Israel's Radware Q3 revenue rises to record high on cloud demand

By Reuters News


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.)

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