Check Point Software Tops Q2 Aided By Growing Cyber-Attacks

Check Point Software Technologies Ltd CHKP reported second-quarter FY22 revenue growth of 9% year-on-year to $571 million, beating the consensus of $559.6 million.
Revenue from Products and licenses grew 12% Y/Y to $133 million, Security subscriptions increased 14% Y/Y to $210 million, and Software updates and maintenance grew 2.1% Y/Y to $228 million.
Margin: The non-GAAP operating margin contracted 500 basis points to 44%. The non-GAAP operating income declined 3.1% Y/Y to $249 million.
Non-GAAP EPS of $1.64 beat the consensus of $1.61.
The company generated $212 million in operating cash flow and held $3.7 billion in cash and equivalents.
"Total revenues achieved growth of 9 percent - more than double the rate of a year ago. This was driven by strength in products and subscriptions revenues which generated a strong increase of 12 and 14 percent respectively," said Gil Shwed, Founder and CEO. "Over the past quarter, cyber-attacks have increased by 32 percent while advanced attacks like ransomware have grown by 59 percent, underscoring why cyber-security is so critical to keep our world going."
Price Action: CHKP shares traded lower by 3.84% at $119.81 in the premarket on the last check Monday.

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