CHKP - Earnings call transcript Q4 2024 | Check Point Software Technologies Ltd.

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Kip Meintzer

Greetings, and welcome to the Check Point Software 2024 Fourth Quarter and Full Year Financial Results Video Conference Call. I'm Kip E. Meintzer, Global Head of Investor Relations, and joining me today are Founder and Executive Chairman, Gil Shwed; Chief Executive Officer, Nadav Zafrir; and our Chief Financial Officer, Roei Golan.

Before we begin, I'd like to remind everyone that this conference is being recorded and will be available for replay on our website at checkpoint.com.

During the formal presentation, all participants will be in listen-only mode, and that will be followed by a Q&A session.

Point's make Check statements. presentation, this representatives forward-looking may During

present cause or to or risks Forward-looking press on statements. be Any obligation could well Check only the relate update our made of publicly projected events different and results future than such we materially our that undertakes our statements. In information. posted been no of forward-looking involve to of and statements presentation generally along release Software as forward-looking statements results has the future day Point financial forward-looking in and to which reconciliation These operating uncertainties for speak non-GAAP with statements GAAP website, any actual non-GAAP the as the reasons as performance. hereof results

please Roei any to our the with that, presentation. have questions free Relations email the call, turn Golan to to the after call at feel by you over for I'd kip@checkpoint.com. And Investor contact of If start like

Roei Golan

and Kip, you, joining thank call. for Thank you everyone the

I with -- a we for high finished think XXXX all strong strong demand with -- note, we So main our products. had

revenues $X $XXX above the reached of projections. Our our million midpoint million,

of Our at $X.XX, EPS top projections. the non-GAAP end was our

Moving to annual results. the

above billion, $X.XXX midpoint So our $X.XX the the our midpoint of of in million revenues reached our the while non-GAAP the $XX growth EPS and X% year-over-year above our projection projections. year, of beginning reached $X.XX,

we strong with as I finish So the strong product. did our -- year did for mentioned with we a see high demand I the a note, mentioned, revenues.

billing million, grew by while $X by $XXX to calculated grew grew our X%. to billing revenues deferred X% by Our our current calculated XX% billion,

billion. to grew RPO by XX% $X.XXX Our

continue our significant to demand we strong our that this the and trend can Force mainly of driven Quantum see see we for launched we the that Quantum the our -- for this appliances, -- Force demand Quantum The beginning I think here. the product, do in set demand firewall the Force year, that was positive trend -- So appliances strong again, for the see for for a since we product.

with achieved This growth quarter, million in of $XXX we revenues. X% revenues

to We customers strong platform. customers Infinity Point new also Check adjoining existing Platform and this by by with continue also for see adoption

think the under and services. earnings umbrella I strong of with agreements one strong this Infinity answering double-digit add is needs Platform growth. product quarter The from another

revenues Moving geographies. to by the

the by new as see, So you our business revenues. when business. to in geographies can looking the booking, I'm double I is digit say grew group. geographies the all have new on this But all

in So most that's translated part, I revenues. the important because think into the end, that's

demand So geographies. again, very strong in all

P&L. Moving to our

Our was with to gross XX%. year similar last margin

the was Our expenses investment increase operating in of we also driven $XXX from acquired year. go-to continued addition last market mainly our and XX% compared QX. that to Cyberint end the reached of million, That in our

Our operating income was $XXX million, XX% operating margin.

financial the to income. Moving

it rate quarter, $XX higher million keep time. as we reached in This over the investing interest

provision tax around Our non-GAAP to assessments was quarter this worldwide. X%, due to tax due updates tax of several mainly rate

income net year-over-year. by basis annual or also net year-over-year. The $XXX a share, increase $XXX billing was million $X.XX growth had our can that X% of strong we GAAP non-GAAP on P&L, while income grew diluted to our per see Our X% calculated X% million annual

Our total revenue gross XX%. grew last by to year's X%. margin similar Again, our

of our and while while our -- margin, related point grew income need margin when our recent billion. And by expenses next by dilution operating looking deal we I'm operating half almost $X.X Our grew by XX% billion, Cyberint. increased take our into by account then to X% into XX%, a operating increased to acquisition to to operating $X.XXX

Cyberint also a reminder also for XXXX. it I when we we quarter. again, discussed last acquired think But

finished the non-GAAP provision million as $XX financial compared tax due year, rate. tax We our of the to updating assessment XX% we for rate because tax year, mainly the Looking year to last income reached again, with again, had on interest worldwide. the XX% of

queue As same for annually. the each the also tax expenses next year, and to be we're in expecting levels around

middle year we're worldwide, tax [ this the and a change As assessment accordingly. method effective could during ] of rate closing reminder, in tax the the

X% net account to $X.XXX looking million of shares income decrease our of when of every as of reached a non-GAAP shares, increase mentioned, approximately year-over-year, billion, while grew I'm EPS and in I year terms was next we for take need Our into an our X% $X.XX, And X quarter. number by year-over-year.

reduction expect shares we So to we every are million, and X X.XX see starting million quarter. from now

Moving cash flow. the to

and year cash billion the finished we with deposits. of $X.X securities So and marketable

