Israel's Radware Q3 revenue rises to record high on cloud demand
Overview
Israel application security firm's Q3 revenue rose 12% yr/yr to record $84.4 mln
Non-GAAP diluted EPS slipped to $0.32, with results impacted by currency headwinds
Cloud annual recurring revenue grew 21% yr/yr to $107 mln
Outlook
Company says customer demand for application security solutions remains robust
Radware expects continued adoption of its cloud security platform with new AI capabilities
Result Drivers
STRONG CLOUD DEMAND - Co said robust customer demand for application security solutions drove cloud bookings and large deal activity
AI SECURITY FEATURES - Co said expansion of AI security capabilities contributed to increased customer adoption
CURRENCY IMPACT - Co said Israeli shekel appreciation adversely affected expenses in Q3
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $84.36 mln | $83.03 mln (2 Analysts) |
Q3 Net Income | $2.64 mln | ||
Q3 Gross Profit | $67.79 mln | ||
Q3 Operating Income | $2.16 mln | ||
Q3 Pretax Profit | $6.89 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Radware Ltd. is $30.50, about 14.1% below its October 27 closing price of $35.50
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 25 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)