Capital Markets Day Transcript - RDWR 2026-02-17

Speaker 12

Good morning everyone.

Yisca Erez, Head of Investor Relations

Hello good morning. Good morning everyone and welcome to AdWords Investor Day. We are happy excited to host you here in person and also in the webcast. So in our agenda today we'll start with Roy Zisappel who will present the vision and the strategy, followed by Connie, Connie Starks, who will present the growth plan, and David Aviv will present the innovation and the offering. After a short break, David Roth and Randy Wood will present the go-to-market, and will conclude with the financial performance from Guy Abidane.

Yisca Erez, Head of Investor Relations

After another break, we will have the Q&A session, live session with our executive and after we read the safe harbor statement carefully I would like to introduce Roy Zisappel okay good morning everyone it's a pleasure to have you today with us and we're excited to take this opportunity we didn't do it for a couple of years to give you a view of the business to a to focus on the core aspects of growth and frankly also to a to share the progress we've made and furthermore we are all coming together we will give you some additional information or insight to some of the growth drivers we are playing specifically one in the go-to-market around MSSPs and one in the expansion of the product and the in the cloud platform around API and AI that it's a great opportunity to share and provide you the full view on that. Okay so let's start. Radware we are delivering a comprehensive real-time protection to the crown jewels of our enterprise and customers the very large applications We're 1,300 people, 3,500 customers, and those are generally very large customers. So the opportunity there is massive. We're one of the very, very few companies that built a cloud security platform, and we have today 65 locations with 30 terabit of capacity. 2025, as you all know by now, was a record deal for us. We crossed 300 million revenues. our cloud security is scaling close to a hundred million and actually accelerating in growth rate and as a result of that the vast majority of our business now 80% of our business is recurring business if you think where we were several years ago as an appliance company and where we are today is a massive shift into a subscription business model and as our cloud scales SOA is our ARR, and Guy will show it in his presentation, now total ARR for the company is growing 11%. What are the investment highlights? So first, RADO today is a cloud-first security company. We have a leadership platform for cybersecurity to protect against this very complicated problem of mission-critical application protection. As I've mentioned, our cloud security business, who's the major growth driver, is accelerating at scale. Beyond that, and Randy and David Roth in their go-to-market presentation will share more details of that, we are seeing strength also in our on-prem business, especially in second half 2025, and that drives subscription growth even further. We worked very hard on our go-to-market. We have a global presence and we've optimized it further and we're now expanding it and David in the go-to-market presentation will share with that, both with the OEMs, but very importantly and you, if you saw our announcement from today morning about Bell Cyber joining us as a new MSSP, the whole MSSP action that we have. And all of this has positioned the company for sustained double-digit growth. So let's go deeper into each one of these. So first, our current markets. If you look on our current markets, we're playing in the web application protection and the DDoS protection. What's nice to see is that those markets continue to grow and they're expected to roughly double by the end of 2028. So there's very, very strong market demand behind us. People are putting more and more applications online and those are becoming more critical. and they need protection, and we, with a very strong platform, are standing to deliver that. So, our platform is protecting any type of application. It can be a web application, it can be a mobile application, it can be an API application, and as all of us are hearing in recent weeks and months, it can be also an AI agent, and we'll talk about it. So any type of application that can reside anywhere. We are indifferent if the application runs in public cloud, Azure, AWS, GCP, or in private cloud, legacy, Kubernetes. Wherever it runs, we can protect it against a whole set of attacks. And what you're seeing here is all kinds of families of attacks that hackers can take advantage of to bring the application down, to target the confidentiality, integrity of our applications. How do we do that? That's very important. We built one fully integrated, comprehensive platform. This is not a platform that we stitched from 10-15 acquisitions. This is something built from the ground up to serve the protection of mission-critical applications, And over the last two years, and David Aviv in his presentation is going to talk about what we've done with AI, we weaved in to each and every model a lot of AI protection capabilities to make the platform even stronger. The strength of this platform is resulting in major wins at the very high end of the market. And you can see in this slide, we are serving nine out of the 10 top carriers. For example, four out of the 10 biggest SaaS companies in the world. One of them was a new customer for us. We just won second half of 2025 in North America. So we continue here to expand and people recognize the leadership we have. You can see some of our large references below, Salesforce, Cisco, eBay, and so on. So let's now go deeper into the platform and the way we look on the growth and the market going forward. Connie is going to mention that and explain it in more details, but we are seeing four waves of growth. If you think where Radware is generating today the business, it's in the DDoS, in the AppSec, what we call the web economy. What do we mean by web economy? People were digitizing their business, They were putting web applications online, and those need protection. This is where the business is today, and we believe we can continue to grow and foster But, in recent years, people started to use the application economy. I'm talking about application-to-application information, I'm talking about APIs, and that's another wave of potential growth because that needs to be secured as well. And last but not least, the AI economy, the agent economy, how AI agents are going to function and deliver productivity, commerce, etc. And we're going to share both on the product side and on the trend side, what are we seeing there. So we're seeing four potential growth drivers for us. And let's now dive into the third one, the API security. So this is a fast-growing market now. It's becoming a billion-dollar market this year, growing 30% CAGR, so very promising. And it's really in the large enterprise. We see 2026 and 2027 as a peak year of decision-making and consumption. So we are really at the right time for that. We've built and released, just short of two months ago, a very, very strong API security solution, very comprehensive, and we've topped it with the acquisition of Pint that adds to us this API testing for pre-production. So today we have a very wide and strong, and we'll share more details about that API security solution, and we strongly believe we can participate very well in this new time and some for us. As we go forward, we also prepared ourselves for the agentic AI security. And I will not share tons of additional market statistics on AI. You're probably overwhelmed by now with that, but it's clear that AI agents or agentic AI is going to be used heavily by enterprises to automate processes, to improve productivity, customer service, acceleration, business demand, and so on. What you're going to see is that with these great outcomes or great potential, you're getting also a huge amount of possible threats and attacks that are very real and very risky. Hence, there's a clear need to secure those agentic AI, and the attacks are completely different from attacks we've seen until today. So there's a new market for AI cybersecurity. You can see the time by Gartner, the numbers are mind-boggling. You're talking 170 billion in 2029. For a company like Radware, that's more than an ocean. It's a whole galaxy of potential. What AI means to Radware? Or why do we think AI is an amazing opportunity for our company? For some companies, AI can be a tremendous risk. For us, it's a major upside. And there are three areas I want to highlight to you. First, with all this AI technology, it's not only serving the good guys. Also, the bad guys took notice, which means AI allows them to create faster, better, stronger, more scalable attacks in very, very quick time. So for that, our customers, for their regular applications, forget the Gentic AI and API, for their regular applications, they need better security that creates demand for cyber security platforms like us it's going you know there's going to be clear differentiation between platforms that can do it and platforms that cannot protect in real time you'll hear from David about our algorithm strength we're definitely ones that can do it that's a tailwind of demand for our cyber security platforms The second point is that, and I've mentioned it on the platform, we weaved in Gen AI and AI algorithms to our platforms to make it better. So making use of AI across, and AI agents across our operations to make it faster, you'll hear it even on the gross margin from Guy, to make it more cost effective. So high use of AI, this we call protect with AI. We are utilizing AI to do better protection. And the biggest potential from revenues and impact is the agentic AI. Those agents need protection, they need cybersecurity, and we just released two new offerings, the protect AI to protect those agents and serve AI to allow our enterprise customers to serve consumers that are coming with AI agents and not mistakenly thinking there are automated bots that needs to be blocked. So there's both on the enablement and in the protection. So all in all, AI for us is a great opportunity. And with the new products we've launched just two weeks ago, we're heavily addressing and targeting this opportunity. Now let's go into the cloud security performance by itself. This is our main growth driver, and I think it's executing very well. Not only that we're scaling, we're actually accelerating the growth. Last year, we increased growth rates from 19% to 23%, and as we shared, we're targeting 25%, at least. The potential is there. We have a very strong solution. I just covered at high level our technology stack there. We are executing extremely well for our customers. The outcomes, our ability to protect in real time is at the highest point in the market. So definitely we're seeing that as a continued growth driver. To that, which is today again centered on this web economy, the AppSec and the DDoS, we're adding the API security and the AI security. And that's why we feel also the TAM and SAM expansion give us more tailwind behind these growth rates for the coming years and to execute that you're seeing us and we are releasing every time more and more data centers we're opening across the world and if you ask yourself okay why are they continue to do so it's because we want to get closer to more customers there's a lot of data sovereignty issues in the world if I'm a bank in Singapore I'm not allowed to move to ship my traffic to Thailand or to Hong Kong I want to be served from Singapore, there's performance considerations that are secondary, there's compliance and so on, so we're opening and building the global infrastructure. I told you we're already at 65 nodes so we have a very nice infrastructure but we're continuing to build and scale this global infrastructure and all of that together we feel is a very good starting point to continued growth in the cloud ARR. Beyond this growth driver, that as I said we feel very strongly about it, we're starting to see also very good outcomes from our on-demand, on-premise appliance business. And the things we've done with this on-prem DDoS mitigation, which we call Defense Pro X, that I'm going to highlight are driving significant subscription growth on the product side leave aside cloud now we're talking product subscriptions we're seeing very good outcomes there the Defense Pro X is unique in the market because we're controlling in DDoS we're controlling the full stack we are the ones that are developing the FPGAs we're developing the hardware the software the algorithms, the management platform, the orchestration and the cloud solution. There's no one else in the market that does all of that. We are unique in our capability and that allows us with the algorithmic first approach, hardware investment in cloud, to be by far the leader in the hybrid cloud DDoS market. So when customers are aiming really high to the very most advanced solutions, more sophisticated outcomes in DDoS, it's our opportunity to lose. In the Defense Pro X, the new generation of Defense Pro, we've put a lot more subscription content than in previous generations. So a customer that migrates from a Defense Pro 8 to a Defense Pro 10, even for the same amount of total dollars, will have more subscription content. And sometimes the whole solution will be sold as subscription. But beyond that, all the advanced feature set, application protection, network protection, management, are all sold as annual subscriptions. We're seeing now the impact of that, especially that we have now the tailwind of the end-of-sale announcements on Defense Pro 8. So customers need to migrate. When they upgrade with us, we immediately see that. and also on new wins, like I mentioned to you, the SAS, Global SAS Providers, there's immediate contribution to our subscription. The end result, and we've published it in Q4, our total subscription business, our total ARR and revenues here is growing now 21%. So you already know Cloud ARR is growing 23%. The total growing 21%. product subscriptions are growing strong double-digit. We're very excited by that. We think we can continue with that. It's a very, very important point, and I think a second growth driver that drives the overall subscription of the company. Go-to-market. We're going to discuss today several core concepts of our go-to-market strategy. First, Randy, in his presentation, is going to cover what we're doing in North America, what we've done, what are the outcomes we've seen, what's our plan going forward. And then David Roth is going to share two global initiatives. One is the OEM, give a bit more insight of the trends we're seeing there, and the MSSPs. We believe MSSPs are a great way for us to expand to the mid-market. So are OEMs, but MSSPs even more. As a company, our direct touch is focused on the very large enterprises, and we mentioned that. We don't have the resources or the scale to go mid-market, but with MSSPs, we can, and we're going to share more details on our plan, our traction, our results in the market. We're very excited by that. So within GoToMarket, it's all about executing more with what we have, executing better, accelerating the growth, and opening new ways to market to scale through the mid-market. And all of that, if you capture everything I told you, and where the company is today, already with 11% ARR growth, 10% growth here over here, and all the investments we've done, I think it prepares us very well for the future. If you take the 25% Kager on cloud, and Guy will cover it in detail in his presentation, and play it out, that drags by itself, without any additional assumptions, the ARR growth to 15% and our total revenue by 2030 to 500 million. We're planning to achieve that and with strong profitability and cash flow, like we always execute it. So to summarize my opening presentation, We are a cloud-first cybersecurity company. We're very unique in the strength of our platform and the expansion we're doing now into API and AI security with huge potential. Our cloud business is accelerating at scale. We're at $100 million, and we continue to forecast 25% ARR growth. With that, we're starting to enjoy the on-prem business subscription growth that together are driving the total subscription of the company to be above 20% growth rate. In the go-to market, we are heavily investing in North America and broadening to the mid-market through MSSPs, and all of that will allow us to sustain double-digit growth for the coming years. So thanks for attending, and I would like to ask Connie, our chief growth officer, to take it from here.

