Check Point Software Technologies .(CHKP)2024-10-29 15:40Financial Data and Key Metrics Changes - Revenues grew by 7% to 3 million [6] - Non-GAAP EPS increased by 9% to 0.01 [6] - Subscription revenue rose by 12% to 562 million, representing 6% growth year-over-year [6][7] - Gross profit increased by 5% to 289 million, primarily due to workforce investments and acquisition-related costs [10] - Cash balances amounted to 249 million [11] Business Line Data and Key Metrics Changes - Product and subscription revenues grew to 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 715 million and EPS between 2.70 [33] Other Important Information - The company completed the acquisition of Cyberint for 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]