Our operating increase quarter flow was for the with X% strong year-over-year. million, cash $XXX

a double-digit for was projections. cash to more calculated was and strong full our of XXXX $XXX we bought we in -- that, I'll profitability. With call strong year, billion. bought also the did maintained driven EPS buyback to our the annual operating so and and had for our Force we amount mainly QX. do in demand see RPO, had $X.XXX midpoint billing We the strong continue revenues appliances. the $X.X growth billion. To We of in shares by also, And demand above it the Gil. hand summarize, Quantum for over in flow quarter, we Our And the million for shares and

Gil Shwed

a here, Thank you, to Roei, It's everyone. pleasure glad here. being see and

because it's me, that, the quarter. marks into very about first jump transition my as to role exciting day a before But the it For I my Chairman. new

And going going about the view of a time going quarter, his not have talking Check but and Point more Nadav I'm his talking about different deals world. to speaks not spend regular today. we present the -- So to about I'm the format for to in that the the is slide vision slightly quarter. about

to knowing think you very I that important it's all get Nadav. start

marks very good a For me, last one. the quarter

lines, know any good concerned growth. We've XX% that on indicator, without very postponed some and as got about billings I an you results. results. won quarter across this billing wins product performed the wasn't that I the you and the quarter, strength, and of quarter. I indicator the Roei mean, large our the we've one the improving very we different you metrics over of In also good. the many to points what to great been now mainly deals X with the particular of that quarter that seeing X measure the saw a showed because with well. were quarter, but great such across focus, all globe were think It internally, is or health last the that's Pretty not It's was one financial deals that's billings, deals of financial Force showed transition more from strong heard We've line our of that much sectors key product Infinity skewed very, see direction. as that the few collection something quarters, an deals business. But core Quantum and this it's and different there. the Quantum across last very were last in

business very in cloud some even security nice business. saw also e-mail We the growth good. Our was

in security job. With with So that, best all want that's that overall, Check way, thank great I the had we we transition line we deliver Point. did to that again, a were that to everybody that in faith in the my mind, that what key our customers showed and expect, metrics in

if for our followed our our salespeople since almost my XX more here, us years summarizes lead organization actually, that in at the metric, we doing X or and but and than see a public, it's this mainly of XXX-folds we Rupal we who Our do very employees, ship all good XXX-folds, made just very turn XX our so people years quarter. our that And so strong in 'XX, it every what many summary business. you see to year XXX look of than you doing, similar. kind But before delivered the EPS same of all I'm the team close revenues the with in products, slide or went customers, If fundamentals. again, 'XX, leadership -- more on we And you, at these I of employees, analysts have Check shareholders then thing, the GCO by grew want whether XX on. look it's grew the what [ business ] to you is. And here a of profits quarter. that thanks Point very years. I'm developers And to from and our that

it's Our look price of If share price, basis 'XX, which number. in the high, at is IPO the XX-folds it's if look pretty also good high. I 'XX, just XXX-fold almost at a I

Check me Point are mainly and to So the work new to the Point good numbers height. people Nadav take with think testament will of that very, very the all now a these strength surrounded and Check of I security to into of

We I did the working in the training pleasure months, of Nadav. a Now good very transition and had last few process. with

took he's riding me do the these bike. he the of Over people CEO I about put than well. I the ask last role XX days, my to Chairman? and Many here So doing going be as what couldn't that. happier a do pictures extremely me Nadav

customers that the you, will for from the hear more take better to is a I from see already of So couldn't very, that all that. is here X.X and hope I maybe to be you a And perform know I win his week, have picked him job. now the for do our heights, the week, call This and to and that employees. And it think Check it's redefine year to future graph to XX new X thoughts great once in the month, a and think, a taking get showed thinking transfer Point you future. security twice I few years Point. I'm I'm pleasure I success day-to-day now, I running resource great doing little great and the to is large yours. wish leader think I for will from with bike, role yes, transition mainly I a I Nadav the with and with the for going but very, a the for the the excited my Nadav a months, not Check experience And office. actually I great as for listen, very away help next a I'm relaxing me to role much, in still am and the everybody and responsibilities to a future. This in operational to every but new with speak, ability I so Check great, everybody, the riding for a we'll day Nadav Nadav, way about enjoying what Nadav wish how of come floor can my my to helping about that well. Point Point. over Chairman, can be about I and we'll anticipate that, Check mainly to It's company continue years future. intend very bit. I have now,

