Check Point registers higher than expected Q1 profit helped by growth of AI-powered security platform
Check Point registers higher than expected Q1 profit helped by growth of AI-powered security platform
The veteran Israeli cybersecurity company said revenue grew 6% to $599 million
Check Point reported on Thursday higher than expected first-quarter profit, helped by growth of its AI-powered security platform. The veteran Israeli cybersecurity company said it earned $2.04 per diluted share excluding one-off items in the January-March quarter, up 13% from a year earlier. Revenue grew 6% to $599 million.
Security subscription revenues reached $263 million, a 15% increase year over year, while non-GAAP operating income hit $252 million, representing 42% of total revenues.
“The first quarter yielded great results with revenues and EPS at the top end of our projections. We delivered strong double-digit growth in Infinity Platform agreements, now constituting over 13 percent of total revenues. Our aggregate recurring revenues now represent 83 percent of total revenues,” stated Gil Shwed, Founder and CEO of Check Point, who announced in February that he plans to step down after 30 years at the helm. “We introduced Quantum Force, a new line of security gateways empowering organizations of all sizes with next-generation firewall technology. In addition, we launched new technologies including Harmony SaaS protecting SaaS platforms and data, and Infinity AI Copilot, an AI-powered security assistant enhancing security effectiveness across organizations.”
In the conference call with investors after the presentation of the reports, Shwed referred to the massive amount of cyber attacks Israel is facing during the war, stating that "the number of attacks has doubled from 1,000 to 2,000 per month. A significant part of the increase is from Iranian groups and Hezbollah, and it is evident that the Iranians have a significant influence on damaging critical infrastructures. This is a record number. The public, health, and private sectors are attacked every day."
Shwed discussed the search process for a new CEO, stating, "The process of appointing the replacement is being done in the best possible way, and we are currently in the heart of the process. When there is something to announce, we will let you know."
Shwed added, "Our platform is suitable for the cloud and is based on AI. We manage to consolidate many products under one umbrella, and all the solutions work together, making our solution much better than others. We have a large number of AI engines that connect to our defense systems. We are investing more and more in ways to transfer data between the various tools. If we detect a concern in one place that is connected to us, we will know how to block it. Artificial intelligence will be a significant part of our future. We have a significant partnership with Nvidia and we will help protect all their chips.”