Speaker 15

Thank you, Roy. Alright, let's flip here. Hard act to follow, hey? Guy has a lot more experience at Radware than I do. I'm in month 11, so that will give you a comparison point. I've known Roy actually for about six years. He checked in with me annually over those six years to say, are you ready to come to work with Radware yet? But if you go check me out on LinkedIn, you'll see two things. An AI-generated headshot, which demonstrates we're all using AI now. And you'll also see a long career in startups. I was a growth stage startup hound. I've been at companies that have scaled from zero to 100 million in ARR. I've been in companies that have scaled from zero to 64 and have gone through a few successful acquisitions. So in order for me to make the decision to join my first public company, which was a big leap for me, I talked to Roy about my role. Like, Roy, are you really serious about hyper-accelerating the growth of this company? And he said, Connie, I am very serious about it. We're doing some pretty cool things, and I think you can help us. So he said, come on in and join us, and this is what I'm going to be doing. I care so much about growth. I insisted I don't want a CMO title. I'm your chief growth officer. I'm going to collaborate really closely with you, Roy, all the executive leadership team, everybody in the business are bored to be able to build meaningful strategic vision for the business. But I absolutely will run marketing because I think, I love that saying, vision without execution is hallucination. Owning the marketing team, owning the sales development group, I own top of funnel, right? I've got to make sure that these visionary strategies work and can be executed can turn into sales motions for those two gentlemen in North America and around the world, and I'm going to introduce them in a moment. So it was a big deal for me to leap into a public company, and I'm thrilled to be here. My first 11 months have been fantastic. I can tell you I've probably joined the most startup-like public company I could ever imagine. We operate like startup, which is fabulous. So when I joined the business, I thought, okay, big task ahead of me. How are we going to develop a great growth strategy for Radware? So I thought, two things you need to understand, Connie, you need to understand the market. What is happening in the market today? And the second thing I need to understand is how to evaluate all the options for growth that we have, right? Because sometimes it's easier, frankly, to do too much, right, and try to boil the ocean but I wanted to focus and I'll talk to you about how we're doing that in a moment so Roy said I will introduce this slide as well he introduced it I'll tell you a little bit more about how we think about it I think about these waves of market disruption that have happened and how well positioned radware is to take advantage of those the web economy the app economy and the agent economy they're all running in parallel today there are companies out there that still run fairly traditional websites they They still matter. They care deeply about DDoS. They care about being protected against that. They care deeply about their application security and being protected. Radware is there. We also have an emergent app economy, as you guys all know. In the early 2010s, let's say, there was a shift in software development to APIs, right, so that software could talk to software, even if you didn't build that software. And that opened up a massive threat surface. And we're there, too. Roy talked about our relaunch, effectively, of our API security solution in the fall. But we've had API security, pieces of that solution, for a few years now. And we have customers that are using it effectively. But we are excited about what we're going to bring to market with our full suite, and we'll talk about that in a moment as well. And then the agent economy. I have to tell you, this is the piece that I'm so excited about. And Roy, honestly, he tempered all of us in our preparation meetings for this session. today. He said, guys, don't go too focused on AI because we do so much more. You've got to be able to, you know, make sure everybody knows we're not abandoning our heritage and our legacy and all those customers that count on us to help them thrive in the web economy, in the application economy, and now in the agent economy. So we're not going to over-focus there, but I can tell you I'm truly excited about this. We'll talk about a little more. So the second thing, I see a few people out here that are about as old as me, so maybe you remember the Ansoff matrix from business school. I need to understand what's happening in the market. We just discussed that. I also need to understand how do I filter through all these growth opportunities and decide what are we going to focus on, right? What am I going to work with Randy most closely on in North America? What's going to resonate here for David, rest of world, and so on? So this was a good framework for me to evaluate these opportunities, and I'm going to double click and dive down into all of those. For people who aren't familiar with ANSOF, it's basically focused on the products and services, solutions you're selling into the markets you sell to, right? And that's essentially what I was, you know, a great framework for how to think about growth strategies. So if we double-click here on, you know, we want to be able to penetrate further existing markets that we're already in. North America is a great example of that. And with the products that we already have. As Roy said, right, yes, API is here and it's exciting, and yes, AI is coming, but we have a great solution in DDoS, Cloud AppSec, and even our on-premise subscription solutions as well. So we decided on a North America double down. I hope everybody's excited to hear that because some of the feedback that I've gotten from customers and prospects in the past is, Connie, we're concerned. It's rad we're committed to the U.S. market. You bet. We've never not been committed to the U.S. market, but we're going to demonstrate that. And, of course, being a marketer, I call it, you know, there is a double down or I would say a triple down that's happening in North America. I'm not going to steal all of Randy's thunder because he has a deeper dive on that, but I am going to talk about a couple of points. And then competitive displacement. When you're talking about penetrating a market with existing products and solutions in a market that's fairly saturated, You guys all know, many of the opportunities we're walking into from a sales perspective are, you know, it's a displacement decision, right? They're making a decision potentially to leave one of our, you know, major competitors. So we have to have aggressive sales motions aligned with those refresh cycles, and we do have those. We have, you know, superior product features are why people are coming to us, right? Some of the new stuff that we're introducing, the integration of an API solution into the Radware platform is very exciting to the market. We also have switching incentives. You know, we want to take down those barriers to exit and sometimes, you know, if you're not quite at the end of your license for a particular product or solution, we might, you know, help you, you know, coach that, move away from them faster with some incentives. So this is what we're focused on. North America Double Down, here's where I will introduce Randy Wood. Randy joined the company in July 2024, so he predated me. He's SVP of sales in North America. He has done tremendous work. I'll let him tell you all about it. I obviously joined in March 2025. I'm in month 11. That's my AI generated headshot. And chief growth officer and as I said work on strategy as well as run the marketing and the sales development team. And David Roth, I used to be the newest, but now he's the newest. David just joined us in July in time to literally go or sorry January in time to really travel around the world and hit all our scores. So he's going to share his insights there. We want you to, we're here. We're in this geo. We're in North America. I'm north of Boston. Randy's in Virginia. David's in Dallas. So we are definitely, you know, focused on this market. We know in order for Radware to win big, we've got to win in North America. And Randy and David are going to tell you how we're doing that. So our game-changing platform, I don't think we spend enough time talking about this. I say to you know to Roy, sometimes you know one of my most important stakeholders inside the company, right, and you might hear a lot of language about the Radware portal, the portal, it's a platform. We have got to start to say that loud and proud. We have an incredible platform and it is one that has been built on a long legacy and knowledge of unique features for us right david i can take no credit david aviv can he's been the cto for years we have been using ai since before it was called ai right we were one of the first companies to introduce machine learning and algorithms and behavior based protection to neutralize threats in real time we have a predictive engine, right? We are using, again, very sophisticated algorithms to be able to understand is this a risk and help you take care of it quickly. Anti-fragile. This is a system that learns and gets better. It doesn't get stuck in the past. It doesn't rely exclusively on signatures and that sort of stuff. It gets smarter every time and all that knowledge gets spread across all our customers. And we're covering all enforcement points, as Roy said. Network application api across cloud and on-prem so all those components and where we can actually you know secure are very um they're still important all those aspects are important for us and they will continue to be so let's move to product development and here we're talking about existing markets and new products that we've introduced or better described as new modules to the platform so i'm going to talk to you guys a little bit about api security a little deeper than roy spoke of Epic AI the introduction that we made predated me again that was in the 2024 timeline AI SOC X and AI doc X and why these are important they're important number one because we're sending a signal to every one of our customers we're continuing to develop features and modules for you that matter right and that make a difference to your your security posture and improve your protection. API security, complete solution for API testing to runtime security. There are lots of API security, well lots actually, there's a few on the market today. We believe ours is the most complete, particularly with the addition of the Pint acquisition for API security testing. You will be able to test APIs before you push them live and then actually watch, observe in runtime and be able to make sure you're protected against any threats to your APIs at that point as well. AI SOCX, this is, apologies, that is my responsibility, that typo. It's essentially a co-pilot for your SOC analysts. We all know SOC analysts are very, very busy. They're always, you know, they're called upon to do a lot. They get buried in a lot of noise, you know, so they're trying to say, you know, what is the signal? AI SOCX helps them figure out what the signal is, and it really is, they have a co-pilot that will allow them to do investigations faster and really reduce their mean time to resolution which is you know what it's all about from a security perspective ai docx this one you know it's one of those things like we're like okay we can make our customers lives easier by building essentially an llm of all our materials around configuration of our platform and all the modules and solutions um we thought this is easy for us to do let's get that done customers love it they're like wow this is incredible you know i can find an easy way to understand the configuration of my waft or what i should be doing um you know with with my api solution so it really is it's a knowledge base model on top easy way to get quick answers good answers to the questions you may have about configuring the platform and then we come to market development now market development here I'm not talking about moving into another region of the globe. We're everywhere. We're in the largest economies around the world. So when I think about markets, I think about new opportunities to sell through. So here we talk about OEM with Cisco and Checkpoint. David, again, not going to steal your thunder. He's going to dive into those. I will spend a little bit more time, though, on the MSSP market. Roy mentioned that. Now, this, again, predates me. It was a, you know, that was a focus market that we wanted to get into at least a couple of years ago. And we have done that. And what that allows us to do is bring our solution to even more and more customers, right? We're only going to hire so many salespeople, and this gives us a lot more, essentially, sellers on the street. So we're very focused on MSSP. We've done a great job. We've also introduced new features and functions. And I think Randy or David's going to talk about those as well. So I'll just dive in here. We're making news with this program. We are landing MSSPs around the world. David's going to talk about SPARC in New Zealand. I'm going to show you a video in a moment for Mayer, our MSSP partner in Milan, Italy. They're probably enjoying the Olympics right now, which is nice. But we're making really good headway, really good progress here. And essentially it is a force multiplier. And I said, you know, I can tell you all about it or I can let one of our existing partners tell you about it.

Operator

We were looking for a partner able to combine technological excellence and management expertise.

Speaker 11

Radware impressed us with AI-based and fully-management approach. The platform, including WAF, bot management, API protection and DDoS mitigation, provided us a complete coverage and automation in a single environment.

Operator

Radware are a strategic partner on our journey for increasing our intelligence and proactive cyber security.

Speaker 11

Looking ahead, we plan to extend Radware's solution like including API protection, adaptive AI security and threat intelligence services to make our cyber security team stronger.

