Check Point Software Announces New CEO and Reports Strong Q2 2024 Results

Jefferies raises Checkpoint Software stock target on new CEO By Investing.com

On Wednesday, Jefferies maintained a Buy rating on shares Checkpoint Software (NASDAQ:CHKP) and raised the price target to $210 from $185. The adjustment follows the company's announcement of Nadav Zafrir as the incoming CEO starting December. Jefferies views this appointment favorably, citing Zafrir's extensive experience in mergers and acquisitions (M&A) and the industry. Checkpoint Software reported product revenue growth for the first time in six quarters, which has been attributed to the performance of its Infinity product. This growth has led to an acceleration in billings to 9.5% year-over-year compared to 6.5% in the first quarter. Jefferies highlighted this as a positive development, indicating a momentum that investors are likely to monitor closely, especially with the anticipated go-to-market (GTM) changes under the new leadership. Despite the broader macroeconomic pressures, which appear to be subsiding, Checkpoint Software has decided to maintain its guidance for 2024. Jefferies expressed confidence in the company's ability to achieve double-digit earnings per share (EPS) growth. This optimism is a key factor supporting the firm's increased price target of $210, which is based on a 21 times price to next twelve months earnings (P/NTM E) multiple, compared to the five-year average of 17 times. The forthcoming tenure of CEO Nadav Zafrir is expected to be a focal point for Checkpoint Software's investors, as they look forward to strategic initiatives and potential market expansion. The company's recent performance and steady guidance have contributed to Jefferies' positive outlook on the stock's future. In other recent news, Checkpoint Software has posted impressive financial results for the second quarter of fiscal year 2024, with revenue and billings exceeding expectations. The company reported revenue of $627 million and an EPS of $2.17. Checkpoint Software's robust top-line results are attributed to several factors including strong large deal traction, improved salesforce productivity, and an uptick in firewall appliance demand. The company's product revenue grew by 1% year-over-year, marking the first instance of positive growth since the fourth quarter of fiscal year 2022. In other developments, financial services company Stifel has increased the price target on Checkpoint Software shares to $182 from the previous target of $165, maintaining a Hold rating on the stock. The company also announced that Nadav Zafrir will take over as CEO in December 2024, a move expected to bring a more aggressive focus on sales, marketing, and mergers and acquisitions. Checkpoint Software has shown a strong focus on AI technology, with particular emphasis on the AI Infinity Copilot and Threat Cloud AI. The company recorded double-digit growth in product and subscription revenues, particularly for its Infinity platform. Looking ahead, Checkpoint Software expects revenues between $615 million and $650 million, and an EPS between $2.19 and $2.29 for the second half of the year. As Checkpoint Software (NASDAQ:CHKP) embraces a period of leadership transition and market optimism, insights from InvestingPro offer an additional layer of financial health and market position. With a robust Market Cap of $20.34B, Checkpoint's financial stability is evident. The company's strategic share buybacks, as noted in one of the InvestingPro Tips, demonstrate proactive management in enhancing shareholder value. Additionally, Checkpoint's balance sheet strength is highlighted by its position of holding more cash than debt, a reassuring sign for investors considering the company's long-term financial flexibility. The company's impressive Gross Profit Margin of 89.03% for the last twelve months as of Q1 2024, paired with an Operating Income Margin of 36.5%, underscores its efficiency and profitability in operations. While the company is trading at a high P/E Ratio of 25.57, it's important to note that it is also trading near its 52-week high, with a price that is 97.56% of this peak, reflecting the market's positive sentiment towards Checkpoint's stock. Investors seeking a deeper dive into Checkpoint Software's performance and potential can find additional insights with InvestingPro. Currently, there are 11 more InvestingPro Tips available, which can be accessed with the use of coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. As analysts predict profitability for the year and with a solid track record over the last twelve months, these tips could prove invaluable for those looking to make informed investment decisions.

