Q2 2024 Check Point Software Technologies Ltd Earnings Call

And joining me today are founder and CEO Gil Schwed, and our Chief Financial Officer, Roy Golan before we begin I'd like to remind everyone that the conference is being recorded and will be available for replay on our website at checkpoint dot com during the formal presentation. All participants are in listen only mode.

Speaker Change: To be followed by a Q&A session. During the presentation checkpoints Representatives may make forward looking statements within the meaning of the securities and exchange acts of the early 19 hundreds. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward looking statements factors that.

Speaker Change: Could cause actual results to differ materially include but are not limited to those discussed in check point software latest filings with the Securities and Exchange Commission any forward looking statements made speak only as of the date hereof and checkpoint software undertakes no obligation to update publicly any forward.

Speaker Change: We're looking statements, except where required by law in our press release, which has been posted on our website, we present GAAP and non-GAAP results along with a reconciliation of such results as well as reasons for our presentation of non-GAAP information. If you have any questions. After the call. Please feel free to contact Investor relations by E Mail at.

Speaker Change: Kipp at checkpoint Dot Com now I would like to turn the call over to Gil Schwinn.

Speaker Change: On mute.

Speaker Change: On mute Gil.

Gil Shwed: Hi, everyone very very excited to be here today with both I think are very good results that we have been some exciting news.

Speaker Change: Before I move to <unk>, and let me share a little bit about the financial results, let me speak a little bit about the exciting are the big news that we have today and Vince the appointment of Madame two our CEO will be effective December and we've concluded a very favorable search looked at candidates.

Yeah.

[music].

Gil Shwed:

Gil Shwed: Around the world.

Speaker Change: A lot of very good people very experienced people and I think that's perfect candidate and I'm really excited about it because I know checkpoint for me it's like a.

Speaker Change: It's like a child in passing Vettori sponsor ability to somebody else they really need to find the perfect person I think but we found the perfect person.

Speaker Change: For those who don't own a dog he became the last 10 years, he established teammate and what it did was much more of them being.

Speaker Change: Like an incubator VC for startups, he really established himself.

Speaker Change: It's a key leader in the cyber space.

It's probably the most well known amongst C sold around the world to build a huge community of sea salt.

Speaker Change: Consult within that work with him, but he's able to work women I think it's a huge asset.

He has a law.

Speaker Change: Lot of vision experience in cyber establishing over 17 cyber companies so definitely knows.

Speaker Change: All the different aspects of cyber and how we can grow and where we should look for.

Speaker Change: And work with all the industry players.

Speaker Change: Any at any level.

Speaker Change: And he has a lot of experience both in the public space and not in the public space again I've been working we've known about for many years I've been working with him and spent many many dozens of hours in the past few months.

Speaker Change: And there is no better choice I'm I'm very honored with he decided to join checkpoint I feel that we can work together and he can lead checkpoint two and next phase. The next phase of success growth innovation and I think I'm very excited to work with them and I think that my management team should be freedom to to have such a <unk>.

Speaker Change: So that's the big news of today, and we get there we can switch to <unk> to go through the financials, which actually are also pretty good and I'll give a novel business update and I think you'll see that we have some very exciting and good news today.

Speaker Change: Thanks Gil.

Speaker Change: And I touched on my screen.

Speaker Change: So as gene mentioned the statistical. Thank you everyone for joining the call as Gill mentioned, we had a very good quarter.

Let's start with our revenues.

Speaker Change: And I think there's an EPS and revenues grew by 7% to $627 million and 5 million above the midpoint of our projections. Our EPS grew by 8% and two San from 17, $2.17, non-GAAP EPS and <unk> <unk> above the midpoint of all of our projections.

Speaker Change: Moving forward to the deferred revenues and billings so.

Speaker Change: Deferred revenues grew by 2% to $1.880 billion, while our short term deferred revenues grew by 3% $1.342 billion. Our calculated billings grew by 10% double digit growth of $620 million, while our current calculated billings grew by 7% to six.

Speaker Change: $22 million I think this quarter, we did see we mentioned a few times in the in the previous quarters. We did see very strong billing that came from strong performance in our business and second the Infinity Infinity, we do see a lot of.

Speaker Change: We did see a lot of utilization of allowances from Infinity business, we do see more bookings from Infinity and that's also drive and drive the growth that we've seen the beads.

Speaker Change: And in terms of product.

Speaker Change: Product and subscription revenues and we May we are in double digit drove 10% growth very high as we had in the last few years and again, we took we can see the turnaround that we've seen since the end of 2023.

