1.
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Radware Reports First Quarter
2024 Financial Results, dated May 8, 2024
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RADWARE LTD.
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|||
Date: May 8, 2024
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By:
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/s/ Gadi Meroz
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Gadi Meroz
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|||
Vice President & General Counsel
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Exhibit Number
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Description of Exhibits
|
|
|
•
|
Revenue of $65.1 million, a decrease of 6% year-over-year
|
•
|
Cloud ARR of $67.0 million, an increase of 22% year-over-year
|
•
|
Non-GAAP EPS of $0.16; GAAP net loss per diluted share of $0.03
|
•
|
Cash flow from operations of $21.1 million.
|
•
|
Revenue in the Americas region was $27.1 million for the first quarter of 2024, the same as in the first quarter of 2023.
|
•
|
Revenue in the Europe, Middle East, and Africa (“EMEA”) region was $22.7 million for the first quarter of 2024, a decrease of
24% from $29.7 million in the first quarter of 2023.
|
•
|
Revenue in the Asia-Pacific (“APAC”) region was $15.3 million for the first quarter of 2024, an increase of 25% from $12.2
million in the first quarter of 2023.
|
|
March 31,
|
December 31,
|
||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
Assets
|
||||||||
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
74,626
|
70,538
|
||||||
Marketable securities
|
97,743
|
86,372
|
||||||
Short-term bank deposits
|
191,585
|
173,678
|
||||||
Trade receivables, net
|
20,486
|
20,267
|
||||||
Other receivables and prepaid expenses
|
9,199
|
9,529
|
||||||
Inventories
|
14,540
|
15,544
|
||||||
|
408,179
|
375,928
|
||||||
|
||||||||
Long-term investments
|
||||||||
Marketable securities
|
18,853
|
33,131
|
||||||
Other assets
|
2,083
|
2,166
|
||||||
|
20,936
|
35,297
|
||||||
|
||||||||
Property and equipment, net
|
18,044
|
18,221
|
||||||
Intangible assets, net
|
14,726
|
15,718
|
||||||
Other long-term assets
|
37,052
|
37,967
|
||||||
Operating lease right-of-use assets
|
20,268
|
20,777
|
||||||
Goodwill
|
68,008
|
68,008
|
||||||
Total assets
|
587,213
|
571,916
|
||||||
|
||||||||
Liabilities and equity
|
||||||||
|
||||||||
Current liabilities
|
||||||||
Trade payables
|
5,704
|
4,298
|
||||||
Deferred revenues
|
101,892
|
105,012
|
||||||
Operating lease liabilities
|
4,537
|
4,684
|
||||||
Other payables and accrued expenses
|
42,757
|
41,021
|
||||||
|
154,890
|
155,015
|
||||||
|
||||||||
Long-term liabilities
|
||||||||
Deferred revenues
|
72,513
|
60,499
|
||||||
Operating lease liabilities
|
15,279
|
16,020
|
||||||
Other long-term liabilities
|
15,164
|
17,108
|
||||||
|
102,956
|
93,627
|
||||||
|
||||||||
Equity
|
||||||||
Radware Ltd. equity
|
||||||||
Share capital
|
744
|
742
|
||||||
Additional paid-in capital
|
536,881
|
529,209
|
||||||
Accumulated other comprehensive income (loss)
|
(66
|
)
|
77
|
|||||
Treasury stock, at cost
|
(366,588
|
)
|
(365,749
|
)
|
||||
Retained earnings
|
118,590
|
119,812
|
||||||
Total Radware Ltd. shareholder's equity
|
289,561
|
284,091
|
||||||
|
||||||||
Non–controlling interest
|
39,806
|
39,183
|
||||||
|
||||||||
Total equity
|
329,367
|
323,274
|
||||||
|
||||||||
Total liabilities and equity
|
587,213
|
571,916
|
|
