Skyhawk Security, emerging from its parent company Radware (RDWR, Financial), has introduced a new partner program aimed at enhancing its channel-focused approach. This global venture is designed to support value-added resellers, managed security service providers (MSSPs), and consultants by tapping into the growing demand for cloud security solutions. By offering Skyhawk's advanced, preemptive Cloud Detection and Response (CDR) platform, the initiative aims to meet the unique requirements of its partners, thereby maximizing returns on investment. The program seeks to expand Skyhawk's presence not only in North America but also in Latin America and other regions. Skyhawk Security's CEO, Chen Burshan, emphasized the program's significant role beyond mere market entry, outlining its potential to amplify partners' capabilities in delivering advanced cloud security solutions. This initiative marks a strategic expansion for Skyhawk, promising to bring innovative and smarter security measures to a broader market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Radware Ltd (RDWR, Financial) is $26.50 with a high estimate of $30.00 and a low estimate of $24.51. The average target implies an downside of 0.36% from the current price of $26.60. More detailed estimate data can be found on the Radware Ltd (RDWR) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Radware Ltd's (RDWR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Radware Ltd (RDWR, Financial) in one year is $22.57, suggesting a downside of 15.15% from the current price of $26.6. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Radware Ltd (RDWR) Summary page.
RDWR Key Business Developments
Release Date: May 07, 2025
- Revenue: Increased 11% year-over-year to $72 million.
- Non-GAAP Earnings Per Share (EPS): Rose 69% to $0.27.
- Cash Flow from Operations: $22.4 million.
- Cloud Security ARR: Increased 19% year-over-year to $80 million.
- Total ARR: Grew 9% year-over-year to $230 million.
- Recurring Revenues: 82% of total revenue, up from 79% in Q1 2024.
- Gross Margin: 82.1%, slightly up from 82% in Q1 2024.
- Operating Income: Doubled to $8.6 million from $4.3 million in Q1 2024.
- Adjusted EBITDA: Increased 72% to $10.8 million.
- Net Income: Increased 73% year-over-year to $11.8 million.
- Cash and Equivalents: Approximately $448 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Radware Ltd (RDWR, Financial) reported a strong start to 2025 with first quarter revenue increasing by 11% to $72 million, marking the third consecutive quarter of double-digit revenue growth.
- Non-GAAP earnings per share rose by 69% to $0.27, demonstrating high leverage in the company's business model.
- Cloud security annual recurring revenue (ARR) increased by 19% year-over-year to $80 million, with expectations to reach close to $100 million by the end of the year.
- The company expanded its cloud security infrastructure by opening new service centers in Peru, India, and Kenya, enhancing its global footprint.
- Radware Ltd (RDWR) achieved significant wins, including a multi-year 8-digit cloud security agreement with a US Fortune 500 financial services company, showcasing the strength of its security offerings.
Negative Points
- Despite strong performance, Radware Ltd (RDWR) faces risks from changing global economic conditions and general business uncertainties.
- The company's APAC revenue was flat year-over-year for the trailing 12 months, indicating potential challenges in that region.
- Radware Ltd (RDWR) plans to increase investments in sales, marketing, and R&D, which could impact short-term profitability.
- The company is proactively adjusting its supply chain to mitigate potential cost pressures from recently announced tariffs, indicating potential operational challenges.
- There is a risk of disruption in the US market due to recent changes in senior leadership, although the company believes these changes are already yielding positive results.
