RDWR - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Radware Quarter Four 2020 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I'd now like to hand the conference over to your speaker today, Anat Earon-Heilborn, Vice President of Investor Relations. you. Thank madam. ahead, go Please

Anat Earon-Heilborn

you, Cindy. fourth welcome Radware's everyone, Good and full-year morning quarter call. and XXXX to Thank earnings conference

today release in Relations Web kit and for President the Zisapel, statements, as Doron Investor Officer. are fourth the Executive financial copy site. me investor as A press and Financial Abramovitch, our quarter, and today's section of the of well Officer; Chief Joining Chief Roy are available

from call statement Zisapel. Please statements & report now future or the files today's limited statements the to Factors the conditions, filed events furnishes the pandemic, made. and time from we estimates. refer risks orders, that time in filings. events to the and the regarding industry, reflect make such Radware's XXXX. the Cybersecurity actual forward-looking could risks During commitment SEC, materially such the contribute are virtual the from the forward-looking our could time participate forward-looking current cause of and or results management Berenberg and changes on on various or I products, annual order or DevOps of any projections to in We financial These changes after other of company update call, impact not to performance in and Roy general future will uncertainties, that, COVID-XX Form forecast is to to, in X, with Radware's the business in differences will differ XX-F timing turn or company's statements date Conference. amount note to may are detailed ability March, revise company. circumstances subject or address April the to but for our other demand last to specifically from in and include, no to you time documents We as undertake

Roy Zisapel

a attack high in lockdowns record of was centers in in and than the the of number quarter, multiple activity, recover expansion combination serve services Radware exposed from first critical many points that than in fourth two-and-a-half was top are a we good in impact significant. at in third applications DDoS at number the book-to-bill enterprises everyone. the some across traffic external Applications with business, were to larger With the and of The expanded in a healthy cyber war motivations activity of attacks that XX% customers and on and record million, the QX fighting waves wins financial attack seeking larger bookings, share in now internet public The enterprises. growth higher ratio the up cyber is acceleration from rushing morning, times cloud of reached QX. ransomware deploy the And is cloud into And bad accelerated, and you. Anat, companies, record increased we fourth you, XX% COVID-XX areas. foreign list from reflected large transformation quarter XX% year triggered on of not cloud their and We digital let of environment fourth to online, attacks third on almost groups significantly attacks are last bot quality subscription and previously online. one. $XXX mitigated to double blocked other hybrid we it customers. more fourth vary, The clear XX% This have the is on. number gains, This The quarter quarters. it the clear, risk. key significant customers quarter. more Thank these roughly activity quarter, bookings to with significantly behalf between include goes business a verticals. ARR remote in logos political applications scrubbing almost services And are requests than data leading from We to application pandemic, The working, and the quarter our me the total The Physical more and revenues number year. forced enjoyed and and We continuous of for quarter. attack ARR approximately saw and our cloud. in surface. XX% detected was and above of the our first the our of financial December web in governments, in subscription waves had activists. and and including that manufacturing

Our broad played spanning Posture major Bot security, solutions Web Management, Cloud Firewall, mitigation our DDoS, Application and a in and deep API attack success. role Security

a of stock One upgrade all The leading experienced with the followed frequent the threatening launch the coupled a more of our and hybrid customers, cloud comprehensive attacks, weeks into elected attack protection, focus upgrading its much centers. benefiting to by these mitigation. cloud higher-end the to of In attack. DDoS brings increased complexity automated the to a of DDoS customer importance our waves and strength and security attack algorithms, of from efficacy the letter plans. they greater protection cyber contract DDoS advantages hybrid intensity, larger After exchange, sophisticated DDoS always-on customers anticipation permanently. detection to traffic face more this multiple of and more our a attack ransom of diverted of larger few contracts and see of We waves in attacks scrubbing an their and

attempts. leading login site our the attacks logo, account solution, after massive a started bot the was signed immediately customer XX% subject the example, customer of For airline, management of attacks. it a attacks. on-boarded constitute European cloud up takeover for the and new We to service account we takeover block These bot to out to Web