Speaker Change: We hoped it would show a continuing and consistent growth of double digit growth in the next few quarters.

Speaker Change: And in terms of the Infinity I mentioned, the Infinity Infinity is doing great.

Speaker Change: Great what the ball for in terms of bookings and in terms of revenues a strong double digit revenues growth.

Speaker Change: <unk>.

Speaker Change: We in terms of booking Gil will discuss it later in the slide, but we had very nice.

Speaker Change: <unk> is an infinity is so again very strong performance from the infinity.

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Speaker Change: In terms of revenues by Geos. So we can see here a distribution.

Speaker Change: It's important to say that in terms of new business annualized bookings.

Speaker Change: Not revenues new business annualized booking all the Geos grew by double digits. So that's very positive in terms of revenues, it's usually come to quarter ill say, a later a chartered into revenues but.

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Disciplined I D followed by pound otherwise just press pound to continue.

Speaker Change: Again, we did see another quarter with double digit drop in youll be missed any of this book.

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Speaker Change: In terms of P&L Haig another strong operating performance our gross profit was 557 million 89% margin.

You have joined the meeting as an attendee and will be muted throughout the meeting and then passing veteran sponsor ability to somebody else they really need to find the perfect person I think but we found the perfect person.

Speaker Change: Our operating expenses increased by 11%.

Speaker Change: It was mainly driven by additional permits 81 acquisition that we had last year and it might be if we did the acquisition of parameter 81 in Q3. So there was indeed, so this quarter we had additional expenses.

For those who don't known above he became the last 10 years. He established you made and what he did was much more than being like an incubator or V. C. For startups. He really established himself as a key lead their toll in the cyber space.

Speaker Change: Not included in Alaska and last year in Q2, so that was the main and of course additional investment that we've done.

Speaker Change: Mainly around the sales and marketing.

A is probably the most well known amongst C sold around the world to build a huge community of phase he sold vet.

Speaker Change: <unk>.

Speaker Change: And then the net income grew by 4% to 246 million dollar while our EPS grew by 8% non-GAAP EPS to $2 17.

Vet, a consult within that work within with he's able to work women I think it's a huge asset.

Speaker Change: On July 11, we announced the expansion of our of $2 billion to our buyback program.

He has a lot of vision experience in cyber establishing over 17 cyber companies. So definitely knows all the different aspects of cyber and how we can grow and then where we should look for and where.

Speaker Change: Well you had up to 325.

Speaker Change: Quarter. So again, we all keep doing the buyback and we expanded the buyback so again something that we feel very positive about it.

Eric we've all the industry players.

Speaker Change: In terms of cash flow, our cash flow grew by eight 5% of operating cash flow grew by 5% to $200 million.

At any at any level.

And he has a lot of experience both in the public space and not in the public space again, I've been working with and I've known about for many years I've been working with vehemence spent many many thousands of hours in the past few months.

Speaker Change: As I mentioned the buyback we did another buyback of $325 million.

Speaker Change: Well shelf.

Speaker Change: And our cash balances cash marketable securities and deposits the market to approximately $1 billion.

And there is no better choice I'm I'm very honored that he decided to join checkpoint I feel that we can work together and he can lead checkpoint tool and next phase next phase of success growth innovation and I think I'm very excited to work with him and I think that my management team should be friedel tool to have such a.

Speaker Change: To summarize we find movie will move to Gill.

Speaker Change: Very strong financially.

Speaker Change: Adult living as any peers above the midpoint of our projections our quarterly revenues accelerated.

Speaker Change: Double digit drop in product and subscription revenues and another quarter with strong infinity business and Armani email another strong performance by our unlimited, becoming more and more significant to our business.

Leaders. So that's the big news of today and with that then we can switch to Rohit to go through the financials, which actually are also pretty good and then I'll give an another business update and I think you'll see that we have some very exciting and good news today.

Speaker Change: And as Paul store profitability with growth, both in EPS and operating cash flow.

Speaker Change: Youll Tam.

Speaker Change: And once again I'm happy to be back again, and let me go into some of repeat some of the highlights of Torrey shared so in terms of the business great results revenues and EPS in the upper end of our projections double digit growth in product and subscription revenues strong double digit growth with infinity, which is all good.

Yeah, Thanks, Neal on moment of Shanghai screen.

No.

So as Gill mentioned a festival. Thank you everyone Hey for joining the call and you mentioned, we had a very good quarter and ill start with our revenues.

