Check Point Software Technologies (CHKP) 1 Aug 222022 Q2 Earnings call transcript

[Technical Difficulty] 2022 Financial Results Video Conference Call. [Operator Instructions] Joining me remotely today are Gil Shwed, Founder and CEO, along with our CFO and COO, Tal Payne.

As a reminder, the video conference is live on our website and is recorded for replay. To access the live conference and replay information, please visit the company’s website at checkpoint.com.

For your convenience, the replay will be available on our website.

to by after e-mail like contact call, would Relations Investor at you reach the us please If kip@checkpoint.com.

to on of non-GAAP reasons to risks forward-looking been on with information. for posted along and well uncertainties, date Commission, our Check the as Section within During may filed this Check and Securities projections, present other regarding obligation Section our solutions, to, for our of products COVID-XX forward-looking based the as such has the results, meaning solutions, which including Point hereof of of in XXE initiatives, statements Exchange Securities statements of XXXX to not adoption general filings limited our in XXXX, make representatives website, other available security and are our disclaims expectations the statements, the to update and competition of our the except forward-looking These the related Check and products non-GAAP information Act pandemic. market SEC. certain customer GAAP and threats, cyber forward-looking supply conditions, chain, the to of statements with Act In our any market, as release, regarding presentation, any a expectations more statements. on Point’s required These XX-F impact by results press and we are Check presentation of regarding from products services, presentation reconciliation XXA law. of report IT including annual fully Point’s security, the include our and as including political, with expectations of and expectations and Exchange statements our described are Securities Form the business other economic subject forward-looking XXXX Point QX XXXX related The also those but the and

for Payne our results. to turn call financial to the like a I’d review over Tal Now, of

the above Thank at will earnings joining see afternoon is and high Good right guidance end midpoint Both the projections, million earnings of to call. of the an $XXX the share our that I revenues, with the which per you, can at our were start review back, and had morning which and we of our everyone projections. quarter. Kate. $X.XX excellent $XX share is projections, and midpoint you the of the high-end quarter revenues per above good a of at $X.XX, us million also of our on second

that acquisition-related Keep effects. as items. let these further I the numbers, as include acquired intangible applicable in our of excluding information proceed as mind, Before remind is expenses results assets presented me non-GAAP stock-based the related into well and charges, you GAAP compensation financial amortization tax

Now, QX, more It’s increased and let’s which the I double numbers dive accelerated me to will ask the quarter, growth first was the start this which will nice which with compared total I take will increase into Revenues from year the quarter from for X% a revenues, revenues. X%. the $XXX million, and you rate reaching quite basically last the the million. is know were start around I $XXX billing. than about

quarter. billing in by deal billing to want as is duration So significantly you affected quarter the us to I the $XXX remind let’s terms. hit it payment we can a for which fluctuate increase. and start, timing, the the X% reached million, between is Hence, quarter that

script and said mega deals, have the built go mega in which deals million, then, deals, few million is $XX we mega through we quite we advance. were you last a $XX $XX back the had if year, million, when deals. specifically, QX recall Specifically, In

in which the part including that, In year be in dip can in if can but P&L. once the see run-rate general, now, in few a of Last year, the compare is in came created deferred deferred split on large which the deals, and no growth then somewhat revenues in the clearly the the happen, will can revenues. very bit, deal right it actually Deferred you the advanced were got had mega deals advance, instead which over on or you built because payment. rate billing So or a we QX built revenues, QX. but if time effect be a of

XX% So, healthy you billion, is which an $XXX year-over-year. see at $X.XX can growth or deferred is of million revenues, increase

the of the that’s subject So, cover revenues. to

the with XX% that items growth, growth with If the million. for a $XXX in split you a go reaching let’s start quarters line in and called in together two product subscription double-digit year-over-year, a together It’s row. revenues, first, growth these double-digit together two lines to the two revenues,

it on see to to nice it’s a double-digit, continue. stabilizing it’s So, and hopefully, planned

of quarter. the the maybe for probably last products just happen I every we So, of weeks quarters, X pull years, delivery it happened had It Even revenues. where to us. time really me many, billing, when the X, It will it’s for many that wait first told had a order. and asked delivery delayed Infinity, in this you you a strong about milestone remind or product that quarter. quarter, great more after we also you XX than is that customers – license some for I could