For the three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
|
||||||||
Revenues
|
65,085
|
69,041
|
||||||
Cost of revenues
|
12,812
|
13,306
|
||||||
Gross profit
|
52,273
|
55,735
|
||||||
|
||||||||
Operating expenses, net:
|
||||||||
Research and development, net
|
18,896
|
21,150
|
||||||
Selling and marketing
|
29,701
|
31,919
|
||||||
General and administrative
|
7,339
|
8,247
|
||||||
Total operating expenses, net
|
55,936
|
61,316
|
||||||
|
||||||||
Operating loss
|
(3,663
|
)
|
(5,581
|
)
|
||||
Financial income, net
|
3,608
|
3,491
|
||||||
Loss before taxes on income
|
(55
|
)
|
(2,090
|
)
|
||||
Taxes on income
|
1,167
|
991
|
||||||
Net loss
|
(1,222
|
)
|
(3,081
|
)
|
||||
|
||||||||
Basic net loss per share attributed to Radware Ltd.'s shareholders
|
(0.03
|
)
|
(0.07
|
)
|
||||
|
||||||||
Weighted average number of shares used to compute basic net loss per share
|
41,750,203
|
44,053,402
|
||||||
|
||||||||
Diluted net loss per share attributed to Radware Ltd.'s shareholders
|
(0.03
|
)
|
(0.07
|
)
|
||||
|
||||||||
Weighted average number of shares used to compute diluted net loss per share
|
41,750,203
|
44,053,402
|
|
For the three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
GAAP gross profit
|
52,273
|
55,735
|
||||||
Share-based compensation
|
79
|
113
|
||||||
Amortization of intangible assets
|
992
|
992
|
||||||
Non-GAAP gross profit
|
53,344
|
56,840
|
||||||
|
||||||||
GAAP research and development, net
|
18,896
|
21,150
|
||||||
Share-based compensation
|
1,722
|
1,959
|
||||||
Non-GAAP Research and development, net
|
17,174
|
19,191
|
||||||
|
||||||||
GAAP selling and marketing
|
29,701
|
31,919
|
||||||
Share-based compensation
|
2,551
|
3,394
|
||||||
Non-GAAP selling and marketing
|
27,150
|
28,525
|
||||||
|
||||||||
GAAP general and administrative
|
7,339
|
8,247
|
||||||
Share-based compensation
|
2,395
|
3,531
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Non-GAAP general and administrative
|
4,724
|
4,703
|
||||||
|
||||||||
GAAP total operating expenses, net
|
55,936
|
61,316
|
||||||
Share-based compensation
|
6,668
|
8,884
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Non-GAAP total operating expenses, net
|
49,048
|
52,419
|
||||||
|
||||||||
GAAP operating loss
|
(3,663
|
)
|
(5,581
|
)
|
||||
Share-based compensation
|
6,747
|
8,997
|
||||||
Amortization of intangible assets
|
992
|
992
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Non-GAAP operating income
|
4,296
|
4,421
|
||||||
|
||||||||
GAAP financial income, net
|
3,608
|
3,491
|
||||||
Exchange rate differences, net on balance sheet items included in financial income, net
|
153
|
(775
|
)
|
|||||
Non-GAAP financial income, net
|
3,761
|
2,716
|
||||||
|
||||||||
GAAP loss before taxes on income
|
(55
|
)
|
(2,090
|
)
|
||||
Share-based compensation
|
6,747
|
8,997
|
||||||
Amortization of intangible assets
|
992
|
992
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Exchange rate differences, net on balance sheet items included in financial income, net
|
153
|
(775
|
)
|
|||||
Non-GAAP income before taxes on income
|
8,057
|
7,137
|
||||||
|
||||||||
GAAP taxes on income
|
1,167
|
991
|
||||||
Tax related adjustments
|
62
|
62
|
||||||
Non-GAAP taxes on income
|
1,229
|
1,053
|
||||||
|
||||||||
GAAP net loss
|
(1,222
|
)
|
(3,081
|
)
|
||||
Share-based compensation
|
6,747
|
8,997
|
||||||
Amortization of intangible assets
|
992
|
992
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Exchange rate differences, net on balance sheet items included in financial income, net