quarter Native the exposed risk datacenter public attempts. posture a by from multilayered portfolio our to fortifies X,XXX added the months workloads into our public earlier. protection the the Cloud our to compliance protection theft reach continuously workloads, online significantly detection the It they and by broadens verifying complete to publicly workloads security by stop and hardening customers' record provides portfolio. application only data saw company. advanced and our wins purchased also is product, It reduce extends for providing Native cloud security environment identifying security They cloud of assets. Protector. our QX We Protect Among SaaS cloud two attack video an cloud Cloud X,XXX

partners continued was Services nearly growth our partners, which with XXXX. business, from among our new significant excellent their paid of won an posed the environment. expansion many for QX us combined OEM an In Fortune OEM Cisco, year partners. year new many and company, logos really to investments result XXXX a to a from strength, XXX a challenges Nokia. a and logo our triggered of win Checkpoint, our to major were others. we through XXXX Fortune in Bookings XXX acquisition, aerospace that doubled Amazon we As Web company, continuously off. this strategic able And and industrial

Cloud cases, Service web API the position the its case, report application industry market acknowledged use published our WAF two the experts. critical cloud security out and November, with score Analysis, high It Gartner announced ranked Behavioral technology its it as market. bot through Our for praised a named highest it about and capabilities by security the four strong leader collective API case. provides use in intelligence, protection. In device also is Manager for the our Knowledge use fingerprinting. that The Deep Solutions Intent-based in Quadrant and has management December, firm Radware In protection Bot XXXX comprehensive bot of

to I for Finally, XXXX. the with would plan share you highlights our like of

specifically, benefit to and the our continue We subscriptions. application to solutions business. grow to ARR our are and of and continue strengthen to efforts strongly We our we focused our And security on growth. grow competitive for cloud to hybrid advantage from intend our enterprise, datacenter center to plan more

the account our Doron. growth I offering, devoted confident there. Taking in, will turn continue long-term ensure strong Radware's over to now very leverage team, will operate our capture our the strategic am and prospects. our strategic We opportunities to I into and solution partnerships, growth we we markets the call in partnerships,

Doron Abramovitch

for record and of quarter and result. fourth and us analysis up were our quarter full-year X% thank Roy, all year-over-year. $XX Fourth million, review our joining a guidance the end at you, Thank for revenues a and of you high

full-year, the decreased Americas, revenues $XXX full-year, X% very perspective, in a grew For $XX.X $XXX.X million and reached $XX.X or for as from performance are we Asia-Pacific and XXXX X% in result from revenues million compared of XX% from to the From total pleased million, the where reached And XXXX. revenues original revenue. XXXX. the EMEA down XX% Revenues million X% XXXX. increased were of with

acceleration in still is surface and in enterprises of subscription attack the in the change cloud the drove noted, that transformation Roy growth As digital our and business. leading

revenues our $XXX of revenues recognition, differences and product million which of cloud Our recurring in a timing XXXX up in XXXX. in that comprised the together represented record December for XX% maintenance subscription reached and end XX% ARR, bookings, December, the revenue to with XXXX. XX% compared normalizes total invoicing, revenue from

in expenses The and differences was the margin our XXXX. more release. now for Within quarter the Gross non-GAAP QX than are GAAP cloud will all XX% in fourth term. discuss I total quarter ARR, similar detailed December between XX. ARR and XX% results to subscription services products grew and the profit non-GAAP XX.X% approximately in press the for

the gross XX.X% with full-year, XX.X% For margin compared in XXXX. was

the QX specific strong over and continue mix, Operating QX. cloud scrubbing in the and in quarter Our lower by impact by million in compared headcount proportion pace higher in gross is successful doing high affected 'XX. margin the been by travel the cloud we expenses margins maintaining The continued cost that bookings of we of have and was operation, in And million by geographic were partially cost so. including and opening Overall, to product of commissions past QX offset $XX.X new years. subscription the expenses each centers. few on of period $XX.X the period, expect with in the gross

of profit significant was quarter quarter. employees travel XXXX $X margin year. of in in QX million increase higher FX with The result We a during Operating previous and commissions, XXXX XX.X% and million $X.X with expenses dollar weakening million for compared U.S. by ended the $XXX,XXX in and the However, offset was were higher partially compared this with $XXX than end caused compared XXXX. lower XXXX and expected expenses. the in larger QX impact full-year a the at approximately $XXX of headcounts million XXXX. to $XX.XX, respectively investment Operating

