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Check Point Software Q3 Earnings Driven By Subscription Growth
Oct. 28, 2019 09:05AM PST
Cyber Security InvestingCloud security subscriptions increased by 13 percent, boosting Check Point’s EPS to US$1.25 and cash balances to US$40.55 million.
Check Point Software (NASDAQ:CHKP), cybersecurity company reported that cloud security subscriptions helped drive revenue for the third quarter, with subscriptions rising 13 percent year-over-year. Net income figures dropped to US$188 million, from US$198 million compared to the same time last year while total revenues increased 4 percent to US$491 million.
As quoted in the press release:
“During the third quarter, our security subscriptions continued to drive results with 13 percent growth. This was underscored by expanded customer adoption of our cloud solutions,” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “We continued to increase the breadth of our offerings with the introduction of CloudGuard Connect and CloudGuard Edge, providing enterprises with industry leading threat prevention driven by a cloud service.”
Financial Highlights for the Third Quarter of 2019:
Total Revenue: $491 million compared to $471 million in the third quarter of 2018, a 4 percent increase year over year.
GAAP Operating Income: $214 million compared to $226 million in the third quarter of 2018, representing 44 percent and 48 percent of revenues in the third quarter of 2019 and 2018, respectively.
Non-GAAP Operating Income: $246 million compared to $250 million in the third quarter of 2018, representing 50 percent and 53 percent of revenues in the third quarter of 2019 and 2018, respectively.
GAAP Taxes on Income: $47 million compared to $45 million in the third quarter of 2018.
GAAP Net Income & Earnings per Diluted Share: GAAP net income was $188 million compared to $198 million in the third quarter of 2018. GAAP earnings per diluted share were $1.25, same as third quarter of 2018.
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $217 million compared to $219 million in the third quarter of 2018. Non-GAAP earnings per diluted share were $1.44 compared to $1.38 in the third quarter of 2018, a 4 percent increase year over year.