Integration accelerates breach identification and containment, effectively stops lateral movement of threats across the enterprise REDWOOD CITY, Calif., April 24, 2025 (GLOBE NEWSWIRE) -- Check Point Software Technologies Ltd. (NASDAQ: CHKP), a global leader in cyber security solutions, and Illumio, the breach containment company, today announced a strategic partnership to help organizations strengthen security and advance their Zero Trust posture. The integration between the Check Point Infinity Platform a ...

Core Insights - Palo Alto Networks has achieved over $1.5 billion in cumulative sales through Google Cloud Marketplace as of April 2025, highlighting its commitment to AI-driven cloud security solutions [1][2] - The company has been recognized with multiple 2025 Google Cloud Partner of the Year awards, emphasizing its strong collaboration with Google Cloud [1][4] Company Overview - Palo Alto Networks is a global leader in cybersecurity, focusing on AI-powered solutions across network security, cloud security, and security operations [4] - The company employs Precision AI technology to enhance threat detection and response, aiming to minimize false positives and improve security effectiveness [4] Product Offerings - Palo Alto Networks offers 31 listings on Google Cloud Marketplace, supported by 20 technical documents and reference architectures to meet evolving customer needs [2] - The integration of Palo Alto Networks' AI-Runtime Security and VM-Series Virtual Firewalls with Google Cloud Network Security Integration allows customers to secure their Google Cloud environments effectively [3] Strategic Partnerships - The collaboration with Google Cloud includes 75 solution integrations that provide end-to-end protection for AI-enhanced cloud infrastructure and applications [3] - This partnership aims to help customers achieve their AI and digital innovation goals while managing associated security risks [2][3]

Industry Overview - The cybersecurity industry is experiencing significant growth, driven by complex attacks such as credential theft and social engineering. The market is projected to grow at a CAGR of 12.63% from 2025 to 2030, with a robust CAGR of 9.4% expected during the same period [2]. Company Analysis: Palo Alto Networks (PANW) - Palo Alto Networks is a leader in cybersecurity, offering a comprehensive suite of solutions including network security, cloud security, and endpoint protection [4]. - The company is focusing on innovative product offerings, such as the enhanced Prisma Cloud platform with Prisma Cloud Copilot, which utilizes generative AI to improve security analysts' efficiency [6]. - PANW's strategic expansion in the APAC region and its focus on Zero Trust and private 5G security solutions are expected to drive growth [5][7]. - The Zacks Consensus Estimate for PANW's 2025 earnings is $3.22, reflecting a year-over-year increase of 13.4% [7][8]. - Over the past year, PANW shares have returned 14%, and the stock is trading at a forward sales multiple of 10.01X, above its three-year median of 9.35X [14][15]. Company Analysis: Qualys (QLYS) - Qualys specializes in Vulnerability Management, Detection, and Response (VMDR) solutions, with 73% of its customers using four or more modules, up from 63% the previous year [9]. - The company has launched several new products, including the Risk Operations Center and Qualys TotalAI, which focus on enhancing cloud-based offerings [10]. - The Zacks Consensus Estimate for Qualys' 2025 earnings is $5.75, indicating a year-over-year decline of 6.2% [12][13]. - Qualys shares have lost 29.8% over the past year, and the stock is trading at a forward sales multiple of 6.43X, significantly below its three-year median of 11.41X [14][15]. Comparative Analysis - Palo Alto Networks is viewed as a stronger investment opportunity due to its leadership position, robust growth prospects, and strong financial execution, despite its premium valuation [18]. - In contrast, Qualys faces challenges from increased competition and a declining growth trajectory, raising concerns about its ability to capitalize on the cybersecurity market [17][18]. - Currently, Palo Alto holds a Zacks Rank 3 (Hold), while Qualys has a Zacks Rank 4 (Sell), indicating a more favorable outlook for PANW compared to QLYS [19].

Core Insights - Check Point Software Technologies has been recognized as the top AI-powered cyber security platform in the 2025 Miercom Assessment, highlighting its leadership in security efficacy, Zero Trust implementation, and ease of use [1][4][5] Company Overview - Check Point Software Technologies is a leading provider of AI-powered, cloud-delivered cyber security solutions, protecting over 100,000 organizations globally [7] - The company leverages AI to enhance cyber security efficiency and accuracy through its Infinity Platform, which includes various technologies for workspace, cloud, and network security [7][9] Industry Context - The 2025 Check Point Security Report indicates a 45% increase in cyber-attacks, emphasizing the need for modernized cyber defenses [2] - Effective security now requires a unified, AI-driven platform capable of real-time protection and visibility across distributed networks [2] Assessment Findings - Miercom's assessment evaluated leading cyber security platforms across ten critical domains, including AI-powered threat analysis and Zero Trust enforcement [3] - Check Point Infinity demonstrated superior security efficacy, consistently outperforming competitors in comprehensive threat prevention and response [4][8] - The platform's user interface enhances ease of use for administrators, facilitating precise decision-making [8] Recognition and Performance - Check Point achieved a block rate of 99.9% against new malware in Miercom's 2025 Enterprise and Hybrid Mesh Firewall Security Report, indicating its effectiveness against the latest cyber threats [5]

