Radware Q4 Revenue Down 12% to $65M, Cloud ARR Jumps 22%
Ticker: RDWR · Form: 6-K · Filed: Feb 7, 2024 · CIK: 1094366
| Field | Detail |
|---|---|
| Company | Radware Ltd (RDWR) |
| Form Type | 6-K |
| Filed Date | Feb 7, 2024 |
| Risk Level | medium |
| Pages | 1 |
| Reading Time | 1 min |
| Sentiment | mixed |
Complexity: simple
Sentiment: mixed
Topics: earnings, financial-results, cloud-growth, revenue-decline
TL;DR
**Radware's Q4 revenue dropped, but their cloud business is booming, signaling a strategic shift.**
AI Summary
Radware Ltd. announced its Fourth Quarter and Full Year 2023 financial results on February 7, 2024, reporting a revenue of $65.0 million for Q4 2023, which is a 12% decrease year-over-year. Despite the revenue dip, the company's Cloud Annual Recurring Revenue (ARR) grew by 22% year-over-year to $64.9 million, indicating a strong shift towards cloud-based services. This matters to investors because while overall revenue declined, the significant growth in Cloud ARR suggests a successful transition to a more stable, recurring revenue model, which could be a positive long-term indicator for the stock.
Why It Matters
This filing reveals Radware's financial performance, showing a revenue decline but strong growth in its cloud business, which is crucial for understanding the company's strategic direction and future profitability.
Risk Assessment
Risk Level: medium — The 12% year-over-year revenue decline presents a risk, but the 22% growth in Cloud ARR mitigates it by showing strength in a key strategic area.
Analyst Insight
A smart investor would investigate the drivers behind the 12% revenue decline versus the strong 22% Cloud ARR growth to understand if the cloud transition can offset traditional business slowdowns and assess the long-term profitability of the cloud segment.
Key Numbers
- $65.0 million — Q4 2023 Revenue (represents a 12% decrease year-over-year for Radware Ltd.)
- 12% — Year-over-year revenue decrease (the percentage decline in Radware's Q4 2023 revenue)
- $64.9 million — Cloud ARR (represents a 22% year-over-year increase for Radware Ltd.)
- 22% — Year-over-year Cloud ARR increase (the percentage growth in Radware's Cloud Annual Recurring Revenue)
- $0.13 — Non-GAAP EPS (Radware's Non-GAAP Earnings Per Share for Q4 2023)
Key Players & Entities
- Radware Ltd. (company) — the registrant reporting financial results
- Gadi Meroz (person) — Vice President & General Counsel who signed the filing
- 07 Trade & Services (company) — organization name listed in the filing
Forward-Looking Statements
- Radware will continue to prioritize cloud-based services, leading to sustained Cloud ARR growth. (Radware Ltd.) — medium confidence, target: Q1 2025
- Overall revenue may stabilize or show modest growth as the cloud transition matures. (Radware Ltd.) — low confidence, target: Q4 2024
FAQ
What was Radware Ltd.'s revenue for the fourth quarter of 2023?
Radware Ltd. reported a revenue of $65.0 million for the fourth quarter of 2023, as stated in the filing.
How did Radware's Q4 2023 revenue compare to the previous year?
The Q4 2023 revenue of $65.0 million was down 12% year-over-year, according to the filing.
What was the growth rate of Radware's Cloud Annual Recurring Revenue (ARR) in Q4 2023?
Radware's Cloud ARR grew by 22% year-over-year, reaching $64.9 million in Q4 2023.
Who signed the 6-K report on behalf of Radware Ltd. and what is their title?
The report was signed by Gadi Meroz, who holds the title of Vice President & General Counsel for Radware Ltd., on February 7, 2024.
What was Radware's Non-GAAP EPS for the fourth quarter of 2023?
Radware's Non-GAAP EPS for the fourth quarter of 2023 was $0.13, as reported in the financial results.
Filing Stats: 229 words · 1 min read · ~1 pages · Grade level 12.9 · Accepted 2024-02-07 06:02:18
Filing Documents
- zk2430891.htm (6-K) — 12KB
- exhibit_99-1.htm (EX-99.1) — 592KB
- image2.jpg (GRAPHIC) — 88KB
- 0001178913-24-000388.txt ( ) — 726KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. RADWARE LTD. Date: February 7, 2024 By: /s/ Gadi Meroz Gadi Meroz Vice President & General Counsel EXHIBIT INDEX Exhibit Number Description of Exhibits 99.1 Radware Reports Fourth Quarter and Full Year 2023 Financial Results