Israeli cybersecurity company Check Point Software Technologies Limited (Nasdaq: CHKP) The stock price fell more than 14% on Wall Street after the company published its third-quarter financial results today. Despite meeting analyst consensus in the last full quarter led by co-founder and CEO Gil Schwed, investors are concerned about the company’s outlook.
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Revenues in the third quarter of 2024 were $635 million, up 6.5% from the corresponding quarter in 2023, and earnings per share were $2.25, up 8.7% from the corresponding quarter. Revenues grew in each of the company’s market segments in the third quarter and in the first nine months of 2024 revenues reached $1.86 billion, an increase of 6.3% from the same period last year.
In Q3 2024, non-GAAP net profit was $207 million, up 1% from Q3 2023, while non-GAAP net profit was $255 million, up 5.4%. % for the corresponding quarter. In the first nine months of 2024, non-GAAP net earnings were $736 million, up 5.3% from the corresponding period in 2023.
At the end of the third quarter, Check Point had $2.87 billion in liquidity, after acquiring Israeli company Cyberint for $200 million during the quarter and buying back shares for $325 million. The shares were purchased at an average price of US$181.60 per share, while yesterday the share price closed at US$208, giving a market capitalization of US$22.9 billion.
Schweid is stepping down
In December, Schwed will step down as CEO after leading the company he co-founded for 30 years. He will become CEO and will be replaced by Nadav Zafrir, co-founder of the Team8 investment fund, as CEO.
“Check Point delivered impressive financial results in the third quarter fueled by double-digit growth in Infinity Platform,” Schwed said. “This success was underscored by double-digit revenue growth in Harmony Email and Infinity Global Services. We expanded our offerings to include the Security Operations Center.” (SOC) with the acquisition of Cyberint, which provides proactive threat intelligence and exposure management powered by AI, and we look forward to continued success with our Infinity platform and broader adoption of our technology as we approach the end of the year.”
Published by Globes, Israel Business News – en.globes.co.il – on October 29, 2024.
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