Slide 1: Investor Presentation
Investor Presentation July 2024
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 forwar
Slide 3: This is Radware
This is Radware Radware’s Core Business The Hawks’ Business Application Infrastructure Application SkyHawk Protection of application hosted Delivery and and DDoS and API in the public cloud Performance Protection Protection ↗ CSPM ↗ Alteon w/GEL ↗ Cloud DDoS Protection ↗ Cloud Application ↗ CIEM ↗ L
Slide 4: Challenges to Maintaining Application Security
Challenges to Maintaining Application Security Key Drivers for CISOs in 2024 1 2 3 4 Shifting New Hybrid Cloud Cybersecurity Threat Regulatory Deployments Staff & Skills Landscape Requirements Expand Shortages Leveraging new tools New, stricter Hybrid-cloud reality Organizations cannot & GenAI to at
Slide 5: Challenges to Maintaining Application Security
Challenges to Maintaining Application Security Key Drivers for CISOs in 2024 1 2 3 4 Shifting Threat Landscape Leveraging new tools & GenAI to attack applications 5
Slide 6: Shifting Threat Landscape
Shifting Threat Landscape 1 +94% 82% +171% Increase in number of DDoS Experience a bot attack on a Increase in malicious web attacks, 2023 vs. 2022 daily, weekly or monthly basis traffic, 2023 vs. 2022 Attacks increase in frequency, size & complexity across all attack vectors Source: Radware Threat
Slide 7: What is Fueling the Shifting Threat Landscape?
What is Fueling the Shifting Threat Landscape? AI-Powered Revolution Attackers’ “Community” Growing Attack Tools Attackers’ Evolving Motivations Shifting 7
Slide 8: Shifting Attack Motivations of Hacktivist Groups
Attackers’ Motivations Shifting Shifting Attack Motivations of Hacktivist Groups Politically Motivated Religiously Motivated Financially Motivated NoName057, Anonymous Sudan, Mysterious SKYNET/GODZILLA, Killnet cluster, Anonymous Team Bangladesh, DragonForce InfraShutdown, Stressers, ATO Russia, Pas
Slide 9: Shifting Attack Motivations of Hacktivist Groups
Attackers’ Motivations Shifting Shifting Attack Motivations of Hacktivist Groups Politically Motivated Religiously Motivated Financially Motivated DDoS & Botnet for hire Canadian PM Credit Agricole (JUN 23) (JUN 23) UPS Cloudflare Attackers offering full marketplace (APR/JUN/SEP 23) (Nov ’23) 9
Slide 10: All-in-One Modern Attack Tools on Github
Attack Tools Evolving All-in-One Modern Attack Tools on Github DDoS attack vectors Bot attack vectors Web application exploits Attackers don’t distinguish between WAF, DDoS, Bot attack vectors Built-in bypass again common defenses Need an integrated platform to overcome all-in-one attack tools 10
Slide 11: Attackers Use AI to Create Autonomous Attacks
AI-Powered Revolution Attackers Use AI to Create Autonomous Attacks Research shows how LLM Agents can autonomously exploit one-day vulnerabilities* GenAI tools used by attackers * [2404.08144] LLM Agents can Autonomously Exploit One-day New AI-based CAPTCHA Vulnerabilities (arxiv.org) solving tool F
Slide 12: Challenges to Maintaining Application Security
Challenges to Maintaining Application Security Key Drivers for CISOs in 2024 1 2 3 4 New Regulatory Requirements New, stricter regulations on cyber- security incidents 12
Slide 13: New Regulatory Requirements
New Regulatory Requirements 2 “Registrants must disclose New & updated requirements: EU-wide legal framework for any cybersecurity incident • WAF requirements mandating cybersecurity they experience that is • Positive security protection measures determined to be material […] • API protection within
Slide 14: Challenges to Maintaining Application Security
Challenges to Maintaining Application Security Key Drivers for CISOs in 2024 1 2 3 4 Hybrid Cloud Deployments Expand Hybrid-cloud reality creates many entry points 14
Slide 15: Hybrid Cloud Deployments Expand
Hybrid Cloud Deployments Expand 3 Most Organizations Today Run Hybrid Multi Cloud Environments 55% Of organizations run three or 73% Still maintain their on-prem 46% Use on-prem, private cloud more environments hardware data centers and public cloud all at once Need consistent protections across div
Slide 16: Challenges to Maintaining Application Security
Challenges to Maintaining Application Security Key Drivers for CISOs in 2024 1 2 3 4 Cybersecurity Staff & Skills Shortages Organizations cannot rely on their internal resources only 16
Slide 17: Organizations Face Cybersecurity Staff, Skill Shortages
Organizations Face Cybersecurity Staff, Skill Shortages 4 67% Face shortages in security 3.99M Estimated open global 41% Can’t find enough qualified staff or skills cybersecurity roles talent Need for automated protections and expert managed services 17 Source: ISC2 Cybersecurity Workforce Study, 20
Slide 18: What is Needed to Stay Ahead?
What is Needed to Intelligent Integrated Consistent Expert Stay Ahead? Security Platform Protections Defense powered by correlating across all with 24/7 AI-based across wide environments security Radware. algorithms array of and entry experts by threats points your side Only way to drive lower MTTR,
Slide 19: What is Needed to Stay Ahead?
