Check Point welcomes new CEO as Q2 reports strong results

Check Point Software Technologies has announced a new Chief Executive Officer alongside strong financial results for the second quarter of 2024. Nadav Zafrir, a well-known figure in the cyber security industry, will assume the role of CEO in December 2024.

Gil Shwed, the company's founder and current CEO, will transition to the position of Executive Chairman.

The company's total revenue for the second quarter was USD $627 million, marking a 7 percent increase from the same period in 2023. Security subscription revenues saw a 14 percent rise, bringing in USD $272 million. The GAAP operating income stood at USD $209 million, which accounts for 33 percent of total revenues, while the non-GAAP operating income was USD $265 million, representing 42 percent of revenues.

GAAP earnings per share (EPS) increased by 3 percent year over year to USD $1.74, and non-GAAP EPS went up by 8 percent to USD $2.17. GAAP net income was USD $197 million, slightly down from USD $202 million in the previous year, and non-GAAP net income rose to USD $246 million from USD $238 million.

Shwed expressed his satisfaction with the company's financial performance, stating, "I'm excited to share great news. Check Point delivered an outstanding second quarter as customers continued to embrace the AI-driven, cloud-delivered Infinity Platform to achieve the highest levels of security." He also highlighted the platform's double-digit growth and significant deals with Fortune Global 500 organizations.

Nadav Zafrir brings a wealth of experience to his new role at Check Point. He has been a co-founder and managing partner at Team8, a global venture creation and venture capital fund, for the past decade. Zafrir has played a significant role in building, investing in, and chairing 17 cyber security companies, in addition to working with many technology companies. He has also served 25 years in the Israel Defense Forces (IDF) and is currently the Chairman of the Board at SolarEdge Technologies, a smart energy company listed on Nasdaq.

Commenting on the appointment, Shwed said, "We are concluding a thorough CEO search process after examining candidates from around the world and found the perfect individual. Nadav has been a key leader in the global cyber security ecosystem for over a decade. I admire his achievements and leadership skills, and I am excited about his appointment. I believe he is the right leader to take Check Point to new heights."

Zafrir expressed his enthusiasm about joining Check Point, remarking, "I am honoured to join Check Point, a pioneer that shaped modern cyber security, and a hotbed for entrepreneurship. Over the last decade, I've collaborated with global cyber security leaders and teams, witnessing firsthand their incredible efforts to safeguard global networks from sophisticated attackers." He added, "In our turbulent world, on the brink of another acceleration point as AI redefines our lives, cutting-edge cyber security is more critical than ever. Check Point is uniquely positioned to lead development of the next stage of security for our complex world."

Other financial highlights for Check Point's second quarter of 2024 include deferred revenues of USD $1,818 million as of June 30, 2024, compared to USD $1,774 million the previous year, representing a 2 percent increase. The company's cash balances, marketable securities, and short-term deposits totalled USD $3,058 million, down from USD $3,515 million at the same point in 2023. Cash flow from operations was USD $200 million, compared to USD $191 million in the second quarter of 2023.

The company also repurchased approximately 2.1 million shares during the second quarter at a total cost of around USD $325 million. On July 11, 2024, Check Point's board of directors authorized a USD $2 billion expansion of the ongoing share repurchase program, allowing the company to continue repurchasing its shares up to USD $325 million each quarter.