Radware Ltd. · NASDAQ:RDWR
Radware — Q1 2022 Earnings Presentation
30 slides from Radware's earnings presentation, May 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 2022
Slide 2: Safe Harbor
Safe Harbor This presentation 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
Slide 3: Radware at a Glance
Radware at a Glance $74M ~1,200 >12,500 >40 24% Revenue* Employees Customers Countries Fortune 50 Customers * For the 3 months period ended March 31, 2022 3
Slide 4: We Secure Digital Experiences
We Secure Digital Experiences All the Time Everywhere
Slide 5: This is Radware: Complete Mitigation Suite
This is Radware Complete Mitigation Suite Radware’s Core Business The Hawks Business SkyHawk Application Application and Cloud Security Protection of application Availability Data Center As-a-Service hosted in the public cloud Application delivery Security Mitigation of data centers, web Mitigation
Slide 6: We Mitigate Diversified Cyber Attacks
We Mitigate Diversified Cyber Attacks Carpet DNS Burst Encrypted IoT Bombing Attacks Attacks Attacks Botnets Attacks Automated Behavioral-Based Integrated Real-time Amplification Behavioral DNS Burst attack 0-Latency intelligence feed & Reflection Protection protection multi-layer to block active at
Slide 7: Cyber Attacks Campaigns
Cyber Attacks Campaigns “Most Severe’ Cyberattack Since Russian Invasion Crashes Ukraine Internet Provider Russian cyber-attacks in Ukraine have peaked, says State Special Communications Service Ukraine's postal service hit by cyberattack after Moskva warship stamp goes on sale online rN Russian hac
Slide 8: Cyber Attacks Campaigns
Cyber Attacks Campaigns Home Israel News Israeli Government Sites Crash in Cyberattack A defense establishment source claims that this is the largest-ever cyberattack carried out against Israel The websites of the interior, health, justice and welfare ministries had been taken offline, as was that o
Slide 9: Radware Evolution
Radware Evolution 1997 1998 1999 2003 2004 2005 2009 2012 2013 2014 2017 2019 2020 2020 2021 2022 2022 Founded IPO ADC Acquired Started Acquired Acquired Shield Launched Bot Launched Leader Alteon Cloud Biz. Seculert Square Manager SkyHawk First LB Launched Acquired OEM OEM Launched Launched Acquire
Slide 10: Why Radware? Investment Highlights
Investment Leading Differentiated Technology Highlights Large Market Opportunity Growth Acceleration Opportunities Why Radware? Strong Financials 10
Slide 11: Differentiated Technology: Broad and Deep Offering
Investment Highlights Differentiated Technology: Broad and Deep Offering with Innovative Technology DDoS Web Application Bot API Security Protection Protection Management Behavioral-based Protection against OWASP Behavioral and ML to Auto-discovery of APIs detection top 10 threats and Zero- identify
Slide 12: Differentiated Technology: Industry Recognition
Investment Highlights Differentiated Technology: Industry Recognition API & HIGH SECURITY 2021 DDOS MITIGATION SOLUTION Q1 2021 SPARK MATRIX: DDOS MITIGATION 2021 VOICE OF THE CUSTOMER: SPARK MATRIX: BOT MANAGEMENT 2021 WEB APPLICATION FIREWALLS 2021 12
Slide 13: Large Market Opportunities in Radware's Core Business
Investment Highlights Large Market Opportunities in Radware’s Core Business 16% Application 23% CAGR* Modernization CAGR* Attack Intensity Work from home Grows Cloud Transition 24% 1.4% CAGR* CAGR* Digital Transformation 13 * Estimates of IDC, Gartner and Forrester for 2019-2025
Slide 14: Total Addressable Market
Investment Highlights Total Addressable Market* (Radware’s Core Business: $Billion) ADC DDoS DDoS $1.75 $5.80 $6.8B $3.40 $13.5B $3.20 TAM TAM Today $1.05 ADC WAF 2025 $0.75 $1.70 $2.60 Bot Manager WAF Bot Manager * Estimates of IDC, Gartner and Forrester 14
Slide 15: Critical Market with Tailwinds from Growth in Cyber Attacks
