Radware Ltd. · NASDAQ:RDWR
Radware — Investor Presentation (May 2019)
29 slides from Radware's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019 www.radware.com
Slide 2: Safe Harbour
Safe Harbour DISCLAIMER This presentation may contain forward-looking information with respect to plans, projections, or future performance of Radware and its subsidiaries, the occurrence of which involves certain risks and uncertainties, including, but not limited to, general business conditions, c
Slide 3: Worldwide leader in Application Security & Delivery
Is a worldwide leader in APPLICATION SECURITY & DELIVERY Across Datacenter and Cloud Our Mission: Securing The Digital User Experience For every Through With a comprehensive business model continued innovation offering 3
Slide 4: Our Business Strategy for Growth
Our Business Strategy for Growth 4 2 3 M&A 1 Expand our business Market Foot Print OEM Partners Alliances Global SIs Cloud & Security Cloud Providers Aggressive Investment in Portfolio & Market Share Data Center 4
Slide 5: Our Business Strategy for Growth
Our Business Strategy for Growth 4 2 3 M&A 1 Expand our business Market Foot Print OEM Partners Alliances Global SIs Cloud & Security Cloud Providers Aggressive Investment in Portfolio & Market Share Data Center 5
Slide 6: The World is Changing
The World is Changing Application Cyber attacks reach Infrastructure Infrastructure is a tipping point is shifting shifting Complexity, IoT, from Datacenter to From monolithic / 3-tier to cloud attacks private, hybrid and kubernetes and micro public cloud services, containers 6
Slide 7: Attack Landscape
Attack Landscape IoT Expands Cloud Becomes an Internet Becomes The Bot Universe Attack Tool Encrypted 7
Slide 8: Attacks Reaching a Tipping Point
Attacks Reaching a Tipping Point Paint Malware IoT Botnet - 1.35Tbps DDoS Target REST API Targeting Facebook A new Mirai Variant Attack, IoT based Vulnerability Credentials January 2018 March 2018 April 2018 October 2018 8
Slide 9: How? Through Portfolio Evolution
How? Trough Portfolio Evolution 4 2 3 M&A 1 Expand our business Market Foot Print OEM Partners Alliances Global SIs Cloud & Security Cloud Providers Aggressive Investment in Portfolio & Market Share Data Center 9
Slide 10: Strongly Positioned for Today's Challenges and Needs
Strongly Positioned for Today’s Challenges and Needs Subscriptions Security Cloud 10
Slide 11: Deep and Integrated Solution Portfolio
Deep and Integrated Solution Portfolio BIG-DATA MACHINE LEARNING CLOUD FACTORIES THREAT INTEL. BOT MALWARE WORKLOAD MANAGEMENT & RADWARE SAAS OPERATION OPERATIONS CLOUD PORTAL SECURITY-IN-THE-CLOUD CONTROL & PUBLIC CLOUD AUTOMATION PROTECTION SECURITY-OF-THE-CLOUD - CLOUD EDGE SERVICES PREMISE CLOUD
Slide 12: Radware AMS Multi-dimensional Competitive Advantage
Radware AMS Multi-dimensional Competitive Advantage BREADTH OF ATTACK COVERAGE (Secure the network, Application and API’s) SELF-LEARNING ALGORITHMS Behavioral anomalies detection Auto-fingerprinting generation COMPLEX ZERO-DAY ATTACK MITIGATION DEFENSE AUTOMATION Premise-Cloud/Premise-Scrubbing THRE
Slide 13: Expanding Our AMS Leadership
Expanding Our AMS Leadership Service Cloud Providers 5G Defense Security Full-Stack New dimension CWP Anti-Bot 13
Slide 14: A Growing Global Cloud Service Infrastructure
A Growing Global Cloud Service Infrastructure Radware Cloud Security PoP Regional Cloud Scrubbing Center 11 24 Scrubbing 14 centers worldwide Cloud WAF PoPs >5Tbps Of global mitigation capacity
Slide 15: Subscription Offering Continues to Grow
