Q1 2021 Check Point Software Technologies Ltd Earnings Call
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Bob.
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You have joined the meeting as an attendee and will be muted throughout the meeting. This presentation check Point's Representatives may make certain forward looking statements. These forward looking statements within the meaning of section 27, a of the Securities Act of 1933 and section 21 of <unk> of the Securities Exchange Act of 1930 point include but are not limited to.
The statements related to check point's expectations regarding business financial performance and customers. The introduction of new products programs and the success of those products and programs the environment for the security threats and trends in the market our strategy focus areas demand for our solutions the impact of COVID-19 on our business, including our product development sales marketing efforts.
And our financial condition of results of operation the impact of COVID-19 on our customers suppliers business partners and macroeconomic environment as a whole and our business and financial outlook, including our guidance for Q2 2021 because of these statements pertain to future events. They are subject to risks and uncertainties actual results could differ.
Really from check point current expectations beliefs factors that could cause or contribute to such differences are contained in check Point's earnings press release issued on April of 'twenty, six 2021 which is available on our website and other factors and risks, including those discussed in checkpoints. The latest annual report on form 20-F, which is on file with the SEC check.
<unk> assumes no obligation to update information concerning its expectations or beliefs, except as required by law in our press release, which has been plus our own website, we present GAAP and non-GAAP results along with the reconciliation of such results as well as the reason for our presentation of non-GAAP information now I'd like to turn the call over to tell paying for a review of our financial.
Yes.
The result of great. Thank you.
Good morning, good afternoon to everyone joining us for the call today.
I'm pleased to begin the review of our.
Quarter of results.
The first revenue for the quarter increased by 4% to $508 million an hour of non-GAAP EPS.
The S grew by nine.
Kent.
First the $1 54.
The most revenues and EPS.
Yeah.
Or in the output of part of our Guy.
Yes.
Before I proceed farther into the numbers, let me remind you the dollar GAAP financial result.
Okay.
Okay.
The.
As per patient charge of.
The board session of acquired intangible assets.
Yeah.
Sure.
The next issue related.
The.
The.
The.
The clearance as well as the related.
Tax.
The.
Okay.
Keep in mind.
Line.
Line that as applicable non.
GAAP information.
It is presented.
Excluding these.
Okay.
Now, let's take a look of the financial highlight.
Revenues for the quarter reached $508 million.
8 million above.
The mid point of Ara.
Yeah.
Yes.
<unk> the product and security subscription revenues were $287 million of 7% increase year over.
For you our security.
The subscription revenues.
<unk> continued to be the driver of the growth.
Strong 12%.
All of which.
Or something to year over year.
Chris.
Up from 10%.
Yes.
Yes.
Sure.
It.
Yeah.
For reaching 177 million.
Sure.
Our software update the maintenance revenue in.
<unk> 221 million.
Representing.
The.
<unk>.
Sure.
True.
That's for one per cent.
In January we announced remain.
The quantum.
<unk>.
The most complete.
Net.
[noise] security solution.
Once the harmony.
Okay.
The driving highest level of security for the remote work.
For the cloud got family.
Yes.
Really what drives cloud native security.
The to prevent threats of managed poster of course, all cloud workload in the.
The more people cloud.
We looked at all of it.
Our cloud got the family continues to show Great results.
Zone with the high debt.
Did you.
<unk>.
Both high double.
Okay.
The BG.
Both.
And as customers move to more of a list.
Solution with subscription based pricing like Infinity cloud the guard in harmony.
E.
<unk> more of the business is allocated.
Richard.
To support and.
It's up to the product.
The less for.
Portion of deferred revenues as of March 31.
2020.
The one reached 1 billion of $458 million.
<unk>.
A growth of.
100 of $9 million.
Yes.
Or.
H.
Sent over March 31.
For 2020.
Did this quarter.
Yeah.
And.
The.
Thank you for all of you the calculate the implied booking.
Flight booking was.
Okay.
Of course revenue distribution by geography.
For the quarter.
It wasn't for.
Total of 44 per cent of revenues came from Americas.
Kind of 43 per cent of Rev.
Came from Europe Middle East.
When used in Africa.
Lease.
Region, and 30% came from Asia.
They stick with it.
You have to say I used.
Yes.
Sorry.
Yeah.
Our non-GAAP operating margin was healthy at 49.
Sure.
9% margin was higher as the result of a higher level of revenues of the one.
And then some.
Some expenses remained low.
Just to call.
Can you the fact worldwide on the other hand.
Our financial income for the quarter.
$13 million.
I was reflecting the reduction in the portfolio of yield because the result of the interest rate dropped in the U.
Yeah.
The us.
Do you.
As we guided.
Net.
The effective non tax rate for.
Florida was 18.
For these per cent in line with.
The Rx station, which was 17.
<unk>.
<unk> success.
We had some indexation effect.
Effects.
This quarter versus the the.
<unk>.
The the quarter end.
Sure.
The last yeah, nothing come for the GAAP net income for the quarter was Huntington.
$3 million or $1.
Eight debt.
And.
Just resetting.
Since the chip.
Non-GAAP net income was $211 million.
Or $1.
And.
64.
Cents per diluted share.
Share an increase of 9% year over year.
Yeah.
Year and towards the high end of our guidance.
Okay.
Guy that the accelerated growth is related to the grocery the revenue isn't.
The continued reduction in our diluted.
The outstanding.
Yes.
<unk> share moving to our cash.
Hello, all the cash balance for the quarter.
Yeah.
An increase.
Chris the our cash balances.
Your line is used to 4 billion.
And the 100.
Okay.
For 1 million.
Yeah.
Operating cash flow for the quarter.
Increased by four person.
Yeah.
$375 million.
The strong collection.
With.
Sure.
Basketball.
For.
The.
During the quarter, we continued the buyer.
The programming.
That's just.
Just to point 7 million share.
Check for 300 of $25 million at an average price of 100.
And plenty of.
The other side.
Okay.
Now, let's turn the call over for.
Yeah.
For Gil Thank you, Paul and the low everyone I'm pleased to have.
You are.
Please find we're going toward the slightly different for months of unusual we're moving the longer to the 21st century, so instead of.
Okay.
Just.
Okay.
Okay.
Talking about the we're reaping the common side.
Yes.
Well.
I want to share with you of presentation and then.
Thank.
Dan.
And the focus.
We probably won't be.
The just yet.
General comments about.
About the quarter.
Yeah.
Sure.
Okay.
The share a little bit more of both of our strategy.
The.
And at the point.
For 'twenty one.
The people.
Check point to kill.
<unk> for the lot of slides you of what we showed you the or customers and partners. So let me jump right in line.
And go ahead.
Yeah.
With the appropriate will work well for.
The first time.
Yeah.
Yes.
One of the Investor.
So.
Part two of them.
Hmm.
Alex.
Yeah.
The forward looking statement you heard from the keep so we don't need to go from that so I'll speak a little bit the boat.
<unk> three for slides about the business highlights of the main focus here will be.
Yes.
About the finish the strategy the checkpoint.
The and the checkpoint strategy around.
They talked reserve.
So I think you've all heard from Paul.
All of quite pleased.
Felipe.
