Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) beat the analysts in its first quarter 2024 financial results. The company reported non-GAAP earnings per share of $2.04, up 13% from the corresponding quarter of 2023 and revenue of $598.8 million, up 6% from the corresponding quarter. The analysts' consensus was $2 per share and revenue of $594.9 million.
The company also surpassed its own guidance of $2 per share and revenue of $592.5 million. In 2024, Check Point predicts 6% revenue growth with revenue rising to $2.625 billion in 2024 from $2.475 billion in 2023 and non-GAAP earnings per share of $8.7-9.3 per share. The analysts see earnings per share of $9.07 and revenue of $2.56 billion.
The company had $3.04 billion at the end of the first quarter, down from $3.62 billion at the end of the corresponding quarter in 2023. Cash flow was $361 million in the first quarter compared with $386 million in the first quarter of 2023. In the first quarter Check Point bought back shares for $325 million.
Check Point founder and CEO Gil Shwed said, "The first quarter yielded great results with revenues and EPS at the top end of our projections. We delivered strong double-digit growth in Infinity Platform agreements, now constituting over 13% of total revenues. Our aggregate recurring revenues now represent 83% of total revenues."
He added, "We introduced Quantum Force, a new line of security gateways empowering organizations of all sizes with next-generation firewall technology. In addition, we launched new technologies including Harmony SaaS protecting SaaS platforms and data, and Infinity AI Copilot, an AI-powered security assistant enhancing security effectiveness across organizations."
Check Point's share price closed up 0.12% on Wall Street yesterday at $161, giving a market cap of $18.2 billion, close to its all time high. Check Point is the second most valuable Israeli company traded on Wall Street after Mobileye, which has a market cap of $25 billion.
Check Point is looking for a new CEO after cofounder Gil Shwed said earlierthis year that he is stepping down after more than 30 years in the job, and will become executive chairman. Shwed's remuneration in 2023 was NIS 17.9 million, down from $22.6 million in 2022.
At the end of 2023, Check Point had 6,450 employees including 2,672 in Israel - up 6% from the previous year.
Published by Globes, Israel business news - en.globes.co.il - on April 25, 2024.
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