Radware Ltd. · NASDAQ:RDWR
Radware — Investor Presentation (May 2020)
27 slides from Radware's investor presentation, May 2020
Slide 1: Investor Presentation
Investor Presentation May 2020 1
Slide 2: Safe Harbor Disclaimer
SAFE HARBOR 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 and economic c
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS MAJOR MARKET LEADING STRONG MARKET SUCCESSFUL OPPORTUNITY DATA CENTER FOOTPRINT TRANSITION TO CYBERSECURITY SUBSCRIPTION PORTFOLIO 3
Slide 4: Our Market
OUR’ . WAAR VX \G “UN.
Slide 5: Applications and Data Changing Locations
APPLICATIONS AND DATA CHANGING LOCATIONS BALANCE SHIFTING TO PUBLIC CLOUDS 2 5 3+ IN are using multiple cloud environments Public cloud environments for large organizations Heterogeneous environment with many entry points which is hard to secure Workloads move in different directions creating attack
Slide 6: Application Infrastructure Is Shifting
APPLICATION INFRASTRUCTURE IS SHIFTING FROM MONOLITHIC TO MICRO SERVICES 60% of organizations run Microservices/Containers/ Serverless Multiple elements with no physical location to placed security infrastructure Intense machine-to-machine communication adds exposure Source: Radware 2019 State of We
Slide 7: Growing TAMs
GROWING TAMs BOT RISK DDoS PROTECTION ADC WAF MANAGEMENT MARKET SIZE: MARKET SIZE: MARKET SIZE: MARKET SIZE: $1.5B $2.9B $900M $300M CAGR: 18% CAGR: 8% Total CAGR: 10% CAGR: 25% -6% Appliance 19% Virtual *Market size as of 2019, CAGR to 2022 Sources: IDC Worldwide Application Delivery Controller For
Slide 8: Our Portfolio
OUR PORTFOLIO 8
Slide 9: Expanding Our Solutions for Growth
EXPANDING OUR SOLUTIONS FOR GROWTH PROTECTION AT THE PERIMETER PROTECTION IN THE CLOUD HYBRID KWAF CLOUD WORKLOAD BOTM BOTM PROTECTION SOLUTIONS WAF CWAF DDOS CDDOS DELIVERY PRIVATE CLOUD RADWARE SAAS KUBERNETES PUBLIC CLOUD Expanding the traditional portfolio from on premise to cloud security servi
Slide 10: Comprehensive Integrated Security Portfolio
COMPREHENSIVE INTEGRATED SECURITY PORTFOLIO EDGE-CLOUD PRIVATE CLOUD PUBLIC CLOUD PROTECTION IN THE CLOUD CWP CWP KWAF KWAF KWAF ACC ACC ACC PROTECTION E-W E-W E-W AT THE PERIMETER BotM N-S BotM FABRIC WAF WAF DEFENSE ADoS DDoS RADWARE CLOUD PUBLIC CLOUD IOT B2B HQ BRANCH MOBILE B2C Portfolio releva
Slide 11: Why Radware - Solutions
WHY RARWARE - SOLUTIONS WE HAVE THE BROADEST AND DEEPEST DATA CENTER & APPLICATION SECURITY FOR PRIVATE, HYBRID & PUBLIC CLOUD 11
Slide 12: Our Go-to-Market
" OUR 50-TO-MARKET WAAR VX \G “UN.