Nadav Zafrir

so you Gil. much, Thank

to As tell, time. to and you can Naturally, speak I have big shoes fill. be all very here you for first the to excited

you glad many see hope to opportunity and and the more you So person to to have future. in the see often in of

infrastructure it's routes selecting the also Board many with me. with is that defending think basis. you, which I perspectives, see his all, critical diamond to had a and that little very, see right? do to many, asked I biking, But to said really, especially, last an not background, by a as well. about years opportunity he national the I building different it work can I need important. Gil, And really know a for Gil, also from had the you double within an won't just attackers' this which friendship here. to So tell my and I on the I transition for he months years, I bit very to the I've the or from company, for as part thank the any large for for me and thank for opportunity few opportunity also awesome the this great and let's of think first to perspective, industry side had black -- and next amazing I've we've you of for singles my industry been want XX it's networks you. I see. Look,

this stay and fact so side. decade, defense the sort this are And of from sometimes have in the at and to industry that difficult And of then the I asymmetric. is of it race how the mostly offense last looking appreciation ahead innovation

so future investor ago, companies. in years future. I've I innovation ready that the to the as to XX about we been TeamX and entrepreneur, for watch of and an over come in will at part building involved was So industry as this anticipate can an what from that cutting-edge opportunity starting start-ups build trying And TeamX, had be XX

that Some of networks Point. the world that do experience leaders joined Check that's is appreciate can and them I it our and different is And I the industry. honestly, I really hyper-connected hard are at how I critical when in it the history look it. And also category to defend and perspectives, think and our to complex actually how reason

that that we with I a as for industry think said. years, here, base with experience and us few lead over to opportunity Gil the there's to huge the continue have next this

own and Check been the super are then but breadth to of my talk the our actually the past been had we the Point passion depth, of Point for would here when that And think that following relying large depth our tell couple for our almost exposed to has to our technology. of world by the things Over the hundreds in people. foremost, and they're years. get with that some interesting I first people. and see as know start-up of scale, sidelines the I about unique to is different I've galvanized opportunity one as Gil, you the I've and world, impressed, dependent And it's finally, really many I'm from has see thing meet ecosystem. Coming you the Check many, technology. And here long and But the have organizations on and people and super to you're dozens because I've in, passionate. say resolve from the software, of this the I was Check criticality our how customers also have of Point is to of months, I opportunities our to partners. of had many the been

after I this. industry. about us that's for excited doing what of talk they're foundation Some strikes decades me the to it them, lead them, think And continue I when great doing to so they're that of to a

spoken day, move Speaking partners, about experience, XXXX, happening have the have to driving passionate huge the will to my President, Hollenbeck, way be a going also from Roei close at be but the our with is opportunity for Gil us, the to into dramatic, at our she because people, field AI already a about. and trenches as people and end to impact. I want are think continue because too trenches. Rupal this that's She's a want to understand to We only is on, be good great thank to with asked customers, with what's the be we can but And our on our a an support at get the industry dimension and my and believe that an us my go-to-market focus, that request, flattening to to don't so we but to focus, I next our going months. walking during given transition more the a is organization the as in the I that with direct we'll as at visibility trenches, level, of era, also few AI see, personal impact at

to product So lead these forum well Americas but and responsible our Revenue organization role will align Chief our creating be create our motion. International can synergies Officer, my not also go-to-market changes that our adding sales our so organization President we the include a to improve of President just as who leadership new to the and sales, our as with

road, getting has been lead from on this last great to I in to innovative exciting about conference. around we quarter and Point be can have also week was my our we're Magic role getting on is going on leader Quadrant, for User This very talking we ARR. really starting stuff We I the launching with our especially week, that people business. very to meeting more to drive of AI not we the go the working AI, SaaS XX,XXX me and stage AI, is to a which out, by we globe, e-mail our coming unified will now to is been to Gartner, people, new, create be in employees, from dozens We're for customers a because leveraging ARR-driven for what security. This a have our SASE going $XXX new Vienna new both a get our simplified, We're of -- Check to them e-mail. year, of to leadership the announced next software. one our last going million lot to achieved to the milestone well, customers crossed the XXXX about actually, Experience thousands. XXXX. our quarter, partners, in Beyond roadmap give created around success that, important of the our that people for only believe, next this and doing stuff opportunity partners own vision. We're also protecting the we've going a be that's but and talk version and be business. And

So you think you. for relationship. Kip, thank I here. back handing forward the it with again, And all to being to look that, I'm over I

Kip Meintzer

are. be these lot month you folks at And a week end next don't or the Yes, in seeing of of we'll the Vegas. forget,

Nadav Zafrir

Vegas, looking forward to that.

Kip Meintzer

And Q&A. and $X.XX look, $XX.XX with EPS appearing. full to call open EPS I'm we $X.XX business approximately. at million $XXX with of for slide, the be out Oh, less. And $X year, and we'll be FY doing of million EPS for approximately here outlook. And $X.XX less XXXX GAAP that, We're going to EPS to start we XXXX, QX to to $XXX $X.XX going go. with to non-GAAP GAAP billion we're for the $X.XX So next please. billion, looking will $X.XX

Kip Meintzer

first? Who call. do have First the on up we

from Adam today James, followed by Gallo Raymond at Tindle is Joseph Jefferies. First up

Adam Tindle

bit start it's And innovation areas, if you a different congrats, Great congrats, you or I the a and some interesting into your on in further some and Point. I and you tenure. for that's strong We Nadav. Check might to perspectives, wonder particularly little that the have compare hear, competitors, have to very endpoint Gil; bigger as platforms of just a assess way Nadav, whether mentioned dig to other how larger. focused larger stack. Check you opportunities to Point investors are finish great SASE new tech think