The <unk>.
We are continuing to execute on our plan.
Yeah.
The.
The increase of the EPS by 9% increased revenue by 4%.
And did the line Youll see play during the presentation and achieve the law.
Not in our strategic air.
Yeah.
Okay.
On the financial side again, the numbers you heard.
Sorry.
From solid 22 more million dollars.
Yeah.
In revenue.
Well.
Well since more of an EPS for the $109 million increase in deferred revenue. So we did increase.
The Oriental.
Yes.
Based on our contract long term and short.
Yeah.
Short term a little bit about news from check point.
Point over the past few years, we did.
Part of the transformation of.
I know, we're supposed to re energizing of the glare of amazing people.
Sales.
And we want to re energize and move the sales force to a much more proactive.
And the higher growth mode.
The wrong two years ago.
So we started with APAC with short of now we've asked for.
For almost two years actually.
Okay.
Really the last few quarter of the results in the APAC were amazing.
Thanks.
<unk>.
This.
Specifically were very.
Okay.
Good for about six months ago, we had.
For some joining us to run Europe.
Europe I.
I think it's too early to win.
<unk>.
<unk>.
Jim.
How will it will work, but the initial signs are very good and again, we are the very best.
The simple.
In Europe.
And just.
Just the day, we have the <unk>.
Jeff joining us to run the of Miracle.
Yeah.
<unk> will join whatever.
Wakes up in.
The west.
So.
Both of them.
It will be the first day to day and we're looking forward.
For accelerated growth of America.
Yeah.
We have plenty of potential in the Americas.
Okay.
Mark.
We also held in the first quarter of worry.
Our conferences every year.
<unk>.
Okay.
The employee and customers and partner come from.
From this year was no exception of involved.
No.
Hello.
All of these conferences the virtual way in the very different.
I won't share much about the employees and so on but you can see here the results about the partners and customers.
The mers with much more than double the attendance.
So customers and partners in both the great achievement.
We got the amazing reviews from all of the parties.
But the bulk of the content of the bulb the ability.
Super.
<unk>.
The book.
Okay.
So.
<unk>.
At least the virtual model here generated.
Some of the.
The positive results for us in moving.
Moving forward, we will have.
I have to find like everything goes the right balance between.
Okay.
The hybrid model between physical and virtual the corn.
Okay.
So we see the very good one of them by the way the biggest increase was the customers from the U.
The us which is the.
The.
I think of as I mentioned the.
Highest potential.
Sure.
[laughter].
True for us moving forward, so lots of little bit about some of the highlights of the first quarter.
But let me share more.
More about our strategy for 2020.
One again I won't do the full presentation of if we shared with customers and partner of it takes a little bit loans.
Okay.
The jump pricing without much better.
<unk> adjusted.
Just to start.
We felt the 2020, we have an amazing.
The architecture.
The increase.
The 2021 we'd be infinity art.
Architect.
Because this is really I think the most.
Most comprehensive.
Set of security technologies of any company.
We the.
The unified architecture.
For the combined all the elements.
Elements together.
Okay.
And if you look what it means is over 80 different product from technologies.
As in all areas of the network for the cloud the users.
Yes.
The knock our goal is to make that.
The simpler.
Yes.
For more accessible more consolidated.
And the elevated the level of security.
Yes.
We decided it.
Two focus Infinity 2021.
One of the architecture and free pillars, which.
Yeah.
Much simpler.
For.
Blur and will elevate the level of security.
All right Don the free pillars and.
And I think I've already shared the first.
First is quantum.
Yeah.
The our network security architecture in the later in the presentation.
Okay.
One of the Vulcan.
So for free.
The slides on every.
Free from every one of the pillars quantum's to secure the networks.
Yeah.
The <unk> cloud gone.
The two stood the club.
<unk>.
And the new one which we launched.
Launching the.
The SPX in February.
You bet.
Right after our earnings call for Q1 is the harmony.
<unk>.
That's something new of its focus is about securing users access because.
This is especially important in today's.
The hybrid the work.
Most of these three pillars quantum cloud Guardian, our ammonia.
Based.
<unk>.
From our using the Infinity vision share the management infrastructure, we've a lot.
A lot of food.
Yeah.
All of them for soccer management Xdr.
<unk>.
And the lot of other advanced security tool.
And they're all based on the threat cloud.
The single infrastructure of it.
Analyzes.
Yeah.
And makes.
<unk> security decision in real time and share of.
Them.
For real time threat prevention.
Across all of <unk>.
The experts.
Experts.
As control across all products.
The technologies.
Thanks.
And I think that's the unique.
Net of the checkpoint the arc.
The technical the architecture now looks much.
Much of <unk>.
Blur and let me dive right.
And the speak a little bit about the different elements and what's new.
Yes.
And each one of them.
Yes.
For 2020.
One the quantum.
Two for me, though.
Yes.
Sure.
Okay.
Our core business.
Net securing the network.
For.
The work.
It's far more of them.
Yes.
The Titans gateway.
<unk>.
For the.
Yes.
The SMB.
Similarly for the perimeter of gateways for the data center of Gateway.
<unk>.
Uh huh.
Between versus the I think what's unique to check point and winning a lot of mind share in the market.
Marketplace and actually a.
A lot of.
Growth is the Hyperscale technology.
The master.
Okay.
<unk>.
Yeah.
<unk>.
We have.
On the of Iot technologies that we've introduced over the.
The last for.
Years, and we're introducing more and more.
Who handle Iot devices and to make the network.
The figure from the.
Yeah.
Alright.
The malware of its vacant.
Yes.
Catch all of.
The powered by our unified management.
<unk>.
Demand from all of.
Of that contains more.
All of.
The 60 threat prevention of engine.
<unk>.
Which provides the highest level of metrics.
Networks.
Networks.
Okay.
Well that's the.
The overview of the quantity of assembly.
Yeah.
What changed in Q1 and the quantity.
From.
Yeah.
Okay.
The first we launched the new family.
Called <unk>.
From sorry, with the S M.
The securities.
Emily.
Based on few existing probe.
The Doc.
But.
Extending that.
Actually a little.
It'll be higher to the broadest of the biggest small.
The segments.
In terms of dollar zone, the on the branch office in SMB and again.
It's a great.
Yes.
Okay.
Great.
Yes.
And we have models that deliver two gigabit.
Second I think the highest in the segment.
Very easy to use very intuitive.
The setup in a minute or a few minutes.
Sure.
Minutes on the go management, including mobile App.
With the can give anyone the alerts.
Some of them.
<unk>.
And theyre in the management capabilities.
Steve.
The quantum.
From <unk>.
Mark has been the Great addition to our family.
Yeah.
We are updating the management platform for the network security of the quantum.
I'm sorry.
One new set of management. The plan says that can manage the double the number of gateways.
It was almost double the amount.
Sure.
<unk> from.
Processes.
The latest version of lots of them lost lease they talked about Miami.
Strokes.
Most of the actually takes the cluster of gateway.
<unk>.
Any thoughts.
Make them be as like one virtual gateway actually bringing a law.
A lot of debt.
That means that the.
[laughter].
They can all be avis.
Non but provides resilience.
<unk> provides the high reliability provide.