Speaker Change: I will show you a little bit later in the presentation. We had some very large eight figure deals we had some very large infinity deals.

And I think there's an EPS and revenues grew by 7% to $627 million and 5 million above the midpoint of our projection. Our EPS grew by 8% add to 2017, a $2 seven intense non-GAAP EPS and two cents above the midpoint of all of our projection.

Speaker Change: We've continued to see a strong performance of our E mail sector.

Speaker Change: And the new quantum force set of gateways, which is a core of our business also started to show some good signs and take off the new models that we had which we call <unk>. So let's start and review some of these news first look at logos that embrace the infinity platform from checkpoint, which is not all the logos that we had this quarter but.

Moving forward to the deferred revenues in billing so.

Deferred revenues a grew by 2% to 1.880 billion dollar while our short term deferred revenues grew by 3% to 1.342 billion dollar our calculated billing grew by 10% double digit growth of six out of the $20 million, while all calling calculated billings grew by 7% to six.

Speaker Change: You just show you with people for the ice vehicles, how infinity wins in different sectors and what you can see here the different Geos Spark from New Zealand, New Zealand largest telecom provider Nasdaq.

And then in 'twenty 2 million dollar or in this quarter. We did see we mentioned a few times those in India and in previous quarters. We did see very strong billing that game took apart from stronger performance in our business and taken their infinity Infinity, we do see a little vague, we did see a lot of utilization of the allowances from infinity business with.

Speaker Change: Don't need to introduce NASDAQ This boom from the U S. Cotai Pacific a number of airlines with buys into the Infinity platform and sees the value in ppt workloads pension provider from Europe at least no name, maybe but also very important and shows with infinity can add value in every sector and every.

You'll see more a booking from infinity and that also drive and drive the growth that we've seen the beef.

Category.

Speaker Change: But this is not even the largest deal of the quarter actually this year the quarter. We had some very very large deals three of them together are $130 million in bookings here, we're talking about total contract value which is multiyear.

And in terms of a product and subscription revenues and we may we are in double digit drove 10% growth very high at this we had in the last day. If you will and again, we took we can see the turnaround that we've seen since the end of 2023, and we hoped it would show a continuing gain consistent a role of double digit growth in <unk>.

Deals, but still the commitment that we are showing to customers and the commitment with our customers showing to us we've free deals with our combined $130 million is amazing.

Z portal.

And in terms of the Infinity, I mentioned infinity Infinity doing way grades a yet another great what the ball for in terms of bookings and in terms of revenues that is strong double digit revenues grow.

Speaker Change: These are not just global 500 companies two out of the freezer actually global 50 companies and again the logic the value they like the security and show very long term commitment to work with us to continue to us and in all of these deals they've extended very installed base.

<unk>.

Are we in terms of booking Gail will later discuss at a later in the slide that we had very nice a eight figure b is an infinite DS. So again very strong performance there from the infinity.

Speaker Change: Wired more more products.

Speaker Change: And got to use more of the checkpoint technologies. So we are very very proud with those deals, especially as we came to this quarter.

And in terms of revenues by Geos. So a we can see hill added distribution and it's important to say that in terms of new business emulate booking a lot revenues new business analysts booking all the geos grew by double digits. So that's very positive St terms of revenues, it's usually come two hotels there later.

Speaker Change: And another sector, but we're seeing a lot of successes in the public sector and the public sector every government agency and versus <unk>.

Huge amount of them around the world. This quarter alone. We had 92 government agencies in 32 countries getting more and more of the checkpoint platform and you can see it goes from Australia to Asia to Middle East.

Profit into revenues, but.

Again, we did see another quarter with double digit Roc and you'll be missed analyst booklet.

A in terms of P&L Hague, and Addlestone operating performance a L. Gross profit was 557 million dollar 89% margin a our operating expenses increased by 11%.

<unk>.

Speaker Change: Africa, mainly in Europe, and then going.

Speaker Change: Left into.

Speaker Change: South America Central America, and North America I think this is a very good day.

That was mainly driven by a additional bi pyramid. The 81 acquisition that we had last year and he might be if we did the acquisition of permit 81 in Q3. So there was indeed, so this quarter. We had additional expenses. There that are we are not included in Alaska in last in Q2. So that was the main and of course additional investment that we've done.

Speaker Change: Next door.

Speaker Change: Victor by the way that requires a lot of efforts to win we need to prove the superiority of our technology in many cases, it's also very competitive in other business terms and I think winning that makes us very proud. So we chose the potential in different spaces, but we have moved.

