Check Point Software Technologies Ltd. Reports Third Quarter 2024 Financial Results
Check Point Software Technologies Ltd. (NASDAQ: CHKP) has released its financial results for the third quarter ending September 30, 2024. Below is a detailed summary of the earnings report.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate | Variance |
|---|---|---|---|---|---|
| Total Revenue | $635 million | $596 million | +7% | $634.86 million | Met |
| GAAP EPS | $1.83 | $1.75 | +4% | N/A | N/A |
| Non-GAAP EPS | $2.25 | $2.07 | +9% | $2.25 | Met |
The company's financial performance for Q3 2024 showcased a consistent year-over-year revenue growth of 7%, with total revenues reported at $635 million, aligning with consensus estimates. GAAP earnings per share (EPS) were $1.83, reflecting a 4% increase, while non-GAAP EPS met the consensus estimate at $2.25, marking a 9% rise from the same period last year.
Revenue Breakdown by Segment
| Segment | Revenue Q3 2024 | YoY Change |
|---|---|---|
| Security Subscriptions | $277 million | +12% |
Check Point demonstrated strong performance in its Security Subscriptions segment, which saw a 12% increase year-over-year. This growth is driven by the company's successful efforts in bolstering its Infinity Platform offerings, particularly in the Harmony Email and Infinity Global Services segments.
Key Developments and Operational Highlights
- Expansion into the Security Operation Center (SOC) market through the acquisition of Cyberint Ltd., aimed at enhancing AI-powered threat intelligence and exposure management.
- Continued double-digit growth in the Infinity Platform, particularly noting high revenue growth in Harmony Email and Infinity Global Services.
- Share repurchase of approximately 1.79 million shares, costing approximately $325 million during the quarter.
Executive Commentary
According to Gil Shwed, founder and CEO of Check Point, 'The company delivered strong third quarter results buoyed by double-digit growth in the Infinity Platform,' further adding optimism about future success with the recent Cyberint acquisition and broader technology adoption.
Dividends and Share Repurchase Program
The company reported the execution of a share repurchase program which involved the buyback of approximately 1.79 million shares at a total cost of $325 million during the quarter. No dividends were announced.
Forward Guidance
Check Point did not provide specific forward guidance for the upcoming quarters. However, the company expressed confidence in its expanding capabilities and solutions driving growth as highlighted by recent strategic acquisitions and increasing platform adoption.
Stock Price Movement
Following the release of the earnings report, Check Point’s stock experienced a decline of approximately 1.71%.
In conclusion, Check Point maintained a stable financial position in Q3 2024, reflecting a solid performance met with strategic expansions that could bolster its market presence and encourage future growth in the cybersecurity sector.
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