Radware Reports Mixed Financial Results for Q2 2024

Radware Reports Second Quarter 2024 Financial Results - Radware (NASDAQ:RDWR)

Second Quarter 2024 Financial Results and Highlights Revenue of $67 million, an increase of 3% year-over-yearCloud ARR of $70 million, an increase of 19% year-over-yearNon-GAAP operating expenses of $49 million, a decrease of 6% year-over-yearNon-GAAP diluted EPS of $0.20; GAAP diluted EPS of $0.04Cash flow from operations of $23 million TEL AVIV, Israel, July 31, 2024 (GLOBE NEWSWIRE) -- Radware® RDWR, a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the second quarter ended June 30, 2024. "We are pleased with our second quarter 2024 results, which exceeded the high-end of our revenue and non-GAAP EPS guidance," said Roy Zisapel, Radware's president and CEO. "We are excited about the launch of Radware EPIC-AI™ and the accelerated AI and GenAI innovation it represents. Together with our strong cloud security offering, we are optimistic these factors will contribute significantly to the second half of 2024." Financial Highlights for the Second Quarter 2024 Revenue for the second quarter of 2024 totaled $67.3 million: Revenue in the Americas region was $30.1 million for the second quarter of 2024, an increase of 12% from $26.8 million in the second quarter of 2023.Revenue in the Europe, Middle East, and Africa ("EMEA") region was $22.8 million for the second quarter of 2024, an increase of 1% from $22.6 million in the second quarter of 2023.Revenue in the Asia-Pacific ("APAC") region was $14.4 million for the second quarter of 2024, a decrease of 11% from $16.2 million in the second quarter of 2023. GAAP net income for the second quarter of 2024 was $1.7 million, or $0.04 per diluted share, compared to GAAP net loss of $5.8 million, or $(0.13) per diluted share, for the second quarter of 2023. Non-GAAP net income for the second quarter of 2024 was $8.8 million, or $0.20 per diluted share, compared to non-GAAP net income of $4.5 million, or $0.10 per diluted share, for the second quarter of 2023. As of June 30, 2024, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $396.6 million. Cash flow from operations was $23.0 million in the second quarter of 2024. Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company's non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release. Conference Call Radware management will host a call today, July 31, 2024, at 8:30 a.m. EDT to discuss its second quarter 2024 results and third quarter 2024 outlook. To participate on the call, please use the following numbers: U.S. participants call toll free: 888-510-2008 International participants call: 1 646-960-0306 Conference ID: 1864701 A replay will be available for two days, starting two hours after the end of the call, on telephone number +1-609-800-9099 or (US toll-free) 800-770-2030. Passcode 1864701. The call will be webcast live on the Company's website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months. Use of Non-GAAP Financial Information and Key Performance Indicators In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware's management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware's ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors. Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business. This press release 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-looking statements. Generally, forward-looking statements may be identified by words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," and similar expressions or future or conditional verbs such as "will," "should," "would," "may," and "could." Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, and the tensions between China and Taiwan; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; a shortage of components or manufacturing capacity could cause a delay in our ability to fulfill orders or increase our manufacturing costs; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia's military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cyber security and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors, or by a critical system failure; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns, such as the COVID-19 pandemic; our net losses in the past two years and possibility we may incur losses in the future; a slowdown in the growth of the cyber security and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware's Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware's public filings are available from the SEC's website at www.sec.gov or may be obtained on Radware's website at www.radware.com. About Radware Radware® RDWR is a global leader in application security and delivery solutions for multi-cloud environments. The company's cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware's solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website. Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, YouTube, and Radware Mobile for iOS. ©2024 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners. Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice. The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release. CONTACTS Investor Relations: Yisca Erez, +972-72-3917211, [email protected] Gerri Dyrek, [email protected] Radware Ltd.Condensed Consolidated Balance Sheets(U.S. Dollars in thousands) June 30, December 31, 2024 2023 (Unaudited) (Unaudited)Assets Current assets Cash and cash equivalents86,802 70,538Marketable securities122,310 86,372Short-term bank deposits169,376 173,678Trade receivables, net25,499 20,267Other receivables and prepaid expenses9,187 9,529Inventories13,796 15,544 426,970 375,928 Long-term investments Marketable securities8,096 33,131Long-term bank deposits10,007 -Other assets2,033 2,166 20,136 35,297 Property and equipment, net17,042 18,221Intangible assets, net13,734 15,718Other long-term assets36,506 37,967Operating lease right-of-use assets19,142 20,777Goodwill68,008 68,008Total assets601,538 571,916 Liabilities and equity Current liabilities Trade payables4,077 4,298Deferred revenues111,680 105,012Operating lease liabilities4,533 4,684Other payables and accrued expenses45,576 41,021 165,866 155,015 Long-term liabilities Deferred revenues70,219 60,499Operating lease liabilities13,919 16,020Other long-term liabilities14,547 17,108 98,685 93,627 Equity Radware Ltd. equity Share capital748 742Additional paid-in capital542,643 529,209Accumulated other comprehensive income (loss)(413) 77Treasury stock, at cost(366,588) (365,749)Retained earnings120,254 119,812Total Radware Ltd. shareholder's equity296,644 284,091 Non-controlling interest40,343 39,183 Total equity336,987 323,274 Total liabilities and equity601,538 571,916 Radware Ltd. Condensed Consolidated Statements of Income (U.S Dollars in thousands, except share and per share data) For the three months ended For the six months ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues67,276 65,607 132,361 134,648Cost of revenues13,056 12,742 25,868 26,048Gross profit54,220 52,865 106,493 108,600 Operating expenses, net: Research and development, net18,701 21,141 37,597 42,291Selling and marketing29,744 31,917 59,445 63,836General and administrative6,984 8,307 14,323 16,554Total operating expenses, net55,429 61,365 111,365 122,681 Operating loss(1,209) (8,500) (4,872) (14,081)Financial income, net4,417 3,419 8,025 6,910Income (loss) before taxes on income3,208 (5,081) 3,153 (7,171)Taxes on income1,544 727 2,711 1,718Net income (loss)1,664 (5,808) 442 (8,889) Basic net income (loss) per share attributed to Radware Ltd.'s shareholders0.04 (0.13) 0.01 (0.20) Weighted average number of shares used to compute basic net income (loss) per share41,857,259 43,400,635 41,803,638 43,725,443 Diluted net income (loss) per share attributed to Radware Ltd.'s shareholders0.04 (0.13) 0.01 (0.20) Weighted average number of shares used to compute diluted net income (loss) per share43,148,129 43,400,635 43,011,501 43,725,443 Radware Ltd. Reconciliation of GAAP to Non-GAAP Financial Information (U.S Dollars in thousands, except share and per share data) For the three months ended For the six months ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited)GAAP gross profit54,220 52,865 106,493 108,600Share-based compensation80 113 159 226Amortization of intangible assets992 992 1,984 1,984Non-GAAP gross profit55,292 53,970 108,636 110,810 GAAP research and development, net18,701 21,141 37,597 42,291Share-based compensation1,536 2,177 3,258 4,136Non-GAAP Research and development, net17,165 18,964 34,339 38,155 GAAP selling and marketing29,744 31,917 59,445 63,836Share-based compensation2,609 3,537 5,160 6,931Non-GAAP selling and marketing27,135 28,380 54,285 56,905 GAAP general and administrative6,984 8,307 14,323 16,554Share-based compensation2,077 3,068 4,472 6,599Acquisition costs192 545 412 558Non-GAAP general and administrative4,715 4,694 9,439 9,397 GAAP total operating expenses, net55,429 61,365 111,365 122,681Share-based compensation6,222 8,782 12,890 17,666Acquisition costs192 545 412 558Non-GAAP total operating expenses, net49,015 52,038 98,063 104,457 GAAP operating loss(1,209) (8,500) (4,872) (14,081)Share-based compensation6,302 8,895 13,049 17,892Amortization of intangible assets992 992 1,984 1,984Acquisition costs192 545 412 558Non-GAAP operating income6,277 1,932 10,573 6,353 GAAP financial income, net4,417 3,419 8,025 6,910Exchange rate differences, net on balance sheet items included in financial income, net(298) (32) (145) (807)Non-GAAP financial income, net4,119 3,387 7,880 6,103 GAAP income (loss) before taxes on income3,208 (5,081) 3,153 (7,171)Share-based compensation6,302 8,895 13,049 17,892Amortization of intangible assets992 992 1,984 1,984Acquisition costs192 545 412 558Exchange rate differences, net on balance sheet items included in financial income, net(298) (32) (145) (807)Non-GAAP income before taxes on income10,396 5,319 18,453 12,456 GAAP taxes on income1,544 727 2,711 1,718Tax related adjustments61 61 123 123Non-GAAP taxes on income1,605 788 2,834 1,841 GAAP net income (loss)1,664 (5,808) 442 (8,889)Share-based compensation6,302 8,895 13,049 17,892Amortization