Radware Ltd. · NASDAQ:RDWR
Radware — Q1 2021 Earnings Presentation
18 slides from Radware's earnings presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation May 2021
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 forward
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 DDOS MITIGATION SOLUTION 2021 RANKED #1 LEADER 2020 CUSTOMER VALUE LEADERSHIP HOLISTIC WEB PROTECTION AWARD BOT MANAGEMENT, 2020 LEADER ‘Voice of the Customer’: Web KUBERNETES WAF Application Firewalls
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 6,392M 409M 1,714K Bad Bot Request Web Application DDoS Attacks Detected in Q1 21 Attack Transactions blocked in Q1 21 blocked in Q1 21 79% 173% 150% 8
Slide 9: Fast Growing Subscriptions Business
3 Business Fast Growing Subscriptions Business Model SUBSCRIPTION BOOKINGS OF TOTAL SUBSCRIPTION REVENUE ($M) 65 35% 55 >30% 42 >20% >15% 30 >10% 18 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 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
\F INANCIALS Wa aN . 1 A\
Slide 13: Q1 Highlights
Q1 21 Highlights $67M REVENUES 66% RECURRING REVENUE $176M ARR* Strong performance in the Americas and EMEA Total ARR up 10% from Q1 20 Cloud and subscription ARR up 27% from Q1 20 CONSISTENT EXECUTION IN LINE WITH LONG TERM STRATEGY * ARR includes the annualized value of booked orders for term-base
Slide 14: Revenues Trends ($M)
Revenues Trends ($M) $252 $250 $234 America up 15% from Q1 20 $211 Americas revenues accounts >50% of total revenues in Q1 21 EMEA up 16% from Q1 20 16% CAGR 6% $67 $60 11% 2017 2018 2019 2020 Q1 2020 Q1 2021 14
Slide 15: Recurring Revenues
Recurring Revenues Predictable Business Model 66% 65% 66% 64% 63% 56% 54% 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 Recurring revenues continue to increase overtime and reached 66% in Q1 2021 15
Slide 16: Total Annual Recurring Revenue ($M)
Total Annual Recurring Revenue ($M) $176 $174 CAGR 11% $169 $163 $160 $155 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 * ARR includes the annualized value of booked orders for term-based cloud services, subscription licenses and maintenance contracts that are in effect at the end 16 of a reporti
Slide 17: Cash Generation and Balance Sheet ($M)
Cash Generation and Balance Sheet ($M) $64 $59 $435M $53 $49 $39 $133 $31 $263 Cash and Equivalents Marketable Securities 2017 2018 2019 2020 LTM Desposits 17
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