) investing activities (29,451) 45,503 (39,520) 92,779
Cash flows from financing activities:
Proceeds from exercise of share options - 63 3 371
Repurchase of shares - (10,103) (839) (63,234)
Payment of contingent consideration related to acquisition - - (3,077) (2,063)
Net cash used in financing activities - (10,040) (3,913) (64,926)
Increase (decrease) in cash and cash equivalents (16,702) 38,116 28,176 24,353
Cash and cash equivalents at the beginning of the period 115,416 32,422 70,538 46,185
Cash and cash equivalents at the end of the period 98,714 70,538 98,714 70,538



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 twelve months ended
December 31, December 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP net income (loss) 2,452 (5,850) 6,038 (21,590)
Exclude: Financial income, net (3,570) (3,239) (16,552) (13,927)
Exclude: Depreciation and amortization expense 2,918 3,028 11,836 12,244
Exclude: Taxes on income 2,109 1,686 6,627 3,837
EBITDA 3,909 (4,375 ) 7,949 (19,436 )
Share-based compensation 6,920 8,871 26,027 34,022
Restructuring costs - 578 - 1,851
Acquisition costs 130 359 701 1,128
Adjusted EBITDA 10,959 5,433 34,677 17,565
For the three months ended For the twelve months ended
December 31, December 31,
2024 2023 2024 2023
Amortization of intangible assets 992 992 3,968 3,968
Depreciation 1,926 2,036 7,868 8,276
2,918 3,028 11,836 12,244