Check Point: Strong Q1 Earnings Under New CEO Nadav Tzafrir - Revenue and Profit Exceed Expectations

Israeli cybersecurity company Check Point Software Technologies kicked off its first full quarter under new CEO Nadav Tzafrir with solid financial results, modestly exceeding analysts’ expectations. The company reported a 7% year-over-year increase in revenue, reaching $638 million—right in the middle of its forecasted range and slightly above market predictions of $636.2 million. Net income climbed 9% to $246 million, or $2.21 per share, surpassing analysts’ expectations of $2.19 per share.

One of the main drivers of growth was the performance of Check Point’s Quantum Force product line, the company’s new firewall solution launched in early 2024.

Billings and Cash Flow See Strong Gains

Check Point’s billings—a key indicator of future revenue, including deferred revenue—also rose 7% year-over-year to $552 million. Meanwhile, cash flow jumped 17% to $421 million, bringing total cash reserves back up to $2.9 billion.

However, operating expenses increased by 7%, reflecting a rise in investments in marketing and sales initiatives, part of a strategic push led by the new CEO.

CEO Nadav Tzafrir Unveils Vision for the AI Era

Commenting on the results, Tzafrir said, “We had a solid quarter that puts us in a good place for the rest of the year. I am already 28 days into my first 100 days on the job, and my plan included meeting with as many Check Point employees as possible as well as potential customers.”

Tzafrir laid out a new strategic direction for the company, focusing on unifying all of Check Point’s security products under a single open platform tailored for the AI era.

“What characterizes customer networks today is the connectivity and hybridity between all systems—cloud, on-premises, remote, and in-office. Our new platform will allow customers to manage all their security needs via a central Check Point portal,” he explained.

As part of this AI-focused transformation, Check Point will establish a dedicated research center and has appointed Jonathan Zenger as the new CTO, replacing Dorit Dor, who will remain with the company in a consulting role.

Workplace Security and Leadership Changes

To further support remote and hybrid workforces, Check Point is forming a new division focused on workplace security solutions. Gil Friedrich, founder of AVANAN (acquired by Check Point), has been appointed VP of Email Security and will lead this new initiative.

On the topic of potential trade disruptions, Tzafrir addressed concerns regarding the U.S. administration’s new tariff policy:

“The events do not show a direct impact on us, but we are of course keeping our eyes open for the future,” he said.

While many cybersecurity companies focus solely on software, about 20% of Check Point’s operations involve hardware, which is manufactured in Taiwan. According to CFO Roy Golan, even in a worst-case tariff scenario of 32%, the financial impact would be immaterial.