gremlin Check Point (NASDAQ:CHKP) delivers collaborative security across an organization's architecture of the Network, Cloud and Workspace. It has performed slightly under the S&P 500 and Nasdaq 100 YTD. The company reported its Q2 FY24 earnings on July 24th, where revenue grew 7% YoY while operating profit remained flat YoY. While the company is seeing double-digit growth in its Product & Subscription revenues as it wins larger deals with global enterprises along with gaining market share in the public se ...

Financial Data and Key Metrics - Revenue grew by 7% to $627 million, $5 million above the midpoint of the projection [26] - Non-GAAP EPS grew by 8% to $2.17, $0.02 above the midpoint of the projection [26] - Net income grew by 4% to $246 million [28] - Operating cash flow grew by 5% to $200 million [28] - Deferred revenues grew by 2% to $1.880 billion, with short-term deferred revenues growing by 3% to $1.342 billion [11] - Calculated billing grew by 10% to $620 million, with current calculated billing growing by 7% to $622 million [11] Business Line Performance - Product and subscription revenues grew by 10%, marking a turnaround since the end of 2023 [155] - Infinity business showed strong double-digit growth in both bookings and revenues [155] - Harmony Email continued to perform strongly, becoming more significant to the business [13] - Quantum Force, a new gateway product, showed good demand and growth in bookings [150] Market Performance - All geographies showed double-digit growth in new business annualized bookings, though revenue growth typically lags by a few quarters [27] - Public sector saw significant success, with 92 government agencies in 32 countries adopting the Check Point platform [55] Strategic Direction and Industry Competition - The company is focusing on AI innovations, including AI Infinity Copilot, Threat Cloud AI, and Gen AI Protect, which will allow customers to monitor AI product usage [31] - The company is working on integrating SASE (Secure Access Service Edge) into a unified platform, aiming to provide a single solution for remote employees, site-to-site, cloud access, and data centers [84] - The company is seeing growth in core network security, with some competitors experiencing declines in this area [37] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the second half of the year, with a healthy pipeline and positive indicators for growth [42][43] - Cybersecurity remains a high priority for customers, with continued investment in the sector despite broader IT budget pressures [46] - The company expects to sustain double-digit growth in new business bookings, which should translate into higher revenue growth over time [41] Other Important Information - The company announced the appointment of Nadav as the new CEO, effective December, bringing extensive experience in cybersecurity and leadership [9][10] - The company expanded its buyback program by $2 billion, with up to $325 million per quarter [28] - The company is investing heavily in sales and marketing, with a focus on increasing productivity and new logo acquisition [80][89] Q&A Session Summary Question: How is the new CEO expected to impact the company's strategy? - Nadav is expected to bring a more outbound and charismatic leadership style, complementing the existing strengths of the company [19][34] - The focus will be on building on the existing strategy, with potential for more innovation, go-to-market changes, and M&A activity [96] Question: What is the outlook for Infinity and its contribution to billings? - Infinity is becoming increasingly significant, with 15% of business in terms of revenue and much higher in bookings [85] - The utilization of Infinity allowances is growing, but it can be lumpy depending on customer needs and payment terms [85][142] Question: How is the company addressing the competitive landscape in network security? - The company is seeing growth in core network security, with some competitors experiencing declines in this area [37] - The company is focusing on integrating its solutions into a unified platform, which is expected to provide a competitive advantage [84] Question: What are the expectations for EBIT and free cash flow growth? - The company expects to maintain a healthy operating margin between 42% to 43% for 2024 [136] - Free cash flow growth is expected to follow billing growth, with a 5% increase in operating cash flow this quarter [137] Question: How is the company leveraging AI in its products? - AI innovations such as AI Infinity Copilot and Gen AI Protect are currently providing competitive differentiation, with potential for future revenue impact [104] - The company is focused on using AI to enhance security and simplify management for customers [31]

For the quarter ended June 2024, Check Point Software (CHKP) reported revenue of $627.4 million, up 6.6% over the same period last year. EPS came in at $2.17, compared to $2.00 in the year-ago quarter. The reported revenue represents a surprise of +0.54% over the Zacks Consensus Estimate of $624 million. With the consensus EPS estimate being $2.16, the EPS surprise was +0.46%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Check Point shares have added about 11.3% since the beginning of the year versus the S&P 500's gain of 16.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ...

Industry participants' financial performance for the to-be-reported quarter is likely to have benefited from ongoing digitization efforts globally. Companies across various sectors are investing heavily in cloud computing, cybersecurity and AI-driven solutions, which is anticipated to have boosted sales of IT services providers. Robust spending on cloud, Internet of Things (IoT), cyber security, data and analytics, artificial intelligence (AI) and automation is likely to have driven sales growth of IT servi ...

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Check Point has an Earnings ESP of +0.20% at the moment, suggest ...

REDWOOD CITY, Calif., July 16, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), a leading AI-powered, cloud-delivered cyber security platform provider, today announced that it has received a Leader ranking in the latest The Forrester Wave™: Mobile Threat Defense Solutions, Q3 2024 report. Check Point believes this recognition highlights Check Point's pioneering approach to delivering robust mobile security solutions, an integral component of its comprehensive Infinity Platform ...

REDWOOD CITY, Calif., July 16, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), a leading AI-powered, cloud-delivered cyber security platform provider, today announced that it has received a Leader ranking in the latest The Forrester Wave™: Mobile Threat Defense Solutions, Q3 2024 report. Check Point believes this recognition highlights Check Point's pioneering approach to delivering robust mobile security solutions, an integral component of its comprehensive Infinity Platform ...

"Throughout 2023 we made significant progress on our ESG commitments to our customers, society and the planet, from more efficient power consumption per throughput for our Quantum Force security gateways to training the next generation in cyber security and more," said Gil Shwed, Founder and CEO, Check Point Software Technologies. "I am proud of our achievements in the past year, and we remain committed to continuing our focus on sound corporate responsibility and ESG action in 2024 in service of our goal o ...

REDWOOD CITY, Calif., July 15, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), a leading AI-powered, cloud-delivered cyber security platform provider, today released its 2023 ESG Report: Security through Sustainability and Action. This annual ESG report outlines the company's approach, commitments, and progress made on the environmental, social, and governance issues that matter most to Check Point and our stakeholders. Cyber Security Awareness for a Safer Digital World Corpo ...