A mainly around their sales and marketing.

Speaker Change: Moving a little bit to the technology side, and I think we said with a big focus of what everybody is doing in the world, but definitely what we're doing is around AI.

In our in India, and the net income grew by 4% to 246 million dollar while our EPS grew by 8% non-GAAP EPS to $2.17.

And AI everywhere delivery security and simplicity. So this is the.

A on July 11, we announced the expansion of our of $2 billion to our buyback program a L or you had up to 325 each quarter. So again, we all keep doing the buyback and we expanded the buyback so again something that we feel very positive about it.

Speaker Change: Tim.

Speaker Change: This is showing some of the AI innovations that we had.

Infinity Copilot doesn't even appear here is new because we launched it at the first quarter and <unk> conferences, but it's still very new how AI can assist security admins to manager.

A.

Speaker Change: Their check point Infinity infrastructure.

In terms of cash flow al cash flow a grew by eight 5% the operating cash flow grew by 5% to 200 million dollar as I mentioned the buyback we did another L. A buyback of $225 million by by the cobalt shell and our cash balances cash marketable securities and deposits the market of approximately $3.1 billion.

Speaker Change: Fred Cloud AI, we have four new threat prevention engines over 50 by now the cloud the guard family New AI powered engine to folio of to fully automate web application firewall again, another growth sector for us and the new one and last and not least we share hasn't come out yet, which is really new and will come out.

Speaker Change: To summarize we fly a movie and will move to Gil a very strong financial are adults living as any peers above the midpoint of our projection of quarterly revenues accelerated and made a double digit drop in product and subscription revenues and another quarter with strong infinity business and <unk>.

Speaker Change: In the coming weeks.

Speaker Change: Is a new product called Gen AI protect when we will actually show customers, what AI products to their users are using it's actually pretty amazing because theres hundreds of AI.

Speaker Change: Product with an organization that.

Speaker Change: Employees of an enterprise organization can use and are using and we can show that control what people can do from the organization, especially which content can be exported because one of the major.

Speaker Change: The email and other sponsor from a bomb unlimited, becoming more and more significant all business.

Speaker Change: And it's all store profitability it would grow both in EPS and operating cash flow.

Gil: Gil your Tam.

Speaker Change: Issue, we've using Gen. AI is not just using different tools, but also which information or we exporting from the organization to the AI. So organization will be able to set policies of using AI applications. So we see them.

Gil: Thank you Shirley and once again I'm happier to be back again, and let me go some of repeat some of the highlights venturi shared so in terms of their business, Great result, revenues and EPS in the upper hand of our projections double digit growth in product and subscription revenues strong double digit growth with infinity, which is all good.

Speaker Change: Also something very.

Very positive it's coming and again this is not the end we will come every quarter with new AI innovation to transform.

Gil: So you're a little bit later in the presentation. We had some very large eight figure deals. We had some very large infinity deals and we've continued to see a strong performance of our email and sector.

Speaker Change: The cyber security into the AI generation.

Speaker Change: So if I need to summarize I think we had strong quarter I'm very thrilled with the announcement on the dogs and <unk>. We will start in December. So we have a few more months to continue and I think no doubt, we'll get every week, we'll get more familiar with checkpoints. So we can start his leadership and his.

Gil: And the new quantum force set of gateways, which is a core of our business also started to show some good signs and take off of the new models that we had which we called force. So let's start and review some of the news first look at logos that embrace the infinity platform from checkpoint because not all the logos that we had this quarter.

Speaker Change: C O world here with the knowledge and the energy that's needed.

Speaker Change: In Q2 above the midpoint of projection Infinity continues strength and some of our largest dealer or not even infinity. Some of them are just using our gateways using our network security the $130 million of deals that I mentioned.

Speaker Change: But you just show you at peoples the iceberg Oleds.

Speaker Change: Now infinity wins in different sectors, and what you can see here is the different geos spark from New Zealand, New Zealand largest telecom provider NASDAQ don't need to introduce NASDAQ Louise for them from the U S. Cotai Pacific Another airlines with buys into the Infinity platform and sees the value in PPD worthless.

Speaker Change: Double digit growth in product and subscription, which is a very positive trend and continued new and innovative technologies and quantum in AI and harmony in the cloud guard continue that trend.

Speaker Change: Pension provider from Europe, unless no name may be but also very important and shows that infinity can add value in every sector and every.

Speaker Change: So I think we are.

Speaker Change: Category.