Check Point's security subscription revenue drives Q2 show; CEO to take reins in December

Check Point Software Technologies (NASDAQ:CHKP) said Nadav Zafrir will take up the role of CEO in December, while announcing its second quarter results, which beat estimates. Gil Shwed, founder and current CEO, will transition to the role of executive chairman, according to the cybersecurity company. Zafrir has been a co-founder and managing partner at venture capital fund Team8, which invests in companies focused on cybersecurity. Zafrir has built, invested and chaired 17 cybersecurity companies. He previously served 25 years in the IDF, retiring as a Brigadier General. Since 2019, he has served as Chairman of SolarEdge Technologies, Check Point noted. Second Quarter Results: Non-GAAP EPS grew 8% year-over-year to $2.17, while total revenues jumped 7% year-over-year to $627M. Both top and bottom line numbers beat analysts expectations. Total revenues from products and security subscriptions climbed about 9.5% year-over-year to $389.8M. "Check Point delivered an outstanding second quarter as customers continued to embrace the AI driven, cloud delivered Infinity Platform to achieve the highest levels of security," commented Shwed. Security subscriptions grew about 14% year-over-year to $271.7M, while Products and licenses revenue rose about 1% year-on-year to $118.1M. "The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations," added Shwed. Software updates and maintenance revenue increased about 2% year-over-year to $237.6M. Share Buyback Program: During the second quarter, the company bought back about 2.1M shares for around $325M. Earlier this month, the company's board authorized a $2B expansion of an ongoing share repurchase program. Check Point will be authorized to continue repurchasing its shares up to $325M each quarter. CHKP +0.88% to $171.50 premarket July 24 More on Check Point Check Point: A Buy Based On AI Growth Drivers And Earnings Strength Check Point Software Technologies Ltd. (CHKP) Q1 2024 Earnings Call Transcript Check Point Software Technologies Ltd. 2024 Q1 - Results - Earnings Call Presentation Check Point Software Technologies Non-GAAP EPS of $2.17 beats by $0.01, revenue of $627M beats by $3.66M Check Point Software Technologies Q2 2024 Earnings Preview

Checkpoint Software shares get new $182 target from Stifel By Investing.com

On Wednesday, Stifel, a financial services company, increased the price target on shares of Checkpoint Software (NASDAQ:CHKP) to $182 from the previous target of $165. The firm has maintained a Hold rating on the stock. Checkpoint Software recently posted its financial results for the second quarter of the fiscal year 2024, showcasing billings and revenue that surpassed expectations. This performance marks the highest year-over-year growth rates since the fourth quarters of fiscal years 2021 and 2022. The positive outcomes were partially attributed to the timing of prior Infinity deals. Checkpoint's robust top-line results are credited to several factors including strong large deal traction, with the top three deals amassing a total contract value (TCV) of $130 million. Additionally, the company saw an improvement in new logo wins, better salesforce productivity, continued momentum in Infinity/Harmony Email, and an uptick in firewall appliance demand. Notably, the product revenue grew by 1% year-over-year, which is the first instance of positive growth since the fourth quarter of fiscal year 2022. The company's guidance for the third quarter of fiscal year 2024 is expected to align with consensus estimates, while the full-year guidance for fiscal year 2024 has been reaffirmed. Checkpoint also made a significant announcement regarding its leadership, revealing that Nadav Zafrir is set to take over as CEO in December 2024. Zafrir's background in cyber venture capital is seen as a potential catalyst for a more aggressive focus on sales and marketing and mergers and acquisitions, which could contribute to driving sustainable growth rates higher over time. In other recent news, Check Point Software Technologies (NASDAQ:CHKP) Ltd. had a strong quarter, surpassing projections with a reported revenue of $627 million and an EPS of $2.17. The cybersecurity firm also announced the appointment of Nadav Zafrir as the new CEO, effective from December. Looking ahead, the company has expressed optimism for the second half of the year, with expected revenues between $615 million and $650 million, and an EPS between $2.19 and $2.29. Check Point Software also highlighted its focus on AI technology, including the AI Infinity Copilot and Threat Cloud AI. It reported double-digit growth in product and subscription revenues, particularly for its Infinity platform. These are recent developments that underscore the company's commitment to innovation in the cybersecurity sector. Following the positive assessment by Stifel and the optimistic outlook for Checkpoint Software, InvestingPro data further illuminates the financial health and market standing of the company. Checkpoint Software boasts a substantial market capitalization of $20.34 billion, reflecting its significant presence in the cybersecurity industry. The company's P/E ratio stands at 25.57, suggesting a premium valuation that investors are willing to pay for its earnings. Moreover, Checkpoint has demonstrated solid financial performance with a gross profit margin of an impressive 89.03% in the last twelve months as of Q1 2024, highlighting its efficiency in maintaining profitability despite costs. Two noteworthy InvestingPro Tips for Checkpoint Software include the company's strategic share buybacks, indicating management's confidence in the company's value, and its strong liquidity position, holding more cash than debt on its balance sheet. These aspects are crucial for investors considering the stability and future growth potential of Checkpoint. Additionally, with the company trading near its 52-week high and analysts predicting profitability for the year, Checkpoint Software appears to be on a positive trajectory. For those looking for deeper analysis and more InvestingPro Tips, there are 11 additional tips available on Checkpoint Software at https://www.investing.com/pro/CHKP. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