Speaker 15

These kinds of customer testimonials and case studies are so valuable and they're so hard to get. Security people just don't want to target on the back, they don't want to talk about the solutions they use. But this is absolutely fantastic when we can get one of our MSASP partners out there and proudly say, you know, it's rad where these are solutions we chose. We're going to bring them to our customer base because they offer superior protections. Alrighty, next up, where I am definitely most excited is really around the diversification opportunity that we have given this. It's not a wave. Agentic security is a tsunami. I think we all know it. I don't want to pour it on too thick, because every meeting you're in like this, you're going to hear about AI, AI, AI, AI. If any of you are planning to go to RSA Security Conference in a couple of weeks in San Francisco, you're going to see AI, AI, AI, AI. But it is. It's that big a wave, and it is very exciting. As Roy said, the CAGR is incredible. I actually think right now, Gartner is, you know, these are impressive numbers. One would argue they're underestimating. I will argue they're underestimating, and I'll tell you why in a moment. but I'll plant a little seed about serving AI so what are we doing on diversification in when I joined the business we had kind of an informal tiger team on AI thinking about it and what should we do I formalized that tiger team and we dove in I worked very closely with David and Roy and a full team cross-functional team across the business including our sales leaders and so on and said okay where do we think the opportunities are in the market this This is not rocket science to anybody. We saw a lot of our customers and prospects were having conversations with us about LLMs. They were building their own LLMs or using off-the-shelf LLMs, be it, you know, the ones from OpenAI or Google or whatever. So they have LLMs that they need to protect, and we built that protection. We obviously have been in the WAF space for a while, so firewalls are good for us, we know them, and this was a solution that we put into market relatively quickly, and it is available now again as an add-on to our cloud app complete license radware agentic protection this is really an industry first solution i won't steal my own thunder because i have a slide we'll go into that and then bot management again this is on the survey i side that we're going to talk about and why i think gartner may be even underestimating ai security spend when i think about this and how we are formulating our thoughts to the market right when we're talking to customers and prospects this is how we're framing it up for them in the web and app economy every one of our customers wants to know we as their partner right as a technology vendor are leveraging AI in our own solutions now hopefully I've illustrated to you yes we are AI Sock X doc AI Doc X as well as Epic AI right we've taken and put an AI wrapper around all of Radware's platform so we are definitely leveraging ai in the agent economy we know our customers want to use llms they want to use agents in their own environments they want to streamline workflows they want to save money we all see it in the news right when somebody probably says hey i cut my software you know engineering group in half or hey you know i used to have 10 000 agents in my call center i now have 5 000 because we're so effectively using these ai agents and this is where protecting AI, LLM models, and agents. This is a solution that allows our customers to leverage that new technology securely, right? Use the LLM, use the agents, but do it securely. And then serve AI. This is really exciting, and I think David's going to talk about OpenClaw. Show of Anybody hear about OpenClaw recently, this new agent that went viral? Ah, a couple hands, excellent, excellent, OpenClaw. This is a consumer-facing agent. This has been built as an open source project. Their desire is to get every one of you, and me, and everyone in this room, using it to go take care of all the mundane tasks we don't want to do. Shopping, online, booking, travel, whatever you might want to do, that's what they want to do. Our customers, eBay in particular, one of our publicly disclosed customers, they are very concerned about this. As people start to use autonomous agents to go out and do tasks on their behalf, they want to make sure that these are not malicious. Just as with their traffic with bot, and this is why, again, it falls into Radware's sweet spots, they want to make sure this is legitimate agent traffic. and we provide a solution for that so we want to allow our customers to serve ai there's a lot of cyber security companies in the market today that are focused on block binary decision block them don't let them on you know some of our major competitors are like don't let ai crawlers you know come to your website and so on they're going to be losers in the future if that's the strategy that they use right you're going to have to welcome these ages into your environment and serve them make sure they can complete their tasks in order to drive your own sales and your own revenues. So this is kind of how we're framing it up when we're talking to prospects and customers about the radware solutions which buckets they fit into and what is the business value they enable for our customers. Now again I told you you're going to hear AI a lot if you hear about it all the time but why are we different and why do we think we're positioned to win here? Most of the security solutions that you're going to see in the market today around AI, including, by the way, all the security built by the major providers of the models and agents, OpenAI, Google Gemini, Microsoft Copilot, and so on, they're guardrails-based. And guardrails are very, very good. But you have to know what bad thing is going to happen for a guardrail to be effective, right? These are rules and policies. So as I said, this is the known. We have behavioral classifiers. This is patent-pending technology David and his team have developed in order for us to supplement guardrails. Again, not saying they're not important. They are. But we supplement that with behavioral classifications that allow you to be secure against the unknowns. Was it Donald Rumsfeld? The unknown unknowns? Well, Radware. Unknown unknowns. We're going to help people do that. This is the key differentiator for us. all right I'm probably going long I apologize I wanted to reiterate you know for everybody in the room radware innovations have been at the core of this business since the beginning of time I mean even way back here behavioral DDoS protection radware was forced to bring that to market right this whole idea of using machine learning and algorithms in order to help and protect against denial service attacks I'm not going to go through everything but I will point to agenting protection, API security, and our bot management, the serve AI components that are coming. I don't think, frankly, the company gets enough credit for this. I don't think we've gotten enough credit for moving to the cloud, but that's just me. But I'm a new public company girl, so. Alrighty, this is our goal, and it's my goal. Right now, just because of the fact that, you know, Radware's a 30-year-old company, you get stuck with that legacy tag, right? And this This is really where my marketing, I've got to flex that marketing muscle for sure because I've got to get rid of that. I've got to be able to get people focused on the innovation that we've had since day one in the business and have people think about radware. When they think about innovation, growth, entrepreneurship, revolutionary markets, I want them to think about radware. So that's what I'm going to be doing. You'll see more announcements from us in the future regarding messaging, branding and that sort of stuff.

Speaker 2

Lots of cool stuff coming. hopefully you enjoy the presentation thank you up next David Aviv my buddy at Radware thank you everyone good morning okay so let's talk a little bit about the innovation to meet the disruption that is happening now in the market so I'm sure you have seen this slide couple of times today so what I would like to do is to share and tell our story the way we evolve our products and solutions to lead in the current waves and the upcoming AI and the agent-driven world. It's going to be a big change. Soon, not soon, it's coming. So let's start with that. my role is to incubate innovations to support the growth out of the entire piece that I'm going to talk today I would like you to remember those three things only three things security leadership cloud first delivery and AI agentic security readiness don't let the three things elaborate a little bit you You know, hardware culture and DNA, algorithm first. Cody mentioned it, Roy mentioned it. Many years ago, we baked machine learning in the product line. So obviously, you know, the machine learning, the early generation of AI and generative AI, very natural to us. And we'll see the results later on, when we talk on the AI. With that, we were able to bake and launch a behavioral best-of-breed line, product line. So we consider the entire product line, the DDoS, the WAV, the bot manager, and now the new baby, the API, best-of-breed. Not that we tell it to ourselves, customers tell it. You will see some of the reasons for that. Then And obviously, with that, building the best of breed, of each layer, we build a complete security stack. Now, how do you package a stack? Through a cloud delivery, cloud motions, but not only the cloud, the cloud motion, the premise motion, and very important, the hybrid ones, combine both the premise, and the premise gets more and more, you know, it's a sideways in history. Now premise becomes more popular because of the AI data center, et cetera. So by that, I can tell you that we are very confident when we say and we tell the market we are ready to move to the next way which is the AI disruption. The next 15 minutes you will see why we are very confident when we say that. So humble but confident what we say and that's and once again provide serving and protecting agents and what's more dramatically everywhere, doesn't matter where, which platform you're running. So remember those three other key things, the key takeaways I would like you to get today. So let's dig a little bit into the security leadership. We have already discussed the algorithm first, and once again, you know, our customers have been enjoying the fuzzy logic technology 15 years ago, baked into the Defense Pro. So every Defense Pro generation used 15 years ago machine learning. As simple as it is, that technology wasn't launch because it's a machine learning, because it simply enables us to see things no other competitor could see, could detect and amplify attacks behind the radar, below the radar noise. Very simply, and with that we have evolved into building more and more detection and mitigation algorithms on top of it. So this is straightforward for us. Obviously Roy mentioned as well on-prem leadership. On-prem leadership means that we provide today, we believe the best and actually the only DDoS hybrid solution in the market. Hybrid. Enabled and powered by new generation of the FPGA scalable platform. So we have both the platform for the customer that require those ones, and part was those algorithms at the premise, the cloud and the hybrid itself. And next, the best of suite, cloud platform. So I'd like to park a little bit on that service portfolio, on the entire stack. We have a full stack. The first time we can say we have an entire full stack starting from DDoS. When we say DDoS, not only network, expanded to application DDoS. By far more important today in the sense of running against the API's and any site outside. And you can see through the bot, client-side protection, enabling you to simply protect yourself from third parties that are connected natively to the application backend, to the service backend. The web application firewall, account takeover, we have already a couple account takeover, which is one of the most vicious attacks today in which you try to actually take over the crown jewels of of someone by manipulating his credentials and obviously the new baby the api with that we have a full stack and it's powered and powered by ai so i'll give you just an example But one of the things that AI, what does it mean powered by AI? You know, when you run large customers which have many, many applications, many endpoints, you run, let's say, a web application firewall, which is a rule-based. Rule-based creates noise. Because the application changes themselves. The customers don't have enough manpower to start all the day and change the rules on a daily basis. that's impossible. The results, after a time, the rules are not tuned to the real use of the application. The noise, the false positive get. So, we designed an autonomous agent. Autonomous agents, AI agents, looks on the security event, monitors them, understands and figures out automatically, hey, what kind of rules needs to be tuned? Does the calculation, the algorithmic calculation, provides the understanding, the reasoning, and provides recommendation automatically, auto-tune automatically the filters to reduce the noise, the false positive noise. So we can now provide a huge business value, scale, provide scalable solutions to the customer with a guaranteed SLA, because what really matters to the customer, can you guarantee through all the operation, my SLA, so I can slip quietly, that's the most important thing. So that's just one example of the usage of the way we power our current generation with Connie mentioned the sock eggs, Connie mentioned also the dock eggs, there are many many things we don't want to overwhelm you, but that's part of making the cloud faster, smarter, better. And most important now, also streamlining it for service excellence and customer experience. Very important, automated processes for service excellence. Adding brains, basically the SOCX concept is adding a brain, a sub-matter expert brain like I showed you. You can see the screen what I described before, the way it does, the auto policy, the noise reduction is done automatically. Customer can come in, look what's going in, hit the bottom and apply the rules inside. So that's better, smarter cloud with service excellence and customer experience motions. So with that, we're adding a new model. So as mentioned before, we add API, not a full suite. So why does it matter? Because you can see by the numbers now, the API grows, outpaces the entire risk. Everyone uses API and let me tell you a small secret, when you use AI, AI below runs APIs. So there will be acceleration of that by the usage of AI as well. The most important, exactly like an application, but much more dramatically, API is changing, API changes on a daily basis, weekly basis, daily basis depending on the application itself. Once again, how do you cope with it, how do you provide a solution, how do you measure the risk for that we decided to move to a completely new leading end-to-end api security suite and with the newest acquisition of pint we completed the entire api delivery pipeline so we are supporting now the apis what we call the shift left from the build time when you start building them, designing them up to the runtime, the shift right. So it provides us now a full control on the API pipeline, testing, providing the application builder feedback, continuous discovery, I'm reacting to the changes of the application. Every couple of hours, boom, we're launching a new discovery, we'll understand what are the changes. Based on that, we build the risk posture. Risk means proactive attitude. We are proactively alarming you. Hey guys, there is a risk here. Either you patch it, if not, we can patch for you in the cloud certain things, not everything. More dramatically, the real change is in the runtime protection, the business logic. Think of the business logic. This is where the real attackers are going because they are hunting your crown jewels. Hunting the real secrets of the enterprise. How? They simply manipulate credentials. They manipulate the credentials, tokens, whatever, identities and by that they are able to get into the crown jewels. Very tough because it's a, I would say, quite a complicated security algorithm. So that's why we came up with now an end-to-end suite which is adding a new model to the entire platform and now we can say that we have an end-to-end, full stack up application security stack so now we are coming to the real stuff the new stuff as a CTO I'm excited obviously on that and Roy warned me not to talk too much on that so it's okay but really we have invested a lot in the application security network security so think of everything a company with a cloud delivery, that we have now net security, application security and AI security. All the three layers together. So let's go on that one, on the AI agent driven. Agent economy. Agents are building the new world connected to anything you can think of and you know the recent, what is happening to the SaaS company because of that, but the most important thing is that enterprise agents are here and to grow, dramatically probably. Now, Connie also mentioned the open source authentic fabric, slightly a consumer. This is the lobster moment, called in this the lobster because the sign of open claw is a lobster. So it's a lobster moment coming to the industry. It's very important because it's going to change many things, we don't have the time time to deal with it, but think of just that agents are starting to talk to each other through communication, through human communication channels, Slack, WhatsApp, agent talks to an agent, open up a social network, a start-up, huge amount. Most important thing for us, Gartner launched end of January, it's two weeks ago, a warning, with agentic productivity comes with unacceptable cyber security risk, very simple. Let's translate it, but before translating it, let's understand why. Those are injections, part of the ecosystem, that you don't know about them. They don't exist. Regular application mode, in order to do injection, you need to be a coder, a programmer, you need to understand. So you need to understand how to inject the Oreo. So it will do the injection, divert the query. Here with LLM, with natural language injection, the software programmer is the English guys. The English language becomes the program, which means the collapsed boundaries between natural languages and instructions, these are those, this is the main risk, collapse boundary. English, Chinese, Hebrew, French, whatever language is instruction. Why? We demonstrate and we'll see in a second that I can run white letters on a white background, human won't be able to see it. LLM machine will sit and do the instruction, obey the instructions. Very simple. It means that when we go to the agentic era, the risks are expanding exponentially, actually hyper-exponentially. Basically, every email, every resource, every message, anything can be an attack payload. Very simple. So let's demonstrate it. In Radware, we understood way back the day, I would say, I must admit, we couldn't even estimate the growth and the explosion, whether we establish a security team dedicated for hunting those kinds of attacks. So first of all, we are now at the forefront of the research, why? That's why, remember I told you in the beginning, I feel very confident rather moving from our current waves into the AI area. Not just blah blah, but real, real research backed by product and by attacks. So, in June, 18 of June, 18 of June 25, we attacked OpenAI, attacked OpenAI Deep Research agent. We are talking of the most guarded agent in the world today, OpenAI. By 3rd of September they acknowledged and we discovered, we are not the only one to discover that new line, zero-click attacks. Indirect prompt injection, a family, which leads, translates into zero-click attacks. Zero-click means you are not aware of anything, you don't click on anything, and whoop, everyone steals your most important data. it's totally not from your pocket from the credit card pocket think of that from the LLM provider you don't know even completely silent we demonstrated it at DLP we called it shadow leak it had the news Bloomberg everyone part of it so third of September openly I admitted corrected told the world we We fixed new guardrails, behavioral guardrails, nobody can buy a bus. Well, the proof that guardrails are not enough took us, the research team, three weeks. We breached and bypassed the old guardrails of OpenAI. Guys, we are talking not on, we are talking on OpenAI, it's really, this is I would say the most important, the most protected environment. So again we bypassed it, 3rd of September, 26th of September and OpenAI fixed it on 16th of December. But this time we took another step. Another step is the proof point for unacceptable cyber risk is done by a new attack called zombie agent. In that attack, much, much more dangerous than just DLP. We simply took over OpenAI environment by installing commands, malicious commands, control commands, into their agent, into the memory of the agent, which made the attack a persistent attack. Remember the APT? Same APT, persistent attacks. Whenever we want, we can take over. This is a totally different generation of attacks, of capabilities, which were demonstrated by us, by Radvar. So that obviously amplifies the Gardner warning with productivity comes unacceptable cyber risk, which makes us at Radvar, and that's why I'm saying with confidence, because of the research that we have done to move from DDoS, application security, AI security. So it was not only manifested in research. We understood that the new AI agent risk requires a completely new attitude, a new solution, a new approach actually. and we went after that approach. So I think, you saw from Cody already, we are moving after two areas. I will start with a survey eye, manual, but we simply make this very simple. Internet was designed for humans, web was designed for humans, and the web protocols is for human browsing there by the end of the year this year 60 70% of the traffic will be generated automated traffic generated by agents that are coming to shop to browse to crawl so the internet is changing is adding a new frontier, not only serving humans, but serving agents. This week, just an anecdote, Google announced WebMCP. I'm not going into that, but basically, it's to serve agents. Well, if you serve agents, you need to protect against it, because agents can be malicious or legit. How do you know? You cannot do the Turing machine, the Turing test between human and agent, it's now an agent and an agent. How do we know? We know by understanding who you are, what is your intent, and how do you behave. Once again, behavioral versus intent. It's a totally different playground. I'm not going into that, but this is exactly the AI agent access control, the serve AI. The other part is the agentic protection. Once again, we are running AI agent, we need to protect as we say. I think you saw it, I would like to go a little bit. This is exactly a new paradigm where we understood guardrails are essential, not enough. We demonstrated it over and over again. And by the way, we didn't breach only open-eyed, there's another announcement to another gorilla that we breached. And with our penetration, our techniques, new techniques, I think we can breach most of them. We have the understanding of how to do. And with that understanding, we designed the second pillar, the behavioral classifier. And this is the differentiation. You have the no-no, the rule-based, and by the way, the rule-based brings us back 30 years ago, the early days of the firewalls. Basically, it's a firewall. But in this way, you cannot manage so many firewalls anywhere. You don't know how to program them all the time, and basically you are looking on the new or what you know, and what we know is changing on literally a daily basis. What we know. The problem is what we don't know. That's why the second pillar is coming. It's totally driven, outcome driven. I'm not going, but think of, I need to understand what is the outcome of the agent, not his input and output. That's the only thing I can say. We have multiple patents on that, proven to show those kind of defeating the silent attacks. Those are the critical things here. Those silent attacks that you saw before. Solution is designed to be platform agnostic. Can run it anywhere. Simply run on the API from the platform customers will have multiple platforms so we support today microsoft copilot foundry studio aws bedrock ongrown agents and you know with more customers the support will expand so the key here to see to remember in this one it's a solution which is platform agnostic It has a behavioral piece for the silent attack. Once again, like 18 years ago, the first generation of fuzzy logic engines that could detect and understand the attacks that no other one could see, that phase, that second layer is designed to do that in the AI space. The same culture, the same DNA, with more grey air, that's it. But the idea, this is the culture, the tradition of fraudware and that's why we are prepared to the next generation. So once again, the three pillars, I'm going back to the three pillars, the three things I wanted you to remember. the security leadership which is actually translated now into the agentic as well the cloud first and the fact that we have a full force innovation power right now unleashed in order position to lead the new cyber wave with that thank you very much all right welcome back

