Radware Ltd. (NASDAQ:RDWR) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 08:30 am ET

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Radware Ltd. (NASDAQ:RDWR) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Radware Q3 2019 Earnings Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to hand your conference over to your speaker today, Anat Earon-Heilborn, VP, Investor Relations. Please go ahead, madam.

Executive
Anat Earon-Heilborn

Thank you, Marcella. Good morning, everyone. And welcome to Radware's third quarter 2019 earnings conference call. Joining me today are, Roy Zisapel, President and Chief Executive Officer; and Doron Abramovitch, Chief Financial Officer. A copy of today's press release and financial statements, as well as the investor kit for the third quarter are available in the Investor Relations section of our website.

During today's call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risks and uncertainties, and actual results could differ materially from Radware's current forecasts and estimates.

Factors that could cause or contribute to such differences include but are not limited to general business conditions and our ability to address changes in our industry, changes in the macro product, the timing and the amount of orders and other risks detailed from time to time in Radware's filings. We refer you to the documents the company files or furnishes from time to time with the SEC, specifically the company's last annual report on Form 20F as filed on April 15, 2019.

We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. Please note that management will participate in the Needham Networking, Communications and Security Conference in New York next week, and in the Credit Suisse Technology, Media and Telecom Conference in Arizona in December.

With that, I will turn the call to Doron Abramovitch.

Executive
Doron Abramovitch

Thank you, Anat. I'm pleased to provide a review and analysis of our third quarter results, in which Radware delivered another quarter with revenues and profit growth, and increased profitability. Q3 revenues were $62.9 million, up 7% year-over-year. This is the 12th consecutive quarter in which our overall revenues are at or above the midpoint of our guidance, a consistency that is mainly driven by our strong subscription growth.

EMEA revenues were up 10% from Q3 2019, and Asia-Pacific revenues, up 32% from last year, representing 31% and 30% of total Q3 revenues, respectively. Revenues from the Americas represented 39% of total Q3 2019 revenues, and decreased 8% year-over-year.

Revenues from enterprise customers increased 13% year-over-year. And revenues from carrier customers decreased 6%. Revenues for the first nine months of 2019 were $184.7 million, growing 8.3% over the first nine months of 2019. The trends for the nine months period were more even than for the quarter. Americas increase represent over the nine months period of 2019, EMEA revenues increased 4%, and Asia-Pacific revenues increased 23%.

Looking at the vertical break down into