Core Insights - Check Point Software Technologies announced that its Infinity XDR/XPR achieved a 100% detection rate in the 2024 MITRE ATT&CK® Evaluations, successfully identifying all 57 applicable attack steps [1][4] - The evaluation demonstrated the solution's capabilities in detecting and preventing sophisticated cyber threats, providing security teams with detailed data for effective response [1][2] Company Performance - Infinity XDR/XPR achieved 98% of detections at the technique level, showcasing unmatched precision and the ability to deliver actionable intelligence against complex attacks [4] - The solution provided perfect coverage across all testable attack scenarios, ensuring reliable protection against ransomware and data breaches [4] Industry Context - The MITRE ATT&CK® Evaluations serve as an objective assessment of security solutions' detection capabilities, emulating real-world threat scenarios to evaluate performance [2][3] - The evaluation specifically emulated tactics used by ransomware groups CL0P and Lockbit, highlighting the increasing sophistication of cyber attacks [3]

It has been about a month since the last earnings report for Check Point Software (CHKP) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Check Point due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Check Point Software Q3 Earnings Mat ...

Check Point Software Technologies (CHKP) shares have gained 19.9% year to date, underperforming the broader Zacks Computer – Technology industry growth of 27.5%. However, it has outperformed the Computers - IT Services sector and its industry peers like Accenture (ACN) , DXC Technology (DXC) and Evolv Technologies (EVLV) .Over the same time frame, shares of Accenture have gained 2.9%, while shares of DXC Technology and Evolv Technologies have declined 1.2% and 11.2%, respectively. The industry has appreciat ...

REDWOOD CITY, Calif., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), a pioneer and global leader of cyber security solutions, has been recognized as a Leader and Fast Mover in the latest GigaOm Radar Report for Cloud-Native Application Protection Platforms (CNAPPs). In its assessment of 17 leading CNAPP solutions, GigaOm identifies Check Point as a Leader in the Innovation and Platform Play quadrant of the Radar, highlighting its strong focus on prevention and a coh ...

Industry Overview - The software segment of the tech industry has seen a significant increase, with the iShares Expanded Tech-Software Sector ETF (BATS: IGV) rising nearly 38% over the past year, including a substantial portion of that growth occurring from mid-October to mid-November [1][2] Company Analysis: MongoDB - MongoDB Inc. (NASDAQ: MDB) specializes in software platforms for data storage and analysis, with its cloud-based database-as-a-service tool, MongoDB Atlas, contributing over 70% of the company's $478 million revenue for the fiscal year [3][4] - For Q2 of its 2025 fiscal year, MongoDB reported a 13% year-over-year revenue increase, although net losses widened slightly to $54.5 million, while maintaining a strong cash position of $2.3 billion [4] - The NoSQL database industry, where MongoDB operates, is projected to exceed $82 billion by 2031, although MongoDB faces competition from larger rivals like Amazon's DynamoDB [5] - MongoDB has a "moderate buy" rating, with 20 out of 26 analysts recommending purchase, and a consensus price target of $334.25, indicating a potential upside of 14.1% from current levels [6] Company Analysis: Check Point Software - Check Point Software Technologies Ltd. (NASDAQ: CHKP) reported a 7% overall revenue growth to $635 million, with a 12% increase in subscription revenue year-over-year, despite some deals being postponed to the next quarter [7][8] - The company maintains a revenue guidance of $2.5 billion for the year and a net profit exceeding $1 billion, with a gross margin of 89% [8] - Following its earnings announcement, Check Point's shares fell, attributed to results that did not significantly exceed expectations, despite a recent downgrade by Bank of America to "neutral" from "buy" [9][10] Company Analysis: Tyler Technologies - Tyler Technologies Inc. (NYSE: TYL) provides software and services to public sector organizations, achieving nearly 10% year-over-year revenue growth, driven by increased demand for its SaaS offerings [14] - Transaction revenues grew over 15%, indicating successful implementation of its cloud-based strategy, although the company has reduced its expected free cash margin and slightly lowered its full-year revenue guidance [15]

Core Insights - Check Point Software Technologies (CHKP) reported third-quarter 2024 results, with non-GAAP earnings of $2.25 per share, a 9% increase from $2.07 per share in the same quarter last year, while revenues missed estimates by 0.5% [1][2] Financial Performance - Quarterly revenues increased 7% year over year to $635 million, driven by double-digit growth in Harmony Email and Infinity Platform revenues [2] - Security subscription revenues reached $277 million, up 12% year over year, aided by the acquisition of Cyberint and strong demand for the Harmony product family [3] - Products and licenses revenues increased 4.2% year over year to $118.9 million, while total revenues from product and security subscriptions were $635.1 million, reflecting a 6.5% year-over-year increase [4] - Software updates and maintenance revenues rose to $239.3 million from $233.8 million in the previous year [5] - Non-GAAP operating income for the third quarter totaled $274 million, up from $269 million year over year, with a non-GAAP operating margin of 43%, down 2% year over year [5] Balance Sheet and Cash Flow - As of September 30, 2024, Check Point had cash and cash equivalents, marketable securities, and short-term deposits totaling $2.87 billion, down from $2.98 billion in the previous quarter [6] - The company generated $249 million in cash from operational activities during the third quarter [6] - Check Point acquired Cyberint for $186 million in net cash consideration [6] - The company repurchased approximately 1.79 million shares for about $325 million in the reported quarter [7] Market Position - Check Point currently holds a Zacks Rank 2 (Buy), indicating a favorable investment outlook [8] - Competitors with better rankings include Monday.com (MNDY), Palo Alto Networks (PANW), and BlackLine (BL), with MNDY gaining 61% year to date [8][9][10]

Core Insights - The previous investment thought on Check Point Software (NASDAQ: CHKP) was a buy rating due to the potential for growth acceleration based on multiple data points [1] Group 1: Investment Approach - The investment strategy focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities [1] - The approach revolves around bottom-up analysis, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

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 ...