What is INTELLIGENT INTEGRATED Needed to SECURITY PLATFORM Stay Ahead? A I - POWERED Protecting Your Radware. Applications & Infrastructure AI- POWERED CONSISTENT EXPERT PROTECTIONS DEFENSE 19
Slide 20: Radware Cloud Application Protection
BAD BOTS Radware 360 WEB ATTACKS BOT Cloud WAF MANAGER POWERED Application A I - ATO Protection API ABUSE API PROTECTION PROTECTION ACCOUNT TAKEOVER Mobile & Web Applications APIs WEB DDOS CLIENT SIDE SUPPLY CHAIN AI-BASED PROTECTION PROTECTION ATTACKS ATTACKS AI- Truly exceptional POWERED protectio
Slide 21: Radware EPIC-AI Platform
Introducing Radware EPIC-AI Platform End-to-end Powerful Integrated Cybersecurity AI Platform 21
Slide 22: Protection with Radware EPIC-AI Platform
360 Protection with Radware EPIC-AI Platform AI-empowered managed services AI-Driven SecOps enablement SOC Compliance, analytics & integrations Threat intelligence insights & preemptive protection feeds Cross-Platform Cross-module AI-based correlation AI Reasoning LOWER MTTR Continuous AI-powered po
Slide 23: Real World AI-Powered Protection Where It Matters Most
Real World AI-Powered Protection Where It Matters Most Radware is the only vendor in this Accelerate SOC analysis to earn a top score on the AI-led human-empowered AI enhanced vulnerability operations & SOC to quickly identify root detection criterion reduce MTTR cause & resolve incidents Block mali
Slide 24: New Disruptive Web DDoS Tsunami Attacks
New Disruptive Web DDoS Higher in volume – Ultra high RPS Tsunami Attacks Encrypted floods Signature-based & rate- limiting techniques are ineffective! Appear to be legitimate requests Requires AI-powered approach for accurate detection & mitigation Multiple, sophisticated evasion techniques (random
Slide 25: Radware Protects EMEA Bank from Web DDoS Tsunami Attacks
Radware Protects EMEA Bank from Web DDoS Tsunami Attacks Attack Peaks Attack Length Attack Signature Up to Several days w/ multiple Signature created in waves lasting real-time includes Layer 7 application DDoS 14.6M 10-20 27 protection is where it shines. RPS HOURS PARAMETERS Mean time to remediati
Slide 26: EPIC-AI Platform: The Radware Difference
EPIC-AI Platform: The Radware Difference AI-Driven EXPERT DEFENSE SOC AI-enabled SOC & managed services Cross-Platform INTEGRATED PLATFORM AI Reasoning LOWER MTTR AI-based correlation & data-driven feeds RT Cloud INTELLIGENT SECURITY Protection AI-powered Web DDoS, DNS, Bot & API protection Engines
Slide 27: Give Your Apps the Most Precise, Hands-Free, Real-Time Protection
INTELLIGENT INTEGRATED SECURITY PLATFORM POWERED Give Your Apps the A I - Most Precise, Hands-Free, Real-Time Protection AI- POWERED CONSISTENT EXPERT PROTECTIONS DEFENSE 27
Slide 28: Global Cloud Services Network
Global Cloud Services Network Dual local PoP for reduced latency and regulations compliance 21 Worldwide SCRUBBING CENTERS 15 Tbps OF GLOBAL MITIGATION CAPACITY DDoS MITIGATION SCRUBBING CENTER CLOUD APPLICATION PROTECTION PoP 50+Global CLOUD SECURITY SERVICE CENTERS 28
Slide 29: Large Enterprise and Service Providers Customers
Large Enterprise and Service Providers Customers 6 10 8 10 5 10 2 5 2 5 OF TOP OF TOP OF TOP OF TOP OF TOP WORLD’S WORLD’S TELECOM WORLD’S STOCK WORLD’S MOST WIDELY BANKS COMPANIES EXCHANGES ECOMMERCE USED SAAS COMPANIES APPLICATIONS 29
Slide 30: 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 Es
Slide 31: Financial Overview
3° radware Financial Overview
Slide 32: Q2 2024 Highlights
Q2 2024 Highlights Revenue Gross Operating Cloud ARR EPS $67.3 million $70 million Margin $0.20 CF 82.2% $23.0 million Comparedto +3% YoY +19% YoY -10bp YoY +100% YoY $4.9M Lastyear * Total ARR includes the annualized value of booked orders for services, subscription licenses and maintenance contrac
Slide 33: Total ARR Driven by Cloud ARR
Total ARR Driven by Cloud ARR TOTAL ARR CLOUD ARR +8% $217M $70M $208M $195M $59M $177M +26% $163M $150M $48M $39M $28M $22M Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 * Total ARR includes the annualized value of booked orders for services, subscr
Slide 34: Total ARR Excluding Customer Termination Agreement
Total ARR Excluding Customer Termination Agreement Total ARR ($M) Total ARR Excluding Customer ($M) +8% $217M +9% $217M $208M $203M $195M $190M $177M $172M $163M $157M $150M $143M Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 * Total ARR includes the
Slide 35: Q2 2024 Financial Data
Q2 2024 Financial Data Revenue Gross Margin (Non-GAAP) Operating Expenses Diluted Earnings Per +3% (Non-GAAP) Share (Non-GAAP) -10bp $66M $67M 82.3% 82.2% -6% +100% $52M $49M $0.20 $0.10 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 35
Slide 36: Revenue Geography Breakdown
Revenue Geography APAC Breakdown $14.4M, -11% YoY ($M) 21% AMERICAS 45% $30.1M, +12% YoY Q2 2024 34% EMEA $22.8M, +1% YoY 36
Slide 37: Cash Generation
Cash Generation OCF FCF CapEx Buyback Cash & Equivalents $32M $29M Deposits $87M $23M $22M $179M $397 $9M $8M $5M Million $3M $0M -$1M -$2M -$1M -$2M -$5M $130M -$18M -$20M Marketable Securities Q2 2021 Q2 2022 Q2 2023 Q2 2024 * Numbers are rounded 37
Slide 38: Thank you!
? 7 Le o r . A ase Thank you -° radware