Second Quarter 2024 Financial Results and Highlights
  - Revenue of $67 million, an increase of 3% year-over-year
 
  - Cloud ARR of $70 million, an increase of 19% year-over-year
 
  - 
    Non-GAAP operating expenses of $49 million, a decrease of 6% year-over-year
  
 
  - Non-GAAP diluted EPS of $0.20; GAAP diluted EPS of $0.04
 
  - Cash flow from operations of $23 million
 
  Radware® (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:
  - 
    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.
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:
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  ©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
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  release.