So and Check at? and the would thinking Point, sort at looking about buckets or about as you opportunity that you think the what you're your be organically tech use stack innovation perspectives different of And top that inorganically? are

Nadav Zafrir

Thanks, Adam, in job and good we've to years. a of believe that the done good you. last see really couple I

our successful. been of Some acquisitions e-mail. very about have spoke I

network. You Perimeter do need of right year hybrid call we the we had mesh in to XXXX. What what great now a a mentioned acquisition is everything SASE with to into merge We've XX.

deal those complexity the I understand through, level when their with when And #X I sit partners, can they that that think I between and that the try I the already using our to they different have with. speak point #X think that And solutions X the the that to customers, is to cracks I think of attackers things benefit. point when to I that speak are hardships mind. they're is they solutions. going fact them come our to that have see to

that mesh have of hybrid and believe we idea through when beyond, our a at the what network already great incredible XXXX idea with platform. the I scale architect the we firewall, mesh of Infinity is merging product a Quantum unified that and creating so take to SASE And a the with look

every I'm know you're I about intelligence. on not to Now hear differentiate that. from tech, going on to going that with myself everybody call artificial

we're How And the that that It's need at going into. to new Vienna a front, to about and it our think CPX, is next next what existing tools? in conference be to use do on that's week we're that are perspectives. tools things we a to literally we're the I defend. lot dimension talking we One need X And perspective new about the beyond. What models, new we are at think level. walking where from places that blown we et attackers it's by right? inversions, the Whether cetera? in But attack make that's surface a I using And going model lot that we becoming AI also show more to is how of to call being started something deepfake, lives new defend after? that much is simple, new their more XXXX, can what we new that that. ideas up can leverage and -- go think

to more So are have to hybrid going are acquisitions to to to on we build acquisitions we where the Adam, our going the it look we strategy done, in that architecture. sum fits do and continue up, mesh of

Kip Meintzer

right. All

Eyal. Joseph is Shaul Gallo up followed Next by

Joseph Gallo

you on Gil, congrats rides, you. Nadav, the on forward role. and working bike congrats madeâ€¦ increased to the Look new Nadav, with

Nadav Zafrir

your baby. on That's new

Joseph Gallo

you. Thank

If it. needed thinking take how you changes frame guidance? go-to-market several implications are changes just your first go-to-market could on and further you Can send appreciate changes you this, maybe those root? And are what quarter. into you then Nadav, time in about your made you elaborate sleep, the expect Roei, of I'd on bringing you to over what

Nadav Zafrir

So thing a and so from the we sleep. one congrats new empathy my my takes couple generally anyways, to years, that want on look, Joseph, lack experience. But your speaking, of and on about of It as want go-to-market. to our impact direct customers end, the we to And I going to is be a in we're leadership. close as to the possible. that changes on to do make have our want baby

will adoption the the and there, truth. folks we always in X the So going industry, focus folks it's that leadership cyber and have latest forward, enable the build market, instead -- on great us, and we continue And we'll the already think team, with and foundation be to of America, that I been America. I X we have greatest it's a there. having the believe that will sales, on focus marketing, and that strong representing have

team, real last the that's go-to-market our side. And product team. the create marketing So I'll a sales from is cohesion say between our team, thing to and about that our

Roei Golan

providing so into revenues guidance, taken we we QX. that of the course, range, a of both with are the we're the starting on it account. again, That around say kind you XXXX and That's And year. also question have affects was wider strong And I in numbers. also, EPS. XXXX, why your good to to And finished

we the with provided, So changes. confident we I think feel with even guidance the

Kip Meintzer

All right.

by Next followed Ho. Jonathan up is a Shaul Eyal,

Shaul Eyal

maybe congrats, on Nadav; That's the network. those hand. And specific Gil. you, the of perspective, more hybrid riding. congrats, well. Nadav, with past, Easy the overall in to through, In of better one your Point slightly improvement more the want where see but Kip, to bike other Congrats can of commentary are of needing depth currently maybe is a from days points Check slightly so Check the you Check and the front. where with what the I my your industry without take product do initial as Point align growth? Thank your for you I on sat on question that side is, you improvement? you XXX sit from we doubt, some Gil about everybody understands mesh maybe from hear think the strength the Check Point, where product Point

Nadav Zafrir

say I'll right. this. All

reliability our think uptime the our prevention strength best I in and is the industry.

on-prem with I this that really AI to is one your your it a right? has gotten leveraging the data it's your the it's network And want your workflow, the and remote hard point it's real SaaS, platform say that complexity cloud and when consolidate everywhere, network. consolidating simplify to for also to of to forward, mesh, a SASE, platform, And it's cloud center of crucial browser. WAF we firewall, idea with. Going hybrid and but So to your the this then on deal create network, network security where your cut idea through on

intelligence. that The of other side is

ThreatCloud happening that customers we're large network, I at can thing and our by engines. get of we infrastructure. And simple we consolidated about, up vendors, already they architecture and engines of AI, AI understand this do are dozen day, that data the a lastly, if intelligence. and from and export And holistic it have Because competitors, with if very driven many announced in trusting simplified mesh and a import XXXX, other a that they we the enterprise the their they best their solutions with think, AI our that is multiple opening what's of the of end understanding XX even can't intelligence opportunity. about can't so in So real a real I platform adding new believe

Kip Meintzer

right. All

-- up Shaul, for Jonathan Colville. way, Ho, by thanks addressing Next the by followed that. Patrick

Jonathan Ho

You AI. give of little the with Point? see want your spoke facility, to becomes that what how can but talked opening a sense try a I understand around of to AI? And opportunities forward-looking just already before, of the where most about don't on a bit new you us about you differentiator dedicated cover you've basis, a sort for Check

Nadav Zafrir

Yes, thanks, Jonathan.