Core Insights - Broadcom Inc. has introduced updates to VMware vDefend aimed at enhancing private cloud security against advanced threats and ransomware [1][2] - The new features focus on simplifying security planning, lifecycle management, and scaling security across application environments [1][3] Security Planning and Assessment - VMware vDefend now includes a Security Segmentation Assessment and Report that provides real-time insights into an organization's security posture, helping to implement zero trust initiatives [3] - The assessment analyzes application traffic to identify security gaps and offers actionable policy recommendations to enhance lateral security [3] Simplified Security Operations - Updates to the Security Services Platform (SSP) streamline deployment and management of security tools, enhancing user experience and lifecycle management [4] - The micro-segmentation as code feature allows for automated security application during the deployment process, ensuring consistent protection across workloads [4] - Network Detection and Response (NDR) enhancements support secure updates of threat intelligence in air-gapped environments, improving detection and response capabilities [4][5] Third-Party Validation - VMware vDefend received an AAA rating for Advanced Threat Prevention from SE Labs, indicating high performance against complex attack scenarios [6] - A Total Economic Impact study by Forrester Consulting revealed that organizations using VMware vDefend realized a 116% return on investment [7] Customer Testimonials - Users from various sectors, including healthcare and education, have reported significant improvements in security operations and the ability to maintain a strong zero trust posture using VMware vDefend [8]

Core Viewpoint - The technology sector, particularly the QQQ ETF, has underperformed in a risk-off market environment, while Palo Alto Networks has shown resilience with a year-to-date increase in stock price [1][2]. Company Overview - Palo Alto Networks is a global leader in cybersecurity, providing advanced security solutions to various sectors, including businesses and governments [3]. - The company employs a "Zero Trust" approach to security, ensuring verification of users and devices before granting access [4]. Financial Performance - For fiscal Q2 2025, Palo Alto Networks reported revenue of $2.3 billion, a 14% year-over-year increase, surpassing analyst expectations [5]. - The company's Next-Generation Security (NGS) Annual Recurring Revenue (ARR) grew 37% to $4.8 billion, indicating strong demand for its offerings [6]. - The Remaining Performance Obligation (RPO) increased by 21% to $13.0 billion, reflecting robust customer commitment [6]. - The company raised its full-year operating margin guidance to 28.0%-28.5% and revised its revenue forecast for the fiscal year to between $9.14 billion and $9.19 billion [7]. Valuation and Market Sentiment - Despite strong fundamentals, Palo Alto Networks has a high valuation, trading at a price-to-earnings (P/E) ratio of 104 and a forward P/E of 50.48 [8]. - Institutional ownership is significant, with nearly 80% of shares held by institutional investors, and the company has seen $28 billion in inflows over the past year [9]. - The overall market sentiment remains bullish, reinforcing the company's appeal as a strong performer in a challenging tech sector [10].

Core Viewpoint - Investors navigated a volatile trading week influenced by tariff rhetoric from the Trump administration, leading to weekly stock losses despite a rally on Friday [1] Group 1: Zscaler - Zscaler, a cloud-based cybersecurity company, is recognized for its Zero Trust Exchange platform, which protects users and applications from cyber threats [3] - The company reported strong second-quarter results for fiscal 2025, driven by the adoption of Zero Trust and artificial intelligence [3][4] - Analyst Shaul Eyal from TD Cowen reiterated a buy rating with a price target of $270, citing a revamped go-to-market strategy and improved sales productivity [4] - Zscaler's annual contract value from its AI Analytics portfolio nearly doubled year over year, with expectations to reach $3 billion in annual recurring revenue by the end of fiscal 2025 [5] - The company serves 14 of the 15 U.S. cabinet agencies and is expected to benefit from government efficiency initiatives [6] - The number of customers generating over $1 million in annual recurring revenue increased by 25% year over year to 620 [6] Group 2: Costco Wholesale - Costco Wholesale reported mixed results for the second quarter of fiscal 2025, with revenue exceeding expectations but earnings missing estimates [8] - Analyst Corey Tarlowe from Jefferies noted that the earnings miss was due to lower-than-expected gross margin expansion and forex headwinds, but highlighted strong comparable sales growth of 8.3% [9][10] - Costco's U.S. sales benefited from increased traffic and ticket growth, and the company has opportunities for further warehouse expansion [11] - The company confirmed that about one-third of its U.S. sales are imported, with less than half sourced from China, Mexico, and Canada, which may insulate it from tariff impacts [11][12] - Tarlowe raised the price target for Costco stock to $1,180 from $1,145 while maintaining a buy rating [12] Group 3: Karman Holdings - Karman Holdings, a defense and space systems manufacturer, recently went public and offers a diverse range of products [14] - Analyst Amit Daryanani from Evercore initiated coverage with a buy rating and a price target of $38, citing strong growth potential driven by various secular tailwinds [15] - Daryanani highlighted growth in U.S. orbital launch volume and increased focus on missile defense as key drivers for Karman's growth [16] - Fiscal 2025 sales are expected to grow 18% year over year to $409 million, with EPS projected at 36 cents and an EBITDA margin expansion to 31% [16]