anticipated were million past marketable and years two discussed full-year, and due million and and had million XX.X% the compared was on yield of profit previous XXXX. in the income margins our to QX in XX% the and $XX calls. in $X.X operating financial with than For $XX.X impact lower securities we declining

expect throughout income XXXX. to further moderately financial We decline

For tax the from rate was due to XXXX XXXX. benefit full-year, we tax in up XX.X%, X% in had

tax XXXX would share. the diluted for million XX%. have per Net or or XX it per was diluted operating million million expect diluted income diluted or for QX full-year rate wasn't share for on impact or $X.X to $XX.X with income Net was per $X.XX share. income We $X.XX increase net for $X.XX been $X.XX expenses, If $XX.X to $XX.X per the share XXXX. compared FX

million led to for balance record XX% $XX.X provided flow collections, activities quarter; items, now a be operating the million by $XX.X another it cash strong a cash the quarter the and XXXX. balance With very of from of fourth Turning full-year, sheet. we up and sheet to have for strong net

we shares a for the total of During $X.X repurchased million. XXX,XXX approximately quarter,

the in with million securities. $XXX bank We $XX.X XXXX deposits, cash, marketable approximately million share ended buybacks. full-year, spent we approximately During on and

of for quarter our first you guidance provide me XXXX. Let the

We are are growth in the operate, accelerate well focused positioned on and to we subscription. healthy and markets cloud given our which

cloud strategic We balanced our investment our partnerships. the in initiatives, expect to including continue growth with and business

expect QX reflecting million the be and between and the be to approximately at $XX.X approximately $XX year-over-year revenues gross million, XX.X%. midpoint, of X% to growth We margin

to impact in increase shekel dollar in the year-on-year the operating higher of XXXX. expenses and of Israeli our throughout strength the cause to the be expect magnitude XXXX, than the We

that, million This million. been $XX If XXXX EPS reflects We QX $X.XX been focus be EPS be expect expenses $X.XX. million rate million XXXX $X.X and higher have would between level to flat impact from our FX and at for have With between $XX.X in a expected to level, open I call negative we QX compared now QX to OpEx approximately our million, the and rates. $X.XX. 'XX is QX operating approximately will to OpEx $XX.X expected $XX.X kept for Q&A. by would exchange XXXX

Operator

Notter George from Your Jefferies. question first Instructions] [Operator with comes

George Notter

Hi, guys business. the by making maybe in wanted guys, to thanks very much. are I you start about the guess out investments asking

I think Can and going in resources, priorities look the you selling as your investing see in forward? the States people talk XXXX, was marketing you of investing and how a and about in XXXX region. particularly you year United into business

Roy Zisapel

Okay.

I so America. we put selective. we hire So on. more then we to and service Internationally, mentioned we cloud Doran my cloud will so into our are continue well reported continue positioned, continue think ramp cloud in in of North also remarks. And investments, to to We people, we delivery, and be will a platform, investment lot as

So, given played the the we we opportunity continue that against to with FX in business though the that disappointed us, see. invest

George Notter

you more that or COVID you you I can there think market, like of that that or talk that was the how okay. business for is APAC for forward, again it, you is had guys region year. APAC and about an where this and see area about the enthusiastic something can you fundamental growing I Got world? perhaps aggressively it that But structural quarter, even get going area And the less softer know about then sounded invest it's

Roy Zisapel

that in several pandemic Yes, factors was the that played believe region we into from APAC. I our that One, hit performance economically. hardest so the think was

of in subscriptions. move you're delayed our is bit view more seeing especially what we our as Second, more a revenues and into bookings,

full are and my I in you to the you the the the was on, if of APAC about talking year revenue first-half So, I extent figures. on seeing now look from comments think weakness so

on good in HX, APAC. we've in However, side, seen performance the improved

of the coming P&L all to our the said there. going overall well. second-half I is for the quarters think as -- I you think it booking solid are Having And in in to focus expect we that in prime we major the even our modest investment, numbers. our while bit that, would regions in and North do see grow a America, be opportunity today see of other

George Notter

great. it, Got

you much. very thank Okay,

Roy Zisapel

you. Thank

Operator

Rosner Tavy next question comes Your from with Barclays.