Speaker Change: Very thrilled with what's happened so far a little bit about projections for the next quarter. So our projection remains within the range that we said in the beginning of the year. So far the first half was slightly even on the high side of what we expected I truly hope for the second half will be even better.

Speaker Change: But this is not even the largest deal of the quarter actually this year the quarter. We had some very very large deals three of them together are $130 million in bookings here, we're talking about total contract value, which is a multiyear.

Speaker Change: Deals, but still the commitment that we are showing to customers and the commitment with our customers showing to us we free deal with our combined $130 million is amazing.

Speaker Change: This time, we're starting the projections a little bit early in the quarter. So we had limited data about the quarter.

Speaker Change: Pipeline and so on but still the projections are pretty healthy within the ranges revenues are expected to be between $615 million to $650 million EPS between $2 19 to $2 29.

Speaker Change: These are not just global 500 companies two out of the freezer are actually global 50 companies and again the logic the value they like the security and show their long term commitment to work with us to continue to us and in all these deals they've extended their installed base they acquired more more products.

Speaker Change: GAAP EPS is expected to be 43.

Speaker Change: Since less and again.

Speaker Change: Full year projections remain unchanged, we are definitely within the range maybe slightly towards the.

Speaker Change: Yeah.

Speaker Change: And got to use more of the checkpoint technology. So we're very very proud with those deals, especially as we came this quarter.

Speaker Change: Upper half after two quarters that were slightly better than expected. So thank you very much for listening and we'd be very happy to hear your questions and answer them.

Speaker Change: And another sector, but we're seeing a lot of success is in the public sector and the public sector is every government agency and versus huge amount of them around the world. This quarter alone. We had 92 government agencies in 32 countries getting more and more of the checkpoint platform and you can see it go.

Speaker Change: All right, ladies and gentlemen.

First step for the Q&A is going to be Joseph Gallo from Jefferies.

Speaker Change: With sell only al from TD Cowen to follow.

Speaker Change: From Australia to Asia to Middle East.

Speaker Change: Awesome, Thanks, guys and thanks for the question Gil Congrats on finding a new CEO in the next Guardian of your child can you just talk us through why a little bit more wine and <unk> is the right man for the job. Obviously this timeline was on the quicker side. So he must have checked a lot of boxes, where do you expect to sell to be the same as yours, and then where do you expect the biggest changes, particularly on the go.

Speaker Change: I am.

Speaker Change: Africa, mainly in Europe, and then going a left into south.

Speaker Change: South America Central America, and North America I think this is a very good the sector the sector by the way that requires a lot of efforts to win we need to prove the superiority of our technology in many cases, it's also very competitive on other business terms and I think winning that makes us very proud so which.

Speaker Change: The market side. Thanks.

Speaker Change: Firstly on <unk> me are very very different and personalities.

Speaker Change: It does I think is much more outbound has amazing charisma is an amazing leader and I think that will complement very very much what I can do area on can help and he can take it.

Does the potential in different spaces that we have.

Speaker Change: Moving a little bit to the technology side, and I think we said with a big focus of what everybody is doing in the world, but definitely what we're doing is around AI.

Check point to exactly where we need them I don't know how familiar you are or everybody on this call notice to personally with no doubt, but when we meet today, we'd see source in the industry every single C. So knows know Dov mentioned, no doubt and building that connection in the in.

Speaker Change: And AI everywhere delivers security and simplicity. So this is the same.

Speaker Change: This is showing some of the AI innovations that we had a a infinity copilot doesn't even appear here is new because we launched it at the first quarter in our Cps conferences, but it's still very new how AI can assist security admins to manager.

Speaker Change: In the last few years is an amazing achievement, which is something I follow or for the last five six years and the Dove has done a tremendous job on that I think.

Speaker Change: Their checkpoint infinity our infrastructure.

Speaker Change: <unk> knows how to both community will know how to communicate extremely well outside specifically with our target audience. The CSO.

Speaker Change: Threat cloud AI, we have four new threat prevention engines over 50 by now the cloud of the guard family New AI powered engine to folio of to fully automate web application firewalls again, another growth sector for us and the new one and last and not least VCA hasn't come out yet, which is really new and will come out.

Speaker Change: And the sea levels in different organization I think you will know very well how to motivate our internal team. He is also a very good track record with.

Speaker Change: With that working and motivating.

Speaker Change: In the coming weeks is a new product called Gen. AI protect when we will actually show customers, what AI product to their users are using it's actually pretty amazing because there's hundreds of AI.

