Check Point's Q3 revenue reaches $635M as valuation hits record $22B.
Check Point's Q3 revenue reaches $635M as valuation hits record $22B.
The Israeli cyber company met analysts' forecasts as operating profit reached $218M. Since the beginning of the year, Check Point’s stock has surged 36%.
Check Point met expectations for the third quarter of 2024, reporting revenues of $635 million and earnings of $2.25 per share. This reflects a 7% revenue growth compared to the same quarter last year. Of the total revenue, $277 million came from subscriptions—marking a 12% increase compared to the third quarter of 2023.
Despite moderate growth, Check Point maintains strong profitability, with an operating profit of $218 million in the third quarter, accounting for one-third of its total revenues. The company, currently trading at a record-high valuation of over $22 billion on Nasdaq, holds cash reserves of $2.9 billion. Additionally, during the quarter, it acquired Cyberint for $186 million.
At a press conference following the release of Check Point's latest reports, CEO Gil Shwed, who will step down in December to become executive chairman as Nadav Zafrir takes over, commented on the record-high stock price: “From our conversations with investors, we see that everyone expects a strong future for the cyber market. Beyond that, after years of pursuing ambitious growth, there’s now a major influx of investors looking for value companies with stable earnings and revenue.”
When asked if the stock’s increase relates to the CEO transition—the first in Check Point’s 30-year history—Shwed responded: “I’m very excited for Nadav to join Check Point. He’s the right person at the right time, but the stock gains began before his appointment was announced. Investors had already noticed the positive developments within the company.” Since the beginning of the year, Check Point’s stock has surged 36%, with about 15% of that increase following Zafrir’s appointment in July.
The timing of Check Point’s report release coincided with a wave of cyberattacks on Israel. Check Point reported that, overnight, Israel faced millions of SMS phishing messages, leading to the website of an Iranian attack group. Citizens also received fake messages promoting a new version of the Home Front Command app. According to Check Point, this impersonating app could perform dangerous actions on devices, including muting alerts during a real attack.
Shwed expressed frustration with cellular operators in Israel, saying, “I don’t understand why cellular operators aren’t blocking these messages before they reach users. They shouldn’t allow them to be sent—it’s an issue that can be easily addressed. When millions of messages go out at once, that should raise a red flag for the telecom companies.”