Financial Data and Key Metrics Changes - Revenue for Q2 was $648 million, representing a 23% year-over-year increase and a 3% sequential increase [39] - Annual recurring revenue (ARR) grew 23% year-over-year to over $2.7 billion, with a net retention rate (NRR) improving to 115% [8][39] - Total calculated billings increased 18% year-over-year to $743 million, with unscheduled billings growing over 25% year-over-year [40] - Operating profit grew by 36%, leading to a 2 percentage point improvement in operating margin to nearly 22% [9][39] - Free cash flow margin reached a record of 22% [9] Business Line Data and Key Metrics Changes - The Zero Trust Branch solution saw significant customer interest, with 57% of customers being new logo customers [17] - Data protection solutions experienced over 40% year-over-year growth in net new annual contract value (ACV) [19] - The number of customers with over $1 million in ARR grew by 25% year-over-year [17][41] Market Data and Key Metrics Changes - Geographic revenue distribution: Americas accounted for 54%, EMEA for 30%, and APJ for 16% [39] - The company ended Q2 with 620 customers generating over $1 million in ARR and 3,291 customers generating over $100,000 in ARR [41] Company Strategy and Development Direction - The company is focusing on the "Zero Trust Everywhere" initiative, aiming to triple the number of enterprises adopting this model within 18 months [14][36] - The strategy includes targeted campaigns to educate customers on transitioning from legacy security stacks to Zero Trust solutions [13][36] - The company is leveraging the upcoming hardware refresh cycle to promote its solutions, emphasizing cost savings and improved security [13][104] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is ongoing scrutiny of large deals, the demand for cybersecurity solutions remains strong [104][110] - The company expects to achieve $3 billion or more in ARR by the end of the fiscal year, driven by strong demand and sales productivity [8][37] - Management highlighted the importance of partnerships with global system integrators (GSIs) in driving growth and closing deals [32][66] Other Important Information - The company is investing in AI solutions, with AI analytics driving strong growth and nearly doubling year-over-year [28][27] - The company has hired a new EVP of AI innovations to accelerate the development of AI solutions [29] Q&A Session Summary Question: How much of the business is coming from ZIA and Secure Web Gateway replacements versus broader platform products? - Management indicated that ZIA is often a starting point, but many customers are now adopting a broader platform that includes ZIA, ZPA, and CDx [52] Question: What proves that the go-to-market changes are making a difference? - Management cited the strength of the pipeline, double-digit growth in new ACV, and increased engagement with C-level executives as indicators of success [58] Question: Can you provide insight into the NRR improving to 115%? - Management noted that larger deals and upsells are contributing to the NRR, with expectations of continued growth in this area [75][76] Question: Can you elaborate on the 8-figure APAC government deal? - Management described it as a landmark deal focused on cybersecurity rather than ROI, with significant upsell opportunities in the government sector [81][83] Question: How is the company addressing the need for data classification? - Management explained that AI is being utilized for data classification, and the platform can work alongside other providers' classifications for policy enforcement [90][92] Question: What is the competitive landscape for Zero Trust solutions? - Management stated that competition primarily comes from legacy firewall vendors and that Zero Trust solutions eliminate the need for traditional security appliances [146]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $459.9 million, representing a 27% year-over-year increase [6][31] - The number of large customers (those paying over $100,000 annually) increased by 27% year-over-year to 3,497 [6][32] - Gross margin was 77.6%, slightly down from the previous year [34] - Operating income was $67.2 million, a 69% increase year-over-year, with an operating margin of 14.6% [36] - Free cash flow for the quarter was $47.8 million, or 10% of revenue [37] Business Line Data and Key Metrics Changes - Revenue contribution from large customers grew to 69% of total revenue, up from 66% in the same quarter last year [6][33] - The company saw a notable uptick in close rates and improvements in sales cycles during Q4 [10][30] - The number of active developers on the platform surpassed 3 million, indicating strong engagement with Cloudflare Workers and Workers.ai [10] Market Data and Key Metrics Changes - The U.S. market represented 50% of total revenue, increasing by 23% year-over-year [31] - EMEA accounted for 28% of revenue, with a 27% year-over-year increase, while APAC represented 14% of revenue, growing by 39% year-over-year [31] Company Strategy and Development Direction - The company aims to enhance its go-to-market execution, focusing on sales productivity and hiring enterprise account executives [12][14] - Cloudflare is positioning itself to capitalize on trends in security, AI, and modernization, which align with its strengths [9][11] - The company is committed to maintaining a unified network architecture while expanding its federal business [63][66] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are increasingly scrutinizing budgets and ensuring value for every dollar spent, but confidence is returning, particularly in the U.S. [8][9] - The company expects to see a reacceleration of growth in 2025, driven by improved sales capacity and productivity [14][39] - For Q1 2025, revenue is expected to be in the range of $468 million to $469 million, representing a 24% year-over-year increase [39] Other Important Information - The company ended Q4 with $1.86 billion in cash and equivalents, maintaining a strong balance sheet [37] - The shift from AI training to AI inference is expected to drive increased investment in GPU capacity [35] Q&A Session Summary Question: Inquiry about the impact of DeepSeq on inference workloads - Management acknowledged that DeepSeq has demonstrated significant optimizations in AI training costs, which could lead to more inference workloads moving to the edge [42][44] Question: Focus on product innovation and upcoming inflection points - Management expressed excitement about the company's ability to prove itself in go-to-market strategies and highlighted the importance of customer-focused product development [51][52] Question: Impact of pool of funds deals on revenue - Management indicated that pool of funds deals contributed approximately nine percentage points to revenue in Q4 and expressed confidence in their recognition as revenue throughout 2025 [57][58] Question: Update on FedRAMP High and government business - Management confirmed that the company is committed to maintaining a unified network while complying with FedRAMP High requirements, and noted growth in federal business both domestically and internationally [61][66] Question: Security performance and standout product categories - Management noted that large customers are increasingly adopting the full suite of Cloudflare products, indicating a shift towards a comprehensive platform approach [70][72]