Speaker Change: People inside and I think again, it's very different than me and that's exactly what I was looking for I was looking for something to complement and augment the skills. The checkpoint already has and the skills that I have and I think I found the perfect person for that.

Speaker Change: Product with an organization that employees of an enterprise organization can use and are using and we can show that control what people can do from the organization, especially which content can be exported because one of the major issues with using gen. AI is not just using different tools, but also which information.

Speaker Change: Great to hear thank you alright, and next steps <unk>, followed by Adam Tindle from Raymond James.

Speaker Change: Thank you so much good afternoon gents congrats on results Gil product revenue came in better than expected. The overall picture seems to be improving.

Speaker Change: Are we exporting from the organization to the AI, So organization will be able to set policies of using AI applications. So we see them.

Speaker Change: Do you see checkpoint as we're gaining share in the network security arena or is it coming from different market categories, and maybe just a word about that.

Speaker Change: Also something very very positive it's coming and again. This is not the end we will come every quarter with new AI innovation to transform.

Speaker Change: A big of twins.

Speaker Change: Placements or greenfield opportunities. Thank you.

Speaker Change: So I'll try to answer so first I think again I think it's early to say that we're gaining a lot of share but at least in the last few quarters when I watched our results versus competitors. It seems that we have growth stability to growth in the core network security in some of our key competitor had a decline there in the.

The cyber security into the AI generation.

Speaker Change: So if I need to summarize I think we had strong quarter I'm very thrilled with the announcement on the doves and UC Oh, we will start in December. So we have a few more months to continue and I think no doubt, we'll get every week, we'll get more familiar with checkpoints. So we can start his leadership and his.

Speaker Change: Last few quarters I'm talking about new business, new deals new gateways subscriptions are stable and growing and enjoying what we did in the past. So I think from that perspective, it's a positive one its still the tip of the iceberg because I think we can win a lot of market share in network security and I think there is plenty of potential in that core market.

Speaker Change: See overall here with the.

The knowledge and the energy that's needed.

Speaker Change: In Q2 above the midpoint of projection Infinity continues strength and some of our largest deal or not even infinity. Some of them are just using our gateway using our network security the $130 million of deals that I mentioned.

Speaker Change: If we're talking about the large deals that I mentioned, if it's a displacement it's not displacement its existing customers, but in a few of them I do believe that we are taking shared customers that have been dual vendors and shifted the big share from other vendors to us so it's.

Speaker Change: Double digit growth in product and subscription, which is a very positive trend and continued new and innovative technologies and quantum in AI and harmony in the cloud Guard continue.

It's deals that we've been working on for a long time and they represent the commitment it's not trivial again, it's not just the easy or not easy its not just simple.

Speaker Change: Continue that trend.

Speaker Change: So I think we are.

Speaker Change: Very freely votes have been so far a little bit about projections for the next quarters, our projection remains within the range that we said in the beginning of the year. So far the first half was slightly even on the high side of what we expected I truly hope for the second half will be even better.

Speaker Change: New deals it's deals with a lot of expansion in the and again in many.

Speaker Change: Many cases displacement of some competitive products.

Speaker Change: Thank you.

Speaker Change: Alright next step is Adam Tindle, followed by Tomer Zilber then bofa.

Speaker Change: This time, we're starting the projects a little bit early in the quarter. So we had limited data about the quarter.

Speaker Change: Okay. Thanks, Good morning, Gil Congrats on your results I wanted to ask a little bit more about recent industry events and crowd strike in the headlines obviously you've been in the industry. A long time I'm wondering if you might provide any reflections on this event and then separately. There's a view that this may cause freezing of spending I know you mentioned when you were giving our guidance.

Speaker Change: A pipeline and so on but still the projection are pretty healthy within the ranges revenues are expected to be between $615 million to $650 million EPS between $2 19 to $2 and 29.

Speaker Change: Little bit early for you to be recording, but any expectations or evidence of that freezing that you've built into the guidance. Thank you.

Speaker Change: GAAP EPS is expected to be 43.

Speaker Change: Senseless and again.

Speaker Change: Full year projections remain unchanged, we are definitely within the range maybe slightly towards the.

Speaker Change:

Speaker Change: I don't have too much incentive fees will cause change in behavior I think the need for security is huge I think what we've been seeing consistently in the industry in the last few months.

Speaker Change: Perhaps after two quarters that were slightly better than expected.

Speaker Change: Escalating level of risk just to be Super clear and I think when actually you look at the challenge first of all to happen.

