Gil Shwed is stepping down after 30 years as CEO of Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP). He will become executive chairman after the company has found a new CEO.
Shwed cofounded Check Point in 1993 with Shlomo Kramer and Marius Nacht and has led the company from an early-stage startup, through a Wall Street IPO and onto becoming the most valuable Israeli company for many years. Check Point currently has a market cap of $18.8 billion - close to its all-time high.
He said, "In 2023 Check Point hit the 30-year milestone as a company. We have delivered 30 years of growth and achieved record highs in almost every parameter for the year. We have an incredibly strong security platform with a super-strong team around the world and proven execution. I feel it is the right time for me to focus on the evolution of Check Point and its next stage. I intend to transition into the role of Executive Chairman charting the future of Check Point and the cyber security market. We’re initiating the succession process to hire a new CEO, and once completed I will transition into my new position as executive chairman. I’m excited to enter 2024 with a great technology pipeline, and a fully energized global team that is ready to deliver a bright and secure future for our customers."
Q4 results: The company beat expectations
Shwed's announcement came as part of Check Point's financial statement for the fourth quarter of 2023 and full-year 2023. The company beat the analysts' expectations and its own guidance with fourth quarter revenue of $664 million, up 3.9% from the corresponding quarter of 2022, and non-GAAP earnings per share of $2.57. For the entire year, revenue grew 4% to $2.4 billion and non-GAAP earnings per share was $8.42, up 14% from 2022.
In the fourth quarter, Check Point reported GAAP net profit of $249 million, down 7.7% from the corresponding quarter of 2022, and non-GAAP net profit of $299 million, almost unchanged from the corresponding quarter. In full-year 2023, Check Point reported non-GAAP net profit of $997 million, up 6.7% from 2022.
At the end of 2023, Check Point had $3 billion in cash, after making acquisitions for $484 million in 2023 and continuing to buy back more of its own shares.
Shwed commented on the results. He said, "We finished the year with a strong quarter, delivering 14% non-GAAP EPS growth for the year, the highest in more than a decade. This was complemented by non-GAAP operating margin of 45%, among the highest of all public companies. Our industry leading AI powered, and cloud-delivered Infinity security platform continued to drive customer adoption and bolstered our 15% growth in security subscriptions revenues for the quarter. Our R&D organization continues to deliver industry leading threat prevention rates and innovative AI technologies. While our salesforce executed a turnaround in customer engagement, delivering double-digit new business growth in the fourth quarter."
Published by Globes, Israel business news - en.globes.co.il - on February 6, 2024.
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