Radware (RDWR) Q2 2025 Earnings Call Transcript

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Wednesday, July 30, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Roy Zisapel

• Chief Financial Officer — Guy Avidan

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Roy Zisapel: Thank you, Yisca, and convey you each for joining america today. I'm pleased to study different beardown quarter, marking our 4th consecutive 4th of double-digit gross growth. In the 2nd quarter, gross accrued 10% year-over-year to $74 million. Non-GAAP net per stock roseate 39% year-over-year to $0.28, highlighting the continued scalability and ratio of our concern model. We besides generated $14.5 cardinal successful currency travel from operations, further underscoring the spot and resilience of our operations. These results bespeak the palmy and accordant execution of the strategy we've implemented implicit the past mates of years to go the best-of-breed supplier successful exertion and information halfway security.

This strategy is driven by 3 pillars: gaining important marketplace stock successful unreality security, starring with algorithm and AI-driven innovation and automation and expanding our go-to-market presence. Cloud information continues to beryllium our superior maturation engine. In the 2nd quarter, we accelerated unreality ARR maturation from 19% to 21% year-over-year, reaching $85 million. With that, we surpassed our short-term people of 20% year-over-year maturation rate. Total unreality bookings and the fig of unreality progressive customers besides demonstrated awesome maturation past quarter, further validating our strategy and execution. This accomplishment reflects our strengthened competitory position, higher triumph rates and accrued information globally.

One of the maturation drivers for our Cloud Security concern is the accrued adoption of our cloud-based API extortion solutions. The API information solution usage AI-driven capabilities to unafraid APIs and concern logic successful existent time. What differentiates Radware for our contention is our quality to automatically and continuously representation concern logic, make and optimize extortion rules and enforce them successful existent time. Ultimately, we're helping customers automate extortion and respond faster to threats. The marketplace request for securing API postulation is translating into meaningful wins, including deals with a European government, a large Asian slope and a planetary sporting event. Our enactment successful this abstraction was recognized successful the GigaOM Radar for exertion and API security.

In the report, we were named a person and accelerated mover for our AI-driven capabilities successful vulnerability detection, relationship takeover extortion and bot management. With AI becoming profoundly embedded successful endeavor workflows, our enactment successful agentic infrastructure information continues to presumption america arsenic a trusted partner. Defending against AI-powered threats demands AI-powered defense, and that's precisely what we proceed to physique with our EPIC-AI framework. Our AI-powered SOC is simply a cornerstone of our AI defence strategy, purpose-built to observe and mitigate DDoS attacks successful existent time. It continuously analyzes planetary postulation patterns utilizing behavioral baselines, anomaly detection and instrumentality learning to place with precocious accuracy, attacks that flight the information controls.