Could Check Point be undervalued today? Here's how the cybersecurity expert hit every third-quarter target and still suffered a share price correction. Shares of Check Point Software Technologies (CHKP -14.47%) fell as much as 16.8% on Tuesday, hamstrung by an uninspiring earnings report. The cybersecurity expert's shares recovered slightly to a 13% drop by 2:30 p.m. ET. How Check Point met every target and still disappointed investors Check Point's third-quarter revenue rose 7% year over year to $635 milli ...

Financial Data and Key Metrics Changes - Revenues grew by 7% to $635 million, exceeding the midpoint of projections by $3 million [6] - Non-GAAP EPS increased by 9% to $2.25, also above the midpoint of projections by $0.01 [6] - Subscription revenue rose by 12% to $277 million, with calculated billings reaching $562 million, representing 6% growth year-over-year [6][7] - Gross profit increased by 5% to $563 million, maintaining a gross margin of 89% [10] - Operating expenses rose by 9% to $289 million, primarily due to workforce investments and acquisition-related costs [10] - Cash balances amounted to $2.9 billion, with operating cash flow of $249 million [11] Business Line Data and Key Metrics Changes - Product and subscription revenues grew to $396 million, driven by strong demand for the Infinity platform and Harmony Email [7][8] - Infinity platform accounted for approximately 15% of total revenues, showing strong double-digit growth year-over-year [8] - Harmony Email reached over $100 million in ARR, indicating significant growth in this segment [12][17] Market Data and Key Metrics Changes - Americas contributed 41% of total revenues, growing by 3%, with strong new business bookings [9] - EMEA accounted for 46% of total revenues, also growing by 7% year-over-year, despite some deals being pushed to Q4 [9] - APAC saw a 17% growth in revenues, with positive new business performance [9] Company Strategy and Development Direction - The company is focusing on expanding its Infinity global services and entering the SOC market through acquisitions [13][19] - The acquisition of Cyberint aims to enhance threat intelligence and security operations, positioning the company for future growth [19][26] - The company is committed to maintaining operational discipline while pursuing strategic acquisitions to drive growth [39][40] Management's Comments on Operating Environment and Future Outlook - Management noted a healthy pipeline and positive internal indicators, particularly in the U.S. market [44][46] - The company expects to finish the year above the midpoint of its revenue and EPS guidance [31][32] - There is cautious optimism regarding the fourth quarter, with projections for revenues between $675 million to $715 million and EPS between $2.60 to $2.70 [33] Other Important Information - The company completed the acquisition of Cyberint for $186 million, which is expected to enhance its security offerings [11][26] - The company continues to repurchase shares, having bought back $325 million worth during the quarter [11] Q&A Session Summary Question: On the billings miss and future M&A strategy - Management acknowledged some deals slipped from Q3 to Q4 but emphasized a healthy pipeline and no immediate concerns [36][37] - Future acquisitions will focus on operational discipline rather than large-scale mergers [39][40] Question: Internal indicators and growth expectations - Management sees positive internal indicators, particularly in the U.S., but remains cautious about projecting growth for 2025 [44][46] Question: Vendor financing and achieving double-digit growth - The company is providing more flexible billing terms but does not engage in vendor financing [53] - Management believes recent investments and product offerings will drive future growth [50][51] Question: Integration of Perimeter 81 and customer willingness to adopt SASE - Positive traction is being seen with Perimeter 81, and sales are growing, indicating a good pipeline for SASE solutions [58] Question: New customer acquisition and competitive displacement - The company is acquiring new customers across various sectors, primarily in network security, and is seeing some displacement of competitors [74][76] Question: Cyberint acquisition and SIEM market strategy - Management is cautious about entering the SIEM market directly but sees potential in the Cyberint acquisition to enhance SOC offerings [80][81] Question: Network security refresh cycle - A healthy refresh cycle is ongoing, but management would like to see faster adoption of new products [84] Question: Channel Partner Program feedback - Positive feedback has been received from the channel organization, indicating improved sentiment [87] Question: Opportunities with embedded DPU chips - The company is exploring opportunities with NVIDIA for AI security solutions, but it is still early to assess the impact [91] Question: Future growth of Infinity and other products - Management believes both Infinity and other product lines can grow together, with Infinity driving overall growth [94]

| --- | --- | --- | --- | --- | |--------------------------------------|-------------------------|-------|----------------|-----------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | 2024 Third Quarter Financial Results | | | | | | October 29th, 2024 | Gil Shwed Founder & CEO | | Roei Golan CFO | Kip E. Meintzer Global Head of IR | | | | | | | [Confidential] ©2024 Check Point Software Technologies Ltd. 1 YOU DESERVE THE BEST SECURITY Forward Looking Statement This presentation may ...

Check Point Software (CHKP) reported $635.1 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.5%. EPS of $2.25 for the same period compares to $2.07 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $635.43 million, representing a surprise of -0.05%. The company has not delivered EPS surprise, with the consensus EPS estimate being $2.25.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Check Point Software (CHKP) came out with quarterly earnings of $2.25 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $2.07 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this data security company would post earnings of $2.16 per share when it actually produced earnings of $2.17, delivering a surprise of 0.46%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Check Po ...

REDWOOD CITY, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the third quarter ended September 30, 2024. Third Quarter 2024: Total Revenues: $635 million, a 7 percent increase year over yearSecurity Subscriptions Revenues: $277 million, a 12 percent increase year over yearGAAP Operating Income: $218 million, representing 34 percent of revenuesNon-GAAP Operating Income: $274 million, representing 43 percent of revenu ...

We are in the first half of the third-quarter 2024 earnings season. So far, the results have come in line with expectations. Market participants are closely monitoring the third-quarter results to draw conclusions on the health of the U.S. economy. Several U.S. corporate behemoths will report next week. Market participants' focus' will be on five of the "Magnificent 7" stocks that will report their quarterly financial numbers. Apart from these next-generation investors' darlings of Wall Street, several larg ...

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Check Point Software (CHKP) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Check Point Software is one of 620 companies in the Computer and Technology group. The Computer and Technology group currently sits at # ...

The upcoming report from Check Point Software (CHKP) is expected to reveal quarterly earnings of $2.25 per share, indicating an increase of 8.7% compared to the year-ago period. Analysts forecast revenues of $635.43 million, representing an increase of 6.6% year over year.Over the last 30 days, there has been an upward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over ...

REDWOOD CITY, Calif., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), has been named as one of the World's Best Employers by Forbes for the fifth year in a row. With over 6,500 employees around the world, Check Point is once again recognized as a leading cyber security employer by Forbes and was recently recognized as one of the World's Best Companies by TIME. "Our employees are Check Point's greatest asset in our mission to secure the world from cyber threats," said ...