Yes.
The CCP.
Okay.
If you need the more bandwidth you don't need to buy.
The new.
Some of you.
Sure.
Just logging on the goal of number one and you get more.
Okay.
More capacity.
Yes.
The deep, though in my Astral, we introduce the new model.
With pretty much doubles, the capacity of the maestro gateways.
Point to three point.
Two.
It's the second.
Second the previous model.
Yes.
The high end was 1.5 Terabits now it's.
Up to 2.2 Terabits.
Yeah.
The second.
Yes.
I think it probably the highest.
Performance in again.
Yeah.
Net.
Ken.
Yeah.
And the security operation.
Yes.
<unk> well.
Yes.
The the Hyperscale and with Maestro provides.
So I think we've had very nice addition, just in.
The first quarter or.
Okay.
Two of quantum remember of it last year.
Sure.
Year last Q2, we introduced a whole.
Sales.
New.
Net.
Uh huh.
For the quantum of clients.
The.
But I think resulted in pretty good results.
So.
So far in actually customers.
Are you happy with them.
And see a lot of performance with.
Okay.
Okay.
So I think.
We're pretty pleased about.
<unk>.
<unk>.
For the few just for reminder of highlights about the.
The what is the quantum of assembly doing in the markets.
Market.
Sure.
We are 20.
161 years and the leadership.
<unk> quadrant.
Yeah.
Current of the Gartner Magic quadrant.
Current for network firewall.
I think that's the big achieve.
Keeping the leader.
The issue for so many years.
Thank.
Years, and I think we're.
Sure.
Point.
Over the years more than.
<unk> six per cent of the global 2000.
The net.
Yeah.
Purchased one from appliances.
Okay.
So again.
Again, that's also I.
I think from one hand, theres potential for the ones of the day bye.
And there is plenty of potential for the ones who did.
Bye.
Within the and do more with.
But I think it is the huge footprint in the Eugene.
The impact of the world.
And if you look at almost every sector of the majority in some cases of nine.
90 <unk>.
The centre of leading.
Are using the.
Check point.
Onto.
From.
<unk>.
Okay.
Thanks.
Oh, that's for quantum invest our core business.
Let's speak a little bit of.
The harmonic family and vet the newest.
Oh.
The one here.
Actually.
The connecting two of needs with the emerge.
Yeah.
We're just now in the in.
In the pandemic.
Okay.
We are seeing with more and more employees are working for.
From mobile devices are working from the non corporate devices for.
For Pcs.
[laughter].
First of all computers, not the company provided computers.
And on the same time people work for the office of the access now he's not with single data Center.
We're lucky to be.
In the.
True.
The first the DOCSIS needs to occur to cloud applications to SaaS application for web.
<unk> for the data center.
Even things that we.
Didn't do before like remote desktop boxes, because we now work on our.
Yes.
Yeah.
And all of our development or trading or any other environment.
I'm in from home.
Yes.
Home.
And so.
And we need to secure all of these connections, but the pretty big.
Sure.
The set of technologies the company needs.
The seats of lot of technologies.
All of these colleges for remote.
Yeah.
Connectivity.
Okay.
T from all.
Okay.
All of the VPN.
<unk> for new SaaS based connection.
<unk>.
Technologies.
Judy for AR device.
<unk> feature to verify with our home computers are working.
Yes.
[laughter].
Well technologies of course, the secured the mobile in the end point devices from the next generation Avi to the traditional one.
<unk>.
And so on and so for.
For it is becoming quite complicated and if you look at what the company.
He needs to check.
Net.
Okay.
Okay.
Net.
The combination.
<unk> of.
Okay.
The few dozen technologies.
Jeez, the don't always work together.
Yeah.
And that's the Revolution.
The time when it for.
Okay.
Right one.
Okay.
One the Emily.
<unk> from.
<unk> all of.
Net.
Net all user.
From everywhere everywhere with the highest level.
Level of.
One solution for the hybrid.
Okay.
World and if two years ago.
You asked T cells in the very priority.
And the end user security.
He was quite low on the priority.
The lease did.
Yes.
The number one priority.
Now.
Yeah.
Now with the pandemic, but we've seen in light.
To say.
Sure.
That the hybrid more whether we will face and by the way with.
The level of the sophistication of attacks of it.
We are seeing in the recent.
Okay.
In the recent.
Yeah.
The months so.
Armani combining at least.
The six different categories.
Of note.
[laughter].
I don't think of that anyone can deliver that because this is again dozens of different technologies.
But I think no one else has volt technology.
All of these except for.
Check.
We've built for them we invested in them.
Oh.
For.
Okay.
The boot decks.
And we are now.
I think the Brady for price.
I must unify.
Yeah.
<unk> platform that will roll into the market gradually.
Okay.
The deal with Harman.
Yes.
Tony you can see some of the market recognition of harmonious already received.
The.
Desktop product.
The inappropriate and.
Point.
The group IDC already put that in the leader in mobile Fritz manner.
The.
And by the.
The way.
Of course, our competitors, we're the only one with the.
So like anything to do with mobile and we of the.
[laughter].
Best mobile device security.
Yes.
Sweeter.
Sure.
And last but not least from last week. This is something we're very proud.
Of the Mitra.
Sure.
Okay.
In debt.
Debt security analysis, we came very very high on the.
Thanks.
The least of the one hundreds of percent detection.
Sure.
<unk>.
<unk> I think of that we have.
Okay.
The best.
Yes.
The pre.
Revenge of capabilities here.
Sure.
Here and I think that's something we should all be proud the way ahead of our.
A competitor.
Thanks.
For as many of the new emerging Guan almost.
Almost all of the traditional competitors.
Competitors.
Thank.
In the city.
Thank you for it.
Last but not.
Lisa let me.
<unk> run quickly.
Cloud the guard.
Guards cloud growth is all about.
Thanks.
'bout, securing the cloud and the cloud again.
And is the PPP creature.
Sure. It includes the private cloud.
<unk>.
Tim.
Okay.
It includes.
Yes.
The things like workloads and containers it includes.
<unk>.
Okay.
For the Google cloud the Azure cloud.
All of them of course, the AWS cloud.
We have one platform that can secure all of the cloud.
We're providing.
Loud highest level of security.
The connected.
First of all the level of doing.
Doing everything for.
Okay.
Yeah.
Think of the cloud and ensuring that the you don't make configuration ill with cloud.
Big Security posture management with the thing would be of the best.
The.
Best.
Best of protecting workloads.
Load dump of server list I think is.
We are way ahead of everything.
Sure.
Gil network threat prevention in the cloud.
Everything that has to do of the cloud.
Okay.
I think we.
We are evolving the platform, but I think we're already.
Okay.
The growth.
All of the tuck.
For them for cloud security.
And this quarter, what we've added the or in the cloud.
Good.
Uh huh.
<unk> is what we call.
All of the cloud growth.
Okay.
Yeah.
Which is sort of but again very very advanced.
The.
The next generation.
So.
<unk> WAF for web application firewall.
But this time, it's not just protecting the.
The servers.
Web for imported by themselves the interconnection.
Rich.
<unk> between the cloud application of the different API.
As of the FERC from the web and connect.
