Check Point Software Technologies .(US:CHKP)2022-04-27 17:16Financial Data and Key Metrics Changes - Revenue reached $543 million, a 7% increase from $508 million, exceeding guidance by $11 million [7][9] - Earnings per share (EPS) was $1.57, $0.04 above the midpoint of guidance, reflecting a 2% year-over-year increase [7][28] - Deferred revenues increased by 14% to $1,666 million [9] - Operating cash flow was strong at almost $400 million, a 6% year-over-year increase [29] Business Line Data and Key Metrics Changes - Product revenue grew by 6%, marking a turnaround from negative growth in the previous two years [13] - Security subscription revenue growth accelerated from 10% to 14% [16] - Combined product and subscription revenues achieved double-digit growth for the first time since 2017, reaching 11% [17] Market Data and Key Metrics Changes - Revenue growth by geography showed America at 43%, EMEA at 44%, and APAC at 13% [18] - All regions experienced double-digit growth in new business bookings, with America leading the growth [19] Company Strategy and Development Direction - The company is focusing on aggressive customer engagement and expanding its market reach [75] - New leadership in the go-to-market organization aims to enhance integration between sales and marketing [45] - Continued investment in R&D and sales personnel to support growth initiatives [24][48] Management's Comments on Operating Environment and Future Outlook - Management noted a 54% increase in weekly cyber attacks globally, indicating a growing demand for cybersecurity solutions [33] - The company remains optimistic about maintaining strong revenue growth and achieving double-digit growth in new business [66][93] - Supply chain constraints are expected to be temporary, with hopes for resolution by the end of the year [23] Other Important Information - The company continues to execute its buyback program, purchasing 2.5 million shares for $325 million [30] - Non-GAAP tax rate for the quarter was around 17%, consistent with expectations [28] Q&A Session Summary Question: Can you elaborate on the divergence between bookings and billings? - Management explained that the gap is due to various factors, including invoicing timing and delivery delays, which can create discrepancies between bookings and billings [70][74] Question: What changes are being made in the go-to-market strategy? - The focus is on being more aggressive in customer engagement and expanding methodologies to better communicate the differentiation in product security [75][76] Question: Will remaining performance obligations (RPO) continue to grow? - Management indicated that RPO is a reflection of backlog and can fluctuate based on booking performance, but overall, the business remains healthy [81][84] Question: Are supply chain challenges impacting win rates? - Management noted that while some projects were won due to supply capabilities, delays in customer projects due to other equipment shortages also affected overall business [88] Question: What is the outlook for pricing in the current environment? - The company has increased prices by 7%, which is lower than competitors, and the impact on end-users varies by project [99][100]