David Roth, Analyst — Other

everybody. As you heard from Roy, from Connie, from David, this has been kind of teed up about the company's direction, what we're doing, how we're executing with the technology. Now Randy and I get the chance to kind of walk you through the go-to-market strategy. Before we do, I want to do quick intros. Randy, you can go first.

Randy Wood, Analyst — Other

Sure. Good morning. My name is Randy Wood, as previously introduced. I am in my 19th month at Radware running North American sales. I'm from Northern Virginia. Prior to Radware, I spent five years at Akamai running the North American business, parts of that business, and ultimately the North American business. And I've got tours of duty at Cisco Systems, totaling 13 years, F5, Red Hat, Symantec. I was the last Veritas employee ever hired before Symantec gobbled Veritas up, if you remember that catastrophe. And I've done a few startups along the way. So excited to talk to you. I've got a couple of things to say. I'm going to hand it back to David and then I will take over after his first slide or two.

David Roth, Analyst — Other

David Roth, CRO running our global business. As you heard everyone talk about their history and kind of apropos that Roy went first so from the absolute founding basis to now have me jump in and talk. I'm the newest out of that group so January 7th was my first day so I actually have about a month into the company, just a little over a month into the company. My background's a little over 37 years in the industry. Grew up in the big shops, IBM out of college, Microsoft when it was a startup or an early growth company. To put it in perspective, I was in the first 2,000 employees at Microsoft when Dawson Basic were the only products that had market dominance, and I became a serial entrepreneur spinning on a Microsoft by the time that we were with the Department of Justice dealing with monopolistic challenges about how the company operated. So obviously we had a lot of market share by the time that I left. I built and grew and exited five companies over 20 years, joined a cybersecurity company called Trend Micro just about 10 years ago. So I had a 10 year run at Trend starting off as a global lead of business development and And by the time I left, I was CRO, and I was running a very large business in the America Enterprise. So really excited to be here. One of the key things I thought I'd share from the start is some of my first impressions, because that's one of the core things I have in 30 days, is the intro view of what I've seen of the company. To give you an idea, I've traveled across the world quite a bit in just under a month within the first three to four weeks. And actually, if I even go a week prior to January 7th, I was in Tel Aviv. So right before starting, I met pretty much all the core leadership in the company. David Aviv and I had a couple good meetings and interactions. So part of my comment about the amazing people, I'd actually even take back to my interactions with the leadership in Israel. I then did, as Connie mentioned, I was at every SKO. So I met with leadership from both the North America business as well as EMEA in Lisbon, Portugal. And had time not only with the leaders, but regional directors, and all the way down to individual contributors, and all the different folks that support our business. went on from there to Bangkok, Thailand, and did the same thing with that group for Asia Pacific. And then beyond that, I also, if there wasn't enough travel, I went and met with our Latin America team, which we call KALA, and I had the opportunity not only to spend time with the sales organization, but I also participated in an executive event where we had 150 clients, prospects, and partners. So it's been a very busy first month. I would tell you we have the right technology, the right people, you know, we're ready to execute and we're, this is all about operational execution at this point. I think the innovative technology, you've heard it from David Aviv, we have a great foundation. Going back to the Defense Pro X, you're gonna hear a lot from me on my talk about cloud growth as well as you know both API and securing AI I mentioned somebody on break I'm a bit of a growth junkie and I think Microsoft was probably my first fix to that situation what it meant to look at a market and see how much how much growth there can really be and really coming up with the strategic attack plans to go win it I want to make sure it's really clear I these four waves that have been hit message after message, it was a big attraction for me to come here because fundamentally in each one of these waves new winners are defined and I think we're extremely well positioned to be a winner in this next generation. So bottom line, I'm driven by growth and I really see that is we have an amazing team for growing our people. I see partners that that are ready to grow their business with us, and as our clients' growth adoption happens, I'm looking to the market to see our stock price go through the roof. These are the three core areas that we leverage to drive our growth. You'll hear quite a bit from Randy about what he's done in North America to build an amazing enterprise go to market. People ask me even on break, no matter what we hear from Randy's approach how is this looking globally and I will tell you we are looking to take the best practices in North America and establish standards worldwide we've enabled a lot of autonomy in this company but under my direction forward we're gonna drive a lot of best practices on these three motions you heard from Roy earlier on that with these channel partners like GuidePoint, Presidio, WWT all the largest players these folks are looking to build services around products like ours right they have really rich security service practices the only M partnerships this is really really huge this is a exponential growth opportunity and you already hear when I when I go back to this in a few slides what we've already done in 25 and I would argue we have multiples above the great success of 25 ahead of us in this market and then on the MSSPs going back to Connie and the others everyone's kind of mentioned what it means to unleash this community I'll come back to it a bit but and by the way we will emphasize some great examples in North America but when I've traveled the world we are seeing global opportunity happening we had a great video earlier of the partner in Italy the strategy actually is going to make total sense on how we roll that worldwide. And the best part of all, I saw this firsthand at all the SKOs. This company knows how to win big in the enterprise. We are awesome at taking care of the most business-critical environments of telco, financial services, healthcare, life sciences. So imagine if we can unleash that at scale to mid-market. There's a lot of opportunity.

