Q3 2024 Check Point Software Technologies Ltd Earnings Call Transcript
Key Points
- Check Point Software Technologies Ltd (CHKP) reported a 7% increase in revenues, reaching $635 million, which was above the midpoint of their projections.
- The company's non-GAAP EPS grew by 9% to $2.25, also surpassing the midpoint of projections.
- Subscription revenue saw a significant increase of 12%, driven by strong demand for the Infinity consolidated platform.
- The company completed the acquisition of Cyberint, enhancing their threat intelligence capabilities and expanding their SOC offerings.
- Check Point Software Technologies Ltd (CHKP) continues to see strong demand for its Harmony email security, which has exceeded $100 million in ARR, showcasing high double-digit growth.
- Calculated billings growth was affected by several deals being pushed from Q3 to Q4, particularly in Europe, impacting the quarter's financial results.
- Operating expenses increased by 9% due to continued investment in workforce and acquisition-related expenses, which could pressure margins.
- Despite positive growth, the company faces challenges in achieving double-digit growth consistently, with current growth rates remaining in the mid-single digits.
- There is some uncertainty regarding the timing of revenue recognition for product revenues related to Infinity deals, which could lead to volatility in financial results.
- The company noted softness in certain regions, particularly in Europe, which is traditionally a challenging market during Q3 due to seasonal factors.
Ladies and gentleman, joining me today are founder and CEO, Gil Shwed; and Chief Financial Officer, Roei Golan. Before we begin, I'd like to remind everyone that the conference is being recorded and will be available for replay on our website at checkpoint.com.
(Operator Instructions) During the presentation Check Point representatives may make forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.
Any forward-looking statements made speak only as of the date hereof and Check Point undertakes no obligation to update publicly any forward-looking statements. In our press release which has been posted on our website, we present GAAP and non-GAAP results, along with the reconciliation of such results, as well as reasons for our presentation of non-GAAP information. If you have any
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