Cyber security company Check Point Software Technologies (Nasdaq: CHKP) has opened 2023 positively, beating the consensus analysts’ estimate on profit for the first quarter, despite revenue being a little lower than forecast.
The company, headed by co-founder Gil Shwed, recorded revenue of $566 million in the first quarter, 4.3% more than in the first quarter of 2022. The analysts’ estimate was for revenue of $569 million. Non-GAAP net profit for the quarter was $218 million, 7% higher than in the corresponding quarter. Earnings per share were $1.8, $0.06 above the analysts’ estimate. On a GAAP basis, net profit was $184 million, which compares with $169 million in the corresponding quarter.
Check Point generated $386 million cash in the first quarter, bringing it to a cash balance of $3.6 billion at the end of it. During the quarter, it bought back its own shares to the tune of $325 million, at an average price per share of $125. The current share price is $127.26, giving the company a market cap of $16 billion.
"We are pleased to report good financial results with 15% growth in non-GAAP EPS and 13% growth in security subscription revenues," Shwed said. "The economic slowdown has resulted in extended product sales cycles, while recurring revenues were healthy and reached over 80% of total revenues for the first time." said Gil Shwed.
In the previous quarter, Check Point published annual guidance of 4% revenue growth in 2023 to $2.34-2.51 billion and a rise in non-GAAP earnings per share to $7.7-8.3.
Published by Globes, Israel business news - en.globes.co.il - on May 1, 2023.
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