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Investing.com - On Tuesday, Check Point Software Technologies Ltd. (NASDAQ:CHKP) reported third-quarter earnings and revenue that surpassed analyst expectations, driven by strong demand for its security portfolio.
The cybersecurity firm’s shares rose 3.15% in pre-market trading after the results.
The company posted adjusted earnings per share of $3.94 for the third quarter, significantly beating the analyst estimate of $2.45. Revenue came in at $678 million, exceeding the consensus estimate of $673.28 million and representing a 7% increase YoY. The strong earnings were partly due to a tax settlement that resulted in a benefit of approximately $1.47 to adjusted EPS.
Security subscription revenues, a key growth metric for the company, increased 10% YoY to $305 million. Calculated billings, which indicates future revenue potential, jumped 20% YoY to $672 million.
"Check Point delivered strong third quarter results, driven by increased demand for our portfolio including Hybrid-Mesh-Network, Workspace and External Risk Management," said Nadav Zafrir, CEO of Check Point Software Technologies.
The company recently strengthened its AI security capabilities through the acquisition of Lakera, an AI-native security platform provider. This strategic move aligns with Check Point’s "AI First" strategy and aims to enhance its position in delivering comprehensive AI-powered security solutions.
During the quarter, Check Point repurchased approximately 1.6 million shares at a total cost of about $325 million, demonstrating confidence in its business outlook. The company reported cash flow from operations of $241 million, which included a one-time tax payment of approximately $66 million related to the tax settlement.
Check Point ended the quarter with $2.82 billion in cash balances, marketable securities, and short-term deposits, slightly lower than the $2.87 billion reported in the same period last year.