Radware Ltd.

Welcome to the RADWARE conference call discussing second quarter 2022 results, and thank you all for holding. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. As a reminder, this conference is being recorded August 8, 2022. I would now like to turn this call over to Yuska Erez, Director, Investor Relations at Radware. Please go ahead. Thank you, Angela.

Good morning, everyone, and welcome to Radware's second quarter 2022 earnings conference call. Joining me today are Roy Zisoper, President and Chief Executive Officer, and Gaia Vidhan, Chief Financial Officer. A copy of today's press release and financial statements, as well as the investor kit for the second quarter, 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 Rado's current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to, impact from the COVID-19 pandemic, general business conditions, and our ability to address changes in our market and our industry, changes in demand for products, the timing in the amount of orders, and other risk details from time to time in redwoods filings. We refer you to the documents the company files and furnishes from time to time with the SEC, specifically the company's last annual report on Form 20F as filed on April 11, 2022. We undertake no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date of such statement is made. I will now turn the call to Roy Zisopel.

Thank you, Yizka. And thanks to all of you for joining us today. In the second quarter, we drove solid results. Our total revenues grew 8% year-over-year, EPS was 18 cents, and cash flow from operations was very strong at $31.5 million. Cybersecurity plays a pivotal role in today's business environment. And Radwell, as a provider of real-time protection, serves as a fundamental force in defending our customers' most critical applications and data centers from cyber attacks. As the threat landscape continues to evolve, with continuous increase in number and size of attacks, our customers must ensure their business continuity, strength and resilience, and improve the customer experience. Therefore, we have every reason to believe that the demand for our solutions will continue to grow in the long term. At the same time, we also believe that uncertainties present in the current macro environment might impact the spending behavior of our customers in the short term. Recently, we've seen some delays, more than usual, in lengthening sales cycles in large deals in America's enterprise, with some customers opting for staged deployments. Looking at the bigger picture, Rador is a healthy company and we are well positioned for times of recession. We operate in a large and critical market with a growing addressable market. We continue to deliver and forecast sustained growth, high gross margin, and healthy cash from operations. We have breast of breast technology, which provides better protection for our customers. We have a large customer base that is diversified across industries and geographies and We have a strong balance sheet with more than $440 million in cash. Backed by these assets, we remain optimistic about the long term. Therefore, we will continue to make investments in our business and specifically in our strategic cloud security initiatives. The demand for cybersecurity solution is highly correlated to the level of threats and attacks. The international conflict in Eastern Europe is a clear example for the use of cyber attacks by nation states as part of armed conflicts. A couple of months ago, we announced that Ukraine State Service of Special Communication and Information Protection is using RADWR Cloud IDOS protection and cloud application security to protect their infrastructure and applications in face of daily attacks. Our success in blocking these attacks is a great testament to the capabilities we have. In the second quarter of 2022, DDoS attacks were relentless. The number of DDoS attacks that we blocked more than tripled compared to the second quarter of 2021. Not only are DDoS attacks mounting, but so are web application attacks, which during the second quarter, their number increased by 24%, and bad VOD attacks that rose 148%. This very active threat landscape creates a huge challenge to enterprises around the world. The midsize customers have the same cyber threats and security requirements like their large enterprise peers, yet they cannot afford the required topics investment and personnel needed to deploy and manage by themselves the high-end solution. Our cloud security as a service allows them to enjoy the high-end level of protection with fully managed services and enable us to increase our customer base and increase growth rates. In the second quarter, we continue to expand our cloud service footprint and capacity. We recently opened new points of presence in Taiwan and Chile. We plan to continue our global footprint expansion to penetrate new customers and geographies. We also continue to innovate on the product front. We just released a new set of crypto mitigation algorithms that block sophisticated bots that evade traditional solutions. At the same time, these algorithms enable genuine website visitors to enjoy a frictionless, capture-free user experience. Our cloud application security continues to receive market recognition. Last quarter, Rador was named the leader and outperformer in the innovation hemisphere of GigaOM's application and API protection radar report. GigaOM awarded Rador the highest possible scores in key criteria categories, such as rule bundles, AI enhancement, API discovery, data leak protection, and bot management. In addition, Quadrant Knowledge Solutions named Rador the leader in its PARC matrix for DDoS mitigation reports. With comprehensive technology and customer experience management, RADO received the highest combined ratings for technology excellence and customer impact, making it the leading vendor overall. I would like to share some of the key wins we had in the quarter. For instance, we signed a large DDoS deal with an IT services and web hosting company. They experienced multiple high volumetric attacks that were not blocked by their incumbent solution, alerting them that they needed more comprehensive and robust protection. Our solution is blocking massive attacks in these customers daily, automatically, and without any intervention from their staff. During the quarter, we also expanded our business with one of the world's leading software and SaaS companies. This customer is building a new internet gateway infrastructure and chose our hybrid cloud DDoS protection to protect it. We signed another large deal, this time for our bot manager solution with one of the largest financial services in South America. This customer has been suffering for a long time with outages occasioned by sophisticated and massive bot attacks. This deal was done with our partner, Azion, a leading-edge CDN provider in the region. To recap, we've been building a leading comprehensive portfolio of data center and application security solutions. We are investing in our strategic cloud initiative to bring our solutions to a broader set of enterprise customers around the world. We are a strong and healthy company in terms of financials and well-diversified in terms of customers and geography. enabling us to overcome macro challenges and deliver sustained revenue growth with profitability. With that, I would like to thank our customers, shareholders, and employees for the confidence and trust they place in Radler. I will now turn the call over to Guy.