a We this quarter. have as in lot quite well that of

when us Maestro solution product into network. the last customers starting also about to billing, start enable which we XX% affecting and large is it also that strong, was from appliances. it SMB but in we use already appliances, We it you very hyperscale they switches It is translating see as organization. can their Infinity in growth implement see talked the the this in our from seeing loans slightly the also the like mid security P&L quarter So, came

long a first in nice it’s quarter time reaching product for time. very double-digits So, for the the

a driven in the million, nice XX% last growth the $XXX XX% the $XXX it at reaching increase to look from subscription, the while Quantum, to double-digit for by pillars you be it last the CloudGuard an all is If but CloudGuard, on continues be year. million The was by Harmony, for year driven new or two. of a with considered growing, last us double-digit items continues them and Harmony, year the subscription, and the of both growth

that acquisition e-mail annualized will continues results September. came an which to security September Harmony in Our e-mail year, deliver you and reminding be great of from acquired last the some in we

growth about is subscription the So, and cloud both both in in All of of our we see XX% it’s revenue nice them, all, in Harmony. now.

creation. in revenues to growth large am and a geographies. going it’s us If So, I the becoming revenue quite for by engine

So the what last year. same here, the you see can percentages are like

Americas you of and from So, see revenues coming XX% our XX% in from APAC. XX% EMEA,

If the you grew will geographies all across similar see year-over-year, you revenues in quite calculate rate. a

So, regions. quite healthy our across all business

nice stable. profitability. to move pretty and also will the I that’s So,

hear margins. million we Gross companies, to of us strong many, $XXX we revenues million, course, So from discussed. up from gross included, it many $XXX profit moved

you for the to row. for temporary the to shipment, will temporary costs production it of expect in the line. phenomena part but hands are shipping which need part say, material second we down. the market and the the costs increase to margin, in. actually strong going it’s tick the – to continue because rest Hopefully, XXXX. to It’s the have early in this early either these a the to we I it we be talked still it’s year, open a like material of – quarters These costs. taking relating XX%. the cost on looks the account strong our This or It’s see normal in into in to actually in pressure now, margins half on to coming go about material two two with also We but are towards the raw material the It’s produce expediting okay. that too it continue higher year, get next So, We of on quarters. is last of It’s significantly here. raw back putting the raw pay

We line pressures all massive companies results very than So, the account material last expenses, are faster quarter. the Operating operating increasing in great seeing that market. in remind you, similar the see to mainly plan to we sales in I our was are R&D. the in just our into taking – raw of the revenues and beginning will the expenses plan going is year. our This XX%. from workforce, continue with to increase

investment elevated in our the bucket, continue We is and CloudGuard mainly which Harmony.

sales sales, in operating the we even both with have In we to mainly some R&D. our of The compensation. year-over-year that line recruiting fact, and double-digits, in result So a the as expenses in workforce increased increased continue. year-over-year, plan, still

Spectral and and expenses we and of interaction that Of course, this Avanan year cloud return travel had face-to-face year. to the last acquisition some

the it an starting actually is we So, us haven’t that’s it $XX shows because versus you recruiting the after in million, expenses. below, don’t higher results. the because of it’s am we we planned. is – part income, finished. here, It’s will operating see And to the if moving meeting quarter, the compare also If we just planned income, see can below original the margin was therefore sequential you operating XX%. slightly it QX, the here, still see process. of – are part not acquisitions you We QX so I still guidance these there EPS the strength those are to Financial We but QX as what well of than increase.

start we As rate higher interest invested we there. our an to being portfolio and is in increase released, see

on why minimal is since income. On is it for good above was share, our is getting They hand, quite start the to $XXX each And of higher per the That’s this with guidance, quite The other. $X.XX, deducted high. index cash earnings taxes, so you net will of are per you part position cash is share the I If as indexed which operating the It’s midpoint expenses. effect provisions planned the I and nobody than know, other flow, is see net our indexation, cash up the tax moving million, earnings the XX%. income tax total our moving Therefore, quarter. and am it. balances. inflation, the to quite – $X.XX which