Speaker Change: So thank you very much for listening and we'd be very happy to hear your questions and answer them.

Speaker Change: All right, ladies and gentlemen.

Speaker Change: <unk> crowd strike has little to do with cyber it's more about automatic athletes could have happened to non cyber vendor.

Speaker Change: First step for the Q&A is going to be Joseph Gallo from Jefferies with sell OE al from TD gallon to follow.

Speaker Change: We have some automatic updates now varies a bit by the way when I look at it both the customer and it's a vendor versus a big challenge there because in the past some organization, we're very careful not to let automatic update and to check automatic updates, which in many cases can prevent these type of.

Joseph Anthony Gallo: Awesome, Thanks, guys and thanks for the question Gil Congrats on finding a new CEO in the next Guardian of your child can you just talk us through why a little bit more wine and Dov is the right man for the job. Obviously this timeline was on the quicker side. So he must have checked a lot of boxes, where do you expect his salary or the same as yours, and then where do you expect the biggest changes, particularly on the go to <unk>.

Speaker Change: The image on the upper end. These days you see the level and the timeliness of security threats and you realize why you need automatic updates why there is a new.

Speaker Change: Market side.

Speaker Change: So first in a dozen mirrors very very different and personalities.

Speaker Change: There is dozens of new Cvs every months critical CBS CBS is the new threats that are discovered an error in critical software all types of software.

Speaker Change: Yeah.

Speaker Change: Dove is I think is much more outbound has amazing charisma is an amazing leader and I think that will complement very very much what I can do area on can help and he can take at the checkpoint to exactly where we need them.

Speaker Change: And Costa and then by the way there is if you look at the number of threats that are being identified growing.

Speaker Change: And the heck are they are learning how to exploit them very very quickly and that's why you need the automatic updates because you don't want to leave weeks and months. When you have known vulnerabilities that the entire world knows about it and you're vulnerable and Thats why automatic updates are important so there's a clear challenge in the industry I hope every.

I don't know how familiar you are or everybody on this call notice to personally with no doubt, but when we meet today, we'd see sort of in the industry every single CSO Nosedive mentioned, no doubt and building that connection in the in the last few years is an amazing achievement, which is something I follow or for AR.

Speaker Change: The one well.

Speaker Change: The last five six years and the Dove has done a tremendous job on that I think are an adult knows how to both community will know how to communicate extremely well outside specifically with our target audience the sea salt.

Speaker Change: We learned the lesson how to on one hand do more automatic updates on the other hand make sure that the quality of these automatic updates doesn't cause.

Speaker Change: Such damage and strategies out there and I think we're all humble in our industry in a row, we're learning from them, let's say, that's what we need to do.

Speaker Change: And the sea levels in different organization I think you will know very well how to motivate our internal team. He is also a very good track record with light revert working and motivating.

Speaker Change: Alright.

Speaker Change: Next up is Tom or Silverman from Bofa, followed by Dan Ives from Wedbush.

Speaker Change: People inside and I think again, it's very different than me and that's exactly what I was looking for I was looking for something to complement and augment the skills. The checkpoint already has and the skills that I have and I think I found the perfect person forget.

Speaker Change: Hey, guys. Thank you for the question I'm on for <unk> today.

Speaker Change: I just wanted to ask you talked previously about the opportunity for new business bookings to support I think revenue acceleration and maybe reach the top end of your guidance can you talk about any updated thoughts around that from last quarter trend.

Speaker Change: Great to hear thank you Alright next upsell Royale, followed by Adam Tindle from Raymond James.

Speaker Change: So I'll take it so I think we mentioned that also this quarter. We did see strong strong new business bookings, we did see double digit growth same as we mentioned also in the last two quarters.

Adam Tyler Tindle: Thank you so much good afternoon gents congrats on the results Gil product revenue came in better than expected. The overall picture seems to be improving.

Speaker Change: This is the turnaround that we talked about.

Speaker Change: Q4.

Do you see checkpoint as we're gaining share in the network security arena or is it coming from different market categories, and maybe just a word about there was a three eight digit wins are these displacements or greenfield opportunities. Thank you.

Speaker Change: And also this quarter was the strong performance, we did see a.

We strengthened the new business and that's in the end, we will we should translate into growth in revenues again, it needs to be consistent it should be more than two or three quarters, but in the end it will kind of be able to sustain this double digit drop in your business it will translate it into.

