Check Point Software Q3 Earnings Match Estimates, Revenues Miss

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]