That end, connecting going hyper-connected to we're point the to we a obviously don't more where at -- back. our I or what years is network the So of process more became in things few not if I call seconds, a the try to it zoom think ago, and XX at we're environment. accelerating, end out a that's for and mesh

couple buckets. flaws. you're era to not foreseeable you end at competitiveness, the it a infrastructure every of actually believe AI, our the of for least change. where is. at It end sense, you a the to create find know to put human customers capabilities. nodes I else new the probably with to the mesh, the about one going dimension are to of change. And going primarily. will being enterprise that for would AI more things day, going of an will is a things That's in remain Bucket all when That's that what in future? it usability, At our change, that with like enables we similar. the efficiency new is autonomous and not In need think that #X I X And are what different can of you those

We future. map capabilities autonomous the looking Trust showing and into using road -- our autonomous will in Zero AI near to be

their look don't you dramatically. because at the from relatively things The reasons. into can But very we're second as already, precise, we're we're defenders than pose, that more happening seeing it experience, have sophisticated look attackers larger many we are now they being come in changed scale, seeing When usually at attackers' bucket have it it. seeing is them and amateurish perspective, to for time to for and improving more seeing them attackers used agile get being side. the at have dramatically. that we're from attackers past at And that are many, the ROI We and my a as attackers already AI

from So them couple From that can stuff could the stuff out all to systems. take of of prompts take we couple taken what the that years that could attacker on critical data take or know hundreds defending need we have that side GenAI our data so we doesn't sensitive of a of information, our a go as engineers defend few. use would way of our out weeks, a

dramatically. research but come there thing will so what's week is futures, it? And there's simplify. And bucket AI industry So understand can around that I'll big and going matter, to industry. To need forgive present literally put into this We we show change I humble or we're our the back research know me happen. it's X corner the to when use really happen the a say the protect little route years, the about and that we is the What we we different right? our the of look this here, that believe how try don't okay, go in predict a do to it's our in new do next don't constantly be them, different philosophical know. change in our trying probabilities think what last that limitation of to is how I center have. to is if bit to for So because that all last we things will about stay then bucket, say, AI to that going being we imagination and engineering, to that be trying time that's to also dimension, to and we will going ahead bucket,

X AI. these think all buckets when to about we need So of we take care

Kip Meintzer

All right.

Patrick up Fishbein Next Jr. by is Colville, Joel followed

Patrick Edwin Colville

industry. of Kip you're the I IR. Nadav, VC a And of ecosystem. you're firewall All godfather a mean, Cheers. godfather Israeli Gil, right. the godfather the is

forward looking next to chapter. So big this

Kip Meintzer

the ] to sweet Brit talking. to it Leave so and be [ complimentary

Patrick Edwin Colville

nonstop. been talking I mean, Nadav, And you've

I'm give you So going break. to a just

Nadav Zafrir

you. Thank

Patrick Edwin Colville

mean in RPO XX% for 'XX I 'XX. a Revenue That's fiscal disconnect. is fiscal guidance X%. Roei, rose big

just revenue and coming can takes puts that you this a So see we talk realm could XQ just maybe the guidance? strength fiscal is there year? and in And growth double-digit 'XX through where in RPO

Roei Golan

Yes.

X%. not it's great the all, It's at were that not going we a XX remind have billings backlog to translated of with only quarter -- did strong revenues be first everything So in be the But short-term into RPO, that's still, you billings. -- next RPO. I again, will it's total Also months.

I I'm I on me think think guidance, and when looking guidance the changes. Jo about about the asked the

year, high with close definitely, end more we good. a year double think finish again, I'm we starting the feel the -- I digit, talk Also to don't double this think, QX. I for momentum our looks to of year, the but are the as with QX, finish great But this guidance. confident year hope about this We pipeline to want when hope on with definitely digit don't again, to looking we I guidance. this in great

year. think revenues show we'll from the the and -- of -- we I hopefully, be midpoint. be finish will end And far XXXX, we -- our guidance high when So that more closer the to not high are we'll on starting the and great

Kip Meintzer

All right.

Next Jr., Patil. by up Fishbein is Shyam followed Joel P.

