Radware Ltd. · NASDAQ:RDWR
Radware — Q4 2020 Earnings Presentation
18 slides from Radware's earnings presentation, February 2021
Slide 1: Investor Presentation
Investor Presentation February 2021
Slide 2: Safe Harbor Disclaimer
SAFE HARBOR DISCLAIMER 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 facts, including statements with respect to plans, projections, outlook, beliefs,
Slide 3: Investment Highlights
Investment Highlights LEADER IN MAJOR MARKET FAST GROWING STRONG DATA CENTER OPPORTUNITY SUBSCRIPTION CUSTOMER BASE CYBERSECURITY BUSINESS 3
Slide 4: Leader in Datacenter Cybersecurity
1 Leader in Datacenter Cybersecurity Leadership COMPREHENSIVE STACK TO ENSURE APPLICATION AVAILABILITY AND SECURITY ACROSS PRIVATE AND PUBLIC CLOUD DATA CENTERS Making applications Keeping data Protecting AVAILABLE CONFIDENTIAL CLOUD TRANSITION DDoS ADC Web App Bot Global Elastic Cloud Workload Prot
Slide 5: The Radware Competitive Differentiators
1 The Radware Competitive Differentiators Leadership CROSS-CLOUD APPLICATION BEHAVIORAL FLEXIBLE VISIBILITY CONTEXT TECHNOLOGY DEPLOYMENT Risk-based visibility Connecting alerts and Behavioral and Multiple deployment across clouds in a feeds from different machine-learning options for any type of si
Slide 6: Winning Industry Recognition
1 Winning Industry Recognition Leadership 2020 WAF WAVE API & HIGH SECURITY 2020 STRONG PERFORMER IDC MARKETSCAPE FOR GLOBAL RANKED #1 DDOS PREVENTION 2019 LEADER 2020 CUSTOMER VALUE LEADERSHIP HOLISTIC WEB PROTECTION AWARD BOT MANAGEMENT, 2020 LEADER KUBERNETES WAF FEATURED FOR INNOVATION 6
Slide 7: Major Market Opportunity
2 Major Market Opportunity Market ORGANIZATIONS’ ATTACK SURFACE INCREASES DUE TO CHANGING ECONOMY WORKING CLOUD FROM HOME MIGRATION ONLINE CONSUMPTION OF GOODS 7
Slide 8: Active Cyberthreat Landscape
2 Active Cyberthreat landscape Market HIGH ATTACK VOLUMES ACROSS OUR CLOUD SERVICES INFRASTRUCTURE 4,535M 441M 1,764K Bad Bot Request Web Application DDoS Attacks Detected in Q4 20 Attack Transactions blocked in Q4 20 blocked in Q4 20 8
Slide 9: Fast Growing Subscriptions Business
3 Business Fast Growing Subscriptions Business Model SUBSCRIPTION BOOKINGS OF TOTAL SUBSCRIPTION REVENUE ($M) 55 35% >30% 42 >20% 30 >15% >10% 18 2016 2017 2018 2019 2020 2016 2017 2018 2019 And More… 9
Slide 10: Strong Customer Base
4 Customer Strong Customer Base Base DIVERSIFIED VERITCALS STRATEGIC PARTNERS HIGH SATISFACTION 15-20% 30-35% Radware DefensePro RANKED #1 BY CUSTOMERS Radware WAF 25-30% RANKED #2 BY CUSTOMERS 25-30% Radware CNP Radware Bot Manager AVG. 5-STAR REVIEWS 10
Slide 11: Summary: Well Positioned for the Future
Summary CYBER SECURITY CRITICAL NEED Well Positioned STRONG MARKET TRENDS for the Future FAVORABLE MODEL INDUSTRY LEADING DYNAMICS & SOLUTIONS STRONG PARTNERSHIPS 11
Slide 12: Financials
FINANCIALS 12
Slide 13: Q4 Highlights
Q4 20 Highlights $69M REVENUES 65% RECURRING REVENUE $174M ARR* Strong performance in the Americas with record bookings Cloud and Subscriptions ARR up 35% from Q4 19 Total ARR up 12% from Q4 19 CONSISTENT EXECUTION IN LINE WITH LONG TERM STRATEGY * ARR includes the annualized value of booked orders
Slide 14: Q4 & FY 20 Revenues ($M)
Q4 & FY 20 Revenues ($M) 2% -1% 67.4 69.0 252.1 250.0 2% 17.4 -19% 57.3 17.1 70.4 20.6 17% 4% 78.4 24.2 75.3 8% -7% 114.4 29.7 27.5 106.4 Q4 19 Q4 20 FY 19 FY 20 Americas EMEA APAC Americas EMEA APAC 14
Slide 15: Predictable Business Model, Highly Recurring Revenues
Predictable Business Model, Highly Recurring Revenues Q4 19 Q4 20 Recurring Non-recurring Recurring Non-recurring 35% 40% 60% 65% FY 19 FY 20 Recurring Non-recurring Recurring Non-recurring 37% 34% 63% 66% 15
Slide 16: Total ARR ($M)
Total ARR($M) 12% 174 156 75-80 55-60 35% Cloud and Subscriptions Services 19-Dec 20-Dec * ARR includes the annualized value of booked orders for term-based cloud services, subscription licenses and maintenance contracts that are in effect at the end 16 of a reporting period.
Slide 17: Cash Generation and Balance Sheet
Cash Generation and Balance Sheet IN PAST 5 YEARS, RETURNED 41% OF OCF TO SHAREHOLDERS AND INVESTED 27% IN CAPEX AND ACQUISITIONS 61.8 $449M 49.3 52.9 53.1 44.7 54.8 38.5 40.4 29.1 31.5 24.3 131.5 262.5 (0.4) (4.3) (9.4) (7.2) (8.9) (8.2) (8.7) (22.0) (24.5) Cash and Equivalents (45.3) Marketable Se
Slide 18: Technical issues with adding a thank you slide to be fixed
Technical issues with adding a thank you slide to be fixed 18