Radware (RDWR) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full year 2024 results, with revenue and non-GAAP EPS exceeding guidance, driven by cloud security, OEM partnerships, and DefensePro X DDoS refresh.

• Cloud ARR grew 19% year-over-year to $77.3 million in Q4, with over 1,000 cloud production customers.

• Non-GAAP gross margin improved to 82.4% in Q4 and 82.2% for the year.

• Diluted non-GAAP EPS more than doubled to $0.27 in Q4 and $0.87 for the year.

• Operating cash flow surged to $12.7 million in Q4 and $71.6 million for 2024.

Financial highlights

• Q4 2024 revenue grew 12% year-over-year to $73 million; full year revenue up 5% to $275 million.

• Total ARR up 8% year-over-year to $227 million; cloud ARR up 19% to $77.3 million.

• Recurring revenue accounted for 78% of Q4 and 80% of full year revenue.

• Q4 net income more than doubled to $11.9 million; full year non-GAAP net income doubled to $37.7 million.

• As of December 31, 2024, cash, equivalents, and marketable securities totaled $419.7 million.

Outlook and guidance

• Q1 2025 revenue expected between $70 million and $71 million.

• Q1 2025 non-GAAP diluted EPS expected between $0.22 and $0.23.

• Targeting over 20% cloud ARR growth and close to $100 million cloud ARR by end of 2025.

• Plans to accelerate cloud security growth by expanding AI-enabled security, opening new service centers, and broadening cloud channels.

• Continued focus on integrated, intelligent protections across hybrid and multi-cloud environments.