Connection.
And for choosing <unk>.
Yeah.
<unk>, what we call contextual AI architecture.
Share of it.
The customers can put it.
And prevent mode.
It sounds obvious but.
Again, most of these technologies in the.
Market.
But.
Yeah.
Are not working and prevent more of their working.
And the only.
Yes.
Of which.
Which of our religion is everything.
To be prevention.
<unk>.
Engine very quick deployment, where you can measure it in hours.
Instead.
The free.
And as you can see.
See I think we.
Okay.
We're starting to see the results, even though which is very very new.
Few highlights about our cloud that's not.
Adjusted.
Just the cloud guard the uptick, but our cloud very firmly in general.
This quarter, we had the 50% increase in the <unk> compared to a year ago.
So and we had very very good internal foundation for the cloud.
Got it.
Okay.
Emily.
I think we have one of the largest.
In total basis.
<unk> for the cloud guard family over.
Over 4000 customers.
<unk>.
Yes.
Perfect for cloud of clouds.
Okay.
And one in five of the global two thousands.
And he is already of cloud garden.
The customer.
Good luck.
Customer and we're very proud of the vet achievement.
We have plenty of potential here to growth.
Yeah.
So I think we have one.
One of the.
Okay.
The most.
Most advanced.
<unk> the most.
Okay.
Six of cloud security businesses.
Since the day in the.
Yes.
The market.
Okay.
So altogether of these create the new Infinity architecture.
Picture quantum cloud guard.
Infinity vision the foundation.
<unk>.
Okay.
For advanced security analysis and manager.
And the threat cloud.
No.
Loud in the.
That's the Infinity 2020.
One we are big believers in vet, but before I go.
Two of the summary, and finished I want to challenge.
Sales.
Mike and maybe the marketplace in terms.
Some of his very novel ways.
Okay.
Wait we need.
Let's remember we need to secure of his new world.
[laughter].
When people are everywhere, they take the everywhere digital transformation to the cloud.
We need to fill.
Sorry, the pandemic on the last few months.
We have seen.
Emergence in the what we call Gen five.
The security attacks.
Sure.
If you remember.
Been speaking about.
The fifth generation.
The cyber attack for.
<unk> of <unk>.
Almost.
Here and it's now of.
The reality of it happens once a year of reality that happens every.
Please.
Weak and you Gen five Sophie.
Sophisticated attacks.
For the Triptans.
The work fundamentals of the <unk>.
Okay.
Network.
So what's the way to secure against but is there another.
Okay.
Way beyond the <unk>.
Yes.
So if you're a customer and you can try and build your own secured.
Alrighty.
Okay.
Oh, hi, rather simplified version here, but features all of which will look.
Yes.
Look like you'll need to choose the different network vendor network.
Network firewall, the advanced threat prevention of Iot and Ot.
Sure.
And several more cash.
<unk>, maybe even through platforms to manage.
Okay.
<unk> of the cloud security.
Deep.
The plenty of alternatives of how to secure workloads how to secure.
Your applications on the cloud the ultra secure the cloud.
Or how to do the.
<unk>.
The cloud posture of management.
Men, you'll need to select the right vendors.
And then on the users and access.
End point security mobile security remote access.
And stuff.
Six.
And you.
Need to take all of these elements.
Yes.
<unk> inside the clinic.
Connections.
Okay.
And guess.
What it doesn't.
Well.
Work they don't connect.
Sure.
Well the slots of the work of getting.
Yes.
The solution is very very hard in the deployment.
It is complicated, but they don't work together.
Sure.
And what you'll end up the file comparing to.
To my analogy here.
For us, which car should I buy.
Yeah.
You will buy a lot.
Yes.
Lots of nice.
The full card, but what you'll end up is the big big traffic.
Traffic.
Okay.
Africa they will.
Uh huh.
All each one will go to a different direction and you won't necessarily achieve the level of security that you.
Warranted.
From.
Five of the analogy of building your own stock.
Stock what it will be like to build it.
<unk>.
With the new Infinity 2021.
Okay.
One thing that the analogy is much better quantum cloud guard the Harmon.
I believe it's.
Like.
Free Supercars.
Yeah.
Cars, each one of them.
Okay.
Okay.
Ill.
And the category.
Yeah.
Laurie.
The all drive together for the all drive the highway.
The.
Yes.
And they will take us to the security of the future of of what.
Hey.
We need this is the difference between infinity.
Yeah.
The <unk>.
And building your.
One day.
Okay.
No.
Summarize.
Yes.
I believe that we started the year.
The strong first.
We the sponsor with good financial results.
<unk> revenues.
First.
And the.
First.
Towards the high end of our range.
Yes.
Range good momentum.
<unk> in Europe.
Okay.
Excellent result in Asia.
Sure.
Yeah.
And.
Not less important double digit growth cloud guard the harmonium.
Uh huh.
And even more.
Uh huh.
More on the total infinity platform.
On the same time, we are in the new world.
World for a new opportunity.
I believe that we have the right platform.
<unk> build the best security.
Okay.
<unk> for the future.
<unk>.
Sure.
Marketplace.
For all your organization.
And the reorganization around the world.
Okay.
We've of Harman.
Monique out there than quantity.
So I think.
Mr.
With.
Yeah.
Percentage of potential ahead of us.
For us plenty for.
Yes.
Yes.
For us.
Okay.
And I think we will.
Thanks.
We'll continue to lead.
<unk> was the highest level.
One of Securities.
Ben.
The every.
Okay.
Good day.
Free almost every.
The industry benchmark.
For.
Yes.
The chicken.
Okay.
Thank you very much.
And the.
I actually want to open it for your Q&A, but before I open to Q&A. It's actually also a good time.
<unk>.
<unk>.
To speak about our projection the.
The second quarter.
For the you know my regular caveat.
The us for.
Okay.
The.
The sharing.
Okay.
You know my regular caveat it's about.
About the.
Okay.
About.
The projections and forecasts.
Cost.
Okay.
The very challenging there is always the high level of uncertainty.
The.
<unk> results can be better result can be worth.
Yes.
Worse.
Jim.
But still we are doing our best to collect the information that we have around the market.
Yeah.
Okay.
The.
And our forecast for the second quarter.
Or is that.
Instead.
Thanks.
Revenues.
Are expected to be in the range of 510.
<unk> two 500.
35 million.
Yeah.
And non-GAAP EPS in the range of dollars.
50.
The dollar.
Six.
Yes.
Six for again.
Okay.
Again $510 million to $535 million for the revenues in dollar.
The $52.
60.
Yeah.
For second quarter EPS.
GAAP EPS.
He is expected to be approximately 20.
The two slower.
Since.
So with that in mind.
I'm.
Sure.
I hope you've learned something from the presentation and I hope you like our vision I know.
All of it.
Works and the I'd love to open the call for your <unk>.
Rene for your questions.
<unk>.
Okay.
Thank you thank you Gil.
Gil before we begin with the Q&A session due to time constraints and the consideration of other parts.
Participant.
Okay.
And please limit.
Yourself to one question and one question only.
Okay.
If you of any.
The difficulties.
It's just that debt question into the channel.
Okay.