Randy Wood, Analyst — Other

Alright. Thank you, David. David, do I hit the forward button to advance the slide? That's all I have to do? What I failed to tell you is I was also an officer in the Marine Corps. I spent a bunch of years in the Marine Corps. And as a Marine, sometimes if you can't headbutt it, it doesn't make sense. So one simple button is all I need to make these slides go forward. Here's what I want to do. I want to take you through three slides. to have you understand the essentials of sales and go to market in north america and i want to start by describing four imperatives the four imperatives that i've defined for what i think drives real growth and success quickly in this north american market and where i want to start here is world-class organization so i've been here for 19 months i think it was the third day, maybe it was the second day with Roy, and we got to the business of defining and rebuilding this sales organization. And I'd come to understand years before that in a sales organization, almost every time, every problem is a leadership problem. Somewhere there's a leadership problem in the sales organization. And so what I had to do first was get this leadership team right. I had to build the right leadership team and that's what we did first and foremost with this idea that we're going to bring to market a world-class sales organization. And if we had to start over, that's okay. And as it turns out, that's what we did. So in the theory of organizational dynamics, the forming, storming, norming, and performing, We went from forming and storming to performing in 12 months. We moved that quickly to rebuild from the ground up this new sales organization. And I want to describe to you what that sales organization is to this day in North America. We're done building and rebuilding. We continue to build and to invest. We'll continue to do that. In fact, we've done that coming into this new fiscal year. But we're through that rebuilding phase. We built from the ground up a brand new hunting and acquisition team. This is the vanguard for new logo acquisition. We're organized vertically in verticals that we think make sense, where we can own and get traction quickly. That's financial services, healthcare life sciences, state local education is a market we're bringing, just SLED specifically this year. The Canadian market, the service provider carrier market, we hunt. with great competency and know-how in those markets. We've also rebuilt what we call our farming business. This is the install-based business. These are the keepers of the crown jewels. This is the business we own, the business that we guard with great jealousy, where we seek to grow, to create real cross-sell, up-sell opportunity. We've rebuilt 100% our sales development resource team. That's 100% churn from the leadership down to bring a world-class STR capability that feeds the top of the funnel, this team reports to Kanye as part of that marketing operation. But we have great alignment into that hunting organization. So we hunt, we farm, we have a right-sized channel organization focused almost exclusively on our hunting business to give real scale and repeatability in our partner-led business. What this means in the last 18 months is we've up-leveled 30 people, about 30 people, which is about 85% of the total organization. This is a complete overhaul. These are world-class, highly experienced, highly competent sales professionals that came from places like Akamai and Cloudflare and Fastly with real market know-how and great sales tenure and experience day one. We rebuilt that leadership team. Josh Pafalis runs that hunting organization. He was a notable performer. We were lucky enough to take from Cloudflare, and we've added to that leadership team. So we split that hunting business now east and west by vertical where we have even better coverage. What this means is we're bringing a whole new level of capability whereby we do business on our customers' terms. We build better customer advocacy, better customer intimacy, better know-how by market where we speak their language. We're doing things like showing up to FSISAC, which two years ago we didn't do. We've shown up to now three, and we're going to our fourth FSISAC in two weeks in Orlando. And the reaction has been, where have you been? same thing with hymns same thing with hymns glad to see you we have main stage presentations so the brand is evolving our presence is better it's bigger it's different than it's ever been it's just a whole it's a whole new field and we bring this new level of vertical know-how and overall better sales competency our performance last year i think it proves that point first imperative world-class organization number two imperative high performance mindset maybe this is the marine in me but i believe that performance and performance alone dictates the predator in any food chain and i am very much a predator in this market we have to in the most positive way we have to operate with this sense of predator predatory mindset And it's performance and being performance-minded that guides us that sort of becomes our mantra. Performance and performance alone dictates the predator. A few growth statistics to stand out. Our ARR, cloud ARR growth last year was an impressive 25%. That's in line with company expectations. I think I grew it bigger this year. Roy talked quite a bit about our subscription business and how that's new and so additive to overall performance, and we grew that at an astounding 57%, and I think we're just getting started. This is a motion we know. This is a sales motion we understand. But from a high-performance perspective, three things stand out, and you've heard this theme. David gave you three themes. One of them is cloud sales growth and customer retention. It's top of mind. I have to grow in cloud. I have to grow quickly. I have to go win my fair share. That is where we're squarely focused. I'll talk about how we're doing that in terms of sales plan strategy. Number two, new customer acquisition. I don't care what we sell. I need to acquire new customers and new logos. This tends to be an elephant hunting business a little bit and that's okay. We know how to hunt elephants. The sales cycle is a little bit longer. We're trying to diversify that business so it's not just those elephants that we're hunting but we're having great success hunting elephants. And number three, it's imperative that we protect the base. Cross-sell and renewal are imperative. That's the crown jewels. That's a farming team that's getting very close and intimate with our install base of customers. And that motion alone is paying enormous dividends. Two years ago, we weren't operating that way. And so we're seeing churn downgrade really level off to normal, acceptable standards. standards, and that cross-sell, up-sell opportunity is accelerating. Number three, we need to optimize our force multipliers. These are accelerants to the business. This drives scalability, repeatability, largely through partnerships. So MSSP, acquisition, enablement, scale, repeatability, David's going to talk about MSSP. Our MSSP business has grown dramatically. we are onboarding this quarter alone three new large MSSP customers to add to our war chest of MSSP partners and providers now. This is an enormous opportunity where we have clearly differentiated ourselves and our ability to scale in a very repeatable way. Partners I talked about, we aspire to drive no less than 50% of our business through partners. This is a tough business this is a business of investment this is a business where you have to show up and i'm not sure we showed up where we should have how we should have two years ago but we are now this is showing up with guide point who's got this strange diversified business but they're very prominent in our world and the same thing with wwt and presidio and the big players and sometimes the small more niche sort of regional players showing up there is imperative so that you get that top of mind. Cisco and Checkpoint, we've talked about. What's important there is just better targeting and execution. We provide Cisco and Checkpoint a capability they otherwise can't address with their customers. This is a huge differentiation for them. And you're seeing quite a bit of contribution top of funnel in the acquisition business in North America. And finally, it's just all about partnering with Connie's team and marketing and bringing real brand relevance. making that Radware brand incredibly prominent and well-known in the things we do today and in that agentic AI journey that we're going to take tomorrow. Number three, force multipliers. Number four, know your strengths and develop new ones. It's my fourth imperative. This might be my most important one. I learned a saying from John Chambers at Cisco years ago, you need to deal with the world the way it is, not the way you wish it was. It's like the most important thing John Chambers taught me a lot, but that one sticks in my And until you can deal with the world the way it is, you need to understand what your strengths are. You have to be very clear about your strengths. And then you have to lead from that position of strength and find a way to develop new Let's leave our weaknesses behind for now. They don't serve me. I'm going to focus on my strengths. I'm going to develop new ones. This is such an important point. The idea of going from market share to wallet share to what I'll call tech biogenesis, that's innovation, building innovation, that I want to end on my final slide with strengths-based execution. This is the strategy that we're pursuing in North America. Here's where we start. From a market share perspective, and you've heard David talk about it, Roy brought it up, Connie reinforced it. Our core strength at Radware, make no mistake in North America, it's not my only strength, but it's my key strength, is on-prem plus hybrid cloud DDoS sales at scale. It's not as if we're the best at what we do here. We're the only ones who do what we do here. There's no arrogance in that. That's just the way it is. We're the only ones who do this, and the customer we've onboarded this year make that point clear. The displacement, competitive displacement we've done is breathtaking. The amount of new business that we've driven by this key core competency, this strength, is the difference that made the difference for me this year. Now, it's not where we stop, but it's where we leverage. This is real market share opportunity. Hybrid DDoS, we're the only ones that can do it, and it's a great story. and guess what? It's not going away. It's not going anywhere anytime soon. We are squarely in the fight with our customers right now. When we talk cybersecurity, we are in the fight in a very meaningful, demonstrable, tangible way with our customers, keeping them in business from this one core strength. So it's imperative that we continue to sell there, that we leverage and penetrate, and we protect that base. Where does that take me? That takes me from market share to wallet share. Now I've earned the right to compete for your business. This is in the cloud. I'm selling cloud DDoS as part of my hybrid solution, and now I've earned the right, the opportunity to have new conversations. For me, you heard David talk about API security execution. It's all about API security execution in North America. The opportunity is that big, and it's not a penetrated or sold out market. It's a competitive market, and we We now bring a product that competes better than anybody, of that I'm sure. Here's how that conversation with an application owner or a CISO goes with API security. First conversation, right here in New York City, large financial institutions. How many APIs do you think you have? About 200?

Bob Johnston, Analyst — Herald Investment Management

250?

Randy Wood, Analyst — Other

And you come in and you do API discovery and you start a proof of concept and before you know it, you found 20,000 APIs they didn't know they had. 20,000. That attack surface is enormous. That threat is as big as anything's ever been. And the risk, and so their willingness to solve that problem is a top priority before anything else. Before AI, before we get to AI, because we're going there, but we still have to solve this API problem because that's the world we're in. And we have a product. We tell a story. We provide the technical competency, I think, that differentiates us from all of our key competitors. It's time to market. It's getting there fast. It's earning the right to have that conversation. And from there, it's cloud upsell. It's cloud expansion. Wow, I've got a WAF or I need a WAF or I need bot mitigation or I need the next great thing. You want to have the AI conversation? These are how these sales calls evolve. This is the wedge the sales play for me. And finally, I talked about this idea of technology biogenesis. You've heard a lot about innovation. David Aviv did an amazing job talking about the innovation that we bring. This is innovative company bringing innovative stuff to market, ahead of market. This is sort of, I'm a hockey guy. We're going to skate to where the fuck's going. We're headed that way. And along the way, I'm going to deal with the world the way it is. I'm going to play to my strength. I'm going to develop new strengths, and that's what we're doing now. We're going to drive cloud AR because we're a cloud-first business. We're going to move to the AI opportunity, and we're going to make the absolute most of the API security opportunity in front of us. That's the North American strategy from a hunting, farming, SDR, vertical market perspective, a brand new organization where the enthusiasm and the energy in this world-class organization is as strong as I've ever seen. And I've seen a lot of great sales organizations. we have built a really good one here. That's what I wanted to tell you. I'm gonna hand it back to David.

David Roth, Analyst — Other

Thank you, Randy. And what you just learned and heard is now the gold standard for our business worldwide. This is now on me to ensure that every one of his peers around the world are living up to this level of commitment and execution, and we do it decisively. One of the things before I dive into OEM Partnership and the MSSP side is also want to do a mini version of Storytel the way Randy was just sharing. Over my last set of years, I've probably done as many EBCs, Executive Briefing Times as any CRO out there. If I look at the conversation, first of all, when we talk about the crown jewels, the core of our presentation, that we secure the crown jewels. This is going to tie together through the rest of this talk, is crown jewels are the applications. Why? Because the applications are the business. That's what the business is being driven through, all right? As cloud was first getting adopted at all, one of the first challenges, the security teams, we got vendors and the tech side, but just the security teams were seen as the slow people and the no people. That was a big issue in the beginning of cloud adoption, right? so we needed to get to the notion of security at the speed of business when David Aviv puts a slide up showing that we uniquely posture the end-to-end solution for API security as a platform what does that mean to the client they get security at the speed of business as fast as a developer is executing on the shift left and we're securing them at the code level all the way forward to when it's in runtime that changes the game for our clients to be the yes people but yes and secure all right so I just want to reinforce that one part the second thing on the AP on double clicking on that APR journey is and out of all those EBC's I did I worked in a company for the last 10 years that was an early player in the attack surface management market and the cyber exposure management market and every major company and security multi-billion dollar company out there have platform solutions to claim helping corporations be predictive proactive by finding the leaks or the challenges in their attack surface before it hits them I could tell you firsthand already that the company I came from and every one of the top competitors do not have what David walked them through so what they're showing a series of sensory data to say on the attack surface level here's what you can see on where you're you're vulnerable so you can figure out how to shore it up and get ahead of it before you're hurt there's a massive opportunity for even all those organizations to partner with us and see what it means to get the API level view because you already heard it from Randy that example of hundreds of API's they thought they had it was tens of thousands that's that's more normal than you know so I'm very excited about what that means the other part is gonna to reinforce from all those EBCs is over a year ago, sitting with say 10 CIOs or CISOs at a time, I'd say three, four of the people in the room a year to 18 months ago could have been in the camp trying to block and stop AI. We're gonna block and stop it. David kind of talked about what goes wrong with that, why vendors try to support an approach to accomplish that. If I think about my last 90 to 120 days and the briefings that went on, that number now is down to one out of 10. And even that one out of 10, the other nine are looking and saying, how's that going for you? It's not possible. They can't block it. You saw a bunch of logos on a screen from David earlier. These are brand name companies. Who doesn't have Microsoft? Who doesn't have Google? Who doesn't have ServiceNow? Who doesn't have Salesforce? Right? Guess what, they have AI. AI is here. So the one thing I find too, is this is going to also, on the brand opportunity with Connie, not only do we have the CISO's attention, when I sit down and talk to CISO's today and the AI topic comes up, they ask me if we can sit down with their CEO or members of their board. That's how big of a topic this is heading into. Let me get back the OEM. Why is it such a big deal? This relationship set that we have with Cisco and Checkpoint, We're talking about organizations here that are touching and have papered relationships with over 100,000 enterprises in the world, over 150 countries. Imagine the notion, and again, our goal for scalability and repeatability is this ability to turn other people's customers to ours. in order to hear from Randy that the product set that they have on their price list they cannot deliver without us right but when it comes to our category there's a really strong compelling message with that I'll give you a great example with Cisco I told you about all my travels when I was in our Asia PAC meeting we had a breakout where our regional leader for ANZ Australia New Zealand took the stage with his peer from Cisco less than five minutes into the talk the Cisco leader clicks the slide and he's showing the adoption of technologies went through two accounts and showed what Cisco products are in place what competitors of Cisco are in place and then he clicked again and circles popped up on this first one there were five radware competitors that he specifically said we together want to knock these folks out we already have at Cisco he says the EA in place so they're giving they're they're driving a motion a go-to-market motion with their clients when they have these EAs in place where the CFO people like guys peers and as well as the CIO they're trying to accomplish more vendor consolidation and if radware helps them bring more under that Cisco umbrella, that team's motivated to do it. And by the way, you're gonna hear me talk through MSSP in a bit, where they're completely running out front for us. In this case, we do it together. So Cisco and Checkpoint lever just as the specialists for what our expertise is in these offerings. But we get the clout, the access that otherwise, how long would it take us to get to these same shops? right it's very very powerful the numbers 85 new logos in 2025 that was a 25% year-over-year increase from 2024 and I believe this I mentioned earlier on that these are very powerful updates I think we have a way high ceiling above where we are in relationships like this we also with these relationships took 122 accounts and upgraded so we're carrying folks forward to our more modern and even including cross-sell upsell capabilities and what I'm seeing across the board is the excitement from both these companies on API and AppSec being the next place that they push together so really exciting checkpoint Cisco by the way again the reinforcement is even though it's called OEM our products are represented as radware the branding still comes through they get to know us at these customers let's shift over to MSSP where I mentioned Randy and his team are on the front line with the OEM model that I described and as you also heard from Randy with the channel partners who are on the front line we need to find a way to get scale where we can't be on the front line to get to everything that is out there for us this this mid-market opportunity is massive when I gave you that example even with Cisco and checkpoint with over 100 enterprises around the world that number and give or take it's probably closer to 140,000 includes the middle market business of a hundred million revenue companies all the way up to the multi-billion dollar largest companies in the world. So, how do we actually go downstream? You heard me say I'm impressed beyond belief about this company's ability to execute on the elephants. As I was hearing Randy describe it, and he also kind of hinted towards it, I'm very excited about the next level of game, which is the gazelles and the zebra. We need we need sales cycles that happen in the 90-day period, not just the 9 to 12 month period, right? This area gives us that access. You heard from Connie that we go back a few years on building this. When you see the next few slides you'll see why there's a few years like what kind of work went into this. I think I came in just at an awesome time because what Randy and team accomplished in 25 was the foundational platform of proving that this is a massively repeatable and scalable business and that's gonna get us the force of multiplication and get us access to the market that would be a completely different approach that would take both in time and execution if we tried to lift it all by ourselves so turning these other folks client bases into ours is really the whole point there has to be the word partnership to not just be a logo on a screen or I call it the Barney deals, I love you, you love me, but there's really nothing much more than a press release. This is why there's a business behind it. Radware brings to these MSSPs an operational service that would be extremely hard for them to hire for, to build out, execute on. We give them a white-labeled portal. So what their client base sees, keeps them within their branding, their logo, well by being powered by radware it ensures that we have their back from the moment that it goes past the first line of support that we handle the tier two and tier three sock support for them and as I mentioned for Connie talking about the few years of buildup in this we actually have built a very rich enablement program that'll walk you through but why did we do all this because they do all of this. They deliver, drive the marketing. You're gonna see an example of this in the next click. They deliver the sales execution. You're not having our folks, like you actually heard Randy say it earlier, he called them a customer. Getting access to their customers, we treat them as a customer just to bring them in, nurture them, to nail this alignment, and then we go from customer mode to partner mode, to access all of their customers. Make sense? And of course, for them to do that, they wanna be the first line of support. What I'm gonna share with you is a commercial that ties all this together, especially going back to when I mentioned that being able to do the security at the speed of business, I think our partner sells this and markets it even better than anyone else could. It's a relationship with Spark. I'm bringing it back to Australia New Zealand unfortunately overnight Randy thought hey maybe I could do an Australian accent on this one it's not going to happen but um the beautiful part is this relationship is a relatively recent win for us last year and it went from getting them on boarded and deploying and executing to now they describe us as really what ensures the clients can have the confidence to grow and if you think about it in the tier one communication provider space delivering MSSP this is a great margin business because the core of selling pipes is a commoditized business this is what the enablement looks like for them very rich portal it gives them the hub of getting all the information that they need to be successful we put them through through a tier one support certification program. So not only are they on the front line, but we make sure they do it the right way. We also train their folks to be able to be the sellers of the solution that they can be. So again, instead of building out our own sales force in this and accessing this market in this way, their sales force becomes an extension of us. We give them all the co-branded materials. We establish a lead generation support enablement. and again things like templates kits sales script email templates pre-built marketing campaign kits this is all the thing that really helps like we go out and fish on our own but why don't we set up a charter of of a fishing charter license that everyone goes and catches fish our way and all the fish that come in we get a cut up right that's what this model is teach others to do it so if you're doing it by yourself there's not the same scale especially when we talk mid market so here goes the australian museum here at spark we're known for doing this listen hey dad