So, billion. as our the $X.X end was the balances quarter, cash of of

the operating order on am P&L. quarter I you $XXX minimize million. effect sheet fluctuations the cash balance currency against our in to we flow was hedge this reminding Our that

the do on quarter also balance So you see it in you the effect P&L our sheet but the fluctuations it happened, minimize protect hedge, P&L as and flow. and cash this an

the the X%. flow, an is taxes This effect in Net of the of cash cash significant. operating year. QX increase was versus in $X last fluctuation quarter, cash hedge the about and excluding expense hedge It $XX million, was million the flow income

growth the So our from our of with continued P&L. collection and quite a the strong expenses in healthy cash expenses flow with headcount and customers line in

During the buyback. also we our continue quarter,

You here, $XXX million can price We shares share continue. an per for see $XXX million share. of $XXX repurchase million, average X.X purchased

position. cash the that’s So,

EPS So for the be to profitability. his growth focused double-digit summarize, the results, had in And growth of strong our turn will very in strong insightful we growth, subscription if we accelerated revenues while over and revenue I projection line, I continue and the products, double-digit call maintaining on Gil top with comments. in now, high-end to

business you, mainly So, wins, right to to environment that more you birthday. glad and before but join congratulate our jump the us. customer have some everyone about want for give I and a thank to little in and all his bit Kip I will to color the

his picked Kip group the wanted for the celebrate with. birthday to that see people very you of and special day that You best

Kip. birthday, happy So,

Happy Kip. birthday,

you. much. very Thank you Thank

And you about intensify. the continues bit first see can which as now, to talk a let’s little landscape,

in attack. long quite I and – sophisticated I very global market, tense mean, say, time are organization so par We is years, are see on it and for attacks basis are seeing actually XX% many rare cyber but XX% continued we such increase ransomware. seeing a, have we we it’s like for We seeing that a would a overall

attacks groups was XX You beyond so, to or even impact. by can scale just ransomware. just bigger see much going the more are organizations And of now every attacks hacking these out quarter, impacted X statistics last a small

country We extortion. have seen

parts state even disrupt and nation life seen world have many Gen cyber spike warfare another is country. to many, And tools. way the or X as geopolitical country even of happening seen a either We actually lot one in a we using organization using attack attacking when of have attacks in

pretty security, that, customers, that us we So, are part I cyber am we this the I fifth-generation is will I which will that continue cyber will focusing on a I strong and around sure of that’s at best And that and and not on that bigger think organizations also almost need many, to what pace seeing real attacks. is think are tens for just is both because and consolidation delivers that detection with of many for what believe most I cases. of because the end, course, our customers cyber the stand of or we prevention prefer will understand solutions, provide. even aim solutions we the And demand and now cannot think cybersecurity take of it more using and something manage life. happening will in also complexity better continuous which of different security everyone anticipate attacks. wave with

Check that? what remind do So, we that’s How kind Point, architecture. we Just Infinity landscape. big we address threat the of have the call to in you,

three vector to cybersecurity a now in way and or that have even we news all the the from of business seen makes that highest in the our most e-mail, and integrated, on I and core upon the every pillars the layer; the in have low product most three ThreatCloud, and proliferated time that shared, is think branches from all the nice common of installations. seen growth And large built which CloudGuard security. growth all sure is level good the pillar. think Quantum, achieved secure cloud; In real Harmony being on we we the one do Quantum, integrated actually families, users and it’s How for built the most management by quarter? did to I on network from in another these it’s end, access last pillars SMBs we and far comprehensive market the accelerated architecture security; information three product to

We thing investment from all very growth Harmony so double-digit large. in Harmony CloudGuard, product about heard again, big more year. have the with and also seen, very growth, but security way very product and numbers, that extended double-digit even unit I the same small growth was e-mail mean the good have the last the the we to you with continues

have We slide part seen have I you over security e-mail which great. Tal. growth XX% in already And from think seen this is the

will I that shortly. So just repeat

the growth that’s We have years. than seen double-digit in in in really fueled that rate X% highest than subscription. years, growth have more we revenue last growth, products seen And double of the the couple by and

see the line revenue actually the green You green lines eventually the the up when between see blue line the here the you takes correlation and line, total growth.