Today, we're going to start with Matthew Hedberg from RBC.
The followed on by Greg Moscowitz of Mizuho.
Uh huh.
Go ahead Matthew.
Okay.
Mr Hedberg.
Okay.
On mute yourself.
Yes.
Yourself.
Okay.
Okay.
All right, let's move on to Gregg Moskowitz.
From Mizuho.
Yeah.
Thanks for everybody so.
Gil you mentioned that 60 percentage of Gulf of 2000 had bought quanta.
Okay.
But my question is has significantly and do you think that you can cross sell.
L Cloud guard and of our pharmacy into your enterprise.
The all base because.
You can do that.
Yes.
That clearly it can drive.
The expansion rates quite a bit.
Okay.
Higher I think there's opportunities on both sides and yes, I think we can leverage.
The.
We've actually by the way the vibe.
Now some of our installed base into.
Okay.
Free categories. What we think are developed accounts, which are buying their fair share.
Yes.
But almost all of them can buy.
Yeah.
By some of the new technologies, the harmonium the cloud volume.
For.
Got it.
And what we call development the countless accounts.
Once the purchase checkpoint fraud.
And our good customers.
But there's plenty of potential in all three pillars.
Yes.
And what we call prospects can be the accounts that.
The RFP for very small ones or the non accounts at this moment and we.
<unk>.
And we can develop memory I think the potential is there I think we need to invest a lot in getting the higher in the organization and.
Yes.
Interest.
Yes.
So.
I think the T cells loves to hear.
All of ours.
Okay.
For it.
Mike here.
The.
The almost every seat.
Yes.
So.
Right.
Check point in.
Likes to hear about.
What we saw.
We need to develop a lot of around cut on discipline and going to work.
Yeah.
And not being.
Sure.
<unk>.
Okay.
No.
Doing a good job with the people with the already worked with the metric level.
Not the.
So the potential is there.
Excellent.
There and by the way, we're seeing more and more investment of actually.
Yeah.
Very good growth in the Infinity platform, when we sell customer not just individuals.
Products of the entire platform.
Uh huh.
And the generally speaking of the infinity customers theyre showing the high level of.
Satisfaction.
Sure.
<unk> they like the.
The fact.
Sure.
Fact that they can buy more.
More of in third and we're building more we're building more and more.
<unk>.
<unk>.
Okay.
Graham for dress them in net.
The customers.
Yes.
Okay.
Okay.
A couple.
Okay.
Yes.
Our next question is with Patrick coal.
Belt.
Okay.
Thank you so much for taking the time sorts of my question.
So the one I have here is around I guess, the go to market and see what these three new pillars quantum harmony.
And cloud costs.
<unk>.
Is.
Okay.
Is.
Yeah. So how are the sales.
<unk> team incentivized to sell.
Of these products I mean is there a change versus.
<unk>.
Since the kind of previous motion.
And of sending them individually just kind of any color there would.
Yes.
B.
Great.
Great.
The factor.
But we've consolidated the morale.
Round with the pillars give us the lot.
A lot of it.
The ability to manage its better each one of them.
Okay.
I mean, the harmonium the cloud growth.
What we call an overly sales.
Sales for.
Of course, the supports the sales team that provides the technique.
Expertise to getting into new technologies.
Sure.
All of these becomes a little bit easier for the sales.
Force.
The existing sales force says very clear measurements of.
About what's worth targets in.
Yes.
In each field.
Okay.
And what we need to do.
Sure.
And I think the main issue is really the of our own education and our own.
Yes.
The openness about.
<unk> being out there in the in being.
It's sort of aggressively.
If you think of 30 of enough.
And extending our prayer.
Yes.
Residents with existing customers and with new customers and.
I think there and we are seeing.
Thanks.
Now.
In some areas and some salespeople of all with the crack the code and they're doing great and many many hours of the potential to learn how to.
Okay.
And Patrick to your question of course, what kind of studies.
The important.
And part.
But the first of all should the commission.
Mission is aligned with these day.
The incentives to sample of the new dollars, the new customers the new cloud.
So on so it's aligned also with the.
All of that.
The.
And around.
Sure.
Around.
Just a clarification did you say that it doesn't overlay sales.
Team for.
<unk>.
Is.
You said it was that.
Correct.
Yes, we're close the garden.
All of them for Harman.
Right.
And again now that we've combined the.
A lot.
Price.
The college's makes me very very for.
Of course not now.
Yes.
Now in the overlay.
For <unk>.
If the carload urine.
For an extra.
Okay.
But the overlays are organized according to visit.
The.
Yes.
Okay.
Thanks, Patrick.
Okay.
Okay.
Patrick Our next question is with Jonathan Ho, followed by for Tivo, Bolani and Keith.
Yes.
Why sort of Jive.
Good morning, I, just wanted to get a sense of what Youre, saying, maybe Jeff can bring to the Americas.
Mark.
Is that could reaccelerate the growth there.
Okay.
And what <unk>.
Sure.
<unk> is the worst and making the <unk>.
Steve.
Europe that maybe you had a similar impact.
<unk>.
The.
In EMEA in the in the past couple of quarters.
The.
Thanks.
First I would like to share all over.
Sure.
The extend the secrets inside for loans.
Rod briefly touch.
Loans.
And I think Jeff brings them and Jesse the very.
Good.
Keith.
Because this is more of an just leaving sales forces the dealt with many many other professions.
And I would say.
More of a little bit more sophisticated than the typical.
The sales leads because they come from different backgrounds.
He came from Vmware, where he.
Yeah.
Built the cloud overlay of the clouds.
So when can it.
We look.
Look focus on the cloud.
The circle.
It definitely brings the.
Okay.
The.
The expertise and the understanding about.
About penetrating new Mark.
Yes.
Yeah.
Okay.
Understanding of the cloud and having all of the contract.
Yeah.
Contact of the relation.
Okay.
The ship, whether it's the cloud customers or the cloud.
Partners I think that has the huge.
Okay.
Huge value.
Due to the.
The.
So.
And the little bit about towards the and as I said I think we're very enthusiastic about.
For the Europe.
Yeah.
But I think one of half quarters.
For early too.
The judges don't want too.
The carry the way, but I think towards them gave us a lot of good insight.
Site.
For somebody that's come from the outside of the lot of interest.
Is the focus with our people.
Sure.
People should pay.
The two focus.
On new business.
And the lot of times you know.
Big huge part of our business in the renewal.
Okay.
The renewal of support contract renewal of the advanced security.
The subscription contract.
And the salespeople are doing a great job serving their customers, which is obviously very very poor.
I think towards them growth a lot of default.
That's really really important.
10.
Okay.
Of course keep your customers happy.
Pete.
The focus of about.
What's your business.
Now the way we look at that in many cases.
Mrs.
For the sort of guy.
Sure.
How many.
So just what's your total pipeline and your total deal size.
What's the.
The how many new opportunities the new by the way is with existing customers and with new customers equal.
Yeah.
But still new it's not just renewing the old cant.
Trucks.
For extending it by a little.
But the bulk.
Providing more security.
The.
<unk> and doing more for the customer and winning a new approach.
Project and I think that's the.
The big.
Focus that we have right.
Thanks.
