Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
I'm proud that in Check Point, we had that consistent execution even with those trends
And I'm very glad to say that in the fourth quarter, we've seen double-digit growth in our new business -- in our internal measures
It's not reveal, but I think that's the strength of what we have
Actually it's the highest quarter to have an EPS since 2011
First, as we said, I mean, it's -- first, we are getting every product in Check Point with subscription base is growing very fast
So it's also we see consistent double-digit growth in -- strong double-digit growth in new business related to Infinity
We showed you -- in the last few quarters, we are showing consistent -- a strong double-digit growth in revenues
We see consistent strong subscription revenues growth of 15% this quarter to $266 million
This call is mainly driven by strong performance, a strong demand for our Infinity platform, our Infinity consolidated platform and Harmony E-mail
We continue to see strong momentum for both of them, and that's going -- that's what we see here, the 15% growth in the last quarter
So this is a pretty big part of our business these days, and we are very proud on what we've done with that and the value and the security that we can deliver to customers that nobody else can
This is a result of significant improvement during the year in the supply chain environment, which is much better than what we've seen last year, in 2022
All of them use the Infinity core services, the ThreatCloud, the play blocks, all of it and many, many other core services that we have in the middle to deliver the best security, and I'm very proud that we are able to do so
We are talking about strong double-digit growth in new business bookings
Almost everybody that registered actually showed up, which is also a good indication of the enthusiasm
In Q4, we did see a really positive turnaround with double-digit growth
As indicated, we continue to see strong adoption for our Infinity platform
Infinity consolidated platform continue to flow in an accelerated way to our revenues, with a strong double-digit growth year-over-year
The highest satisfaction rate ever over nine, and the highest satisfaction we measure it on many, many different aspects
They were all very, very strong
It represented double-digit growth in revenues in America, mainly driven by Infinity's strong demand for Infinity there and Harmony E-mail business
All the sessions got very high score, which I was very proud of all the people in Check Point to do that
That's the strength of the Check Point platform
You see both the number and the percentage grew that year, which means that every month, we introduced approximately one more -- one new engine to the Infinity platform, and that's a huge strength
The indicators for the first quarter are positive, too
So I think it's a very good positive momentum that we've seen in Q4
So we're very proud of that, and I think it shows
And it's good for us because the more you create it, you get more predictable and long-lasting business
Non-GAAP operating income continues to be strong at $309 million, a 7% growth year-over-year and represented a 47% operating margin compared to 45% operating margin last year
I think it's a very good testimony to the Check Point product team to be able to get into a leadership -- into a leadership position in so many categories
       

Bearish Statements during earnings call

Statement
We actually ended 2022 with what we think was a very tough economy when customers held back on projects, postponed investments and actually the level of new business was going down
So if I need to summarize, we finished -- we started 2023, and you see it here in the graph, with a very challenging market condition
Our GAAP net income was $249 million or $2.15 per diluted share, 2% decrease year-over-year, and it's mainly due to higher amortization related to our recent acquisition of mainly of Perimeter 81
As I mentioned, last year, we had a very tough three quarters at the beginning of the year, where actually new projects were delayed, postponed
And the new business and the products were going down
But once we exited the pandemic instead of the economy flying through the roof when everybody goes back to spending, there was a challenge
We've actually seen with some of our competitors that they are being hit by the slowdown that we've seen a year ago
I think Roei also indicated the challenge
Looking into next year and our operating margin, we need to take into account the recent acquisition that we completed in December and October that will have a headwind of approximately 2 points to operating margin 2024
The real change what we're seeing is actually in the products and licenses that are going down less than before
In 2023, despite the tough economy and despite the fact that for three quarters, we had a decline in new business, we had it stable
It's not a challenge, I think
GAAP EPS is expected to be approximately $1.70 less than that
And in the last few months, I would say, I've been struggling again with that question
And yet, at the same time, let's remember, there's a lot of uncertainties
But then -- again, it's a time -- you say, times are tough
Not enough
And even now if the situation in Israel, shows us that you can always be surprised
I remind you also the billing duration that again, because of the high interest environment, 2023 was -- the billing duration in general was lower than compared to 2022
So it didn't -- it grew a little bit, but not by a lot
   

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