Operator

my car's on the tow truck that's the sound of great telecommunications but we also do this listen that's the sound of great cyber security yeah spark does cyber security and we're one of the best in aotearoa we protect against unwanted dramas like data breaches stolen customer info terrifying PR storms and keep business well calm so you have the space to make it more exciting we just hit 300,000 users and because of our partnership with radware outside the security for your business and the apps you make is so secure keeping things so chill Yep, no drama here. We keep cybersecurity top of mind so you can have peace of mind. Secure your future and talk to your client lead today.

David Roth, Analyst — Other

Again, driving that middle market to an action and our brand is right there, hitting home on how and why this all works. So why are these folks doing it? I mean, we could, if I jumped right into the middle, can't they just do this themselves? Even if they actually went about the do-it-yourself scenario, which I mentioned already, the expertise required, getting access to the tech, and so forth, even if we just looked at what it meant cost-wise, none of these folks can afford the loss of time to market. They're all in the battle for their lives to actually ensure that they're creating this differentiation in their market, and they need this coverage yesterday. So it's a new revenue stream a profitable more high margin revenue stream compared to their legacy where they've come from They get foundational leading kind of going back to to Dave's point David's point earlier is They get the benefits of this this leading DDoS and AppSec protection service by the way This is all driving our cloud security Growth model everything you were hearing earlier about our numbers this success and the kind of things we're talking about today are part of the example that came into the results we share about our cloud ARR growth in 2025. And it's amazingly sustainable. This is a sustainable and growing, exciting business. And it adds a revenue base from an existing client base for all these folks. Lower risk, no CapEx. It gives them a full managed capability that we're providing, the white labeling we give them so that they get their brand coverage, keep it consistent for their clients. I already talked about the comparison against do-it-yourself. And on the monetization, I said earlier, speed to market's huge. We give them all the enablement they require to be successful and they got a pricing area that gives them the ability to deliver high margins. I said earlier that I'm not, I think the core of partnerships is we're really working together with companies to ensure that our value proposition hits through to their clients so the clients are successful from it, this partner is growing their business from it, and in turn it drives a whole market segment for us that otherwise would take us a lot longer to get to. I want to kind of reinforce out of John, the president of Bell Cyber, and for anybody that doesn't know, this is a managed service of Bell Canada. This is part of Randy's world. You'll see the reinforcement that they know what David was talking about earlier. The attack surfaces are ever-changing. It's challenging. It's concerning to their clients. They need a way for it. They need, knowing that the attackers have automated techniques. We actually, and they have ways to evade detection. They need a partner that out maneuvers the attacker. That's really what they're looking for and what they get from us. By the way, to give you an idea, even though Bell Canada is in the tens of billions, this services business is over half a billion dollar business and growing for Bell Canada, Bell Cyber, and what they talk about in this is that their most critical industry mid-market on-up customers are the ones that pay for this out of the Bell Canada base. That's where this is sold. It's our sweet spot. The financial services, the health care, the markets, the same markets that Randy talked through earlier. So it's a great alignment. So by the way, what I just gave you that quote from, that was February, right, Connie? It was a really recent, like days ago, kind of release. Maybe the last 30 days, I don't know, but it was recent. Yeah. Very, very recent. What I'm going to show you next gives you a year to look at what happened in 2025 with a tier one US provider. By the way, I hit home on this tier one concept. I'm a big believer that with leverage models, with partnerships, and to accomplish what Randy mentioned earlier about how closely we can and work together, you can't go broad and thin. That doesn't work. So 80-20, 85-15, you need ratios where you're gonna say, I'm gonna get 85% of my business from 15% of these partners, or 80% of the business from 20% of these partners. Even when you heard him bring up that there could be some smaller regional plays here and there, it fits into that model, right? I guarantee you, for each one of his teams, they know out of the bigger, broader players who each team focuses with, and if there's a regional one they need, they don't go beyond how many they can count on their hand right this is focused deep relationships so we do the same thing in the MSSP world somebody can go and look at the MSSP track list it's a big list of companies out there but if you take the 80 20 rule you're gonna find that there's 20% at the elite top that do the biggest amount of revenue in the market that we want to own so that's That's why we went tier one providers first. And even after we knock through every one of these tier one providers in each major market around the world, we're also going to then take on each of the major AppSec, SOC as a service, SOC providers that are also on the top of that list of MSSP, which come in right after these kinds of names. this company originally was trying to work with a competitor of ours when we won them over by the end of 24 with the competitor they weren't able to bring that capability to their client base more than a hundred or so customers they were stuck and not growing it wasn't working it wasn't scaling so we said this needs to be repeatable needs to be scalable I think everyone agree this chart looks pretty scalable and through the different things I showed you on how we do it this thing's very repeatable we went from 168 onboarded customers February 25 and somewhere between November and December we broke through a thousand the other thing in these relationships is these partnerships like this and their engagement with Randy's team are constantly asking us for the next modules? When can we have the next things? I think I heard somebody bring up at one of the SKOs, this exact company asked us as soon as we're ready to productize our AI offering, they want to talk to us about how to bring in that module capability. So it's just the notion of having a platform and adding modules as we go. There's two things you could see out of a chart like this. One is turning their customers into ours. The other is expanding our module coverage to those customers. That leads me to Guy. Thank you, everybody.

Speaker 12

Thank you, David, and thank you, Randy, for inspiring presentation. When they talk about go-to-market, they mean business. All right. So, good morning, and again, welcome, everybody, to Rodver's Investor Day 2026. In today's session, we will discuss Rodver's financial journey. We will talk quickly about the last three years then we touch again the 2026 sustainable growth some KPIs regarding our long-term model and I'll conclude with the investment highlight last slide is obviously thank you but one slide before the last slide is going to be an interesting slide so stay till the end of the presentation. Revenue was growing very nice from 2023 to 2025. We ended the year with $302 million in revenue. Total ARR grew and you can see significant growth from, this is year over year growth from 4% to 8% and then 11% cloud ARR growth, 22% then 19% and then back again to growth Q3 was 24%. Then we finished the year with 23%. Most of what we talked today is about our double-digit growth. That's the main growth engine in our business model. And the leverage you can see in the EBITDA margin actually more than doubled over the last few years. And when you look at the EPS, nearly tripled over the last three years. So we saw very nice leverage in our, very nice OPEX leverage in our model in the last three years. So we just had the earning call last week, so I'll go over the numbers pretty quick. 10% growth year over year in Q4, ending Q4 at $80 million. dollars steady gross margin around 82 percent 240 basis points sorry 240 basis point improvement in operating margin and 19% improvement in EPS growth so that's actually what is fueling our growth from a strong foundation now if If you look at the 2025 numbers, so again, 10%, if we're looking on our annual 2025 numbers, from strong foundations to double-digit growth, and we're talking about sustainable double-digit growth on an annual revenue, the company grew by 10%. But if you look at the other KPIs that actually allude to the future and what we expect to do in the future. We're talking about 11% total ARR growth, 13% RPL growth that will give us the backlog for 26 and beyond, and 23% cloud ARR growth. Other indicators from the P&L, 82% gross margin, 13.1% operating margin, 32% EPS growth, and on the balance sheet you can see that 13.8% free cash flow margin and we ended the year with 461 million cash, cash equivalent and marketable securities. So now we look at the path to sustainability in 26 and obviously beyond. I'll touch four parameters, top line, gross margin, OPEX and capital allocation. Two things, two parameters drive our growth in 2026 and we believe it will continue also in the future the number one gross engine is cloud cloud cyber and the KPI is cloud ARR and we expect it to continue grow and grow at 25% and the other parameters is increased subscription revenue so cloud ARR growth driver for 2026 and beyond and by way of recap because my colleagues my friends already discussed most of these topics is divided to the technology side, new platform, unique go-to-market and regional participation. So as David Aviv already talked we have a leading differentiated technology based on behavioral algorithm and unified platform that actually cross all our solution from DDoS, AppSec, API security and AI and all is coupled also with the epic AI that Roy described before Connie talked about the amazing opportunity in the new modules API security and AI we're looking at an amazing addressable market with very good potential for serviceable addressable market because we're touching the LLM firewall API protection of the agentic protection and and the agentic surge so yes it's a great addressable market hyper Kager We're looking at a 60% CAGR in this market, and good cross-selling opportunities. This addressable market, just in terms of numbers, is at least 10 times bigger than what we're looking at today on DDoS Plus AppSec. Just saw before my presentation, David's and Randy's presentation about the go-to-market MSSP. Classical case for force multiplier. We're adding MSSP. They're adding customers. customers are adding circuits and again we're adding more services so huge potential for growth and great collaboration with Cisco and checkpoint our OEM partners and Randy discussed also what he did and what he's planning to do in North America when I'm saying participation I mean predominantly the US the other element of the growth and on the top line is actually the non cloud ARR and the non-cloud ARR actually comes mainly the drivers are mainly subscription that's product subscription and software subscription so we're shifting from our capex selling business model to more and more subscription we already announced it on the defense pro x last year and we will continue to do it with other product throughout 2026 the other element is is obviously we're adding more and more software lab product coupled with the appliances so we have the application protection on the defense board we have the gel with an alteon and many many other software-based product that obviously are sold as a subscription roy already touched the number that we announced 21 subscription revenue growth and that comes from both cloud subscription as well as product subscription so if we look on on on the coming chart as of the last year we we had 38% of our total error as cloud ARR and for the overall revenue of the company 80% of robber's revenue is based on recurring revenues if you look on the last five years we we managed to post close to or actually about 23% growth in cloud ARR and the growth especially in the last three years was driven definitely because of the weight the growing weight of cloud ARR but also nice single digit growth also on the side of the non-cloud ARR so this is pushing us to a sustainable double-digit growth in scale if we're taking this model and based on what we talked earlier today we expect that the cloud ARR will continue to grow sustainably at a rate of the 25 percent year over year and single digit growth based on non-cloud subscription which is now a bigger number than our services so the two together will take us to the target year of 2030 that we expect to sell 500 million dollars and year over year growth on ARR of 16 percent. The second point is gross margin so we're about the way we see in 2026 we're about to face some headwind from cost of goods sold related to memory prices that increase in the market and as well as some impact from FX changes newest really shaken versus the US dollars but at the same time we will see also tailwind that will come from more efficient use of our network and that's our current network we currently have 65 global cloud security services around the globe 30 terabit DDoS mitigation and we're about to increase this network during 2026 by four to six new point of presence our ability to improve utilization of this network will definitely be a tailwind to our gross margin the other point in improving gross margin which is also related to cloud ARR is adding automation AI based automation to our SOC and other processes related to uh to our cloud operation so opex on on the opex side we're talking for the last few quarters that we are increasing investment when it comes to innovation and especially innovation as david aviv discussed before in the api security area and in the AI security. So we're doing that, and we will continue to do that in 2026. Connie, Randy, David talked about go-to-market. A, go-to-market in North America. B, investment in brand awareness and the whole story that we're telling, investing more money in the correlation between cybersecurity, leading cybersecurity, and the name Robber. So if you look at the bottom part of the slide, you can see a bridge that takes you from the operating margin of 13.1% that we had in 2025 to a bit lower operating margin that we expect on 2026. and the two main numbers that you should focus on, we do expect leverage to continue seeing leverage in our model based on top line and gross profit growth. But this leverage is based on constant currency. On the other end, we expect based on our forecast that our OPEX will grow by 4.4% just because of strong new Israeli shekel versus the US dollar. and that will bring us to 12% for 2026 so in terms of capital of the capital allocation we're looking to continue to invest in innovation we closed an M&A deal on January and we're looking at other very interesting companies in M&A to expand our our platform our cloud platform share repurchase we did a press release last Friday and this is definitely an intention of the company. The company, even with the lower operating margin, is planning to continue and generate a lot of cash in 2026 and cash to maintain flexibility in dynamic environment. A few more points about cash. So we ended the year with around $461 million in cash, cash equivalent and marketable securities. Most of our cash is actually invested in deposits. The interest rates in deposits currently is the highest in the market that we can get. We generated 50.1 million cash from operation in 2025, and free cash flow came in at $41.6 million. dollar it is important to say based on our architecture and the way we build our cloud operation normally the ratio between free cash flow and cash flow from operation in radware is way better than our let's say competitors in that space we are building the network based on radware equipment and as a result definitely we're gaining better performance but also better economics So we talked, everybody talked today and also me about sustainable double-digit growth in scale. And here I'm going to show you a bit more conservative numbers going into 2026. So normally, and this is the last time I'm going to show you an annual guidance. We're going to be back to quarterly guidance. But me as a conservative CFO, I'm going to take the 8% to 9% growth in revenue that will lead us to $326 to $329 million, $230 million in OPEX as a result of increased investments in technology and go-to-market and the FX impact. and that will lead us to the number that we already seen, 12% operating margin. So you've seen this four-wave chart like a zillion time already this day. The two points that I would like to add to this chart is actually related the disruption and probably the acceleration and inflection point that that could cause to the way we grow. Bear in mind that this process, DDoS, APSEC, as of today took us 13 years. These two, the way we call it, two new modules, two new markets, which are 10 times bigger than this market, this is going to happen in two, three, four years. So the disruption to the market, the disruption of pretty much everything that happened in Radwar, is gonna be a great opportunity. The disruption will drive acceleration and will probably drive an inflection point sometime here. Mentioned again, $500 million in revenue, 25% CAGR in cloud ARR and 15% CAGR total. So again, talking about the investment highlights and that's not the last slide, Accelerating cloud and subscription growth, we're looking at very large addressable market and growing market, large TAM, large SAM, and very fast-growing Kager, high-growth segments, as Randy and David mentioned, before outpacing the market, extended depreciated cloud security platform and clear path to sustainable growth, profitability and cash generation. Now currently the way we look at ourselves and Publi, you look at Radware, you put us in the bucket of on-prem companies. If we put Radware here at the growth rate of 2025 and multiple of between two and three, definitely it is clear that we're let's say the cheapest in this bucket we talked a lot about our shift definitely most of what we do today is cyber most of what we are focusing is cloud based on subscription model whatever actually should be in this class in this packet of cloud companies and even on on today's of multiple again between two and three we're very low in this market and if we take it based on on today's growth to the medias or close to the average of this sector we're talking about multiples that are close to ten times and with that thank you okay so we are in the Q&A session and you're welcome to