Slide 13: Go to Market Priorities for 2020 and Beyond
GO TO MARKET PRIORITIES FOR 2020 AND BEYOND SALES ORGANIZATION MARKET ACCESS CUSTOMERS We have the right sales Investing in partnerships: Focus on delivering world class structure to support and Cisco, OEMS, GSIs customer experience focus on growth Bringing innovative technology Introducing our cust
Slide 14: Cisco
CISCO BOOKINGS VIA CISCO Increasing number of global opportunities in CRM “Tens of $M annually” Participation in multiple Cisco “sales plays” Participation in strategic Cisco projects All Radware regions are active – driven by Cisco senior management Expand our offering ON TRACK TO REACH TARGET SET
Slide 15: GSI - Go to Market
GSI - GO TO MARKET GSI EXAMPLES: INDIRECT SALES WIDER LEVERAGE MARKET COVERAGE THE OUTSOURCE TREND MORE FASTER SCALABLE & CHEAPER GROWTH & PREDICTABLE BUSINESS Opportunity to support Global System Integrator as they engage deeper in security Opportunity to support Global System Integrator comprehens
Slide 16: Our Customers
OUR CUSTOMERS 12,500 30% of 2019 cloud business Customers comes from new logos 15-20% 30-35% 32 450 25-30% Deals of >$1M in 2019 Cloud Customers 25-30% 16
Slide 17: Why Radware - Market Access
WHY RADWARE - MARKET ACCESS WE CAN ACCESS ANY GLOBAL 2000 CUSTOMER THROUGH STRATEGIC PARTNERS AND GSIs AND WIN >$1M OF BUSINESS 17
Slide 18: Summary: Our Strategy
SUMMARY: OUR STRATEGY M&A 4 Market Footprint Expand our Business Cloud & Security 3 Data Center 2 OEM Partner Alliances Global SIs 1 Cloud Providers Aggressive Investment in Portfolio & Market Share 18
Slide 19: Financials
FINANCIALS 19
Slide 20: Financial Profile - Q1 Highlights
FINANCIAL PROFILE – Q1 20 HIGHLIGHTS $60 REVENUES 14% TOTAL DEFERRED REVENUE $21M OPERATING CASH FLOW GROWTH TO $181M COVID-19 affecting mostly APAC in Q1, rest of world late in quarter Some delivery disruptions due to airport lockdowns Internal operations impact contained, hiring for long term cont
Slide 21: Revenue Trends
REVENUE TRENDS QUARTERLY REVENUE ($M) REVENUE BY REGION ($M) 120 252 67.4 234 61.4 62.9 63.8 211 60.0 60.5 58.8 57.3 58.5 100 106 54.5 53.0 98 102 51.0 48.9 80 76 75 60 70 57 57 56 40 20 - Q1 Q2 Q3 Q4 2017 2018 2019 2017 2018 2019 2020 Americas EMEA APAC 21
Slide 22: Continuous Strong Cash Generation
CONTINUOUS STRONG CASH GENERATION ($M) IN PAST 5 YEARS, RETURNED 47% OF OCF TO SHAREHOLDERS AND INVESTED 31% IN CAPEX AND ACQUISITIONS 49.3 52.9 39.1 38.5 31.5 21 (0.4) (2.5) (13.8) (9.4) (7.2) (8.9)(4.3) (8.2) (22.0) (18.7) (24.5) (52.9) 2015 2016 2017 2018 2019 Q1 20 OCF Capex Buyback 22
Slide 23: Recurring Revenue Driven by Subscriptions
RECURRING REVENUE DRIVEN BY SUBSCRIPTIONS SUBSCRIPTIONS ARE THE MAIN GROWTH DRIVER 64% 65% 63% 54% 56% RADWARE’S RECURRING REVENUE INCLUDE 42% SUPPORT, CLOUD SERVICES AND PRODUCT >30% SUBSCRIPTION >20% >15% >10% >5% 2015 2016 2017 2018 2019 Q1 20 Recurring revenue as % of total revenue Subscription
Slide 24: Successful Transition to Subscriptions
SUCCESFUL TRANSITION TO SUBSCRIPTIONS SUBSCRIPTION REVENUE ($M) >30% 55 22% >20% 18% 42 >15% 14% >10% 30 9% 18 2016 2017 2018 2019 2016 2017 2018 2019 Subscription revenue as % of total revenue Subscription bookings as % of total bookings 24
Slide 25: Shift to Subscriptions on Track to Secure Performance
SHIFT TO SUBSCRIPTIONS ON TRACK TO SECURE PERFORMANCE TOTAL DEFERRED REVENUE A KEY INDICATOR OF FUTURE GROWTH 60-65% of Total Deferred Revenues is scheduled to be recognized as revenues within 12 months (60% in 19 / 63% in 18) 185 181 167 159 31 148 55 39 20 121 35 101 37 30 150 130 139 128 113 113
Slide 26: Why Radware - Financials
WHY RADWARE - FINANCIALS WE HAVE A STRONG BALANCE SHEET, A FLEXIBLE COST STRUCTURE, AND A HIGH PROPORTION OF RECURRING REVENUE. WELL-PREPARED FOR ANY SHORT-TERM SCENARIO, AND CAN AFFORD CONTINUE INVESTING FOR THE LONG-TERM. 26
Slide 27: Thank You!
“ose radware \ THANK YOU!