Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) share price is down over 14% on Wall Street after the company published its third quarter financial results today. Despite meeting the analysts' consensus in its final full quarter managed by cofounder and CEO Gil Shwed, investors are concerned about the company's guidance.
Revenue in the third quarter of 2024 was $635 million, up 6.5% from the corresponding quarter of 2023, and earnings per share was $2.25, up 8.7% from the corresponding quarter. Revenue grew in each of the company's market segments in the third quarter and in the first nine months of 2024 revenue amounted to $1.86 billion, up 6.3% from the corresponding period of last year.
In the third quarter of 2024 non-GAAP net profit was $207 million, up 1% from the third quarter of 2023, while GAAP net profit was $255 million, up 5.4% from the corresponding quarter. In the first nine months of 2024 non-GAAP net profit was $736 million, up 5.3% from the corresponding period of 2023.
At the end of the third quarter, Check Point had cash of $2.87 billion, after acquiring Israeli company Cyberint for $200 million during the quarter and buying back shares for $325 million. The shares were bought at an average price of $181.60 per share, while the share price closed yesterday at $208, giving a market cap of $22.9 billion.
Shwed stepping down
In December, Shwed will step down as CEO after leading the company that he cofounded for 30 years. He will become executive chairman and be replaced as CEO by Nadav Zafrir, the founding partner of the Team8 investment fund.
Shwed said, "Check Point delivered great third quarter financial results that were bolstered by double-digit Infinity Platform growth. This success is underscored by double-digit revenue growth in Harmony Email and Infinity Global Services. We expanded our offerings into the Security Operation Center (SOC) market with the Cyberint acquisition that delivers proactive, AI powered threat intelligence and exposure management. We’re looking forward to continued success with our Infinity Platform and the broader adoption of our technologies as we close out the year."
Published by Globes, Israel business news - en.globes.co.il - on October 29, 2024.
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