Peter Zdebski

Zdebski or Hi, Was performance. kind or the EMEA of for through was mentioned you about there? Peter is strong this direct flowing quarter this for a some the taking the strength Thanks unusual wanted there ask I expected to Tavy. revenue last of of on question. result order just the anything

Roy Zisapel

Now, also I think we've results. seen second-half EMEA improved in

The I there the to we're wins I The starts P&L. are think way And cloud think significant. it business performing we its make that again, and subscription to the well. have well. are doing business

the all, if rank need in to is North you first, all APAC. then our regions, so, is And me America second third EMEA, and

with So satisfied definitely the we're we're there. - we're trends now seeing currently

Peter Zdebski

mix Is Okay, I great. in you'd growth on an XXXX, keep cloud driving if in growth trajectory comment recovery based and QX. the And we the after to nice gross margin sequential then see there there the saw opportunity you on from wondered rate? how subscription

Doron Abramovitch

Yes.

the the that into will probably geography on consideration, focus -- So, some is as take I product and this one America hand, so impact. are something have they is mentioned, by mix gross we affected margin in North

non-cloud accompanied hosting and very with margin, a high on while contradicting subscription a the bit and other margins gross the are they the over and trend, our with software, below. there carry subscription it's end, investments, services cloud On are so cloud

years. overall, taking consideration, as we achieved So the line XX.X%, in the last which with few into we for guided in all something quarter, first is what like mentioned and

the potential XX%-XX%. revenue the we all the we now, So and is mix that there, right focused, right are there, believe the seeing trends but we in all that

Peter Zdebski

Thank you.

Operator

comes next Henderson Alex question Needham. Your from with

Alex Henderson

Thanks.

last a was XX%. was your hoping night, interesting Cisco X%, service their see service numbers service could provider, provider up today. enterprise down between to down was about and and Yet where contrast it's what good up split talk bit XX%. enterprise reported that is X% and little to to their the you I provider So, your enterprise

So, full-year [indiscernible] doesn't with different, little comp a there? so could in It going the help you like bit on understand particularly us look 'XX. what's is [indiscernible] of the

as going you provider cloud shift an yourselves on service percentage or more the enterprise a there? to would and of gradually a being much of decline what? So that expect to function what's business, Is

Roy Zisapel

Yes, cloud so a carrier enterprise our on security a that's obviously of play service, overall, is I already enterprise we're believe focus quarters more play. trend as much several seeing numbers and an given our a this in than security

focus that on So more the more where we the on. our do coming. be is the native enterprise, it is enterprise, can the broader and enterprise, growth that's cloud so traditional But

we the with and we're market growth opportunity. but Checkpoint, there on more think our good I seeing a focused big the currently Group, and partnerships, strategic carriers, way the the so where and Cisco there, market On is enterprise that's and Security are the are overall

Alex Henderson

expect sales, should provider percentage decline but we not service of gradual in decline as So the a a necessarily business?

Roy Zisapel

Exactly.

Alex Henderson

And to the in is a a rest bulk the it is subscription, right. growth. in what mix nice help relative numbers? the statement, numbers, acceleration, of All that what's of subscription obviously XQ, XX% business that see total, overall fair in shift? wasn't Is we to result within company Obviously numbers XX% the that you're on the subscription percent, scaling as and in a becoming in large with base and ARR it XX% ARR so -- you business great of a that much the this cloud the back really up going that overall the suggest XQ, to up this be the an enough out would very cloud driving of going acceleration can't can could us if and start ARR

Roy Zisapel

Yes.