of intangible assets992 992 1,984 1,984Acquisition costs192 545 412 558Exchange rate differences, net on balance sheet items included in financial income, net(298) (32) (145) (807)Tax related adjustments(61) (61) (123) (123)Non-GAAP net income8,791 4,531 15,619 10,615 GAAP diluted net income (loss) per share0.04 (0.13) 0.01 (0.20)Share-based compensation0.15 0.20 0.30 0.40Amortization of intangible assets0.02 0.02 0.04 0.05Acquisition costs0.00 0.01 0.01 0.01Exchange rate differences, net on balance sheet items included in financial income, net(0.01) (0.00) (0.00) (0.02)Tax related adjustments(0.00) (0.00) (0.00) (0.00)Non-GAAP diluted net earnings per share0.20 0.10 0.36 0.24 Weighted average number of shares used to compute non-GAAP diluted net earnings per share43,148,129 44,268,786 43,011,501 44,513,899 Radware Ltd.Condensed Consolidated Statements of Cash Flow (U.S. Dollars in thousands) For the three months ended For the six months ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Cash flow from operating activities: Net income (loss)1,664 (5,808) 442 (8,889)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization3,028 3,113 5,971 6,191Share-based compensation6,302 8,895 13,049 17,892Amortization of premium, accretion of discounts and accrued interest on marketable securities, net80 718 7 955Loss (gain) related to securities, net- (1) - 244Increase (decrease) in accrued interest on bank deposits5,468 229 5,459 (1,525)Increase (decrease) in accrued severance pay, net17 (36) (41) (105)Decrease (increase) in trade receivables, net(5,013) 1,937 (5,232) 932Decrease (increase) in other receivables and prepaid expenses and other long-term assets(199) 532 406 (2,326)Decrease (increase) in inventories744 (1,044) 1,748 (895)Increase (decrease) in trade payables(1,627) 3,020 (221) 1,383Increase in deferred revenues7,494 470 16,388 1,216Increase (decrease) in other payables and accrued expenses5,310 (6,944) 6,793 (11,442)Operating lease liabilities, net(238) (215) (617) (1)Net cash provided by operating activities23,030 4,866 44,152 3,630 Cash flows from investing activities: Purchase of property and equipment(1,034) (1,595) (2,808) (3,363)Proceeds from (investment in) other long-term assets, net19 1 (6) 48Proceeds from (investment in) bank deposits, net6,734 21,000 (11,164) 30,200Investment in, redemption of and purchase of marketable securities, net(13,499) (3,857) (9,997) (1,881)Net cash provided by (used in) investing activities(7,780) 15,549 (23,975) 25,004 Cash flows from financing activities: Proceeds from exercise of share options3 88 3 308Repurchase of shares- (19,741) (839) (32,483)Payment of contingent consideration related to acquisition(3,077) - (3,077) -Net cash used in financing activities(3,074) (19,653) (3,913) (32,175) Increase (decrease) in cash and cash equivalents12,176 762 16,264 (3,541)Cash and cash equivalents at the beginning of the period74,626 41,882 70,538 46,185Cash and cash equivalents at the end of the period86,802 42,644 86,802 42,644 Radware Ltd.RECONCILIATION OF GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (U.S Dollars in thousands) For the three months ended For the six months ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited)GAAP net income (loss)1,664 (5,808) 442 (8,889)Exclude: Financial income, net(4,417) (3,419) (8,025) (6,910)Exclude: Depreciation and amortization expense3,028 3,113 5,971 6,191Exclude: Taxes on income1,544 727 2,711 1,718EBITDA1,819 (5,387) 1,099 (7,890) Share-based compensation6,302 8,895 13,049 17,892Acquisition costs192 545 412 558Adjusted EBITDA8,313 4,053 14,560 10,560 For the three months ended For the six months ended June 30, June 30, 2024 2023 2024 2023 Amortization of intangible assets992 992 1,984 1,984Depreciation2,036 2,121 3,987 4,207 3,028 3,113 5,971 6,191 Market News and Data brought to you by Benzinga APIs

Radware Reports Second Quarter 2024 Financial Results By Investing.com

Second Quarter 2024 Financial Results and Highlights TEL AVIV, Israel, July 31, 2024 (GLOBE NEWSWIRE) -- Radware ® (NASDAQ: NASDAQ:RDWR), a leading provider of cyber security and application delivery solutions, today announced its consolidated financial results for the second quarter ended June 30, 2024. We are pleased with our second quarter 2024 results, which exceeded the high-end of our revenue and non-GAAP EPS guidance, said Roy Zisapel, Radware's president and CEO. We are excited about the launch of Radware EPIC-AI™ and the accelerated AI and GenAI innovation it represents. Together with our strong cloud security offering, we are optimistic these factors will contribute significantly to the second half of 2024. Financial Highlights for the Second Quarter 2024 Revenue for the second quarter of 2024 totaled $67.3 million: GAAP net income for the second quarter of 2024 was $1.7 million, or $0.04 per diluted share, compared to GAAP net loss of $5.8 million, or $(0.13) per diluted share, for the second quarter of 2023. Non-GAAP net income for the second quarter of 2024 was $8.8 million, or $0.20 per diluted share, compared to