that So I mean, we are very happy trend. about

the investing is We And we have in quarters, last does three are different I been restrained long repetitive that think the that quantum. story go kind So, with two, pillars? a glad the here it How for time. intensified. of

businesses. gateways will and growth product demand gateways. small strong a the seen small have the from these let’s here look and the And for enterprises, from branch SMB double-digit wins. the at few I We offices to also both start large are from actually

few country. that than all ruggedized more stations, are Utility stationed a companies are X,XXX over the for different gateways examples. the power Here Europe, in

now using deployment. Fuji purposes used nice the And example important. telco first, secure very our and is Another of see get – is that nice it’s humanitarian actually that’s secure access. Europe, A a usual in in things using our to XXXX, that one that’s bit so the even type actually it’s European gateways less Internet to and so that such product products country, across see Internet are nice refugees for zero-touch to That’s another shops access is little the also first this organization project. housing of actually our for deployment,

least the service gateways won. to part a market. and is nation APAC, another X,XXX just project of that’s that X,XXX And that small that’s using that across we again represents this last the somewhat lower telco manage in for big but not of So in have we businesses wins the some the

examples. I Both replacements. here new Both them you picked competitive If the market, of the are look upper two them are of end of at customers.

files for solution performance reason is solution our we management. though won performance detected Maestro their tested through. the that capacity story, replaced the merely see right, because different malicious the us took getting very blocked in simply picked We provider to super Alto. healthcare let sites. one sets, they high getting. all on average side, Asia, and can on is the the with And them performance. wasn’t our only the we Maestro slightly Fortinet were even just similar we these liked that file support And They to was our You left scalable files, XX but malicious the that They are Palo against get high the product actually

So, system, files them We Check could recognize that still an no and were be in let attachment our them, only actually the through. should be the and with architecture. and some Point of again, blocked winning the to such the open though a factor course, by consistent people that’s infected, can solution installation. coincidence, even get malicious that’s didn’t And cases,

So, is this for Quantum.

examples or these at let’s business also look look In two examples. Let’s transaction two one acquisition. continued – and CloudGuard. the financial had business growth institution the Again, Europe, at an around here important

and to the that, better time. and a between cloud their Cloud. for the looking environment They even a in AWS, first Google though more deploying this by case, they control organizations are Azure way, of that As they a result spans the way actually compliance, sophisticated were better many – visibility, wanted solution

want Here, we this solution account. did and another replace

tools winning another both to and the They cloud fact we retailer, better and way. better are part the how unified was our more more we solution liked manageability. the same Another security similar a organization of on-premise Europe, a roadmap public in They a connect provide of transformation. leading to cloud and them get and cloud using environment our that experience connect in using factor and they control their can wanted

we least win accelerated numbers again, So, securing quarters And still there. way, sector, the with with by of same better to the the over in Point. you One U.S. users. later, And cloud we They And holding Check the good the apply growing are and even consolidation. you entrance with really on vectors after nice growth. two to similar seen see and here, year different organization. another the what in nicely the examples have the Quantum three to nice Last They technology e-mail but vectors, before the not end that’s XX% thing were numbers can is towards Harmony the the We the before, very, a last very company. Harmony see same the principles, security challenged are have to front. different is attack augmented were the but

it’s not of didn’t Their company regulatory found and right, new is, they experience – stop and e-mail, the have Harmony both mobile, here many competitive way the compliance the them, only endpoint cases. e-mail And attacks cases across security it’s seen. safety their which replacement, solution in the they industry. attempt. able Harmony by best was with to another the and old cases, only in to deliver major So unified U.S. in the ransomware X,XXX was highest over both the highest the solution the everything to e-mail that from actually them, packages blocked the security but Harmony identified identified the from mailboxes e-mail. effectiveness and customers

winning across all pillars, customer product this as streak can all we geographies see, across across you many and So segments. have

the business main growth. what and that growth, that summarize, doubled that our business drives and had the new here revenue was the fact we a the double-digit, the the we growth products theme see quarter the I had, double-digit on drives subscription to that the we you think fact So

end our to have CloudGuard. continued projection and to the and demand from EPS both see We upper small got healthy and large and revenues both from to of for the – on the Harmony have we quantum,

good I pleased this overall, quarter. with very to we And I am the market results come. So the seeing quarters will keep I hope think in that

a touch for for guidance the Now, we answer, next bit before me the projections question and on open quarter. let little the it the and

projections. let’s the So, about speak

say Our slide, is on between per you the million, to range share non-GAAP $X.XX that $XXX than third $X.XX, for to the GAAP in it what projections nothing I to caveat, be $X.XX can can see the can expected EPS better this approximately quarter, always kind. $XXX worse. I earnings to anticipate, as is the was revenues it projecting we mean, be of future be less. million given human