And XX%. driven growing the we clouding movement if total number. had that growth. XX% recall at quarter, we're second growth, subscription So, in a is by now you it ARR And is

which and subscription. other products and appliances, subscriptions it's the more large me our what's the traditional cloud we product service call recap, was to business those ARR, cloud if we XX% the $XX million. product contracts total And comprised it million of range had. look on you total XX%, of software, maybe hardware, on XXX, the where and Hence $XX component is cloud subscriptions, or subscriptions, is let contracts, of come that's the maintenance growth together The So, from. our

XX% hopefully ARR. the the significant believe the we mentioned, of overall So to that, a very it's we becoming grow cost as and in continue acceleration rate you've that see portion we will already total

Alex Henderson

That makes sense.

will that contract subscription product contract on products. a perpetual inherently, gotten mean, I encompass historically service the have So you

does cannibalize existing a and declining in results becomes So natural less less as business cannibalization, opportunity I to mean, deceleration the that that's a factor? some

Roy Zisapel

I think sell in products cannibalizing not we a lot are of the products. subscription existing

So for is that example, all software, all software, subscription. management our sold automation, of our only analytic all in and

no there any add-ons sell, you're was perpetual. but that other So again, reason subscription, in to product product a cannibalization. is There perpetual cannibalize. also equivalent not capabilities are they're extend And some cannibalizing that the those right we

would we the contracts. service overall, love So

while to so subscription. And grow keep cloud we and subscriptions steady the the product aggressively

Alex Henderson

That's Thank very very you helpful. much.

I Just one more question, if could.

at we the after? the how portions or pre-deploy the security main after that you're digital the you've cloud, flight in pressure to the it's do going secure the portion not whether CloudFlare VMware look targeting across workloads transformations, Zscalar are I of inside to you domain you positioned, of As putting data a What market? portion Stack the obviously, adoption, relative either to cloud, significant of number see Kubernetes in to what seen DivvyCloud rapid are where in container how do cloud the for from Kubernetes runtime, whether on acquisitions, over you companies that announcements from to or that's workloads and at of going ranging IBM, it's shift lot to RapidX, the

Roy Zisapel

Okay.

that areas Kubernetes the I after inside Kubernetes we're for So that's customer Workload, going the firewall, that in on, specifically, three we workload framework, and web focus running application think the for the VPC.

as of it mentioned it the cloud there the service. as first, be the second, a cloud, third, all the be any they not the we're like of that, And on both, had posture we're the that that, there not can VPC the apps the well. they that's other with providing record it's Kubernetes be or API And attacks public agents application, is can compliance, of better detecting as end, excluded. on so and run we on. Kubernetes And protect better servers. putting not and Azure, quarter need We so provide It we how go, whether for the on. I what as So recommendations API's securities, going can AWS, not on cloud and the they customer, these after leaving security other platform,

So at itself infrastructure; going going not protection, after, think for we're example, from I and the market, not And it's very ourselves of we're at very called well it's workload workload level. security application we're the web, after keeping strong and not Cloud our seeing what's this the really agentless. point, we're a doing Kubernetes we're demand We're in cloud the customers.

Alex Henderson

I job, appreciate the great Great, answers.

progress. Thanks, great Roy. making You're

Roy Zisapel

Thank you.

Operator

Your next question comes from Andrew King with Colliers Securities.

Andrew King

for my thanks guys, Hey taking question.

of obviously, So seen well, more how them? a little really Cisco partnership ramping the us be really for to into your to XXXX you year, Nokia last those focusing just partnership and bit give the color but ramped OEM are going investments ramp and Checkpoint over could a we've

Roy Zisapel

actually, all this also did and this of So very year quarter. well them

Again, Global well strong doubled and expansions XXXX, on. is Fortune to new in the XXX also so we leading manufacturing, business other major XXXX. So, with Checkpoint as in in banking, logos grew, very, carriers, in wins very as Checkpoint in over customers,

solution. complete also, nice very capabilities, groups. adding major wins a more helping XXXX, obviously So, on the there's we're to on Nokia, partnership. the telecom for incumbents market, investments side. least, And ramping from of had They're resources focused more but definitely good actually And we're our not but momentum also part complete us architecture as we investments in Checkpoint there. last it's given actually, the And we replace competition, their in there, carrier also Nokia, and

Global with and on about access. we and you is this enterprise where side, So leading the it need Fortune And still bigger that, them the with very to Checkpoint the together if companies the OEMs at point to much all we're very think Cisco XXXX, leverage and the have execute good in on carrier all three all, side, we should are working XXXX think potential to think and executing but world. the around and Cisco we're, leverage the than to hard I that access I well, Nokia carriers