non-GAAP net income of $4.5 million, or $0.10 per diluted share, for the second quarter of 2023. As of June 30, 2024, the Company had cash, cash equivalents, short-term and long-term bank deposits, and marketable securities of $396.6 million. Cash flow from operations was $23.0 million in the second quarter of 2024. Non-GAAP results are calculated excluding, as applicable, the impact of stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. A reconciliation of each of the Company's non-GAAP measures to the most directly comparable GAAP measure is included at the end of this press release. Conference Call Radware management will host a call today, July 31, 2024, at 8:30 a.m. EDT to discuss its second quarter 2024 results and third quarter 2024 outlook. To participate on the call, please use the following numbers: U.S. participants call toll free: 888-510-2008 International participants call: 1 646-960-0306 Conference ID: 1864701 A replay will be available for two days, starting two hours after the end of the call, on telephone number +1-609-800-9099 or (US toll-free) 800-770-2030. Passcode 1864701. The call will be webcast live on the Company's website at: http://www.radware.com/IR/. The webcast will remain available for replay during the next 12 months. Use of Non-GAAP Financial Information and Key Performance Indicators In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of gross profit, research and development expense, selling and marketing expense, general and administrative expense, total operating expenses, operating income, financial income, net, income before taxes on income, taxes on income, net income and diluted earnings per share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets, litigation costs, acquisition costs, restructuring costs, exchange rate differences, net on balance sheet items included in financial income, net, and tax-related adjustments. Management believes that exclusion of these charges allows for meaningful comparisons of operating results across past, present, and future periods. Radware's management believes the non-GAAP financial measures provided in this release are useful to investors for the purpose of understanding and assessing Radware's ongoing operations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is included with the financial information contained in this press release. Management uses both GAAP and non-GAAP financial measures in evaluating and operating the business and, as such, has determined that it is important to provide this information to investors. Annual recurring revenue ("ARR") is a key performance indicator defined as the annualized value of booked orders for term-based cloud services, subscription licenses, and maintenance contracts that are in effect at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as perpetual license or professional services revenue in our consolidated statement of operations. We consider ARR a key performance indicator of the value of the recurring components of our business. Safe Harbor Statement This press release 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-looking statements. Generally, forward-looking statements may be identified by words such as believes, expects, anticipates, intends, estimates, plans, and similar expressions or future or conditional verbs such as will, should, would, may, and could. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, and the tensions between China and Taiwan; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; a shortage of components or manufacturing capacity could cause a delay in our ability to fulfill orders or increase our manufacturing costs; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia's military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cyber security and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors, or by a critical system failure; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns, such as the COVID-19 pandemic; our net losses in the past two years and possibility we may incur losses in the future; a slowdown in the growth of the cyber security and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware's Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware's public filings are available from the SEC's website at www.sec.gov or may be obtained on Radware's website at www.radware.com. About Radware Radware ® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company's cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware's solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website. Radware encourages you to join our community and follow us on: Facebook (NASDAQ:META), LinkedIn, Radware Blog, X, YouTube, and Radware Mobile for iOS. ©2024 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners. Radware believes the information in this document is accurate in all material respects as of its publication date. However, the information is provided without any express, statutory, or implied warranties and is subject to change without notice. The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.