Now the.
I think what people.
Sorry.
I can focus on the debt and in turn the lights.
That will focus on the right.
But if we take good care of the customers the renewals will.
Uh huh.
The focus should be.
I'll do.
Do we extend.
Okay.
Okay.
Thank you Jonathan.
And our next question.
<unk> seven for team of Bolani, followed by Keith Weiss.
Okay.
<unk> and <unk>.
Okay.
Yeah.
Good morning, Thank you for taking the questions Tom the funds for you.
I wanted to focus on the deferred revenue.
Specifically and no debt.
A two part question.
Can you talk to us about some of the drivers of the factors behind the acceleration in the long term net.
Yes.
Next this quarter and could each center of anything.
For.
One time in nature and also maybe.
At the <unk>.
Bigger picture in terms of the deferred revenue net.
D.
Especially as you see the infinity things panels.
Very quickly can you share with us the mix of the deferred revenue today between.
Subscription revenue of our blade revenue.
Versus traditional knee and that the teach out would be very helpful. Thank.
Yeah.
Right.
The first line is easy.
And if longevity.
Kevin.
Because they get more long term contract that you can invoice so it really depends the.
That's why I always when people ask me why we don't provide billing I said because of.
Of that can't really predict.
Predict.
So.
That really depends many times of customer budget, sometimes they.
Oh.
I wanted to pay the whole three years in advance.
<unk>.
Vance.
<unk>.
And if they make a long term contracts of your invoice for it and then you will see it in deferred revenues.
And sometimes.
Just for your contract but paid annually so.
The only.
First of you in the.
Sure.
Only.
The.
Which means that this quarter, specifically you had some.
On debt.
The.
Sure.
They also want.
Hi, Peter.
<unk>.
Hey, Ed.
True.
In advance and therefore, you see it in the long term because we have to invoice.
So you see it in the long.
But it doesn't mean that the total is different.
So I think when you look at.
Different.
I'm curious of the reflecting its in line with what.
The.
Victor.
Victor.
Okay.
And so some quarters it can be affected by a lot.
Large deal there wasn't.
And the beauty deal here.
Here. It was the few deals that were a healthy and good then also be needed.
That's all.
Thanks.
And.
Okay.
And the second question about the mix actually in the annual report we provide.
The sleep.
Slip between the product support.
Sufficient the deferred revenues.
So in general I wish that.
The major change.
At.
The previous quarter.
These very similar.
On the bigger picture I wish there was the.
Yeah.
Scripture growing of course faster.
Subtract.
The quite small because.
Typically the majority of it is recognized in the same quarter.
Except for things that depend on other items and therefore your weight.
Sure.
Wait for the majority.
Thanks for the subscription.
The support is typically in line with what you've seen the revenue.
Yes.
So the acceleration that you see typically.
The success.
Okay.
Very helpful. Thank.
Uh huh.
Thanks for the team.
Our next call of our next question is coming from Keith Weiss.
Why it's followed by <unk>.
Uh huh.
Yeah.
And Rob.
<unk>.
Excellent. Thank you guys for taking the question.
Oh.
I wanted to talk about sort of the the breadth of the product portfolio you guys have a really nice.
Breath of solutions.
And some of the numbers being presented at that cloud guard, 50% plus any of our growth is very striking.
Any chance, we could get a kind of a breakout of the relative sizing of these businesses.
The quantum armani versus.
Versus how guard of kind of how.
How they fit within the overall.
<unk> portfolio of number one.
Okay.
One the number two.
Q and you could talk a little bit about the.
The upsell potential into the base house.
How far into the base have you gotten with.
Yeah.
With some of the newer stuff like wildcard in harmony and what's the.
The opportunity on a go forward basis.
To get existing customers, who take on.
This is more of this portfolio.
John.
Yes.
Thank you Paul I'll start from the second part in terms of maybe.
It will extend the.
A little bit more on the financials.
Hi, there.
Thanks.
Uh huh.
The potential is definitely there and I think customers love it and for us.
The.
The lot of value.
He was sort of the value.
We'll see.
Thanks.
Okay.
Of the being a customer of one company is the fee.
Part of the things connect.
Okay.
The next and I think that's what we have.
Okay.
Sometimes the educate the customers about the fact.
With having different silos.
<unk>.
In cyber security usually means.
And because of that there are not just more complicate.
Between the.
Don't provide the high enough level.
All of us.
Right.
Because I always thought of you got.
Good.
The system.
From the analyses that what you've gotten infected file.
Fine job of security now is just not just the block.
By.
Okay.
The way pretty much all of our competitors if you receive an insert.
The filed by email, which is the number one Victor you received the <unk>.
Yeah.
And later on you will file that you've been in.
The.
In fact, our job.
Yes.
All of Us blockage, which we do which is unique.
<unk>.
And then make sure that this file doesn't go and doesn't exist.
From any of the other vector.
Yes.
So you can download it from the web.
P T fit exist on any end point, we recognize.
Okay.
Is that because he found it wise then we can deal.
The.
Everywhere, so yes, the potential is there.
There to sell it to more customer.
Sure.
And we do have several thousand.
And I voted over 4000 customers for example.
Ample for.
Okay.
The.
For the.
The.
Jim.
The cloud guard.
And most of these are of the what's been quantum customers before growth.
Okay.
So I mean the entrance sometimes it's true also from the other direction, but we get new customers.
We of cloud guard door harmonium, Zambia.
Adult for.
Quantum family, but most.
Okay.
Of it is our installed base of its being open.
And up learn more about.
The check.
The vision.
Yeah.
Can hear numbers, Tom do you want to give some color on.
Yeah.
I think the Allstate first I want to refresh of your dress code I think there has it changed from the people walking the talk.
The sound good for you and I had the Gil shred of T shirt on the if the official black.
Check point conference call Yeah, Okay.
Okay.
I would say the following the potential is huge because the.
Gil I don't want to provide additional information for what new shows of the stride, but when he was referring to.
Sure.
The global 2000 in the cloud the.
He said one out of five.
Five.
It shows the one out of five already.
Purchase.
<unk>.
That shouldn't.
Most of the huge potential because of the one hand, it's very early days both in harmony of the cloud.
We live in the same quantum if you look at the.
<unk>.
Yeah.
The sandblast.
The advanced threat protection, even that being paused.
Yes.
<unk>.
The.
The fishing.
So the potential to upsell is massive and all.
All of these units both in the.
The quantum in the cloud they need the harmony.
All of them the needed.
<unk>.
And the Infinity gives them I'll say the.
So to.
The best.
And how quick it will happen its really up to us.
Do.
The execution of the shale so the essentially is very large.
Sure.
Alright, thank you so.
Okay.
Thank you Grizzly Adams.
Out of our next caller circuit Kalia of followed by Rob Owens and great.
So.
Okay, Great can you hear me okay.
I kept the.
Yes.
Okay.
Okay.
Okay.
Excellent alright, thanks folks for taking my question here.
Harold just one housekeeping question.
Gil or Tal thanks.
Thanks for the Q2 guide.
Good.
Apologies if I.
I missed.
But did we mentioned anything.
About the full year.
And are there any assumptions.
So about.
Yes.
The full year.