I healthy good field one on think on for and good our overall, execution demand us are in Check the the team seeing, side, we and the marketplace. hand, Point enthusiasm

hand, think of signs economy is On softness uncertainties around is the some that. there I all you that of lot other know the and showing

we cost, remains things Some the that increase think we revenue. and our in year half will the impact Right the kind has even half I and us cost side. now, model, the we we in the like this fact cost. regional know don’t the we see business remain predicting revenues that’s solved in will expenses of chain our up and challenging will we for return less in the the that’s example, on But to our range something The affect think that year bit project. will a the happen little second supply for of in to of positive an quite issues the control that side, the in and again, were less supply have it growth original and ability chain the that get next actually

what are mean for that our than for current of third you better our expect on based I models. you we actually So, plan than your many can better see projection original and quarter,

something on are projection questions? Tal? we add it the mute, do want So that’s the on – You for open you Tal, for forecast, before to

about to it. probably going let’s no, because ask it, leave Sorry, they are questions

questions. open So, the the let’s for floor

Good.

So we’ll questions. to it start I presentation and your the will open

Mizuho followed Instructions] Moskowitz [Operator Today, by Alright, Gil. BofA. Gregg Tal of going to from we’re with start Liani out

birthday XXth Thanks, and Alright. happy to you. Kip

Thank you.

am last perhaps the drivers or of and were QX And if billings in Gil demand intact. of sounds correctly, out RPO tone like I strong both grew the Tal macro are or your But understanding for quarter, called environment, the below your similar Point grew over you. you year-over-year, healthy XX%. So, consensus. double and period, it still that had bookings Check to Gil, digits question a that little Regardless for

And if so this with share to growth able the was you’re Thanks. growth the wondering what us and/or bookings quarter? RPO

I three will – these a But dollars, year contracts we the let than and a talking ago, talk I about advance, not deals. customers. signed positive just And I’m Tal a contract that had a impact billing a a is even have ago, these a had for get very reason like of tens year. that. dozen, think X-year that dozen a of that we the last prepaid I’ll mega year of I worldwide that, like main customers that millions that And again, before less of for in on that think say group we dozen had some to mega customers deals, even

in this reason main year are that were the they deal, year. anything since that’s they even a So or like in not a this renewal X-year

can So first with And – quarter overall, it you speak Tal, line, than anticipate we more in wanted. about I think not in for the I for numbers. slightly what the what or for I the again, I would line half, finished and better think

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end quarter goes. This

very over so the quarter, increase so it have a although create a in it a billing you customer. You came billing think even double in create healthy you was tell relating bookings won’t if or last will and revenues of I on. or part had a comparable was are this actually grew this year, really as customer new in business reduction, And translate deals, deferred had the the And a invoiced. that they flat had digits invoices biggest the booking. quarter time the year a can well, that the last it in But really effect hence is that with large deal few that not large will big okay? to But business but

just for billing. revenues time, over So concluding the quarters say I look and revenues, at over careful you be That’s I’ll the why always so on. look from look say, four deferred at

same thing. So saying I the keep

the about advance. was but that mainly year deals also that quite in build was last lot in quarter fact of there was not advance, only booked This a

both. you, Thank Helpful.

welcome. You

Tindle, followed Tal by Adam Raymond up James. next Liani, Our BofA, is

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this Tel we are in Aviv here So week.

on of I new new terms in existing strong customers. So customers, a put emphasis do customers,

Asia. and that seeing successful, are Europe We in especially

some got wins. nice also We

that toward also Americas. in Point U.S., have lot the showed especially, a we growth think expand. in from more I think family. the them plenty of And new that I potential existing Check of join But I comes in the America, our will customers customers

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you. Thank

Alright.

