Network and data security company Check Point Software Technologies (Nasdaq: CHKP) reports growth in revenue but a decline in profit for the second quarter of 2022. Quarterly revenue totaled $571 million, 9% more than in the corresponding quarter of 2021.
At the end of the quarter, deferred revenue was up 13% year-on-year at $1.666 billion. The company’s quarterly operating profit nevertheless fell 6% to $208.8 million while net profit on a GAAP basis shrank 6.7% to $173.6 million.
On a non-GAAP basis, Check Point reported earnings per share of $1.64. According to the analysts survey on the Yahoo! Finance website, the consensus estimate for the second quarter was revenue of $560 million and non-GAAP earnings per share of $1.62, so the company beat the estimates on both measures.
"We are pleased with our second quarter results. Total revenues achieved growth of 9% - more than double the rate of a year ago," said Check Point founder and CEO Gil Shwed. "This was driven by strength in products and subscriptions revenues which generated a strong increase of 12% and 14% respectively.
"Over the past quarter, cyber-attacks have increased by 32% while advanced attacks like ransomware have grown by 59%, underscoring why cyber-security is so critical to keep our world going. Our strategic vision of a consolidated prevention-first security architecture is more relevant than ever to combat today’s cyber challenges."
At the end of the second quarter, Check Point had cash, marketable securities and short-term deposits totaling $3.7 billion, down from $4.0 billion at the end of the second quarter of 2021. During the second quarter of 2022, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.
Check Point has a market cap of $15.63 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2022.
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