Radware Ltd. (NASDAQ:RDWR) Q4 2023 Earnings Conference Call February 7, 2024 8:30 AM ET

Company Participants

Yisca Erez - Director, IR

Roy Zisapel - President and CEO

Guy Avidan - CFO

Conference Call Participants

Alex Henderson - Needham & Company

Chris Reimer - Barclays

Operator

Welcome to the Radware Conference Call discussing Fourth Quarter and Full Year 2023 Results, and thank you all for holding. As a reminder, this conference is being recorded February 7, 2024. I would now like to turn this call over to Yisca Erez, Director, Investor Relations at Radware. Please go ahead.

Yisca Erez

Thank you, Ian. Good morning, everyone, and welcome to Radware's fourth quarter and full year 2023 earnings conference call. Joining me today are Roy Zisapel, President and Chief Executive Officer; and Guy Avidan, Chief Financial Officer. A copy of today's press release and financial statements as well as the investor kit for the fourth quarter and full year are available in the Investor Relations section of our website.

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

Factors that could cause or contribute to such differences include, but are not limited to, impact from changing our severe global economic conditions, the COVID-19 pandemic, general business conditions and our ability to address changes in our industry, changes in demand for products, the timing in the amount of orders and other risks, difference from time to time in Radware's filings.

We refer you to the documents that the company files and furnishes from time to time with the SEC, specifically the company's last annual report on Form 20-F as filed on March 30, 2023. We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date of such statement is made.

I will now turn the call to Roy Zisapel.

Roy Zisapel

Thank you, Yisca, and thank you all for joining us today. We ended the fourth quarter of 2023 with revenue of $65 million, and non-GAAP diluted earnings per share of $0.13. In the fourth quarter of 2023, total adjusted ARR as discussed in our last earnings call, grew to $211 million, a 7% increase compared to the same period in 2022. The ARR growth is driving recurring revenues, which accounted for 77% of total revenue in 2023. This is a 900 basis point increase compared to last year. The total ARR growth was fueled by cloud ARR growth of 22%, once again exceeding 20% year-over-year growth and reaching $65 million.