Our Saket Tindle is James, next come Raymond from from going Adam to from question Kalia Barclays. followed by

about just maybe on to growth wanted double-click maybe Alright. wanted I to got I pricing that margins taken you I’ve each. tailwinds I one recap and if just took. was and as to another think Thanks, to company-specific some ask, you’ve both look there you’ve month got Kip. could we date the it a growth, On ago forward actions you right, that

date actions pricing mentioned Tal, moving to you should catalyze So And on growth material forward? margin, costs. that

I’m not immediately currency sure have also some reflects. that You

both tailwinds currency growth moving to be costs from helpful? ASP material increases the you. and So from margin Thank forward would and

Yes.

had you’re beginning price correct. on We first the maybe from pricing, July. So increase the a

the say, are the the for see there relevant between theory theoretically but terms in. it’s a gap when coming So actuality and relevant is this should of quarter, you in I not be for what the future, deals would

this is put economic because it not our let’s a But environment. of it because this all in So help. we’re hopefully, now new pressure also there will I’m on on it, customers way, counting lot

tool sure. to, try hope I’m will it’s I So not help, but to it but a

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the... Regarding

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it’s short-term that more I a able it much to believe think see, You this at not concerned I’m phenomenon honest, time, to to be because point deliver. be about is I of and can important

to many ability can the And deliver. entire kills just you kill think your model, in ability see industries, to there is I no It that right? deliver.

to So our focus customers is more, to to we be order want secure. our – pay even get to and them able if we more need and keep to ship to pay it it in

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you and problem, So update us, something It’s not as right? But We move we to changes. like have see will it’s again, is some a company but we profit. million for follow not up, will that $XX a us okay. we nice,

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effect. material the like see So lot the servers raw affecting a and companies publish like in that all everything think needs. they of is quite It’s server I

Alright.

Joel next is Our followed Fishbein. Saket Kalia, up by

thanks, birthday, Hey, happy Kip. and everyone Great. Okay.

Thank you.

Tal, for year. you, mega last from maybe just the deals on

millions of prepaid. and few You customers of talked a tens about

is maybe we page, that finer that on not necessarily you just that to so on put we’re same sure make just of can could that, Just point kind kind to sure normalized make the right, think about comparable everyone a mispositioned of how if think lapping about will? Avanan, sort to you of about is QX – as our going we I should in lap year-over-year, QX, calibrate forward. you How think, called just much do Avanan billings, out we going think you

Avanan actually joined in September.

big in nothing nothing few expenses increased give course, account our X and measure I’m be dramatic years That’s will payment it’s hard that’s it, dollars So, the it for few And maybe it’s, looked it is, of of right? but but So not you a at what is QX. But would deal, part again, that QX that. see billing when I It’s versus And few dramatic, year So deal. billing, if acquisition, when some you careful to you maybe hard acquisitions, that’s a as it’s our okay to the X%, It’s specific that acquired was know of not we well, expenses, low there. of to right? to the for So you That’s is that back growth it regarding is Remember to XX%. predict say Because you Avanan all in not a final this effect, will be general, year-over-year very even if going that’s mega compare it’s then by But the right? on deals have when don’t saying. few that’s dollars to will Spectral subscription, millions, on or right? remember, – you right? trick. X the it, it accumulate predict. a you know overweight. was have why when right? in a something so also this millions a X%, it like a expenses you added million of year. course, affected It

helpful. Very

Alright.

is next from Joel Brad Our Bank. by Deutsche of followed Zelnick question Fishbein, coming

Happy birthday, Kip.

you. Thank

dynamics Gil, like that with to what in and customer – little – us look Harmony help in and some of the areas. wins you for you was I around did that around color customer two would quantum. with wins you, the hoping a give us helped But those you CloudGuard regard the competitive

the So we’ve gave ransomware one, consolidated plus examples think files And was the one gave fact view. of examples another blocking fronts. Harmony won on that’s over it them, the were Harmony with that I again, got because all that blocking. we few impacting we e-mail I a customers. that and they that more was a we’re I – were

many of, the I against cases compete actually a cloud, many, for We in First, is there suite little of fragmented. more a both markets vendors, CloudGuard, Harmony and different are example, bit probably don’t so know, half subsegments of many endpoint, and disk more least even the with if security, at dozen, data even it’s not categories. more, major e-mail mobile a market Harmony from different, different

especially very, side, provide when the more the overall solution, one against also alert And providing late. too some get full proposition and through, customers get is but the cloud from understand cybersecurity endpoint, value of the will to end-to-end file and will of very the it average coming all don’t actually I we especially that even it on to also necessarily a think we don’t on malicious solution. the will is minutes think vision an providing And worse. we file solution compete we us, not I think by but e-mail, vendors, I the hey, architecture, again, later, that does credit each of we try that’s something these that other on Because that malicious see the that are download the been XX let I to completeness when these your this send unique integrated. solutions architecture blocked because you it that’s says, and you that. think network. infected Many have see any file, the And from

