Robust Cloud, Subscription Business Drives Radware's Q3 Beat

Radware Ltd RDWR reported third-quarter FY21 revenue growth of 17% year-on-year to $73 million, surpassing the consensus of $70.95 million. ARR of $185 million was up 9% Y/Y.
"We are pleased to report another strong quarter. Driven by our cloud and subscription business, we achieved a record quarterly revenue of $73 million. In addition, we saw double-digit growth across key financial metrics," CEO Roy Zisapel said.
Revenue in the Americas region rose 18% Y/Y to $35.7 million, Europe, Middle East, and Africa (EMEA) region increased 29% Y/Y to $23.6 million, and Asia-Pacific (APAC) region grew 1% Y/Y to $14.1 million.
The non-GAAP gross margin remained stable at 82.6%, up 40 bps.
Non-GAAP EPS of $0.23 beat the consensus of $0.19.
Radware generated $17.9 million in operating cash flow and held $455.9 million in cash and equivalents.
Compared to the same period last year, total revenue grew 17%, cloud and subscription ARR increased by 26%, and EPS rose 32%," Zisapel said.
"The growing number of increasingly complex cyber-attacks is creating more urgency and driving more organizations to strengthen the defenses around their critical assets. We are confident that this demand, coupled with our best of breed security offering — which includes DDoS protection; Web application, API and Bot security; and cloud posture security — will fuel our growth in the coming quarters."
Price action: RDWR shares closed higher by 0.46% at $34.88 on Tuesday.

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