Radware Ltd. (RDWR) Bundle
A Brief History of Radware
Radware Ltd. is a prominent player in the field of application delivery and cyber security solutions, specializing in multi-cloud environments. Founded in 1997, the company has evolved significantly over the years, adapting to the changing landscape of technology and cybersecurity.
Recent Financial Performance
As of the second quarter of 2024, Radware reported a revenue of $67.3 million, marking a 3% increase year-over-year. This growth can be attributed to various factors, including increased demand for cloud-based solutions.
| Region | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Year-over-Year Growth |
|---|---|---|---|
| Americas | $30.1 | $26.8 | +12% |
| EMEA | $22.8 | $22.6 | +1% |
| APAC | $14.4 | $16.2 | -11% |
Income Metrics
In terms of profitability, Radware's GAAP net income for Q2 2024 was $1.7 million, or $0.04 per diluted share, an improvement from a GAAP net loss of $5.8 million, or $(0.13) per diluted share, in the same quarter of the previous year. The non-GAAP net income stood at $8.8 million, or $0.20 per diluted share, compared to $4.5 million or $0.10 per diluted share in Q2 2023.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| GAAP Net Income | $1.7 million | $(5.8 million) |
| GAAP EPS | $0.04 | $(0.13) |
| Non-GAAP Net Income | $8.8 million | $4.5 million |
| Non-GAAP EPS | $0.20 | $0.10 |
Cash Flow and Assets
As of June 30, 2024, Radware had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities totaling $396.6 million. The cash flow from operations for the same period was $23 million.
| Category | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $86.8 |
| Marketable Securities | $122.3 |
| Short-term Bank Deposits | $169.4 |
| Trade Receivables | $25.5 |
Operating Expenses
Radware's non-GAAP operating expenses for Q2 2024 amounted to $49 million, reflecting a 6% decrease year-over-year. This reduction in expenses contributed to the improved profitability metrics.
| Expense Type | Q2 2024 (in millions) | Q2 2023 (in millions) |
|---|---|---|
| Research and Development | $18.7 | $21.1 |
| Selling and Marketing | $29.7 | $31.9 |
| General and Administrative | $7.0 | $8.3 |
In summary, Radware Ltd. has shown resilience and adaptability in its financial performance as of 2024, reflecting positive growth trends and strategic management of its resources.
A Who Owns Radware Ltd. (RDWR)
Major Shareholders
As of 2024, the ownership structure of Radware Ltd. reflects a mix of institutional and individual investors. The largest shareholders include:
- Roy Zisapel: CEO and co-founder, holds approximately 12.5% of shares.
- Institutional Investors: Various institutional investors hold a combined total of about 55% of shares.
- Public Float: The remaining shares are held by retail investors and other entities.
Institutional Ownership
Institutional investors play a significant role in Radware’s ownership. Key institutional shareholders include:
| Institution | Percentage Owned | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 4,429,000 |
| The Vanguard Group, Inc. | 8.9% | 3,825,000 |
| State Street Corporation | 8.5% | 3,675,000 |
| Invesco Ltd. | 7.1% | 3,075,000 |
| Wellington Management Company, LLP | 6.5% | 2,800,000 |
Recent Stock Performance
As of mid-2024, Radware Ltd. has shown a positive stock price trajectory, with the share price reaching $16.50, reflecting a year-to-date increase of approximately 25%.
Financial Overview
Financial highlights from Radware's Q2 2024 earnings report include:
- Revenue: $67.3 million, a 3% increase year-over-year.
- GAAP Net Income: $1.7 million, or $0.04 per diluted share.
- Non-GAAP Net Income: $8.8 million, or $0.20 per diluted share.
- Cash Flow from Operations: $23 million.
- Total Assets: $601.5 million.
Shareholder Equity
As of June 30, 2024, Radware’s total shareholders' equity stands at:
| Category | Amount (in thousands) |
|---|---|
| Share Capital | $748 |
| Additional Paid-In Capital | $542,643 |
| Treasury Stock | ($366,588) |
| Retained Earnings | $120,254 |
| Total Shareholders' Equity | $296,644 |
Market Trends and Future Outlook
Radware continues to adapt to market demands, focusing on cloud security and AI-driven solutions. The annual recurring revenue (ARR) reached $70 million, showing a 19% increase year-over-year, signifying robust growth in subscription-based services.
Radware Ltd. (RDWR) Mission Statement
Company Overview
Radware Ltd. is a global leader in application security and delivery solutions for multi-cloud environments. The company's mission is to empower enterprises and carriers worldwide to address evolving cybersecurity challenges while enhancing their operational efficiency.
Mission Statement
As of 2024, Radware's mission is to provide innovative solutions that ensure the security and availability of applications, while delivering a seamless user experience. The company aims to lead in the cybersecurity space through advanced technology and exceptional customer service.
Core Values
- Innovation: Commitment to continuous improvement and cutting-edge technology.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Integrity: Conducting business with honesty and transparency.
- Collaboration: Fostering teamwork and partnerships.
Financial Performance
In the second quarter of 2024, Radware reported significant financial metrics that reflect its operational effectiveness:
| Financial Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Revenue | $67.3 million | $65.6 million | +3% |
| GAAP Net Income | $1.7 million | $(5.8) million | — |
| Non-GAAP Net Income | $8.8 million | $4.5 million | +96% |
| Non-GAAP Diluted EPS | $0.20 | $0.10 | +100% |
| Cash Flow from Operations | $23.0 million | $4.9 million | +368% |
Strategic Goals
Radware aims to achieve the following strategic goals in 2024:
- Enhance product offerings with AI-driven solutions.