I fact, is better think and demonstrating the we this job better winning than is anyone else. Point’s that. a need to do security makes Check showing But this something so that and a much

much. so you Thank

Alright.

next followed from Zelnick Bank, Our of Eyal will Cowen. Deutsche Al Shaul from by come Brad call our question – next

Excellent. Thanks so birthday, happy much Kip. and

Thank you.

strong resiliency results, line top accelerating to the seem demonstrate which on in business. congrats the Gil,

to year are cycles. Check many seem during the Gil? spending regardless, seeing to conservatism? your typical downturns weathered real raising But today, you expectations, there your And you on year Point something prior What resilient Is half Or also you gave time some gives guided you that experience about in your update full first caveats stronger be guided just guidance. when people expect overachieved not and a for seeing from you’ve the QX You is didn’t you’re hesitation? you downturn. security environment, is and has what full

And your think related but all are many think because that multiple here same the probably is very worry people question they something I excellent That’s it’s Okay. parts. to subject, about. I

the Check global about Point what I sales my concern I mean we that see changes. we sense time, economy, the our for sensed year, third in don’t about also is we the can haven’t that terms customers, anything the I rest we I First, in don’t happen. see anything from first any they just know any mentioned, seeing the our sales economy things as see feedback, or pipeline, different that the and the see person. or the are force, them of of here you Point the I Check I see. don’t mean leader forecast but our about all quarter

we terms didn’t to of open the year guidance, full want the full guidance. In year

to Tal, get the part I revenues over don’t won’t to it know, right for bit provided have to little still That it But the calculate within we guidance already the there. right, end upper the in actually that at will the additional of the we we can got the a – be the from because but more can you want of you year. we will more year, I little I lower at we mean, range that beginning don’t into provide yes, do know, $XX guidance beginning slightly detail. quarters. – the narrowing million probably some, want looked the bit the discuss are to two to? Tal, likely provided that first we’ve we’ve more if a range it’s the of a the that we to We be of and

not year. Brad, guidance about the just about it’s a of us. we you gave said, know Yes. know only It’s but beginning it’s us, in knowing I I the like

the We there macroeconomic interest many are the environment, and be inflation, direction, cautious. other on you hand, one bizarre I would a hand, up on it, showing parts, many rate many unemployment call metrics in very, Russia, is moving different happening Ukraine, on should war things different

because you – about, at don’t don’t the – I the anything this – never think if – us, beat year. for see right? we your should around our we guidance is one we to except hand guidance see our don’t that ever So on to not and not we look worry we think So everything you we updated history,

companies and the provide We quarter of for beginning a going Some year, in year then provided one the guidance only quarter. each forward.

into in a quite short-term, see you looking So the good guidance. QX,

and the that is to mountains, in means happening don’t QX QX So guidance a need us, it ahead beyond general we like it see to wait very there. market. anything We like right. looks dramatic. what’s the see of we in good looks gave

that not too logic. is into details much there So

thank Okay, you.

Alright.

question coming Mattew Hedberg next RBC. Our of is Shaul from Eyal, followed by

Good you afternoon, that. everybody. for Thank

me the But three PowerPoint try but on two, let narrowing by I ago. prior on you understand continue past. way. the you started haven’t in done even the maybe in you like a past, Tal, So like great the have and thing Brad’s quarters annual range. had question maybe It’s presentation, a that haven’t it

you. Thank

good So, reconsider to a that. maybe it’s point

Okay.

tell So what I do. you will will I

range other wouldn’t be think at wide former the any least reason your words, In midpoint you that above growing or guidance? to

guidance. the to annual going update was advance. you quarter, I what, take I’ll next And say, I will you know

the previous come. midpoint probably – but $XX new million kill probably think at I to than will want should be least going me, I are tell Again, We least $XX the more million to we than roughly don’t be probably at more midpoint.

we side and that. I revenue On are the very happy think about

the just it, about the to situation, months huge like would quarter, look to into general the beast, visibility say, X a product taking opinion. biggest booking the QX, low account risk my it’s product which because very right? you it’s December. quarter to the brave relating I the It’s It’s early think bit product biggest is just and line, would the So nature a coming in December. all of at away about by too – right? always just That’s the I say if be

Alright. No argument.

