Check Point Software Technologies Ltd. (NASDAQ:CHKP) Q3 2023 Earnings Call Transcript

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And last one in these examples. And again, you can imagine that we have many, many examples of different customer wins and customers scenarios that we sorted out. To get to this list is a very important customer for us. The US DLA, the Defense Logistic Agency, that’s kind of the procurement army of the US Department of Defense. American Federal Government using both the Quantum and our CloudGuard, so gateway and cloud. And like the flexibility and the ability to deploy more and more technology with the Infinity agreement that we’ve signed. So these are few important and interesting wins, there is many, many more. And our revenue of the business is the technology leadership and how it’s being recognized by analysts. You can see here, and I won’t go through the list, some of the awards and some of the mentions that we got in different analyst mentioned Frost and Sullivan, Giggle Forster, Gartner and several more, but I didn’t include here was, I think, about more than 10.

Just here on this slide. Most of them, seven or eight are just from the last quarter shows the leadership on that. Again, I don’t remember even how many years in the Gartner Magic Quadrant for Network Firewalls. I think the — but everything we are stepping more and more, even in new areas like the Horizon for the security consolidation, the Harmony for the user security for the CloudGuard. We’re making more and more progress and winning more and more wins into the leader quadrant, or the center of the circle that we have or the leadership of the ways — in terms of the leadership of our technology. I think it’s something we should be very proud and we should all understand that we’re able to lead in many different markets and especially consolidate them.

Last but not least here, we were also recognized by few publications, the Forbes 2023 World’s Best Employers. Very proud to be here. The fourth year in a row seems to be the leading company in our industry. Thank you for our employees for choosing us and for voting for us. These are by the way, both to service that are unaided. We don’t know how we are being managed. We don’t contribute to that. So, this is independent studies. And the second one, for the first time we were surprised to see us or not the Newsweek World’s Most Trustworthy Companies, again, leading in the industry. So customers and partners and many people trust the Check Point brand and I think that’s a very, very important thing, especially when you speak about a brand that’s important for cyber security.

So we just completed kind of a spectrum of technology and innovation, users and wins, analyst that recognize that and our employees in general public which recognize the potential and the leadership of the Check Point brand. So to summarize my part, I think we had pretty good quarter. Very good financial results, strong profitability with 17% EPS growth, 15% growth in subscription, highest growth since 2017. I think we have game changing innovation, free acquisition, the Quantum SASE, Horoizon Playblocks for collaborative security. And I think, like we mentioned, we are seeing a lot of signs for positive change. If you remember last November, we started with — and I think what we’ve seen is a major slowdown in our industry. I think it continued throughout the first and second quarter.

And I think now in the third quarter, I’m seeing some good signs of turnaround. I think part of it is the economy and the industry and parts of it is the action of our people in Check Point and especially our people in the field that are working very hard and I think we’re starting to see that and I’m very, very positive about the signs for the future that we’ll get out of it. So before I open the call for a question-and-answer, maybe it’s the right time to speak about our projections for the fourth quarter. So in general, our projections, I’m actually first, very positive. I think Roei shared the positive signs that we’ve seen and we see more positive sign in our internal indicators that you can see on the external numbers. We have decent and healthy pipeline and projections by our field.

So with that, I think we can move to that. I think in terms of revenues, we expect revenues to be in the range of $636 million to $686 million, it’s a wide range, because I think there is a lot of possibilities. Our field actually is even more positive and more optimistic than I do. I know and you know my regular prior caveats, that projecting the future is very challenging, there is a very high level of uncertainty and results can be better or worse. So I think there are some good signs, but it can be better. On the EPS side, I think we are expecting very healthy EPS between $2.35 to $2.55. GAAP EPS is expected to be approximately $0.32 less. And I think, overall, these projections play very much well into the ranges that we provided in the beginning of the year.

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