|
153
|
(775
|
)
|
|||||
Tax related adjustments
|
(62
|
)
|
(62
|
)
|
||||
Non-GAAP net income
|
6,828
|
6,084
|
||||||
|
||||||||
GAAP diluted net loss per share
|
(0.03
|
)
|
(0.07
|
)
|
||||
Share-based compensation
|
0.16
|
0.20
|
||||||
Amortization of intangible assets
|
0.02
|
0.02
|
||||||
Acquisition costs
|
0.01
|
0.00
|
||||||
Exchange rate differences, net on balance sheet items included in financial income, net
|
0.00
|
(0.02
|
)
|
|||||
Tax related adjustments
|
(0.00
|
)
|
(0.00
|
)
|
||||
Non-GAAP diluted net earnings per share
|
0.16
|
0.14
|
||||||
|
||||||||
Weighted average number of shares used to compute non-GAAP diluted net earnings per share
|
42,875,058
|
44,762,161
|
|
For the three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
GAAP net loss
|
(1,222
|
)
|
(3,081
|
)
|
||||
Exclude: Financial income, net
|
(3,608
|
)
|
(3,491
|
)
|
||||
Exclude: Depreciation and amortization expense
|
2,943
|
3,078
|
||||||
Exclude: Taxes on income
|
1,167
|
991
|
||||||
EBITDA
|
(720
|
)
|
(2,503
|
)
|
||||
|
||||||||
Share-based compensation
|
6,747
|
8,997
|
||||||
Acquisition costs
|
220
|
13
|
||||||
Adjusted EBITDA
|
6,247
|
6,507
|
|
For the three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
Amortization of intangible assets
|
992
|
992
|
||||||
Depreciation
|
1,951
|
2,086
|
||||||
|
||||||||
|
2,943
|
3,078
|
|
For the three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
Cash flow from operating activities:
|
||||||||
|
||||||||
Net loss
|
(1,222
|
)
|
(3,081
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,943
|
3,078
|
||||||
Share-based compensation
|
6,747
|
8,997
|
||||||
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net
|
(73
|
)
|
237
|
|||||
Loss related to securities, net
|
-
|
245
|
||||||
Decrease in accrued interest on bank deposits
|
(9
|
)
|
(1,754
|
)
|
||||
Decrease in accrued severance pay, net
|
(58
|
)
|
(69
|
)
|
||||
Increase in trade receivables, net
|
(219
|
)
|
(1,005
|
)
|
||||
Decrease (increase) in other receivables and prepaid expenses and other long-term assets
|
605
|
(2,858
|
)
|
|||||
Decrease in inventories
|
1,004
|
149
|
||||||
Increase (decrease) in trade payables
|
1,406
|
(1,637
|
)
|
|||||
Increase in deferred revenues
|
8,894
|
746
|
||||||
Increase (decrease) in other payables and accrued expenses
|
1,483
|
(4,498
|
)
|
|||||
Operating lease liabilities, net
|
(379
|
)
|
214
|
|||||
Net cash provided by (used in) operating activities
|
21,122
|
(1,236
|
)
|
|||||
|
||||||||
Cash flows from investing activities:
|
||||||||
|
||||||||
Purchase of property and equipment
|
(1,774
|
)
|
(1,768
|
)
|
||||
Proceeds from (investment in) other long-term assets, net
|
(25
|
)
|
47
|
|||||
Proceeds from (investment in) bank deposits, net
|
(17,898
|
)
|
9,200
|
|||||
Investment in, redemption of and purchase of marketable securities ,net
|
3,502
|
1,976
|
||||||
Net cash provided by (used in) investing activities
|
(16,195
|
)
|
9,455
|
|||||
|
||||||||
Cash flows from financing activities:
|
||||||||
|
||||||||
Proceeds from exercise of share options
|
-
|
220
|
||||||
Repurchase of shares
|
(839
|
)
|
(12,742
|
)
|
||||
Net cash used in financing activities
|
(839
|
)
|
(12,522
|
)
|
||||
|
||||||||
Increase (decrease) in cash and cash equivalents
|
4,088
|
(4,303
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
70,538
|
46,185
|
||||||
Cash and cash equivalents at the end of the period
|
74,626
|
41,882
|