Year debt of changed from the last time that you provided.
Sure.
As far as I'm concerned no day stays the same.
And if you remember when we talked at the beginning of the year about the the margin that we said about the fact.
Thanks.
Net.
We expect.
Sure.
The well to come out of COVID-19.
Sure.
Of it in Q1.
Sure Dan.
So it was slightly better as a result of that but nothing dramatic because we already embedded in the plan the portion of it.
When do you think he of a year from the.
Next for.
<unk>.
The last year.
Fully out of the.
Therefore.
Yeah.
For in the next quarter.
We expect to be in line with the budget that we did indeed.
Kate.
And.
We returning to the coffee two out of coffee those all the time.
While the comparable.
Sure.
Half of it.
The full effect.
Effect of say of coffee.
Okay.
The saving in.
Index.
So we pretty much in line and you can see the.
So in our guidance.
As.
Guidance.
For the next one.
Got it very helpful. Paul.
Okay.
Thanks.
Our next caller is Rob Owens.
One followed by Gray Powell and Ben Bolan.
Okay.
Yes.
Colin Thanks Kip.
And good afternoon guys.
In and around Infinity 2021.
One just wanted to get your thoughts around marketing.
<unk>.
And whether you would lean into this with incremental program.
Rams MDF.
Okay.
He asked for anything of the like and that's how you kind of answered.
The before but relative to.
A reopening how are you thinking.
[noise] about.
And timing.
So.
Timing. So first we are trying to be as aggressive as we tend to the marketing. We're also trying.
Smart because.
The most important for.
<unk>.
<unk>.
The.
The touch customers and get too.
And get their return.
No.
They'll just.
To get.
And now there's a lot of price achievement in terms of more marketing for example, you've seen the reach of our virtual conference.
Yeah.
For instance, we had the great increase in participants and met again after.
Do you remember.
Last year towards Q3.
Yes.
Free we were all locked at home.
Home people didn't have I mean, the the only way to connect with the world was participating in some conferences with.
Yeah.
Now that we get people to attend the conference that means that they are really interested in is important.
Yes.
And we love the fact with more customers are now.
Now participating in the where your 12 CPR.
The expert.
For example, there's a lot of other achievements that we have even when we have continued to maintain.
C level for.
Things such as Baidu.
Loans.
Okay.
Again, the great way to create the community that we need.
Okay.
Yeah.
Thanks.
And the visit and it's going very well at the in getting.
Interest.
Okay.
Yeah.
We've really really improve the aura.
It's actually not just to improve.
Sure.
The level of interest of its customers that have an hour of technology can go to Google We are now.
The.
Now on the the <unk>.
First for even position zero in many cases on the.
The.
On most of the keywords to search search for cloud security for a number one of the search.
Yeah.
Search.
Search for it.
<unk>.
Yes.
The cyber talks we are also I.
Thanks.
<unk>.
I believe of changing all the time position zero on cyber.
Okay.
The attack zero as of even before the for.
First searches.
It's the explanation of the term.
So we are getting the mind share and again look at many.
Of the cyber attack.
Sure.
True.
The cloud security network security.
At the end point.
Security.
We're number one or a number of zero in Google.
Okay.
Gil and almost all of these Google searches so I think the drives more of trust.
The two hours.
<unk>.
So I think we're making a lot.
A lot of focus of almost everything of the SCO part, which as I say by the way.
The report.
All the because that means with the content we provide to the world is the is being recognized.
And then maybe I would just add.
I think the main remember the majority.
The <unk> switches that are really of.
The head count in our people.
Paul.
Okay.
They're all of that we would like to see an accelerated growth of the head.
So you want more people. So we're working on that so to your question.
<unk>.
More people.
For instance.
Yes.
As part of our plan and guide.
But that's what we're aiming for all of this the main one.
Yeah.
And.
The more marketing of course, if the.
The Institute the way, we would love.
The two but the main focus is head count head count head count now and also a.
When you relate to the returned to normal G&A is very hard to know.
Sure.
Know how it will be.
10, because I think many people realize the.
Debt can be very productive most of them.
The.
All of the flight so.
How much will be debt and 20% of 50% and 70 percentage of beta.
They my intuition is is what girl of the way back line.
Net.
<unk>.
It is.
Will it be 50, or 60 or 70, I really don't know.
Debt.
And we would need to grow out like the rest of the all of them.
Net.
The.
See what is needed and it was the best serve.
Our customers any.
The.
Yes.
Alright. Thank.
Thanks.
Rob.
Next our next question is coming from Gray Powell of followed by Ben Bolan and Brian.
Thanks.
Okay, great. Thanks can you hear me okay.
Yeah for.
Okay.
At.
Yes.
Yes, so I guess.
Sure.
How should we think about the mix of product revenue and subscription trends.
It's in the context of guidance this year.
And then I think you hit on this in the prepared.
March is there is there anything.
Going on like for like a.
The ship for the infinity or bundled offerings.
Yes.
<unk>.
The impact that Nixon caused product revenue to be recognized.
More more random.
Yeah.
Okay.
I'll say, it's really in line with what I said in the script, it's a great question.
Sure Jonathan that we're dealing with for the last few.
Sure.
As the rest of day of world when more and more people moving into subscription model.
And I think infinity is for subscription, although it provides products and support.
Subscription and it is for subscription in terms of the.
I think model of the state with harmony of the sandwich.
Sure.
The.
So.
Cloud.
And if somebody buys jud.
No.
For the appliance is that each of product.
Yes.
So of course, the product line for the last few years is on the Brushy.
Just pricing.
It's not.
Got to have shifts you can see some quarters it better than the other but in general we always.
It can help.
Look at the.
As I keep saying look at the total GAAP.
Growth.
Sufficient takes longer to get into the.
The P&L, but it is all the time you see it also in the profit the net loss before.
Okay.
You see the subscription day.
Picked up.
Each quarter, which is nice.
The scale I think.
It was the per cent moving.
The 12%.
Yes.
Thank you I'll start out of the pickup.
The chip.
Sure.
<unk>.
And.
The coming from a lot of from the professional services for customers also the meters they implement.
Elements of robust.
<unk>.
Sure.
Ed.
For my intuition I can't guarantee it but the first will come and look at the total picture.
Yes.
And not the only on the true.
The action the long because the product in the plastic.
Plus the central minus 3% or.
Anyway, it depends how bundle it is the more of a bundle they want the more pressure it will put on the.
Hi.
Understood.
Okay. Thank you for.
Okay.
Much of thanks, Greg.
Our.
The next fall.
Okay.
Great.
Our next question is coming from Ben Bolan, followed by Brian Essex.
And filling out.
Woody which will most likely be our.
Our last question for.
Okay.
For the day.
Okay.
Good morning, good afternoon, thanks for taking the question.
Okay.
<unk>.
Okay.
Fairly specific.
But.
Interesting.
Okay.
The.
You've seen or you're thinking about component availability concerns for your appliances.
Yes.
Did you have free availability throughout the quarter or.
For.
Or are you anticipating any tightness.
Look forward.
Great.
Okay.
Our net debt.
Well.
Okay.
So actually we you know since COVID-19 started you have.
That Genie every quarter.
