Check Point Software Clocks 8% Revenue Growth In Q3 Driven By Product & Security Subscription

Check Point Software Technologies Ltd CHKP reported third-quarter FY22 revenue growth of 8% year-on-year to $577.6 million, beating the consensus of $571.8 million.
Revenue from Products and licenses grew 11.2% Y/Y to $132.4 million, Security subscriptions increased 13.4% Y/Y to $215.5 million, and Software updates and maintenance grew 2.1% Y/Y to $229.7 million.
Margin: The non-GAAP operating margin contracted 400 basis points to 45%.
Non-GAAP EPS of $1.77 beat the consensus of $1.67.
The company generated $240 million in operating cash flow and held $3.57 billion in cash and equivalents.
"Product and Security Subscription revenues increased by thirteen percent driven by double-digit growth in Harmony, CloudGuard, and Quantum network security gateways," said Gil Shwed, Founder and CEO.
CFO Update: Starting in November, Tal Payne, the company's CFO & COO, will take a six months sabbatical leave for a cycling tour and travel around the world.
The company's VP of finance, Roei Golan, will serve as the company's acting CFO.
Price Action: CHKP shares closed lower by 0.21% at $116.49 on Wednesday.
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