Investment 3,806K +122% DDoS Attacks blocked in Q1 2022 YoY Highlights 665M +63% Web Application Attack Transactions YoY Critical Market with blocked in Q1 2022 Tailwinds from Growth in Cyber Attacks 14,442M +126% Bad Bot Request Detected in Q1 2022 YoY 15
Slide 16: Growth Acceleration: From on-prem to Cloud AppSec
Investment Highlights Growth Acceleration Opportunities: From on-prem to Cloud AppSec Subscription Revenue ($M) Subscription as % of Total Bookings 37% $93 35% 31% $72 23% $55 18% $42 14% $30 $18 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 16
Slide 17: Global Cloud Security Network Enables Geographic Expansion
Investment Highlights Growth Acceleration Opportunities Global Cloud Security Network Enables Geographic Expansion 40+ AppSec PoPs WITH GLOBAL COVERAGE 10 Tbps OF GLOBAL MITIGATION CAPACITY DDoS MITIGATION SCRUBBING CENTER CLOUD WAF PoP BOT MANAGER SERVICE CENTER 16 Worldwide SCRUBBING CENTERS 17
Slide 18: Loyal Install Base: Partners and Diversified Verticals
Investment Highlights Growth Acceleration Opportunities: Loyal Install Base Our Partners Diversified Verticals Financial & Tech & Insurance Consulting ~35% ~10% Government ~15% Other Service ~15% Providers ~30% 18
Slide 19: Loyal Install Base
Investment Highlights Growth Acceleration Opportunities: Loyal Install Base 9 Of Top 10 5 Of Top 12 5 Of Top 10 16 Of Top 20 3 Of 10 World Telecom World’s Stock World’s World’s Most Widely Used Companies Exchanges Retailers Banks SaaS Applications 19
Slide 20: Strong Financials
Investment Highlights Strong Financials Cash, Deposits and Marketable Securities Cash Flow and Capital Allocation $72 $64 $66 $466 $449 $428 $401 $53 $55 $52 $344 $49 $45 $45 $40 $31 $24 $25 $4 $0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Operating Cash Flow Free Cash Flow Buyback 20
Slide 21: Growth Strategy
Growth Strategy Acquisitions Cloud Services GTM Expand through Data & Solutions acquisitions Center OEM Partners Alliances Global SIs Aggressive Investment Cloud Providers Cyber Security in Portfolio & Market Share and Application Move to Subscription/ARR Delivery Solutions 21
Slide 22: Environment, Social, Governance
Environment, Social, Governance Protecting the Promoting Investing in Environment Human Rights Community • Implemented KPIs for • Published Human Rights • Building strong relationship reduction in the use of and Labor Standard with the community with water, power and paper Policy various projects •
Slide 23: Financial Overview
Financial Overview
Slide 24: Q1 2022 Highlights
Q1 2022 Highlights $74M 68% $192 33% YoY 20% YoY Revenue Recurring Total ARR Growth Cloud and 10% Increase YoY Revenue 9% Increase YoY in EMEA Subscription ARR Revenue Growth * ARR includes the annualized value of booked orders for term-based cloud services, subscription licenses and maintenance con
Slide 25: Revenue Trends ($M)
Revenue Trends ($M) CAGR 9% $74 $67 $61 $60 $55 $49 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 25
Slide 26: Annual Recurring Revenue Trends ($M)
Annual Recurring Revenue Trends ($M) CAGR 10% $192 $190 $185 $176 $177 $174 $169 $163 $160 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 * ARR includes the annualized value of booked orders for term-based cloud services, subscription licenses and maintenance contracts that
Slide 27: Revenue ($M) and EPS Growth
Revenue ($M) and EPS Growth 10% 11% $74 $0.19 $67 $0.17 Q1 2021 Q1 2022 Q1 2021 Q1 2022 27
Slide 28: Revenue Breakdown by Geographies
APAC Revenue +34% YoY Breakdown by Geographies $16 ($M) $30 AMERICAS -12% YoY EMEA +33% YoY $28 28
Slide 29: Cash Generation and Balance Sheet ($M)
Cash Generation and Balance Sheet ($M) Cash & $72 Equivalents $64 $54 $53 $49 $213 $397M $130 $31 Deposits Marketable Securities 2017 2018 2019 2020 2021 29
Slide 30: Thank You!
Thank You!