Something else that day has an allocation there.
There's some issues, we dealt with all of them very well.
Cash.
And also of the recent one there were dealing very well and.
I hope.
The one.
Hello.
But the we are.
So for in line with all.
Okay.
Alright.
Okay.
I think.
Excellent.
The by the way that can be from increasing pricing, but nothing that would be exactly of parent.
For you.
So some components of prices are moving up as the result of allocation is all around.
<unk>.
Okay.
The box alright, thanks, Ben.
Okay.
And then our net.
Next all of our next question is coming from Brian Essex.
Thanks.
Maybe.
Okay.
Brian.
Do you think.
<unk>.
Those are sort.
Okay.
First question for you and then I have a follow up.
You mentioned that you wanted.
The move your sales force into a more proactive high growth mode.
Thank you.
I mean.
He.
Yes.
If you take a step back.
What are your expectations.
<unk> for.
For high growth mode.
Speaking.
So to us what the what might that translate to.
<unk>.
Two for revenue.
Growth is as you consider where.
There.
Some of the core.
For me.
Maintenance.
Great.
<unk>.
In potential.
Will.
Appliance revenue may make track over the next few years.
Okay.
Some of the newer.
Sure.
Initiatives that you have driving subscription.
Growth.
<unk>.
Like if you had a set of a range of like you know I would like check point to be.
This level of growth that's Michael.
Yeah.
How would you frame.
From that first of the market will change over the.
The next one.
Years, we want to grow.
At least with.
The interest here.
Maybe.
But for me here.
Yes.
Here I'll share with you some internally.
I hope the what we.
But we are of very clear goal.
For salespeople they need to grow the newbies.
Business with regenerate.
But for the overall overarching.
<unk> targets.
Again, it may be a few variances depending.
This is the person, but that's the overall golfer.
For.
Thanks.
So first of all again it depends on the.
Yeah.
<unk>.
And over the year as the new business is growing by 20%.
It will.
It will follow the.
The risks the.
The subscription will eventually.
It's true.
Really all of the new business by the way for everything.
Because of the new.
Subscription you support.
Okay.
For the new products.
Doug for you.
Every day.
Okay.
But the focus growth the new business by.
Yeah.
For the entire.
Sales.
<unk>.
The first day.
And I think I don't know what will.
The target for 2022 of 2020 free that depends on market.
But the secured.
Please go ahead.
Okay.
Great.
That's super helpful and maybe just the follow.
Yeah.
All of you you obviously have.
Some fantastic domain expertise.
Around the 10 intelligence and research.
Search and we're seeing some of your peers.
Kind of work towards.
Towards maybe establishing of practice around that monetizing that how do you think of.
About potentially.
Yes.
Okay.
Italy, enhancing the monetization of.
Okay.
Of that intelligence of domain.
The next.
So you know in the future.
That's for sure.
First of all of our excellent point and I think.
Sort of thinking the Baltic long ago actually by the way did the few.
Jack for are doing.
Doing new projects.
<unk> threat level.
Okay.
Or kind of more.
Sure.
Okay.
More peak for <unk>.
<unk>.
<unk>.
Yeah.
The.
Yes.
The.
Let's say I'll give you an example.
Looking at the company.
Up for when they have applications in analyzing all of its application with our.
Yes.
So it's actually.
Throw project.
Projects that we are doing in the domain I can't resist.
Okay.
Zero.
Okay.
<unk>.
We have a very good incidents.
True.
The sponsor.
Exist for many many years and again.
No.
Again as the lot of for it these days with all the new way.
The supply chain of.
That's the fix they of amazing tools to provide.
Thanks.
Yeah.
The fetal most of our research today the raw.
Around timing of the things that are common with the world.
See we have.
You almost of one hundreds of publication from a range of interest.
The interest.
The steam over the.
For <unk>.
The losses.
Here.
We have for.
<unk>.
<unk>.
Unbelievable.
The vulnerabilities.
These like we'd like last summer of it was I mean, we found is when many more.
But one of its gas.
Like 10 out.
Out of.
For was the.
Yes.
The Microsoft.
Soft ex.
Change of.
Okay.
Not.
The changes.
Like for like the active directory.
The one.
One.
The show, though you can get into the DNS server the Wendy in the server of getting.
The directory.
So I mean this is an interesting area for.
But.
<unk>.
I think keeping that not just.
The for hire but keeping the research the openness is also very important.
That's.
Yeah.
As the kids.
Sure.
Couple of thank you Brian.
Okay.
Our last question is going to come.
From Sterling Auty from J P. Morgan.
Again, a sterling.
Okay.
Hey, guys.
Thanks I appreciate.
Got it so the changes.
Yes.
Or taken place here in North America, you mentioned Mister waters.
<unk>.
<unk>.
First day.
But I think there may have been one or two other changes as well in just one.
Thanks.
How much disruption to that call.
For the quarter looking at the results from the Americanism.
How do you anticipate trying to minimize any.
Any disruption as you go through kind of.
Yes.
The sales transition in North America.
Yes.
Erica.
I think we have the first I think overall for.
I'll, just say over again I don't want to provide too much.
Much inside the data, but I think in general what.
Ceiling with the level of the.
Attrition in checkpoint in general.
Yeah.
The.
The stable.
There was a decline in the attrition.
Yes.
The second and third quarter of last year due to the Corona.
But the market pretty much.
Sure.
Got back to the all the more than the usual.
I think we have some people that we don't like to lose with our excellent people to remember of our industry is very.
Yes.
Hot companies of Ray.
Raising tons of money.
And many people R R.
Looking for the opportunity wherever it is in the number of large company.
Yes.
And in many cases in some hot start up whenever you have the dream about.
<unk>.
Part of.
Of the.
The next Unicorn.
Okay.
Corn.
Some of it is on the <unk>.
Wanted the undesired.
And some of it the desired because there are people that again.
Again, we have a lot of very very.
Good.
I don't even the.
Let go of anyone.
Yeah.
One, but some people it is time to refresh and take them you look in your view of the world even for people that contribute to the very well.
Well.
Check point, so I think overall.
We are of good level of change.
Yeah.
I think initially we will.
I will expect more change because we need the VAT.
Yeah.
Change, but long term, we definitely want.
<unk>.
To keep.
For good people Ltd.
We do bring.
Brink's.
Thanks.
With new leadership.
Shoot.
True.
Okay.
The degree of new way.
As of managing and thinking.
Yes.
<unk>.
Simple.
Thank.
Okay.
Thank you guys.
Yes.
Yes.
Thank you for.
All of the joining.
Yes.
Okay.
Day later will have the presentation posted on the website for any of your debt.
Like do downloaded and review it and further.
Okay.
The other than that.
That we look forward to seeing you during the quarter at the conferences.
And.
Okay.
And look forward to.
Yes.
The next quarter's.
Earnings.
Yes.
The fall thank.
Yes.
Now let me share it if you have any feedback from the presentation. We will appreciate to get it done.
And get.
Yes.
On the format of the call we'd love to hear your feedback.
Because.
Okay.
Thank you thank.
Okay.
Thank you.
Bye bye have a nice day.
Okay.
Day.
Goodbye.
Okay.