Check Point Software Technologies Ltd (NASDAQ:CHKP) reported second-quarter FY23 revenue growth of 3% year-on-year to $588.7 million, missing the consensus of $588.9 million. Non-GAAP EPS of $2.00 beat the consensus of $1.89.
Revenue from Products and licenses declined 12% Y/Y to $117 million, Security subscriptions increased 14% Y/Y to $239 million, and Software updates and maintenance grew 2.1% Y/Y to $233 million.
“The second quarter delivered robust profitability with over 22 percent growth in EPS. Our platform security strategy realized continued success, as Infinity revenues surpassed 10 percent of total revenues for the quarter,” said Gil Shwed, Founder and CEO of Check Point Software.
“This was further emphasized by a 14 percent increase in security subscription revenues that encompasses our advanced security solutions such as ThreatCloud AI, CloudGuard, and Harmony E-mail.”
Margin: Non-GAAP operating margin increased by 100 basis points to 45%.
The company generated $191 million in operating cash flow and held $3.5 billion in cash and equivalents.
Price Action: CHKP shares traded lower by 2.88% at $125.00 premarket on the last check Wednesday.