Andrew King

you. thank Great,

Operator

next comes Your from Joshua question Berenberg Markets. with Tilton Capital

Joshua Tilton

maybe And Hi, the guys, how to for about just somehow full-year. non-recurring this also, you think to touch recurring thanks the accelerate taking be kind through I level mix just on guided the my could to expect question. for XXXX? remainder that the give great. of remain of versus in growth wanted should That XXXX you at then you've would if the of year? is kind we going Do to versus it revenue us for the of QX? Or

Roy Zisapel

that visibility was mentioned at more year about the we And the QX So of have for bit But was all very yes mentioned start and next the the now, we'll for we of we what what the great the quarters, I revenues, this a expected. year optimistic. what we achieved recurring midpoint we're X% early you, didn't of the right beginning higher a too although, to a guide lot of XXXX, we and talk the this XX% with it's and record than lot quarter is which following we XX%. of have assume

to this the to a already the so will is on continue to So we assume grow, I we cloud should do is target hope This one. continue bit high sentiment year, continue portion very that subscription, level next grow and and our it. we'll with

Joshua Tilton

business for software business? margin give upfront on gross the of And sense the then one chance follow-up me, there is us you a just kind is more of the subscription where cloud any versus can

Doron Abramovitch

unfortunately, for no, too do many assumptions you we this. in order about need to to No, that convince to talk

Roy Zisapel

the I quarter margins levels. the one nodes, also, populate each And when from goes to we're margin gross gross different can is back different business, explain, that opening we in new to the cloud in other. of scaling fully there until want cloud big and those of fluctuations those to be stages nodes, services it it's And in

So, the mentioned this think services full-year stand for by. it is fluctuates at Doron we a between periods. what to what XX.X% between And I like point, would guide lot the

Joshua Tilton

All quarter. Congrats right, the on thanks guys.

Operator

Yi next Fu Your Oppenheimer. comes with question from Lee

Yi Fu Lee

get taking just just to set environment. the for you your of comments cyber congrats a my want Thank comment, results. question elevated Maybe Roy, first And threat, question. on to on strong for want

DDoS some the slew commentaries I attack had was some wondering, earlier your organic firm peak, of it You research mentioned seen sunburst in of is well, that that XXX%. its cooperates our bot a December, the peak external then its you've as at at over with in And and helped pipeline, cybersecurity starting maybe breaches, first-half in with guys? your on breach, as well, whether was this has you XXXX, that of some growth

Roy Zisapel

more driving Obviously, and cyber is business. activity the increased more

the the as really and saw, and we've to are every security that throughout are the mentioned applications to and challenged large of centers, security others for ability taking their defenses, they data is in to best strength world on secure, trend. because aim think, high-end more that very that enterprises given already, we're continuously the to it's the We the to our security enterprise block because provide need real, we're is our that focus enjoying us we must world, a increase very you in and seeing And clearer their I really with. around attacks And business. into clearer the of know year, that that each becoming think to threat that solution. very, high-end I XXXX, critical

the booking already. of and seeing pipeline the on we're definitely, So impact

Yi Fu Lee

Roy And right. -- then I you just mentioned is well. relationship that, Checkpoint know, quick can That's a with earlier follow-up that going

your anticipate want guys. of about I millions and what's to it yet, the of the on comments vendors, as colors those get Cisco, newer, get me know how dollars, Nokia's like XXs Checkpoint expectation Cisco you year, for to want on, two last I do other for your was guidance think Just that's of XXXX three your for

Doron Abramovitch

be we we disclose But you disclose, that dollars. year, a that versus was in with previous number. one. we I'll But the we versus imagine Xx this to We're tens But few very about And again, million are of So be one. these strategic really we let mentioned the it the break a expect revenues. comfortable last to if Xx we're good we don't year, situation. don't Roy years don't ago very take can

Roy Zisapel

as mentioned, also very And good did deal. Checkpoint I a

we is And definitely results. deliver the potential better enterprises as and the carriers Nokia, us. them on point, that still with and them with more, this so our a there at rapidly for is growing focus Nokia all and I mentioned and of larger I've believe Cisco doubled. group, and practically large with And so as better should mentioned are they

Yi Fu Lee

Thank much day. Roy, again good have you very a

Roy Zisapel

Thank you.