- Increase annual recurring revenue (ARR) to $70 million, a 19% increase year-over-year.
- Expand market presence in North America and EMEA regions.
- Focus on customer retention and satisfaction through improved service delivery.
Market Position
As of 2024, Radware is positioned as a leader in the cybersecurity market, competing with major players through its innovative solutions and strong customer relationships. The company's robust financial results demonstrate its resilience and growth potential amidst a competitive landscape.
Conclusion
Radware's mission statement emphasizes its commitment to innovation, customer satisfaction, and operational excellence. The company's strategic goals align closely with its mission, aiming to solidify its market leadership and enhance stakeholder value.
How Radware Ltd. (RDWR) Works
Company Overview
Radware Ltd. (NASDAQ: RDWR) is a global leader in application delivery and cyber security solutions for virtual, cloud, and data center environments. The company specializes in providing a range of services including DDoS protection, application delivery, and cloud security services.
Financial Performance
As of the second quarter of 2024, Radware reported revenue of $67.3 million, a 3% increase year-over-year. The breakdown of revenue by region is as follows:
| Region | Q2 2024 Revenue | Q2 2023 Revenue | Year-over-Year Change |
|---|---|---|---|
| Americas | $30.1 million | $26.8 million | +12% |
| EMEA | $22.8 million | $22.6 million | +1% |
| APAC | $14.4 million | $16.2 million | -11% |
Net Income
Radware's GAAP net income for Q2 2024 was $1.7 million, or $0.04 per diluted share, compared to a GAAP net loss of $5.8 million, or $(0.13) per diluted share for Q2 2023. Non-GAAP net income was $8.8 million, or $0.20 per diluted share, compared to $4.5 million, or $0.10 per diluted share in the previous year.
Operating Expenses
The company's operating expenses for Q2 2024 totaled $55.4 million, down from $61.4 million in Q2 2023. The breakdown of operating expenses is as follows:
| Expense Category | Q2 2024 | Q2 2023 |
|---|---|---|
| Research and Development | $18.7 million | $21.1 million |
| Selling and Marketing | $29.7 million | $31.9 million |
| General and Administrative | $7.0 million | $8.3 million |
Cash Flow
For Q2 2024, Radware reported cash flow from operations of $23.0 million, compared to $4.9 million in Q2 2023. As of June 30, 2024, the company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities totaling $396.6 million.
Key Performance Indicators
Annual recurring revenue (ARR) reached $70 million in Q2 2024, reflecting a 19% increase year-over-year. This metric is crucial as it indicates the annualized value of booked orders for cloud services, subscription licenses, and maintenance contracts.
Market Position and Developments
Radware is actively enhancing its offerings through innovations such as the recently launched Radware EPIC-AI™, which focuses on AI-driven solutions for cyber security and application delivery. The company aims to leverage these innovations to strengthen its market position and drive growth in the latter half of 2024.
Balance Sheet Overview
As of June 30, 2024, Radware's total assets amounted to $601.5 million, with total liabilities of $264.5 million, resulting in total equity of $336.9 million.
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $601,538 |
| Total Liabilities | $264,551 |
| Total Equity | $336,987 |
Conclusion
Radware's robust financial performance and strategic innovations position it well in the evolving landscape of cyber security and application delivery solutions. The company continues to adapt to market demands while enhancing its operational efficiency.
How Radware Ltd. (RDWR) Makes Money
Overview of Revenue Streams
Radware Ltd. generates revenue through a combination of cloud services, application delivery solutions, and cybersecurity services. The company primarily focuses on helping enterprises and carriers secure their applications and data across multi-cloud environments.
Financial Performance
In the second quarter of 2024, Radware reported total revenues of $67.3 million, which represents an increase of 3% year-over-year. The breakdown of revenue by region is as follows:
| Region | Revenue (Q2 2024) | Year-over-Year Change |
|---|---|---|
| Americas | $30.1 million | +12% |
| EMEA | $22.8 million | +1% |
| APAC | $14.4 million | -11% |
Cloud Services
Radware's cloud services segment is a significant driver of revenue, with an Annual Recurring Revenue (ARR) of $70 million as of Q2 2024, reflecting a 19% increase year-over-year. This segment includes subscription-based services that provide ongoing protection against DDoS attacks and other cyber threats.
Cost Structure
The company's total operating expenses for the second quarter of 2024 were $55.4 million, compared to $61.4 million in the same quarter of 2023. The breakdown of operating expenses is as follows:
| Expense Category | Amount (Q2 2024) | Amount (Q2 2023) |
|---|---|---|
| Research and Development | $18.7 million | $21.1 million |
| Selling and Marketing | $29.7 million | $31.9 million |
| General and Administrative | $7.0 million | $8.3 million |
Profitability Metrics
Radware's GAAP net income for Q2 2024 was $1.7 million, or $0.04 per diluted share, compared to a net loss of $5.8 million in Q2 2023. Non-GAAP net income for the same period was $8.8 million, or $0.20 per diluted share.
Cash Flow Analysis
For the second quarter of 2024, Radware reported cash flow from operations of $23 million, a significant increase from $4.9 million in Q2 2023. The company ended the quarter with cash, cash equivalents, and marketable securities totaling $396.6 million.
Market Position and Future Outlook
Radware continues to evolve its product offerings with innovations such as Radware EPIC-AI™, which enhances its capabilities in AI-driven cybersecurity solutions. The company is optimistic about its growth potential in the rapidly expanding cybersecurity market, particularly in the cloud segment.
Radware Ltd. (RDWR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Radware Ltd. (RDWR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Radware Ltd. (RDWR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Radware Ltd. (RDWR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.