Israeli cyber security firm Check Point Software Technologies reported a higher-than-expected profit for the second quarter of the year. The company stated that it earned $2.00 per diluted share, excluding one-off items, which is a 22% increase compared to the same period last year. Revenue also grew by 3% to $589 million.
Despite a 12% decline in product and license revenues, Check Point experienced a 14% increase in security subscription revenue for its cyber security platform. This platform is designed to prevent attacks across networks, mobile, and cloud.
Check Point CEO, Gil Shwed, emphasized the company’s focus on incorporating artificial intelligence (AI) into its products to protect against a growing number of AI-related cyber attacks. Check Point has been conducting hackathon events to explore and develop new generation generative AI technology. Shwed stated that AI can be used to create more sophisticated attacks, so it is imperative to leverage AI for the company’s benefit rather than against it. He sees AI as a challenge and an opportunity for the market, and believes in its potential for the evolution of the company’s offerings.
While Check Point has been facing increased pricing pressures from customers this year, it has not caused any significant concerns. As part of its ongoing $2 billion share buyback program, the company bought back 2.6 million shares in the second quarter worth $325 million.
Check Point Software Technologies’ shares on the Nasdaq have seen a 2% increase in value to $128.71.