Joel Fishbein

back you've in you anybody Check will think outlined Point's a argue terms portfolio. got Nadav, what fantastic don't of so product go-to-market. I'm going mind. you, to if far changes love that I to don't to I come

is vendor things been of you going can of of discounting this consolidation? talk share net some customers, missing, these One though, after new the helpful. et the new about cetera, some be that's customers, would competitors of a right? amongst light your to And are really little bit that market net aggressively strategy the really in That about particularly just in platformization gain very strategy, market

Nadav Zafrir

focusing want I to Security actually I I and our that's can we're growth, look going formed first be as that nice announced I've example one next on to of with and we and quarter, business. but leadership Point, lead net thing when year throughout this love we XX% saying change. we've we this going to logos, are my our by don't keep last And last is accelerate. and at Check hopefully, want high-growth SaaS go-to-market an XXXX. The Joel. that to with start that's to want of that to to going continue new about the thing, I to that, say we're is we you, something Thank team about new finished grown security, said that, already which XXXX nicely change one is a all, going motion, all leadership that. Having and thing yes, want that, not you role

our mesh, the And business, idea so Infinity doing customers consolidation level lead the I we're hopefully, us a will business, that and faster. with platform more think with with e-mail gain at hybrid new the our SASE to of

Kip Meintzer

Tilton. Shyam Joshua is followed Patil up by Next

Shyam Patil

year? we for potentially then, contributing guys? And Nadav; the Gil. Congrats, I I'm opportunity firewall Roei, curious, your as a I that? that when guess, refreshes year, of kind have anything your kind an that how guess of competitors congrats, refresh is about. this you're you driver sizable upside big an look had material is in talked outlook factoring through go for of or the some question at go that through from the as of around just year, they you I Or

Roei Golan

and So start, I can Nadav, can add you afterwards.

it's year, going mentioned, disclosed XXXX able I that end a be base 'XX. think, the again, competitors, by will as our what mean, I and account on It the business full So think outlook, -- on I have we will we into of to guidance support the didn't -- -- of take all, end when it's that -- our for you upside. be they think probably to I -- of first be so on I'm significant looking installed going it's

the it's something So definitely, that's in a market. huge opportunity for everyone

see, our the also few traction in last around quarters. the firewall very We way, by positive the

it's we momentum to -- this this continues. So want continue see definitely

guidance, for us. factor from a So in terms of upside it again, can significant of significant But any we be take course, that. didn't the

But a have plans of to for our lot be that's around also want new guidance. And you net firewall gaining from add definitely We Nadav, and refresh upside our something going competitors. to customers around it?

Nadav Zafrir

our our do the is hope through but allow our only that mesh permutation, with platform the cloud, more XXXX, not mutation, opportunity firewall areas refresh more every it's SASE use to The are it sometimes for sometimes of product. customers the appliances, it makes X but And looking one actually it's the in an gets opportunity to coupled firewalls, the hopefully, every I there, differentiated going not actually for but it us time, with not would hybrid which go Edge, for just focus that Infinity the can because everything at a which protection of only idea thing we've be also it is direct, sometimes for we're also or component, to And agile, this and that every SASE decades efficient. And I and us, seen for closely. just is this SASE. watching our of an SASE if where firewall do cycle send introduce add the to experience

Kip Meintzer

by Up followed is Owens. Tilton, Joshua next Robbie

Joshua Tilton

Maybe to with Nadav, just to I'll you. congrats Blanketed everyone. start

the you for I some coming time from maybe look does your think can just, the an metrics then a QX? exiting those what And on of I perspective, understand an in industry help growth the basis really organic quick, that -- Point can your frame? And maybe kind of Roei, out us rate strong you years. the but for leading next perspective growth your you prepared over understand Check look year, to you I industry-leading of like for talked guess, like how from few spiel, growth

Nadav Zafrir

Yes.

me, out So is Again time baton and team very especially Gil, the handing I'm coming to say at that to shortly -- the springboard the things. I'll I'm just great, thankful good X is me. over to we're a and whole that for which of for

of that think but obviously, growth, a lot not the industry also about about is, first about just that. I the all, leading technology. We spoke the

to want the I what growth, growth, I healthy you're because the things going a of to great right? So Check changes and be think about do efficiency any see is able growth. the that one healthy, not terms In Point of continued is to sustainable mega

and do. in Now company a to a accelerate sustained what if that's and sustainable that's we volume growth can way, think health maintain a that like, what looks I leader needs player

Roei Golan

They the X billings we your revenues. so nonorganic, and end of contributed that QX. around terms our the course, question organic in point than in we Cyberint, of And had of acquisition closed less versus to

less It's our to significant. point than billings not and it's revenues. So X

the is So everything others, organic.

