Fourth Quarter 2023 Financial Results and Highlights
- Revenue of $65.0 million, down 12% year-over-year
- Cloud ARR of $64.9 million, up 22% year-over-year
- Non-GAAP EPS of
$0 .13; GAAP net loss per diluted share of $0.14
Full Year 2023 Financial Results and Highlights
- Revenue of $261.3 million, down 11% year-over-year
- Non-GAAP EPS of
$0 .43; GAAP net loss per diluted share of $0.50
“We closed 2023 on a positive note with our cloud security business delivering 22% year-over-year ARR growth,” said
Financial Highlights for the Fourth Quarter and Full Year 2023
Revenue for the fourth quarter and full year of 2023 totaled
- Revenue in the
Americas region was$24.6 million for the fourth quarter of 2023, a decrease of 23% from$31.9 million in the fourth quarter of 2022. Revenue in theAmericas region for the full year of 2023 was$103.4 million , a decrease of 17% from$123.9 million in the full year of 2022. - Revenue in the
Europe ,Middle East , andAfrica (“EMEA”) region was$24.9 million for the fourth quarter of 2023, an increase of 2% from$24.3 million in the fourth quarter of 2022. Revenue in the EMEA region for the full year of 2023 was$96.5 million , a decrease of 7% from$104.2 million for the full year of 2022. - Revenue in the
Asia-Pacific (“APAC”) region was$15.5 million for the fourth quarter of 2023, a decrease of 13% from$17.9 million in the fourth quarter of 2022. Revenue in the APAC region for the full year of 2023 was$61.4 million , a decrease of 6% from$65.3 million for the full year of 2022.
GAAP net loss for the fourth quarter of 2023 was
Non-GAAP net income for the fourth quarter of 2023 was
As of
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
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 +1-647-362-9199 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),
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 and volatility of the market for our products; the effects of the current attacks by the terrorist groups
About
©2024
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, ir@radware.com
Media Contact:
Condensed Consolidated Balance Sheets | |||||
( | |||||
2023 | 2022 | ||||
(Unaudited) | (Unaudited) | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 70,538 | 46,185 | |||
Marketable securities | 86,372 | 44,180 | |||
Short-term bank deposits | 173,678 | 207,679 | |||
Trade receivables, net | 18,959 | 17,752 | |||
Other receivables and prepaid expenses | 10,015 | 7,196 | |||
Inventories | 15,544 | 11,428 | |||
375,106 | 334,420 | ||||
Long-term investments | |||||
Marketable securities | 33,131 | 90,148 | |||
Long-term bank deposits | - | 43,765 | |||
Other assets | 2,166 | 2,146 | |||
35,297 | 136,059 | ||||
Property and equipment, net | 18,221 | 21,068 | |||
Intangible assets, net | 15,718 | 19,686 | |||
Other long-term assets | 39,161 | 41,269 | |||
Operating lease right-of-use assets | 20,777 | 23,078 | |||
68,008 | 68,008 | ||||
Total assets | 572,288 | 643,588 | |||
Liabilities and equity | |||||
Current liabilities | |||||
Trade payables | 4,298 | 6,464 | |||
Deferred revenues | 103,703 | 108,243 | |||
Operating lease liabilities | 4,684 | 4,685 | |||
Other payables and accrued expenses | 41,650 | 44,643 | |||
154,335 | 164,035 | ||||
Long-term liabilities | |||||
Deferred revenues | 60,499 | 72,219 | |||
Operating lease liabilities | 16,020 | 19,461 | |||
