Check Point Software Technologies Ltd (NASDAQ:CHKP) reported fiscal second-quarter 2024 revenue growth of 7% year-on-year to $627.4 million, beating the analyst consensus estimate of $623.3 million.
The American-Israeli enterprise security solution provider's adjusted EPS of $2.17 beat the analyst consensus estimate of $2.16.
Revenue from Products and licenses grew by 1.0% to $118.1 million, Security subscriptions increased 13.7% year over year to $271.7 million, and Software updates and maintenance rose 2.0% year over year to $237.6 million.
Margin: Adjusted operating margin declined to 42.3% Y/Y. The operating margin declined to 33.3% from 37.5% a year ago as operating expenses surged by 13.8% Y/Y.
The company generated $200 million in operating cash flow, compared to $191 million a year ago, and held $3.06 billion in cash and equivalents as of June-end.
CEO Transition: Check Point named Nadav Zafrir of Team8 as CEO, effective December 2024. Founder & CEO Gil Shwed will transition to Executive Chairman.
Gil Shwed said, "The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations."
Check Point stock gained 34% in the last 12 months. Investors can gain exposure to the stock through First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) and Amplify ETF Trust Amplify Cybersecurity ETF (NYSE:HACK).
Price Action: CHKP shares closed lower by 0.28% at $170.00 on Tuesday.