Summary of Zscaler (ZS) 2024 Investor Day Company Overview - **Company**: Zscaler (ZS) - **Event**: 2024 Investor Day held on June 12, 2024 Key Industry and Company Insights Expanding Platform and Market Opportunities - Zscaler is expanding its platform, focusing on secure communication, data protection, and Zero Trust networking as core areas of growth [8][10][11] - The company identifies a significant opportunity in the Internet of Things (IoT) and Operational Technology (OT) sectors, with a serviceable market of approximately 1.5 billion devices [13][83] - The Total Addressable Market (TAM) has increased from $72 billion to $96 billion, reflecting growth in data protection and Zero Trust solutions [16][18] Data Protection and Security Innovations - Data protection is highlighted as a rapidly expanding area, with Zscaler investing in technologies to secure applications and data across various environments [10][54] - The company has developed a comprehensive data protection solution that integrates multiple data loss prevention (DLP) engines, reducing complexity for organizations [54][59] - Zscaler's data protection market has grown from $10 billion to $20 billion, driven by the consolidation of fragmented data security solutions [61] Zero Trust Networking - Zscaler emphasizes the importance of Zero Trust networking, which eliminates the need for traditional VPNs and enhances security by verifying every connection [70][76] - The company has scaled its Zero Trust Private Access (ZPA) to over 25 million end users, positioning itself as a leader in this space [70][75] AI and Platform Integration - Zscaler is leveraging AI to enhance its platform capabilities, focusing on proactive threat detection and actionable insights [24][25] - The acquisition of Avalor is expected to enhance Zscaler's data fabric, allowing for better integration and contextualization of security data [25][27] Customer Engagement and Market Strategy Customer Wins and Adoption - Zscaler has secured notable contracts, including a global bank with 150,000 seats and a Fortune 500 financial services company with a 74,000 seat deployment [62][64] - The company is seeing increased adoption of its data protection solutions, with a focus on simplifying security for complex environments [58][61] Go-to-Market Strategy - Zscaler is refining its sales approach by creating specialized teams for emerging products, ensuring that new offerings receive adequate attention [19][20] - The company is focused on educating potential customers about the benefits of its Zero Trust solutions to overcome market inertia [15][16] Additional Insights Challenges and Competitive Landscape - Zscaler faces challenges in educating the market about Zero Trust solutions and overcoming the inertia of legacy systems [15][16] - The company is positioned to disrupt traditional networking and security vendors by offering a comprehensive, integrated approach to security [76][80] Future Outlook - Zscaler anticipates continued growth in its serviceable market, particularly in the areas of IoT and OT security, as organizations modernize their networks [85][86] - The company is committed to expanding its product offerings and enhancing its platform through ongoing innovation and strategic acquisitions [59][61] This summary encapsulates the key points discussed during the Zscaler 2024 Investor Day, highlighting the company's strategic focus on expanding its platform, enhancing data protection, and leading in Zero Trust networking.