Other long-term liabilities | 18,160 | 19,430 | |||
94,679 | 111,110 | ||||
Equity | |||||
Share capital | 733 | 732 | |||
Additional paid-in capital | 529,218 | 498,168 | |||
Accumulated other comprehensive income (loss) | 77 | (4,844 | ) | ||
(365,749 | ) | (303,299 | ) | ||
Retained earnings | 119,812 | 141,402 | |||
284,091 | 332,159 | ||||
Non–controlling interest | 39,183 | 36,284 | |||
Total equity | 323,274 | 368,443 | |||
Total liabilities and equity | 572,288 | 643,588 | |||
Condensed Consolidated Statements of Income | ||||||||||||
( | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenues | 65,032 | 74,083 | 261,292 | 293,426 | ||||||||
Cost of revenues | 12,824 | 13,917 | 51,710 | 53,884 | ||||||||
Gross profit | 52,208 | 60,166 | 209,582 | 239,542 | ||||||||
Operating expenses, net: | ||||||||||||
Research and development, net | 19,712 | 22,486 | 82,617 | 86,562 | ||||||||
Selling and marketing | 31,869 | 32,544 | 126,237 | 126,533 | ||||||||
General and administrative | 8,030 | 10,244 | 32,408 | 29,786 | ||||||||
Total operating expenses, net | 59,611 | 65,274 | 241,262 | 242,881 | ||||||||
Operating loss | (7,403 | ) | (5,108 | ) | (31,680 | ) | (3,339 | ) | ||||
Financial income, net | 3,239 | 2,018 | 13,927 | 8,052 | ||||||||
Income (Loss) before taxes on income | (4,164 | ) | (3,090 | ) | (17,753 | ) | 4,713 | |||||
Taxes on income | 1,686 | 1,034 | 3,837 | 4,879 | ||||||||
Net loss | (5,850 | ) | (4,124 | ) | (21,590 | ) | (166 | ) | ||||
Basic net loss per share attributed to | (0.14 | ) | (0.09 | ) | (0.50 | ) | (0.00 | ) | ||||
Weighted average number of shares used to compute basic net loss per share | 41,806,042 | 44,586,590 | 42,871,770 | 44,943,168 | ||||||||
Diluted net loss per share attributed to | (0.14 | ) | (0.09 | ) | (0.50 | ) | (0.00 | ) | ||||
Weighted average number of shares used to compute diluted net loss per share | 41,806,042 | 44,586,590 | 42,871,770 | 44,943,168 | ||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||
( | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
GAAP gross profit | 52,208 | 60,166 | 209,582 | 239,542 | ||||||||
Share-based compensation | 112 | 112 | 515 | 399 | ||||||||
Amortization of intangible assets | 992 | 992 | 3,968 | 3,704 | ||||||||
Non-GAAP gross profit | 53,312 | 61,270 | 214,065 | 243,645 | ||||||||
GAAP research and development, net | 19,712 | 22,486 | 82,617 | 86,562 | ||||||||
Share-based compensation | 2,305 | 2,073 | 8,505 | 7,292 | ||||||||
17,407 | 20,413 | 74,112 | 79,270 | |||||||||
GAAP selling and marketing | 31,869 | 32,544 | 126,237 | 126,533 | ||||||||
Share-based compensation | 3,489 | 2,993 | 12,554 | 11,241 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Non-GAAP selling and marketing | 27,802 | 29,551 | 111,832 | 115,292 | ||||||||
GAAP general and administrative | 8,030 | 10,244 | 32,408 | 29,786 | ||||||||
Share-based compensation | 2,965 | 4,480 | 12,448 | 8,421 | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Non-GAAP general and administrative | 4,706 | 4,945 | 18,832 | 19,404 | ||||||||
GAAP total operating expenses, net | 59,611 | 65,274 | 241,262 | 242,881 | ||||||||
Share-based compensation | 8,759 | 9,546 | 33,507 | 26,954 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Non-GAAP total operating expenses, net | 49,915 | 54,909 | 204,776 | 213,966 | ||||||||
GAAP operating loss | (7,403 | ) | (5,108 | ) | (31,680 | ) | (3,339 | ) | ||||
