Check Point Software Fails To Meet Street Topline View As Economic Uncertainties Lead To Extended Product Sales Cycles

Check Point Software Technologies Ltd CHKP reported first-quarter FY23 revenue growth of 4% year-on-year to $566.2 million, missing the consensus of $568.9 million.
Revenue from Products and licenses declined 6.8% Y/Y to $108 million, Security subscriptions increased 13.2% Y/Y to $228.2 million, and Software updates and maintenance grew 2.1% Y/Y to $230 million.
The company's CloudGuard and Harmony E-mail product families drove the Security subscription growth.
The Infinity platform revenue grew over 140% during the quarter, underscoring the platform's strength as the future of cyber security.
"The economic slowdown has resulted in extended product sales cycles while recurring revenues were healthy and reached over 80 percent of total revenues for the first time," said Gil Shwed, Founder & CEO of Check Point Software Technologies.
Margin: Non-GAAP operating margin contracted 200 basis points to 42%.
Non-GAAP EPS of $1.80 beat the consensus of $1.74.
The company generated $386 million in operating cash flow and held $3.62 billion in cash and equivalents.
Price Action: CHKP shares closed lower by 0.55% at $127.36 on Friday.

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