Operator

question Alex comes from with next Needham. Henderson Your

Alex Henderson

couple Yes, if income interest line? just could. The hit expense questions, is FX of a the all $XXX,XXX I housekeeping that in

Doron Abramovitch

the Shekel. very $XX terms that expenses one I that to is commission, good booking OpEx we quarter that FX $XXX,XXX to in of on $XX, is some good is quarter and added due a mentioned the last No, when the Israeli that the guided strong -- of we part XXX so thing impacted

So, not -- it's speakers]… [multiple

Alex Henderson

expense line translation So, in the is then? income at there interest all

Doron Abramovitch

dollar. interest. only not U.S. It's No, to of the OpEx Israeli translation the Shekel that the it's

Alex Henderson

And Perfect. the don't could get it? I think headcount me I you number? caught

Doron Abramovitch

X,XXX.

Alex Henderson

the beyond other than first in you second that little quarter. had forensic talk you had event Obviously, Okay, of quarter? magnitude the analysis think quarter higher the COVID you know the want the that about can I growth thanks. bit the just over you don't quarter fact? of quarter first trajected forecast course quarter retrospect that the impact think And how that But, given any to year impact. -- And in a versus have second biggest rate anything in XQ. the the But, was much based on the I best should the your the had after impact some also

about magnitude the terms talk the be what So, of little that year? can we you should thinking a of course of over about in impact bit the

Doron Abramovitch

to-date shutdown like our hard delays. travel world to the in obviously there and limited. project were that year, on although Initially to there and several hospitality is very tell. It's so were And practically there segments almost exposure in the were

seen directly security the shifted the pipeline But the On COVID got I as home, around And the main growth and more maybe the impact it that not we to main extent, the on COVID progressed hand, from not, main heightened so increases. is and used that hacking view world. business is was activity, driving that. it, saw the think from on. or activity enterprises to activity I capacity we don't as a related the work from have But, it's think other to I initially or year we've

are we that we into is in So, delays to on access the And even to on the fact focused tell when cybersecurity. to it's COVID. so more reasons are increased not seeing physical way think we way hence, require and and as year, because look any delivery or cloud the to and and focused more more the entering does than linked investments current option lockdowns countries actually I we an that is that to continuous And on. today are one that Where location budgets of delays next by application. the we're that are bit on on impact it's exiting enterprise a seeing we hard seeing on not and are

all, So are we I all in think well positioned.

security activity environment. the cloud with well service business, capabilities high the and attack extremely cloud really growing that heightened services in fit need have people this fact We

Alex Henderson

X.X% should first I around am And the you in to momentum X.X% important. the that's look as a business so that bit mechanics ends year. I we the those compare bigger substantially understand year. revenues decided highest just just should your last accelerating. the am and XQ, trying is Roy, security whether quarter sure we at focus of half the be or can back And why as the improved I it's but in point, expect comps a coin], in became more understand little second the your have a to down growth sense therefore, we much of relevant? quarter the better of the being quarter [Ph] business up whether [I were Obviously, that

Roy Zisapel

really the was Generally last QX I -- have at several Yes. COVID, on second before We years years think actually for couple lower quarter this you if have any our revenue us. now. last visibility at are to We cetera. say ARR, in for guidance QX look what don't we of QX the et beyond the It's growing than point have that's on not don't going this thoughts to growing also point.

we quantify deal hard. COVID you but At of midpoint, the good see exact I the QX already in cannot expecting of impact, us, that front for course, it's very in X%-X%. growing, we're You are

Alex Henderson

I appreciate All right, thanks, response. the

Operator

the questions to further to back time. no conference showing turn Zisapel. at would Roy I I'm this like

Roy Zisapel

you and day. have great everyone, thank Okay, a

Operator

today's participating. conference this and Ladies Thank gentlemen, you concludes call. for

You disconnect. may now

Radware (RDWR) 10 Feb 212020 Q4 Earnings call transcript