Share-based compensation | 8,871 | 9,658 | 34,022 | 27,353 | ||||||||
Amortization of intangible assets | 992 | 992 | 3,968 | 3,704 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Non-GAAP operating income | 3,397 | 6,361 | 9,289 | 29,679 | ||||||||
GAAP financial income, net | 3,239 | 2,018 | 13,927 | 8,052 | ||||||||
Exchange rate differences, net on balance sheet items included in financial income, net | 563 | 413 | (207 | ) | (1,301 | ) | ||||||
Non-GAAP financial income, net | 3,802 | 2,431 | 13,720 | 6,751 | ||||||||
GAAP income (loss) before taxes on income | (4,164 | ) | (3,090 | ) | (17,753 | ) | 4,713 | |||||
Share-based compensation | 8,871 | 9,658 | 34,022 | 27,353 | ||||||||
Amortization of intangible assets | 992 | 992 | 3,968 | 3,704 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Exchange rate differences, net on balance sheet items included in financial income, net | 563 | 413 | (207 | ) | (1,301 | ) | ||||||
Non-GAAP income before taxes on income | 7,199 | 8,792 | 23,009 | 36,430 | ||||||||
GAAP taxes on income | 1,686 | 1,034 | 3,837 | 4,879 | ||||||||
Tax related adjustments | 61 | 61 | 246 | 246 | ||||||||
Non-GAAP taxes on income | 1,747 | 1,095 | 4,083 | 5,125 | ||||||||
GAAP net loss | (5,850 | ) | (4,124 | ) | (21,590 | ) | (166 | ) | ||||
Share-based compensation | 8,871 | 9,658 | 34,022 | 27,353 | ||||||||
Amortization of intangible assets | 992 | 992 | 3,968 | 3,704 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Exchange rate differences, net on balance sheet items included in financial income, net | 563 | 413 | (207 | ) | (1,301 | ) | ||||||
Tax related adjustments | (61 | ) | (61 | ) | (246 | ) | (246 | ) | ||||
Non-GAAP net income | 5,452 | 7,697 | 18,926 | 31,305 | ||||||||
GAAP diluted net loss per share | (0.14 | ) | (0.09 | ) | (0.50 | ) | (0.00 | ) | ||||
Share-based compensation | 0.21 | 0.21 | 0.78 | 0.60 | ||||||||
Amortization of intangible assets | 0.02 | 0.02 | 0.09 | 0.08 | ||||||||
Restructuring costs | 0.02 | 0.00 | 0.04 | 0.00 | ||||||||
Acquisition costs | 0.01 | 0.02 | 0.03 | 0.04 | ||||||||
Exchange rate differences, net on balance sheet items included in financial income, net | 0.01 | 0.01 | (0.00 | ) | (0.03 | ) | ||||||
Tax related adjustments | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.01 | ) | ||||
Non-GAAP diluted net earnings per share | 0.13 | 0.17 | 0.43 | 0.68 | ||||||||
Weighted average number of shares used to compute non-GAAP diluted net earnings per share | 42,462,751 | 45,227,288 | 43,655,555 | 45,947,476 | ||||||||
RECONCILIATION OF GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) | ||||||||||||
( | ||||||||||||
For the three months ended | For the twelve months ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
GAAP net loss | (5,850 | ) | (4,124 | ) | (21,590 | ) | (166 | ) | ||||
Exclude: Financial income, net | (3,239 | ) | (2,018 | ) | (13,927 | ) | (8,052 | ) | ||||
Exclude: Depreciation and amortization expense | 3,028 | 2,878 | 12,244 | 11,692 | ||||||||
Exclude: Taxes on income | 1,686 | 1,034 | 3,837 | 4,879 | ||||||||
EBITDA | (4,375 | ) | (2,230 | ) | (19,436 | ) | 8,353 | |||||
Share-based compensation | 8,871 | 9,658 | 34,022 | 27,353 | ||||||||
Restructuring costs | 578 | - | 1,851 | - | ||||||||
Acquisition costs | 359 | 819 | 1,128 | 1,961 | ||||||||
Adjusted EBITDA | 5,433 | 8,247 | 17,565 | 37,667 | ||||||||
