Check Point Software Tops Earnings Estimates, Announces CEO Transition

Check Point Software Technologies Ltd CHKP reported fourth-quarter FY23 revenue growth of 4% year-on-year to $663.5 million, beating the consensus of $661.5 million. 

The American-Israeli enterprise security solution provider’s adjusted EPS of $2.57 beat the consensus of $2.48.

The revenue from Products and licenses declined 8.7% to $158.3 million, Security subscriptions increased 15.1% Y/Y to $265.8 million, and Software updates and maintenance grew 2.3% Y/Y to $239.4 million.

Margin: Adjusted operating margin expanded by 126 bps Y/Y to 46.5%. 

The company generated $236 million in operating cash flow versus $230 million a year ago and held $2.96 billion in cash and equivalents as of December 31, 2023.

CEO and Chair Transition: Founder and CEO Gil Shwed announced plans to transition into the position of Executive Chair as the company initiated a succession process for a new CEO.

Price Action: CHKP shares traded lower by 0.83% at $159.46 premarket on the last check Tuesday.