Subscription Offering Continues to Grow Products Cloud Management Professional & Control Services Cloud DDoS ERT Under Attack ERT Active Attackers Feed Vision Analytics Protection Service Service Security Update Subscription Right to Use (RTU) ERT Managed Service Cloud WAF Service (SUS) for DefenseP
Slide 16: How? Through Footprint Expansion
How? Trough Footprint Expansion 4 2 3 M&A 1 Expand our business Market Foot Print OEM Partners Alliances Global SIs Cloud & Security Cloud Providers Aggressive Investment in Portfolio & Market Share Data Center 16
Slide 17: Diversified Customer Base
Diversified Customer Base Over 12,500 Customers 2018: Over 20 Deals >$1M 8 Of Top 12 World’s Stock Exchanges 11 Of Top 20 Leading Social Network Global Financial Technology Services Top CDN Global IaaS leader World’s 10 Of Top 10 Banks Asian Government Major online Endpoint European Government World
Slide 18: Leading Technology Validated
Leading Technology Validated Market Strategic RECOGNITION BUSINESS PARTNERS 18
Slide 19: Increasing Market Footprint through 3rd Parties
Increasing Market Footprint through 3rd Parties Strategic Partners, System Integrators, Service Providers VARs 1 Deeper and broader relationships with strategic partners, adding Radware solutions to their price lists to increase to > 20% of bookings Long Term Goal 2 System Integrators growing role i
Slide 20: Actively Searching for Inorganic Opportunities
Actively Searching for Inorganic Opportunities 3 4 2 M&A 1 Expand our business Market Foot Print OEM Partners Alliances Global SIs Cloud Providers Aggressive Investment in Portfolio & Market Share Data Center 20
Slide 21: Acquisitions to Expand Offering and Presence
Acquisitions to Expand Offering and Presence Latest Examples January 2017 Technology Driven Acquisitions $420M Cash and Equivalents as of Mar-19 Business Driven Acquisitions Q1 2019 21
Slide 22: Financials
Financials Updated for Q1 2019 22 www.radware.com
Slide 23: Q1 Business Indicators
Q1 19 Business Indicators Total Deferred Revenues* +13% >20% Subscription bookings $159M Revenue growth Up 8% of Total * As defined by the Company EPS 3x From $0.06 to $0.18 $23M Operating Cash Flow almost 2x from Q1 18 23
Slide 24: Operating Leverage
Operating Leverage Operating Income Operating Expenses COGS $234M $211M $61M 18% $197M $54M 18% 18% 82.7% 172 82.3% 82.8% 43 82.2% 170 82.4% 158 43 73% 80% 80% 2% 2% 9% 21.6 3% 12% 7.6 4.2 3.8 1.5 9% 2% 2% 24 2016 2017 2018 Q1 18 Q1 19
Slide 25: Balanced Presence
Balanced Presence REVENUES BY REGION VERTICAL EXPOSURE 43% 30-35% 25% 35-40% LTM to Mar-19 33% 25-30% Carriers & Service Providers Americas EMEA APAC Banking, Finance & Government Other ~1,100 35 Employees Offices 25
Slide 26: Shift to Subscriptions on Track to Secure Our Performance
Shift to Subscriptions on Track to Secure Our Performance PROVIDES US WITH VISIBILITY & CONFIDENCE 60-65% of Total Deferred Revenues is 167 148 159 scheduled to be recognized as revenues 148 within 12 months 21 121 35 39 26 101 85 37 30 Total 18 128 139 Deferred 113 122 103 93 Revenues 71 84 67 ($M)
Slide 27: Continuous Strong Cash Generation
Continuous Strong Cash Generation Cash and Equivalents Balance ($M) 450 401 420 400 350 331 315 320 344 300 250 200 150 100 50 0 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.3.19 27
Slide 28: 2020 Model
2020 Model Operating Cash Flow Revenues of >$270 >$60M Subscriptions Revenues CAGR >9% >30% Gross margins >83% Operating margins >15% (from 2% in ’17) of Bookings Continued strong cash generation Operational margins leverage Well positioned for sustainable organic growth in Bookings 28
Slide 29: Thank You
cose os’ fradware Thank You