Radware Ltd. · NASDAQ:RDWR
Radware — Investor Presentation (May 2018)
31 slides from Radware's investor presentation, May 2018
Slide 1: Investor Presentation Q1 2018
INVESTOR PRESENTATION Q1 2018 May 2018
Slide 2: Safe Harbor
Safe Harbor 2 Disclaimer This presentation may contain product development, profitability and forward-looking information with other risks detailed in Radware's respect to plans, projections, or future reports filed from time to time with performance of Radware and its the Securities and Exchange su
Slide 3: Application Security & Delivery
3 Is a worldwide leader in APPLICATION SECURITY & DELIVERY Across Datacenter and Cloud Intro
Slide 4: Impact of digital transformation
Impact of digital 4 transformation Cloud Datacetner User experience migration complexity focus New delivery models Virtualization, expectations for flawless require new capabilities private/hybrid cloud, availability multiple vendors Anytime, Everywhere Rapid changes require agility intro
Slide 5: Current state of cyber attacks
Current state of cyber attacks 5 INTENSIFYING SKILL WIDENING Current state of cyber attacks THREATS SHORTAGE THREATS Attackers sophistication + Scarce security expertise Attack motivation variety + Attack tools availability + Need for automation Attacked industry diversity platforms variety and full
Slide 6: Current state of cyber attacks
Current state of cyber attacks 6 INTENSIFYING SKILL WIDENING THREATS SHORTAGE THREATS 24% of organizations Only 33% of security 45% of organizations Current state of cyber attacks report being under cyber officers feel confident they experienced a data breach attacks daily or weekly can mitigate app
Slide 7: Our Mission: Securing The Digital User Experience
Our Mission: 7 Securing The Digital User Experience For every Through With a business continued comprehensive model. innovation. offering. intro
Slide 8: Everywhere
8 EVERYWHERE To meet every business model ARCHITECTURE Everywhere
Slide 9: Solutions Architecture: Everywhere
Solutions Architecture 9 Wherever it is located From Physical Appliances on Perpetual License On premise Private cloud Hyper cloud Public cloud To Physical or Virtual Hybrid Appliances, on premise, cloud and Hybrid Everywhere Will protect it
Slide 10: Effective
10 EFFECTIVE Continued Innovation TECHNOLOGY Effective
Slide 11: Effective: Comprehensive Secured Delivery
Advanced automation Comprehensive Secured Delivery for attack life-cycle management 11 and mitigation of unknown attacks Behavioral-based detection Using big data analytics and machine learning Synchronized messaging to improve detection and mitigation response and accuracy. High performance Device
Slide 12: Comprehensive Secured Delivery
Comprehensive Secured Delivery 12 Solution management Fully managed cloud services catalog and cyber threat intelligence services Cloud migration Multi-cloud migration, hybrid deployments across data-centers, public and hyper-scale clouds Effective
Slide 13: Easy
13 EASY Comprehensive offering SOLUTIONS Easy
Slide 14: Deep and Integrated Solution Portfolio
14 Deep and Integrated Solution Portfolio Big Data RealTime Machine Learning Analytic Feed Management Vision Reporting & Visibility Cloud Portal Module Control Plane vDirect DefenseFlow Orchestration Automation Data Plane 3.5Tbps DDoS/WAFaaS DefensePro Alteon Easy
Slide 15: Success Factors
15 SUCCESS FACTORS What makes it work Success factors
Slide 16: Success factors: Supporting Assets
Supporting Assets Leading Technology 16 Market Strategic Industry leading RECOGNITION BUSINESS TECHNOLOGY PARTNERS PARTNERS Success factors
Slide 17: Over 12,500 Customers
Supporting Assets Over 12,500 Customers 17 30-35% 35-40% 8 Of Top 12 11 Of Top 20 World’s Stock World’s Exchanges Banks 25-30% 10 Of Top 10 Carriers & Service Providers 3 Of Top 8 Banking, Finance & Government Success factors World Telecom N. American Application Software Other Companies Companies
