Check Point Software Technologies Ltd. saw a 5% drop in its shares in regular trading today, despite exceeding expectations in its latest quarterly earnings report. The cybersecurity company reported adjusted earnings per share of .04 for the first quarter ended March 31, marking a 13% increase year-over-year. Revenue also saw a rise of 6% year-over-year to 9 million, surpassing analysts’ expectations. Check Point’s revenue from security subscriptions increased by 15% to 3 million, and adjusted operating income rose by 6% to 2 million.
The company reported deferred revenues of .826 billion and had .035 billion in cash, marketable securities, and short-term deposits by the end of the quarter. Check Point highlighted the strong growth of its artificial intelligence cloud-delivered cybersecurity platform, Infinity, with new customers like W.W. Grainger Inc., Virgin Media O2 Ltd., and government agencies across 40 countries signing up.
Check Point also introduced Quantum Force, a new line of security gateways, and new technologies like Harmony SaaS and Infinity AI Copilot. Founder and Chief Executive, Gil Shwed, expressed satisfaction with the results for the quarter, with recurring revenues now constituting 83% of total revenues.
Looking ahead, for its fiscal second quarter, Check Point anticipates adjusted earnings per share between .10 and .20, and revenue ranging from 7 million to 7 million. The projections align closely with analysts’ consensus. Overall, despite the decline in stock prices, Check Point Software Technologies Ltd. continues to showcase strong performance and growth in the cybersecurity sector.