Kip Meintzer

Owens, Up followed next by is Fatima Boolani. Robbie I'm-soon-out-on-maternity-leave

Robbie Owens

just I want reinvigorate was hoping geos? the seeing at obviously, maybe parse theaters us to you number, growth, look do you're you could to North better. for across American look to that you And what as relative various I

going to the And the here Obviously, in the take you the significant. is about hypercompetitive talked but U.S. what mention in way on other some Americas the changes, front? really that You did to being go-to-market needle of start very moving

Nadav Zafrir

the but most area, Yes, it the Rob. Thanks, competitive most is it's also probably important.

to leadership that's need the tenure, But built solid a We We reinvigorate not have many we've Rupal's enough. ways. boots in -- team. under ground on that

out of believes foremost, the that it. there. First reasons hired can That's Gil one reasons and the I me. one that Board get that of the That's take

eye, need So sit works, also them look the and get there, at the out customers, industries with it look to perspective. we what improve, from what in understand different

of this Americas. of to a idea superior. we we're what the industries, We to add start needs, for example, the have our for other creating the and with in United which playing hopefully, and accelerating is and growth rest States an the ROI, strong are lot the of simplifying industry the can financial, we see very but So blocks that need what each we -- need in

Robbie Owens

any various EMEA comments U.S.? versus theaters the seeing, Roei, on you're what and

Roei Golan

remaining on great of -- looking in quarter. the and continue that course, on year mean, for XXXX, in Americas I to and say a you the looking -- in also that So the U.S. revenues. on had -- long the quarter. it U.S. booking all it and the I see have great a Americas. I'm third had side, I don't and U.S. hope the will It of in the the definitely, the booking But we to on great mean We wanted region. We term. quarter looks

So there. again, improvement we significant we see definitely, are in --

Kip Meintzer

one pulling for that Rob. in, Thanks

Fatima is up Zelnick. Fatima, by Boolani, Next in advance. Congrats Brad followed

Fatima Boolani

new reinvigoration. very focal very working and to kind points efforts really you Check some you, you. It's Nadav, very introduction. over much of meet energy the a look clear with to you're away go-to-market and ton bringing Point's forward for of here. nice that Thank much I'm on Very very Yes, baking redoubling of

front. So I on time to more that spend wanted

new bringing the talking You're customers. with visibility executives, really in reinforcing about you're

want I a going about go-to-market capacity XXXX? segmentation, is, to ask organization? what deliberate think the the from changes you then there's making in at how And should sales sales if are we So you you from any to perspective look a a growth strategy be as verticalization specifically perspective

Nadav Zafrir

But this #X going want happen faster, grow because overnight. we a following, but will this the to to but healthy, forward going I you be process Look, be it Thank not is working to very want know happen to you, grow high, want meet yes, to that responsible looking with and is Great sustained, way. Fatima. we also in faster and expectations reasonable, responsible a things. I to not well. I'll you, are as the say overnight. is X to

marketing role -- On e-mail we're and the SASE, security that team growth include and to things to the new I'm the is leader the adding the high do the going leadership segmentation, of first network endpoint. SaaS first cloud to X thing my creating

same some because these solutions these as not consolidated and the necessarily And be is also well. software buyers to going it's consumption that's So the of of changing.

need change that to as we well. so And

consumption from it, all be and repeat together real our from the mesh perspective, perspective, before, one own the and and from technology as it I'll to I bringing hybrid at at it a of this it at and buyer's So it a ultimately, perspective. But strategy look look platform. look idea said platform

Kip Meintzer

Hoping Fatima. CPX. at to you see Thanks,

by Zelnick, Next followed Fodderwala. Brad up is Hamza

Brad Zelnick

My welcome. Fatima's question, Nadav, Nadav, follows everybody. go-to-market. see you to for Nice

sense. growth is in next timing Or channel? And composition as of and it life? is incentives? next sales customer much the message close a being sales headcount mean I'm How ground you and hitting bring as you marketing of and the into the does for to curious since the QX as of makes of ton adds and this greatest XXXX. in that, marketing that P&L variable the then more direct related as the to to the How think expense marketing year Roei, Your into to possible understand year? is we should running sales go-to-market about hit expense Nadav's what vision

Nadav Zafrir

the channels. with start I'll

to And must and do Our are at this if the They've to our partner them. want it do best and imperative always partners success. we be channels to to been we with we scale, want them.

next And In so I've with like a through I've weeks, more. said days. to going met dozens meet XX halfway I'm I'm X first few. the my before,

of to, work through we how their to work I is also day our just MSSP the is products, large our it's them do being whether trenches there the How yes, not going better together partners for there out the end way the way our the enterprise, partners, so stewards is day, use actually partners. at the being security they after that customers? it out all complexity that in, of the to hard are want day consume end at which be understanding to understand services? to really but from our And the out where networks. happens, What actually And down the

Roei Golan

you One, as X around the contributed points incentives. your the others And we I around for that here. to think marketing, around is factors sales XX% that X so had the Cyberint And see. question and

course, mainly growth Of we over had incentive. is had new our around job. business. I the I in but business also that and in headcount, significant new we some also mentioned great The a added mean, other paid quarter. new sales logos new business a commission

see So commission. higher we did

of quarter I revenues. it think the don't strong still was you see again, in -- terms new in business. But the we

P&L. we already of the on some the expenses see in So side, these expense do

Brad Zelnick

seeing to Look forward everybody at CPX.

