Jerusalem

Check Point Software Technologies, based in Israel, has reported a surge in cyberattacks in the wake of the October 7th raids by Hamas. Despite the increase in cyber threats, the company continues to operate as planned and anticipates higher annual profits than previously projected.  

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According to Reuters, the CEO of Check Point, Gil Shwed, revealed that 98 per cent of the company's customers are located outside Israel, highlighting its global presence. Shwed also commended the dedication of their workforce, which, despite the challenges posed by the recent war, has successfully launched new technologies and completed acquisitions.

Data provided by Check Point indicates an 18 per cent rise in cyberattacks within Israel since the October 7th attacks, with 52 per cent of these targeting the government sector. This emphasises the critical role that cybersecurity measures play in safeguarding sensitive information and infrastructure. The company has consistently adapted to the evolving threat landscape, focusing on improving its platform that prevents attacks across networks, mobile devices, and cloud environments. 

In terms of financial performance, Check Point exceeded third-quarter profit expectations, driven by substantial growth in subscription revenues. The company reported earnings of $2.07 per diluted share (EPS) for the period of July to September, marking a 17 per cent increase from the previous year. Revenue also saw a 3 per cent rise, reaching $596 million. 

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Previously, companies tended to delay updating their existing firewalls. However, a shift has occurred, with Check Point observing a change in this trend. The current quarter reflects a positive shift in business dynamics, indicating that organisations are increasingly investing in enhancing their cybersecurity infrastructure. 

In response to these promising developments, Check Point revised its 2023 adjusted EPS estimate, raising it to a range of $8.20 to $8.40, up from the previous estimate of $7.70 to $8.30. The company also adjusted its revenue estimate to a range of $2.387 to $2.437 billion, compared to the earlier estimate of $2.340 to $2.510 billion. This positive outlook has garnered approval from analysts who had originally projected an EPS of $8.16 on revenue of $2.41 billion. 

Looking ahead to the fourth quarter, Check Point anticipates revenue in the range of $636 to $686 million and an adjusted EPS in the range of $2.35 to $2.55, exceeding analyst expectations. The company has also been actively engaged in its $2 billion share buyback program, repurchasing 2.48 million shares worth $325 million in the quarter. Additionally, Check Point invested $490 million in the acquisition of cybersecurity firm Perimeter 81, further reinforcing its commitment to fortifying digital security. 

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(With inputs from Reuters) 

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