Check Point Software Technologies Ltd. (CHKP) is a global leader in IT security, providing comprehensive solutions to protect enterprises' cloud, network, mobile devices, endpoints, and IoT solutions. The company offers a multilevel security architecture through its Infinity platform, delivering end-to-end security with unified security gateways and a single agent for endpoint security. CHKP sells a range of products and services, including hardware and software products, subscription-based security services, and software updates and maintenance.
- Security Subscriptions - Offers subscription-based security services, including advanced threat protection, Infinity CloudGuard, and Harmony, providing customers with a suite of security solutions sold as a service.
- Software Updates and Maintenance - Provides software updates, maintenance contracts, and professional services, including rights to software upgrades, technical support, and hardware services.
- Products and Licenses - Sells software and hardware products integrated with essential functionalities, contributing to the company's overall revenue.
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- Considering the unusually high number of slip deals this quarter, what measures will you implement to reduce the timing variability in revenue recognition and ensure more consistent forecast execution?
- With the noted 50 basis point headwind from discounting on subscription revenue, what specific initiatives are you deploying to mitigate this margin pressure in the near term?
- You’ve highlighted significant investments in AI, including the hiring of 500 new experts—how will these AI initiatives be monetized, and what is the expected timeline for these investments to deliver tangible productivity and margin improvements?
- While your SASE strategy is currently driven mainly by upsells from your existing customer base, what concrete plans do you have to secure new customers and differentiate your SASE offering from cloud-native competitors?
- In light of the recent 12-day conflict in Israel, how are you addressing potential operational disruptions from geopolitical instability, and what contingency plans are in place to safeguard ongoing deal closures and overall execution?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Veriti Cybersecurity | 2025 | Check Point acquired Veriti Cybersecurity to enhance its Infinity Platform with preemptive threat exposure and automated, cross‑vendor virtual patching capabilities; the deal was valued at $84 million (net of cash) and was scheduled to close by Q2 2025. |
Cyberint Technologies Ltd. | 2024 | Check Point acquired Cyberint Technologies Ltd. to bolster its SOC operations and expand managed threat intelligence offerings by integrating Cyberint’s external risk management capabilities into its Infinity Platform, with a net cash payment of $186 million in Q3 2024. |
Perimeter 81 | 2023 | Check Point acquired Perimeter 81 to accelerate secure access for remote users, sites, and cloud environments by enhancing its SASE offerings; the acquisition, announced in August and completed in September 2023, was executed on a cash‑free, debt‑free basis for approximately $490 million. |
Atmos | 2023 | The Atmos acquisition had a modest impact, with its effect on revenues limited to only a few million dollars and no major strategic or financial details disclosed. |
[Indiscernible] | 2023 | Check Point acquired an indiscernible small Israeli start‑up aimed at expanding its SaaS security technology capabilities, although specific deal terms and detailed information were not provided. |
Source | 2023 | The acquisition of Source enhanced Check Point's Infinity Global Services by adding managed firewall services to its portfolio; the deal was completed approximately 1.5 weeks before the Q3 2023 earnings call. |
Spectral Cyber Technologies Ltd. | 2022 | Check Point acquired Spectral Cyber Technologies Ltd. to extend its CloudGuard solution with developer‑first security tools such as Infrastructure as Code scanning and secrets detection, adding a few million dollars to expenses while targeting enhanced cloud security. |
Recent press releases and 8-K filings for CHKP.
- Check Point Software Technologies Ltd. launched new AI-powered Quantum Force Branch Office Security Gateways, which deliver up to a 4x increase in threat prevention performance from previous models and an industry-leading 99.9% block rate.
- Existing Quantum Force Security Gateways for data centers and perimeters will automatically receive a 15%-25% performance boost in threat prevention throughput via a software update.
- The new gateways address the increasing cyber threats faced by branch offices, which are experiencing an average of 713 weekly attack attempts per location, marking a 36% rise from the same period last year.
- Check Point Software Technologies Ltd. has entered into a definitive agreement to acquire Veriti Cybersecurity, a pioneer in Preemptive Exposure Management (PEM).
- This acquisition is intended to strengthen Check Point's Infinity Platform by integrating Veriti's automated, multi-vendor pre-emptive threat exposure and mitigation capabilities, enhancing prevention-first security against AI-fueled attacks.
- Veriti's technology offers automated, cross-vendor virtual patching and real-time threat intelligence enforcement across over 70 security vendors, which will be integrated into Check Point's Threat Exposure and Risk Management offering.
- The transaction is subject to customary closing conditions and is expected to close by the end of Q2 2025.
- Check Point's executive, Nadav Zafrir, 149 days into his role, noted the company has solid products but needs to improve its market voice and narrative. He outlined a four-lever strategy for growth focusing on strategic focus, culture, infusing new talent, and balancing profitability with growth.
- The company is strategically focusing on three key product areas: hybrid mesh (with a strong emphasis on SASE), workspace security (building on the success of its email product, which is projected to cross $200 million within a year), and External Risk Management.
- Check Point's Perimeter 81 SASE solution is generally available and has scaled to 60,000 seats. The SASE strategy emphasizes a flexible, hybrid mesh architecture that is not cloud-only, leveraging the company's existing infrastructure and ThreatCloud AI intelligence.
- The company is pursuing an "open garden" partnership philosophy, exemplified by its collaboration with Wiz for CNAPP, cloud observability, and posture management, and with Illumio for segmentation.