Speaker 14

ask yeah hi this is Grant Darling with Jeffries thank you guys for all the detail today. Maybe to start off, what's the biggest opportunity for upside? Is it MSSP, improved direct sales, or OEM? And maybe if you could comment on that in relation to what's assumed in terms of that 500 million ARR number.

David Roth, Analyst — Other

You could speak to North America first.

Randy Wood, Analyst — Other

Yeah, from a North American perspective in terms of biggest opportunity upside, it's clearly cloud. It's the cloud for us. It's winning our fair share in the cloud. Again, strengths-based execution. It's taking what we're very good at and expanding and developing new strengths. Specifically, I think API security gives us an enormous advantage and opportunity to go expand. To expand in existing logos, that existing base of customer, and new customer acquisition. It's a competitive market. It's not, by no means is it a layup. And you have to show up on time, on target, first pass with the right product. It becomes a very, we had this conversation during break, It's a feature-by-feature, very often POC-based evaluation process. But that unlocks, that alone unlocks enormous opportunity to drive ARR and specifically cloud ARR growth in North America.

David Roth, Analyst — Other

I think that does also echo on a global basis. I see that in Asia Pacific as well as our EMEA business. The only other thing I'd say to, and by the way, I'm already hearing this. I mentioned the time I've been in front of clients so far, the existing customers and their movement from our foundation that they've been with us to cloud, hybrid cloud specifically, and then they actually jump right in and tell me about how they're beginning to adopt API. So I think our team's doing a great motion already on the description that you just heard from Randy, and I'm also seeing it out of our strategic partners, including those those VAR channel value-add partners. I'd say out of every partner I saw in Latin America for example, they each had a combination of existing client as well as prospect they brought to the event.

Randy Wood, Analyst — Other

And I'll say one more thing with respect to that growth contribution force multiplier, and we talked a lot about this, the MSSP opportunity is enormous and he talked The Pareto rule, the 20% are going to drive 80% of the business. You saw that one chart. That's a North American service provider where we went from nothing to 1,250 unique customers in a year. That is enormous cloud ARR contribution in one MSSP. And I have the opportunity to do that four, five, six more times this year, not just in DDoS, because that was just DDoS, but also in AppSec and the new aspects of Aspect. So you can see it becomes quite a large contributor at scale to that ARR growth. That's a big part of that cloud growth strategy, I think, worldwide, certainly in North America.

David Roth, Analyst — Other

One last part, too, is the OEM aspect takes muscle memory cycles, and it has to come from both sides, further investments that the Cisco and Checkpoints make as well as us. I gave you an example of an ANZ team, an ANZ team that were showing they're building that muscle interaction together. But in Randy's team alone, each one of the three regions, it's not a complete fabric where everyone's got the motions perfectly there so far. We've got certain team areas that are going faster. So the more that becomes a growth engine, there's multiples of where we're going to get both the cloud growth and that relationship, but overall our entire platform. I hope that gives you some ideas.

Speaker 12

So regarding the other part of the question, how we get to the 500 million, so obviously we start at the 3.02 that we ended 2025. Now if you look on two elements, recurring, non-recurring, so we ended 2025 at 80%, 20% non-recurring. On the target year, we expect to be close to 90% on the recurring. recurring again is the cloud AR and non-cloud AR and services I'll start with the non-cloud ARR which is based on subscription of our appliances as well as the software component with some headwind on the services all in all this element we expect to continue and grow single digit and the ARR portion we expect it to grow at 25%. And that will bring us to 500 million. Got it. Thank you.

Jeff Hobson, Analyst — Needham

Hi, Jeff Hobson from Needham. Thanks for the question. Maybe for Randy, what is so challenging about the North American market and why does it require a different approach that maybe has led to the changes that we've seen over the past 18 months?

Randy Wood, Analyst — Other

That's a great question. I think it's a more discriminating buyer in North America. I only know North America, but I know that to be a highly competitive market. That's where companies typically go first and try and go big. And so for us, it's building that new strength, right? Leveraging what we have and finding ways to accelerate that cloud growth based on the core competency of who we are. There's a certain brand recognition and expectation that we have in North America, and we're trying to change and evolve that so that we're just not that on-prem DDoS, hybrid DDoS provider. But we're also a very competent, very credible, very competitive cloud provider. And so it's a different conversation. It requires a different sales motion in North America. Where previously we were trying to tend to the install base and new customer acquisition in a single sales motion, the dynamics of this market necessitate that we handle it differently. We have to deal with the install base customers separately and exclusively and bring that new hunting motion which doesn't get distracted in the important business of maintaining customer intimacy and advocacy, that's important, but can now go hunt distinctive new logos across the portfolio of what we sell. So I think, and I don't, you know, Europe is a country based sort of approach and so it's handled sort of country by country, it's managed that way. North America is a different dynamic and even the way we would segment the market. So for me to try and go after the entire market would be a huge distraction, which is why we focused vertically. We think we can win repeatedly in scale in healthcare life science and financial services, state local education is a great market for us. So that's kind of where we've pointed our guns and where we've we've now been successful going to market in this new way.

Jeff Hobson, Analyst — Needham

Perfect, thank you, I appreciate it.

Yisca Erez, Head of Investor Relations

I want maybe to add to that is that all over the world we're seeing opportunities and that's what David mentioned to actually align all our organization, go-to-market organization to same best practices. So I think similar, I would say, outcomes or improvements, there are other markets that we are looking for, as well as bringing some of the best practices here to North America. So I think we just need to do the work. There's ample potential all over the world for improvement of growth rates by aligning and, you know, organizing in similar ways that we've done here. And David is on the job to do that, as he mentioned.

Randy Wood, Analyst — Other

I've had this conversation a few times this morning just about brand. And I think the Radware brand in North America is its own sort of thing that's evolved for 30 years. I don't own the brand. We don't own the brand. I can influence the brand. And so I think in very direct, specific, measured ways, we've begun to positively influence the Radware brand such that it's a cloud-first brand. And that's by bringing to market great salespeople, great sales leadership, a new face to the sales force. We had an executive exchange we do once a year this year in Scottsdale, and we had 60, 65 distinct existing customers. and prospects in the executive exchange. It's a two-and-a-half-day event. And after the first half of the first day, I was pulled outside by a couple of existing customers to say, hey, something feels different here. The content's different. The message is different. It feels different. You guys have really upped your game. You're saying different things, and it feels pretty good. And we get the same feedback at the FSISAC event, the HEMS event, at Black Hat and RSA. So it's also showing up and doing business on customers' terms and really trying to influence the brand in a new way. And it's everything to do with the people we've hired, those 30 new peoples and the great leadership team that we've built that are projecting that brand in every conversation we have.

David Roth, Analyst — Other

One thing, and Roy kind of reinforced to the global nature, I kind of also want to say that this is not a combination of our first rodeo and going through this before. You could see where you can cut through in a given market around the world, like in India or pick a certain sub-market of EMEA or Asia and so forth, where it might work for that area, but it doesn't necessarily mean that it's going to cut through what Randy mentioned earlier about what it means to make the difference in USA and North America because of the exact things he brought up earlier. But when you actually nail it and win here, it actually has an echoing effect everywhere. That's why we're making such a big deal about this North American focus is this will create a high tide where all boats will rise off of that. The other thing I was going to say about growth is there's really three main knobs. The 18-month investment that Randy was talking about getting the team right and the focus down is a knob that's important on executing. And it also gets the outputs he mentioned on that effect where these folks that are out in the field and representing us are all coming together to drive the new radware perception. right then the two other main knobs we have are partnerships and marketing so we and and by the way i would argue the more orchestrated all three of these knobs are and not seen as silos or independent things is where the power is amplified yeah and i just wanted to quickly address the brand since i own it we you know when i joined the business i told you about what we focused on right what are the growth drivers what should we go after and i partnered very closely with david and his team to build product that we are now launching into the market.

Speaker 15

A brand needs to be credible. It needs to be ownable. We're now in that position where we can credibly own a new brand. And that is a big project coming up for me, for my team. So again, I alluded to that before. We're gonna be doing some work there. Doing it two years ago, it probably wouldn't have had the effect, right? It's, you know, everybody's heard. it's a bad analogy but I'll use it anyway you know lipstick on the pig you know this this is more than that now we are more than what radware was as short as you know three years ago and I think we're ready now and have built a solid solution platform foundation that will you know sing in a new brand and new messaging we're gonna improve in North America our brand awareness and we're going to improve the perception of the brand as I said in my slides get rid of that legacy tag and start to make sure security buyers see radware as synonymous with innovation.