Kip Meintzer

by Next up is Hamza Kalia. Fodderwala, Saket followed

Hamza Fodderwala

Nadav. for Gil to and a question you. Congrats Nadav,

for about of well really had been, just of Point You've mentioned, now did is one really you strong TeamX And at CISOs. days. the network at things you you a Check XX

the better? And the then year? FX So what that? customers, what Point things does for if I X you you any for And of but to operating mentioned talk guidance, or do CISOs, that sorry Check the to it there missed you this earlier, to assumption some things I'm Roei, in your was X could Check When around well. when is margin are benefit Point talk

Nadav Zafrir

Thanks, Hamza.

we're models, things. AI, our us be X say simpler, would solution #X with and their our is innovate going lives AI I want their to do to to -- it secure think expecting to love out our one customers we SASE I think also there don't to faster. But they assets. we but are to SaaS responsibly. also that try that the to do with to about us think something and that change is thing I both that that's make I leverage that

security, capabilities but easy few you the AI importance process, innovate high So do but end on that understanding uptime the know of is we prize use, need again, that can bake with at And the uptime magic I cetera. And scale that that to the the losing can't scalable, about opportunity hope right? we at said the new I've of not the to highest times, not with to that So that. in. all a accelerate eye lose this of overstate et comes day, which I is and the that

Roei Golan

around discussed. this in so seen we And XXXX. margin our benefit I Cyberint to margin, might expect the margin, below X.X% Again, FX what of next significant year, mentioned so don't be We year. the next it acquisition because for presentation. year, terms in that we've as guidance expect part of the again, the of that's we than and operating similar mainly see

Hamza Fodderwala

was That X.X point, Roei?

Roei Golan

Half Approximately are X.X point below taking. what point. we a

Kip Meintzer

Kalia, our Boyd. by from of the day, question Next be last followed up is Roger Saket which will

Saket Kalia

market it the business? becoming as hitting is Perimeter a more to think here SASE in about just team. XX? really total as adoption. sand so the a Nadav. with sort you a differentiating Infinity to whole meet Roei, how Nadav, line for of you, the you, that Congrats maybe mainstream do on the How about in think focus of you maybe market we that And the do to SASE, relatedly, for sort And, put size sort good business just of like mean, really from feels future. you in virtually. Maybe bigger business Just that I

Nadav Zafrir

ability So on I the to means say and SASE mesh, when we the differentiation also -- work that side, ability but have point-to-point the Edge. And have to different. also at cloud architecture when ability to the on is the say operate the hybrid, the that a we through work

gives and agility. that flexibility So us

intent. identity, us folks this the that, understanding decision but most the at make I unique. better now, make And gives not the architecture a hybrid also best only to is the brought. of also it is to through to end everything hybrid on our that's knowledge, cost-effective of to this of Perimeter cloud. And the And the most do based to on because knowledge, allows also terms the more spot, think my cost secure, least road the way has is right mesh effective our Zero who what it. And it opportunity this accelerate but architecture, what it at prevention. also the best go in other not from XX makes And us Trust, to

multiple can we because, the that is enterprise cases have this the and that and with for our capabilities, look, when we with of we have, the firewall that think -- when -- depth some breadth Now long-tail merge is good I you're use customers, sort I think niche But end of permutation every is this differentiation. already or brings out stuff a and enterprise and needs, cases. you the specific every when that an that there use have real for of especially

Roei Golan

again you it Did to about ask of ask was? size Infinity, just question a Can me -- the the Infinity. -- you asked question you

Saket Kalia

Yes, that's Roei. right,

however want the of XX, So to Perimeter size it. or size Infinity size the you of

of part to the business. for of that a sense SaaS of that sort get Just kind

Roei Golan

XX% think I it's our revenues approximately Infinity, today. of So

it's In much terms higher. booking, of

XXXX So to going we higher. this see percentage significantly in expect

SASE still the XXXX In the SASE, XX in again, around the very it's terms very we work -- with in to and all mean, But nicely nice last XXXX. of grew And that was see product. a the did expect months another again, I improvements uptick in do we the all small. done

Kip Meintzer

your from shot, And our last Roger Give Boyd. come to question is Roger. it going

Roger Boyd

your I'll Gil color went congrats was a a I Gil echo there? And to get Nadav, specifically but quarter. where get to both in then Any stack for well. that On more XXXX love my vision think I love think be on mentioned would competitive mentioned CloudGuard, how can you to you SASE, in metrics focus and little on it space. Nadav. a would cloud strong focus areas? you I I will terms what security on know does of up be

Nadav Zafrir

Yes.

one part, clouds, every of So one for all branch, your of one your policy the want we where policy for estate, So to bring ability to of to your policy your having want one we the across data for network cloud creating is right? unify center, for instead that. shine one policy

security So focused our we're cloud going and network be firewall. to cloud on

architecture. put And very this we're into for that of again, a have also idea to, strong mesh going the We software WAF.

Kip Meintzer

That covered for you, Roger?

Roger Boyd

That's great.

Kip Meintzer

All the Myself, for very us. of be the throughout the see call. frequently. much quite conclusion Roei and will visiting We'll right, joining quarter. you Nadav, guys. Thank That's you

quarter. in seeing the care, to and you now. take we So Bye-bye look forward

Gil Shwed

you Thank much, very everyone.

Nadav Zafrir

Thanks, folks.

Roei Golan

you. Thank

Check Point Software Technologies (CHKP) 30 Jan 252024 Q4 Earnings call transcript