For the three months ended | For the twelve months ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Amortization of intangible assets | 992 | 992 | 3,968 | 3,704 | ||||||||
Depreciation | 2,036 | 1,886 | 8,276 | 7,988 | ||||||||
3,028 | 2,878 | 12,244 | 11,692 | |||||||||
Condensed Consolidated Statements of Cash Flow | ||||||||||||
( | ||||||||||||
For the three months ended | For the year ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Cash flow from operating activities: | ||||||||||||
Net loss | (5,850 | ) | (4,124 | ) | (21,590 | ) | (166 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 3,028 | 2,878 | 12,244 | 11,692 | ||||||||
Share-based compensation | 8,871 | 9,658 | 34,022 | 27,353 | ||||||||
Amortization of premium, accretion of discounts and accrued interest on marketable securities, net | 638 | 766 | 1,754 | 2,345 | ||||||||
Loss (gain) related to securities, net | (1 | ) | (4 | ) | 243 | (68 | ) | |||||
Increase (decrease) in accrued interest on bank deposits | 549 | (1,424 | ) | (3,265 | ) | (2,480 | ) | |||||
Increase (decrease) in accrued severance pay, net | 207 | 301 | (299 | ) | 219 | |||||||
Increase in trade receivables, net | (6,587 | ) | (4,401 | ) | (1,207 | ) | (4,561 | ) | ||||
Decrease (increase) in other receivables and prepaid expenses and other long-term assets | 1,017 | (1,887 | ) | (1,524 | ) | (2,360 | ) | |||||
Decrease (increase) in inventories | (2,550 | ) | (574 | ) | (4,116 | ) | 152 | |||||
Increase (decrease) in trade payables | (1,771 | ) | (306 | ) | (2,166 | ) | 2,154 | |||||
Increase (decrease) in deferred revenues | (5,165 | ) | 1,584 | (16,260 | ) | 13,475 | ||||||
Increase (decrease) in other payables and accrued expenses | 10,603 | 6,665 | (195 | ) | (14,054 | ) | ||||||
Operating lease liabilities, net | (336 | ) | 428 | (1,141 | ) | (1,553 | ) | |||||
Net cash provided by (used in) operating activities | 2,653 | 9,560 | (3,500 | ) | 32,148 | |||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property and equipment | (936 | ) | (1,768 | ) | (5,429 | ) | (8,814 | ) | ||||
Proceeds from (investment in) other long-term assets, net | (11 | ) | (71 | ) | 66 | 35 | ||||||
Proceeds from (investment in) bank deposits, net | 29,686 | 5,824 | 81,031 | (13,377 | ) | |||||||
Investment in, redemption of and purchase of marketable securities ,net | 16,764 | 1,640 | 17,111 | (3,862 | ) | |||||||
Payment for the business acquisition of | - | - | - | (30,000 | ) | |||||||
Net cash provided by (used in) investing activities | 45,503 | 5,625 | 92,779 | (56,018 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of share options | 63 | 832 | 371 | 2,034 | ||||||||
Repurchase of shares | (10,103 | ) | (12,301 | ) | (63,234 | ) | (59,492 | ) | ||||
Payment of deferred consideration related to acquisition | - | - | (2,063 | ) | - | |||||||
Proceeds from issuance of Preferred A shares in subsidiary | - | - | - | 35,000 | ||||||||
Net cash used in financing activities | (10,040 | ) | (11,469 | ) | (64,926 | ) | (22,458 | ) | ||||
Increase (decrease) in cash and cash equivalents | 38,116 | 3,716 | 24,353 | (46,328 | ) | |||||||
Cash and cash equivalents at the beginning of the period | 32,422 | 42,469 | 46,185 | 92,513 | ||||||||
Cash and cash equivalents at the end of the period | 70,538 | 46,185 | 70,538 | 46,185 | ||||||||
Source:
2024 GlobeNewswire, Inc., source