Alright.

Powell BTIG. from Matthew of next to come Our going is Hedberg, by Gray followed question

birthday Great. Happy Thanks. too, Kip.

you. Thank

will maybe you a time. Obviously, Harmony think specifically, guess newer it’s maybe security primarily do limitation a some And sales? around Quantum? some is long like been for the newer type quick How prior aspect higher some and diversified were platform. to a You’ve in versus the transformational CloudGuard you of more of now downturns, historical lines And a ROI firewall more products, I much center. maybe do there versus appliance

First, architecture, get I We’ve And installation. much seen get if an in implement it right. some you Infinity mean in you we’ve time. seen you security can you’re much it. ROI amazing can better the and full shorter

we’re the installed gave about through one getting immediately. think Harmony QX agent I I example in

stop didn’t there. malware So we

some And to full organizations. completed organization X months so, infected was from architecture architecture. usually weeks, And XX Infinity this that that spine transformation X probably we country. with serious security organization really within the the with in another most between takes full process This for

level So if in CloudGuard jump I both and you adopt is Harmony architecture a into the potentially, think huge Quantum, elevate the of that Infinity and security to time. short

is jump Our customer to into this a the think, deepwater most once is and the work do organizations I doing way, lot amazing. work to that, By still the there to transformation, the develop ROI methodologies transformation. do unfortunately, people the of convince the

of You’ve set console, got products. one one

how in solution malicious of a important, stop – infected that present, speaks the just get is everybody to infected. coming more e-mail so wind another from You’re but we’ve you, attacks and visibility. if you minutes some organization. you see it’s will the seeing see that will visibility, to cases take another file in simply seen your will a actually We or have think, file, later We filing your getting the don’t, ridiculous better solution, been much people XX let block that the tell about it’s know other again, you to I

CloudGuard, we investment customers block these our And much as better get on cases. Quantum and to identify. solution will will things the all return our implement same how are much, Point Check You of would I somebody network Harmony Infinity about hour huge know our because the won’t and it the stopped. security. An can are if We be these think the and And will part unique download architecture. it the later, all from come file architecture, that

Alright.

Powell, coming and BTIG. question from next be question last Gray will Our

Okay. for Great. Yes. much really Thank welcome in, appreciate you very it.

seeing So like we drill been Are give in you just sort Europe, to color was us last in there scrutiny bit. have little follow-up deals? macro great? on in conversations I questioning, be on of on customer the additional Europe of would any X hoping months? any cycles sales or could line Europe any a can on additional the How changes you Just

in No, Europe I markets is discussion I – haven’t up. open. maybe noticed is that being the seen and seeing spending, corona in don’t not looks everything People the our the behave I any you Europe. change is mean Europe I that opened discussion, has with in let’s the we of there revenues. corona like – it’s cyber terms But have partly exception increases. in think Russia, no impacted I’ve of fact much like it’s mean, the are that are our It – around that

in results actually, it’s the very are good. Now, QX

didn’t some we So see like issues there.

Okay.

in or terms the geographies XX% out of evenly or across revenue Just was elsewhere? product stand split pretty anything that growth, Europe

ago, we of and see this can were you last quarter XX% the and that year and both and shows Yes, in QX year had in year that revenues. slide a Europe by the same sales this have geography America the in we XX% and terms in QX APAC,

much. very you Thank Alright. enough. Fair

Alright, seeing attending after you will we to forward you you And gals, you – and and look today, thank the speaking the thank obviously. guys for during wishes. all you much for We to very guys. birthday quarter. the be Thank call,

great a and Bye-bye. care, have take So day.

Kip sharing with thank for us. you, And your birthday

great Bye-bye. Thank you. a day, Have guy.

Bye-bye.