Bob Johnston, Analyst — Herald Investment Management

Bob Johnston with Herald Investment Management. Thank you very much. It's been helpful. One thing I'd like to do is just dig more into the incentives. You talked about going to Hunter Gatherer. How is that divided? Number of reps, what percentage in either one, and how are they being incented and then you know globally you know you've had oem relationships in the past and the incentives weren't correct so you know how do you feel that you're now you're setting up the incentives with oems with mssps to do you know the you know the um the expansion that you're looking for to get to 500 million in arr start north america and i'll cover the okay yeah i'll start from a north american perspective from a coverage compensation perspective, it is a typical commission-based compensation plan, a little bit different between

Randy Wood, Analyst — Other

hunter and farmer. On the hunter side, it's all annual contract value-based commission. The split is typical in the industry in terms of base and commission. That's 50-50, 60-40 is typically we see this comp plan to come in on the hunting side I'm sorry on the farming side it's a little bit different because we're asking those farmers to do more than one thing we want you to grow cross sell and upsell and for that there's an ACV component the comp plan but there's also an ARR component we want you to pay attention to ARR preserve and grow ARR that is the essentials of that job. And it's a different sales type of person, executive account management, than it is from hunting. So the skills are different. Where we've hired is different. The up-leveling we've done is purposeful and different. You'll find the mix between those teams is in North America. It's about 50-50 between hunters and farmers. I also lump in my service provider carrier team and my Canada team tends to do a little bit of both. It's just a smaller market, but they're pretty competent with their know-how and experience and customers. From a partner perspective, we have completely revamped our partner program. The big part of partnering in North America, and maybe this is back to one of the challenges and difference in North America, is it tends to be a very partner-led, partner-centric market. And so in some ways it's the cost of doing business. You have to show up on their terms and you have to be there. There's a whole lot of partner hustle and you can't try and be all things to all partners because you'll never get there. A big Cisco can do that, Radware can't do that. So I have to be very specific and targeted in terms of who we embrace from a partnership and how we go to market together. And then we need to create very attractive, very lucrative sales financial opportunities for our partners to make it make sense to get their attention because they have a lot of people courting them trying to be their primary vendor in whatever the technology. So it's a lot about showing up. Showing up, for example, last week GuidePoint had their sales kick off in Orlando. It's just table stakes. I have to be there. I have to be there and I have to be part of that experience and I have to show up and we have to create and talk about the joint opportunities that we can create and pursue so that those GuidePoint reps all over the country are thinking first radware when it comes to this particular opportunity so we have a sophisticated mature modern partner program that is very strong attractively incentive based to attract and recruit and retain and then pay and partner that partner community that's a good part of what's working and as we grow we aspire to just grow that part of the business regarding the the overall

Yisca Erez, Head of Investor Relations

as Randy mentioned we moved all compensation plans in the company to be ACV and ARR based from total deal value or CAPEX so the whole company is aligned to ARR and ACV some of the new challenges you've mentioned like MSSP them being sale selling on a yearly basis and cloud contracts etc have gone away once the whole company works on annualized terms so there's no more and should I do MSSP or just try to sell them equipment? No, you should do MSSP because of the scale effect. And actually, given the ACV and ARR focus of the company and the compliance aligned to that, it's very lucrative to land an MSSP. You've seen the numbers. So all the sales force are very, very interested in this type of partnership and scaling the business because, you know, it gets them way over their, way over their targets if they're able to execute that. So I think we're pretty much aligned. People see the value and the potential in that. And I think in our, even in our president club or what we call circle of excellence for 2025, I think two of the, you know, awarded teams, two of our most successful teams did it based on MSSP. So I think now in the company.

David Roth, Analyst — Other

One other part that's critical on ensuring that these aren't Barney agreements and we truly are economically partnering, and you heard from Randy, being there at that SKO is a big deal, but I think so fundamentally, we're executive-executive connected in that company, right? Their CEO came to a big event of ours before I came on board. I just know the story. And the key of the relationship for us is we need to hold each other accountable, that we can live up to even in QBRs to say, for what we needed from each other last quarter, how did we do? Where somebody needs to do better, how do we do better? This is also the reason where you don't necessarily even keep logos as a partner forever. There might be certain that have to cycle if, from one side or the other, we're not being the kind of partners we need to be to each other. That's how the 80-20 rule or 85-15 rule works. So I think we're doing the right things on an executive-to-executive basis. Then it goes to in-region, how those quarterly areas happen. And then within days and weeks of every quarter, how do the teams execute with each other? So, yeah, I think we have different stages of muscle memory on that across the world. But the goal now is to take the best practices we have in each region and keep raising the bar.

Jim Macri, Analyst — Neuberger Berman

Hi, Jim Macri, Neuberger Berman. I've got two different questions here. One is the API security market is very competitive and maybe connecting some dots. How important or how helpful is having a roadmap to agentic AI security in winning some business? And then the other question, completely different, has been on my mind for a number of years. How come we don't do more business with the U.S. federal government?

Randy Wood, Analyst — Other

So it's the biggest market, but the barrier to entry level. Can you? No? Ah, there it is. Yeah, you got me. I think you can hear me nonetheless. So an important market, a very lucrative market, it's a very difficult market. It could be things like fiscal cliff and continuing resolution and all those great things. And despite all that, as a salesperson, at the first of the month, the rent is due. because a person like Roy doesn't care about all that. And so we're not, although we are pursuing the sled business, it's a little bit different, and I think we can be very successful there based on some great relationships we have. We haven't put our toes in the Fed market. To the API question, it is a very competitive market. It is a market, I think we're still in the gold rush in that market, that those monuments have by no means been erected to commemorate who won that market. I think we are going to show up and win our fair share and probably more. But having that agentic AI conversation in terms of innovation, it's the difference that makes a difference. Because I tell a very strong, believable, comprehensive API story and I put my money where my mouth is in POC and then we have the opportunity to bring in David Aviv, who is, among other things, a real, he's a magician, and he brings magic. This is, the agentic AI piece is real magic for us, and it's believable, and it's back to that, the biogenesis I talked about in terms of innovation, and sometimes that's what takes the customer to the next place, because we're creating real possibility as we're staring down what's next for us so it's a great story I think we tell it better than anybody again go to RSA everybody's telling some version of an AI story but we can show up and we can bring that magic to life and I can solve your API security problem today so it's a it's a it's a great story to tell something that we just did our sales kickoff at the first of January and it was the focus of main effort for the sales force we're going to tell the API story we're going to go to win with API and we're gonna follow on with that AI piece. Roy, do you want to talk about?

Yisca Erez, Head of Investor Relations

Yeah, I think on API, there are many players but we have very strong security solution per se in API itself, but we also bring this fully integrated platform. And when you talk about API security, it's true that there's API attacks, but the same API endpoint can be attacked by Adidas. The same API endpoint can be attacked by a bot that will try to do over and over activities. So it's not enough to limit yourself in API security to API-specific attacks because there are other vectors that apply to the same API application. So versus the startups that are coming with pure API-only security, we're coming with a broader, stronger solution. And versus some of the other players that are cloud security and so on, they generally went into API by acquisitions. So they don't have one platform, they have several products that together maybe can operate. We're bringing one fully integrated comprehensive platform. I think we're coming, like Randy said, at the right time, the right solution, and I think like we did in the other markets, we've been very successful in the larger enterprises, we'll be very successful here as well. And with the MSSPs and the OEM, we're planning to leverage it also down to mid-sized enterprises.

Speaker 15

I just wanted to add something on the AI piece and how important that is. Randy mentioned in his presentation that we rebuilt our SDR team. So for those who aren't familiar with the SDRs, these are young kids out of college, very aggressive and hungry, want to set up meetings for us. We want to get our salespeople more at-bats, and at-bats in our world is meetings. And it's early days, so I can only provide anecdotes, but I can tell you that when we're sending out emails, because it's you know cloud app sec is competitive because you know API is competitive those emails don't get as many responses as AI people are talking about AI they want to have conversations about AI so the direction that I've given to my SDR leader and the SDR team is use that as your wedge in it doesn't mean you know we can pivot that conversation right we can talk cloud app sec because maybe they're not happy with our current provider we can talk API security again because maybe they have an incomplete solution and you know and they're seeing their APIs attacked by business logic attacks, which is one of our core differentiators. So AI, they're answering more emails, they're picking up more phone calls, and we're getting inbound, right? Our demand gen from an inbound perspective based on the discoveries that David talked about, Shadow Leak 1, Shadow Leak 2, Zombie Agent. We have maximized our marketing wrapper around those. We've had webinars, right? We've had email campaigns. We have nurture campaigns and everything set up. So capturing that early level demand, tossing that into the SDR pool, and driving for meetings so we can get Randy, his team, and all our team members globally more at-bats. And again, they'll pivot the conversation, whichever way they'll pivot it, but AI is an amazing starter.

Yisca Erez, Head of Investor Relations

We will take a question from Ryan Kuntz from Needham. How do you manage channel conflicts across your OEM, MSSP, and direct?

Randy Wood, Analyst — Other

So channel conflict is a reality of the business. It's going to happen. You need to expect it's going to happen. And it has to be done by way of good agreements, good agreements, make good friends. But it's also best mitigated through a modern, sophisticated partner channel system where you have, for example, a deal registration process. And you honor and respect deal registration so that you just keep objectivity in your partners. And then when it's time to resolve that partner conflict, that you do it directly. You do it responsibly, and sometimes maybe it's a little tough love to one of those partners, but it can't be something that drags on, that's debated and relitigated. It needs to be addressed. It needs to be resolved with a commitment to not do that again and to learn from it collectively and move on in a good, sophisticated, mature channel program. And I think we have that. We have a great deal registration program. We have great partner agreements. And we have the leadership courage that it takes to have the tough conversations when you find yourself. These can be very passionate issues for partners who think they themselves have a legitimate registration or a forced mover in a particular opportunity. So it's got to be managed in a very deliberate, respectful way. And I have a great channel leader with great channel know-how who does that at least on a weekly basis. mentioned very strong momentum in the North American organization.

Ryan Kuntz, Analyst — Needham

Can you some sense of the kind of the backlog that's building perhaps and and maybe what would give Guy confidence to become a little less conservative with his projections because it looks like we're growing double digits and poised to meaningfully accelerate?

Randy Wood, Analyst — Other

I think two things stand out from from from leading indicators. Salesforce readiness is important, and it took me the better part of 12 months to build a new Salesforce and bring readiness to near 100 percent, learn the Radware way, build sufficient, believable pipeline, do all those things that if you have a competent, ready Salesforce, they can now go shape, develop, and close business. Number one, my readiness is at almost 100% in terms of new hires that we made within the last 12 months. So we've worked very hard, very quickly to do that. Number two, pipeline, if you were to look at, let's talk funnel. Funnel's inclusive of all deals at all stages. My pipeline mix is breathtaking, is a word I would use, in terms of both diversity of deals, so we're selling the breadth of the portfolio, the maturity of the deals, how far advanced they are, how quickly we're growing and advancing that pipeline, and then the size of these deals themselves, both on-prem or hybrid DDoS deals, cloud deals, cloud AppSec deals, competitive replacement, refresh deals, many routes to market the pipeline growth in not just acquisition and hunting because you would believe it would be big there it's big but also in farming just by now treating these customers in a in a discrete different way no distractions the pipeline we're building there from that cross upsell motion and not one refresh passes us by we're starting these refresh conversations well out to go take advantage of that when the refresh is due. Those are very strong leading indicators and what we didn't necessarily do on the hunting side is wait to see a bunch of success before we started investing and hiring more. We see these leading indicators and Roy said go hire and so I went and hired another sales director and then we separated and expanded into the west coast which is where we were a little bit light. And so that in aggregate is a very strong, I won't speak for Guy, I'll let Guy address that, but those for me are very strong leading indicators in terms of what's possible. And we started seeing it in Q4. Q4 is a very strong quarter for us because of the great selling. Roy and I had a one-on-one early in the quarter and he said, hey, what do you, if things look good and strong, what do you attribute it to? And I said, I attribute it to the things I just talked about, Salesforce readiness and the maturation and size of my pipeline is such that we're going to close consistently in a very strong way, and we did, and I expect that momentum to continue.

Speaker 12

Again, look at the model. So as time goes by, I'm less dependent on one deal. So yes, I have the backlog, I have the 400 million RPO, but I have the model, which is stronger. So, as long as we can do a sustainable cloud ARR and non-cloud ARR growth, then my next quarters are secure. So, the rubber model totally changed in the last few years. So, it's, in a way, easier for us to forecast the future, even without knowing what's the next PO. Tillman?

David Roth, Analyst — Other

So that's another thing that I eyeball quite a bit, not only for North America, but for every region around the world, as how are we doing with our leading indicators about our at-bats and our at-bats turning into demos and then demos to POC. I'd say back to my first impression slide, super impressed with this company's win rate on POC. We get it to a POC and the disciplines that this guy's described earlier, we nail down critical success criteria and our win rate's very high on entering a POC and coming out the other side. But I'm not going to take away that these can't still be nine to 12 month sales cycles, but we have the right indicators to track along the way on how we're really confident about how we think we're going to do on the other side.

Yisca Erez, Head of Investor Relations

No further question. Thank you, everybody, for coming.

Yisca Erez, Head of Investor Relations

I would like to thank all of you for spending the time with us. Hopefully it was constructive and helpful in understanding the business, the momentum, and not only what we do now, But also how we're going to the future. So thanks a lot for your support and trust in us