Over the past few quarters, Radware has been pivoting its business to a Software-as-a-Service (SaaS) subscription model, and it appears to be working in its favor as it reported its third consecutive quarter with double digit growth in its first quarter 2018 earnings call.
Radware reported first quarter 2018 revenues of $54.5 million, an increase of 11 percent year over year. It reported non-GAAP net income of $2.6 million, an increase of 271 percent compared to the same quarter last year, resulting in earnings per share of $0.06.
Regionally, the company saw positive revenue growth in both the Americas, which makes up of 44 percent of its total revenue, and EMEA, which makes up 28 percent. But it saw a decrease of 5 percent year over year in revenue in the APAC region, which makes up 28 percent of its total revenue. However, the company noted it recently won a $7 million contract with an APAC government military organization. According to Radware, the military organization is setting up a next generation network and will look to the company for appliances and subscription services for application availability and parameter security.
Radware attributed its continued growth to greater adoption and acceptance of cloud and security solutions outside of North America. It said that in Europe, trends are now in-line with North America.
In EMEA, according to the Seeking Alpha transcript of the call, Radware CEO Roy Zisapel said that he sees it as a region “where we’re taking a lot of share, and we’re seeing some of the fruits of the early investment in cloud security there.”
Zisapel noted the company’s “focus is on availability and security solutions for the data centers,” and that this will only continue to grow and have value in the evolving threat landscape.
In the first quarter of 2018, the vendor added two new products: a subscription service that identifies and blocks attacks, and a malware detection solution.
Radware on Partnerships
Radware’s distributed denial of service (DDoS) software is available on Cisco’s next-generation firewall. In the earnings call, Zisapel said Radware had been ramping up its contributions to and relationship with Cisco and is seeing sequential growth as a result of the partnership. “It’s definitely becoming a very, very large and significant opportunity and activity for us.”
Nokia and Radware have a reseller agreement. Nokia’s Deepfield performance monitoring technology is paired with the Radware suite. Zisapel noted that “Nokia continues in a very strong path of engagement in carrier projects throughout the world, and this relationship has continued to be very, very positive.”
On Check Point, Zisapel only noted that the last quarter was disappointing, but he hopes for the best in the upcoming quarter.