Check Point Software Technologies Clocks Strong Q2 Earnings, Beats On Revenue And EPS

Check Point Software Technologies Ltd CHKP reported second-quarter revenue growth of 4% year-on-year to $526 million, beating the analyst consensus of $523.1 million.
Revenue from Products and licenses decreased 2.9% Y/Y to $119.1 million, Security subscriptions increased 12% Y/Y to $183.7 million, and Software updates and maintenance grew 2% Y/Y to $223.3 million.
Strong execution drove double-digit growth across CloudGuard and Harmony and a triple-digit increase in Infinity platform sales, CEO Gil Shwed stated.
He estimates the organizations to stop the next cyber pandemic by adopting a prevention-first approach to security across the network, cloud, and remote users.
The non-GAAP operating margin contracted 100 basis points to 49%.
Non-GAAP EPS of $1.61 beat the consensus of $1.56.
The company generated $264 million in operating cash flow and held $4 billion in cash and equivalents.
CHKP repurchased shares worth $325 million in Q2.
The company held $1.9 billion in cash and equivalents.
Price action: CHKP shares closed higher by 0.74% at $125.90 on Friday.

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