Slide 18: Global Presence
Supporting Assets Global Presence 18 26% LTM Mar-18 48% Revenues 26% Americas EMEA APAC BALANCED Geographic Exposure Radware Cloud Security PoP Regional Cloud Scrubbing Center Success factors ~1,000 35 OVER 3.5Tbps Of Global Mitigation Capacity Employees Offices
Slide 19: Our Business Strategy For Growth
Our Business Strategy For Growth 4 19 Expand our business THROUGH ORGANIC GROWTH ACQUISITIONS 2 Cloud & Security Aggressive Investment in Portfolio & Market Share 3 Market Foot Print: • OEM Partners Alliances • Global SIs 1 Data center ADC and AMS • Cloud Providers Solutions Strategy
Slide 20: Financials
20 FINANCIALS Updated for Q1 2018 financials
Slide 21: Back to Growth Post Business Model Transition
Back to Growth Post Business Model Transition 21 Annual Revenues ($M) 222 217 211 189 193 197 -2% 167 8% -9% 144 109 89 95 81 49 55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 17 Q1 18 Financials
Slide 22: Shift to Subscriptions (1)
Shift to Subscriptions (1) 22 Recurring Revenues as % of Total 70% 65% >60% Business Mix 60% Provides Us With 56% 54% Visibility & 55% Confidence For 50% Future Financial 45% Performance 42% 40% 35% 30% 2015 2016 2017 Q1 18 Financials Radware’s Recurring Revenues include support, cloud services and
Slide 23: Shift to Subscriptions (2)
Shift to Subscriptions (2) 23 Total Deferred Revenues ($M) 60-65% of Total Deferred Revenues is scheduled to be recognized as revenues within 12 months 148 148 128 121 34 26 101 37 85 37 76 30 65 18 17 122 12 113 93 84 91 78 59 67 71 53 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 . Mar-17 Mar-18 Q2 17
Slide 24: Continuous Strong Cash Generation
Continuous Strong Cash Generation 24 Operating Cash Flow in Last 12 Months of $37.3M Cash Balance ($M) 344 358 331 315 320 286 275 Readiness to Put Cash Balance to Work and Expand our business THROUGH ACQUISITIONS 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.03.18 Financials
Slide 25: 2020 Goals
2020 Goals Total Deferred 25 Revenues CAGR Higher than Revenues of > $270 revenue Revenues CAGR > 9% Operating Gross margins > 83% Cash Flow > $60M Operating margins > 15% Subscriptions (from 2% in ’17) >30% of Bookings Well positioned Operational Continued strong for sustainable margins leverage ca
Slide 26: Summary: Why Radware
26 Why Radware • Fast growing, critical market • Clear Vision and Strategy • Leading attack mitigation technology, customers, partners • Fast expanding subscription and cloud business • Excellent visibility into 2018 and beyond • Well positioned for continued long term growth Summary
Slide 27: Appendix
27 APPENDIX financials
Slide 28: Radware's innovations track record
Radware’s innovations track record 28 Iot 2017 Protection Zero day Operator Malware detection Automation 2016 2015 ADC SSL Virtualization Inspection Patent 2014 ADC, DDoS, 2009 2010 2011 2012 2013 SDN Applications 2008 Patented Business Smart Network Patented Patented Site-Wide ADC Security Manageme
Slide 29: Integrated secured delivery solution: incoming traffic
Integrated secured delivery solution: incoming traffic 29 DDOS & WAF Behavioral big-data analytics and machine learning SSL Defense Mitigate encrypted threats Delivery Control Load balancing and Appendix performance optimization
Slide 30: Integrated secured delivery solution: outgoing traffic
Integrated secured delivery solution: outgoing traffic 30 CLEAN SSL Inspect Outgoing removes blind spots by enabling traffic protection systems visibility into encrypted traffic Cloud Malware Protection detect and block malware channels by using AI and Machine Learning Blocked Traffic Outgoing traff
Slide 31: Thank You
THANK YOU ooee os? radware