Check Point Software Technologies Non-GAAP EPS of $2.17 beats by $0.01, revenue of $627M beats by $3.66M (NASDAQ:CHKP)

Check Point Software Technologies press release (NASDAQ:CHKP): Q2 Non-GAAP EPS of $2.17 beats by $0.01. Revenue of $627M (+7% Y/Y) beats by $3.66M. Security Subscription Revenues: $272 million, a 14 percent increase year over year Nadav Zafrir, renowned Cyber Security leader, will assume CEO role December 2024 Gil Shwed, Founder & CEO, will transition to Executive Chairman More on Check Point Software Technologies Check Point: A Buy Based On AI Growth Drivers And Earnings Strength Check Point Software Technologies Ltd. (CHKP) Q1 2024 Earnings Call Transcript Check Point Software Technologies Ltd. 2024 Q1 - Results - Earnings Call Presentation Check Point Software Technologies Q2 2024 Earnings Preview Cybersecurity firms see lower estimates as gen-AI absorbs IT budgets: survey

Check Point Software Announces New CEO & Reports Strong 2024 Second Quarter Results

"I'm excited to share great news. Check Point delivered an outstanding second quarter as customers continued to embrace the AI driven, cloud delivered Infinity Platform to achieve the highest levels of security," said , Check Point founder and CEO. "The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations." New CEO Appointment: For the past 10 years, has been a co-founder and managing partner at , a global venture creation and venture capital fund. establishes and invests in companies focused on cyber security, Data & AI, Fintech and digital health. He built, invested and chaired 17 cyber security companies in addition to dozens of other technology companies he has consulted and mentored. He previously served 25 years in the IDF, retiring as a Brigadier General. Since 2019, he has served as Chairman of the Board of SolarEdge Technologies, a Nasdaq traded smart energy company. will assume the CEO role in and will join Check Point's Board of Directors upon shareholder approval at Check Point's next Annual General Meeting. will become Executive Chairman of the Board. "We are concluding a thorough CEO search process after examining candidates from around the world and found the perfect individual. Nadav has been a key leader in the global cyber security ecosystem for over a decade. Having lived in and , he became one of the most respected figures within the global CISO community. He established and led multiple cyber security companies and partnered with the world's largest security vendors. I admire his achievements and leadership skills and I am excited about his appointment, and believe he is the right leader to take Check Point to new heights," concluded . "I am honored to join Check Point, a pioneer that shaped modern cyber security, and a hotbed for entrepreneurship," said . "Over the last decade, I've collaborated with global cyber security leaders and teams, witnessing firsthand their incredible efforts to safeguard global networks from sophisticated attackers. I am in awe of the work of security practitioners and their organizations deserve the best security. In our turbulent world, on the brink of another acceleration point as AI redefines our lives, cutting-edge cyber security is more critical than ever. Check Point is uniquely positioned to lead development of the next stage of security for our complex world. I look forward to working with the company's accomplished leadership team and Gil to write the next chapter in Check Point's growth," concluded . Financial Highlights for the Second Quarter of 2024: For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see "Use of Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information." Conference Call and Webcast Information Check Point will host a conference call with the investment community on , at /. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir. Third Quarter Investor Conference Participation Schedule: Members of Check Point's management team anticipate attending these conferences and events to discuss the latest company strategies and initiatives. Check Point's conference presentations, if applicable, will be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at www.checkpoint.com/ir. The schedule is subject to change. To follow this and other Check Point news visit: About Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services. Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding our products and solutions, the appointment of our new CEO, the transition of our CEO into the role of Executive Chairman and our participation in investor conferences and events during the third quarter of 2024. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; the appointment of our new CEO, the transition of our CEO into the role of Executive Chairman; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the , including our Annual Report on Form 20-F filed with the on . The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law. Use of Non-GAAP Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income, and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Check Point's ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community in visualizing the Company "through the eyes of management," and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating the business internally and has determined that it is important to provide this information to investors.