Speaker Change: So I'll try to answer it. So first I think again I think it's early to say that we're gaining a lot of share but at least in the last few quarters when I watched our results versus competitors. It seems that we have growth stability to growth in the core network security in some of our key competitor had a decline there in the loss.

Speaker Change: Higher revenues, though.

Speaker Change: Maybe just to double click on that since he said you know you need to see a couple of consistent quarters of that does that mean that we should consider.

Speaker Change: The back half to be more in line are you seeing less opportunity now than you saw maybe last quarter in terms of reaching the higher end of the guidance call.

Speaker Change: A few quarters I'm talking about new business, new deals new gateways subscriptions are stable and growing and enjoying what we did in the past. So I think from that perspective, it's a positive one at still the tip of the iceberg because I think we can win a lot of market share in network security and I think there is plenty of potential in that core market.

Speaker Change: I mean, we're still positive on the second half of it I mean, we're still positive about the second half of deal very positive about second half with.

We see the pipeline again mentioned that it's still too early for this first quarter, because we announced this earnings a bit earlier than usual, but still the pipeline looks healthy looks good.

Speaker Change: If we're talking about the large deals that I mentioned, if it's a displacement it's not displacement its existing customers, but in few of them I do believe that we are taking shared customers that have been dual vendors and shifted the big share from other vendors to us so it's a.

And mainly for even for the fourth quarter. It looks healthy it looks better. So I think we feel positive about the second half of <unk>.

Speaker Change: And hopefully we'll be able to show it to be in the upper end of the guidance, but against all interesting.

Speaker Change: And I would say I would just add.

Speaker Change: Super positive about the second half Q3 is always kind of sleepy quarter, and you kind of look and say what's going on because everybody is on vacation.

Speaker Change: It's deals that we've been working on for a long time and they represent the commitment it's not trivial again, it's not just the easy or not easy its not just simple a renewal deals it's deals with a lot of expansion in the and again in many cases displacement of some competitive products.

Speaker Change: Everybody is afraid that the customers will be on vacation and even the deals that we really won't be at the end by the way more Q3's end up pretty well because at the end of the World continues to move if I look at the indicators that are for the full year by our sales force I think we are mostly very positive higher level of engagement higher level of pipe.

Speaker Change: Thank you.

Speaker Change: Alright next step is Adam Tindle, followed by Tomer Zilber van of Bofa.

Adam Tyler Tindle: Okay. Thanks, Good morning, Gil Congrats on your results I wanted to ask about a little bit more about recent industry events and crowd strike in the headlines obviously you've been in the industry a long time I Wonder if you might provide any reflections on this event and then separately. There's a view that this may cause freezing of spending I know you mentioned when you were giving a guidance it is.

Speaker Change: <unk> and so on so I mean, I mean, I think over the last year and a half hour.

Speaker Change: <unk>.

Speaker Change: Commercial organization in rupiah did a very good job, establishing better cadence and better processes and better measures and as far as icd's process at the macro level, it's improved significantly.

Speaker Change: A little bit early for you to be recording, but any expectations or evidence of that freezing that you've built into the guidance. Thank you.

Speaker Change: Great. Thank you so much alright, well it looks like Dan Ives has on a television show so he's not going to be making it in today, but we have Gabriela Borges from Goldman Sachs, followed by Rob Owens.

Speaker Change: Am I.

Speaker Change: I don't have too much incentive fees will cause change in behavior I think the need for security is huge I think what we've been seeing consistently in the industry in the last few months is the escalating level of risk just to be Super clear and I think when actually you look at the challenge first of all to happen with.

Speaker Change: Hey, good evening I'll follow up on the macro question from earlier.

Speaker Change: Ryan I'm trying to reconcile some of the confidence companies to submit comments that you're making about pipeline.

Speaker Change: With crowd strike has little to do with cyber it's more about automatic athletes could have happened to our non cyber vendor.

Speaker Change: Comments from last quarter on overall budget, something generally tightened under pressure how should we think about from a macro standpoint, if one each on a macro level comment on a little bit under pressure again, a broader comment on a checkpoint comment can we actually bring up a stronger than usual project Bosch and second.

Speaker Change: We have some automatic updates numbers a big by the way when I look at it both with the customer and as a vendor.

Speaker Change: There is a big challenge there because in the past some organization, we're very careful not to let automatic update and to check automatic updates, which in many cases can prevent these type of.

Speaker Change: And that's what our second half thank you.

Speaker Change: First thing I'm always think predicting the future is always a big risk and began known invert and if it's an art I don't know we've seen years when no like every year, we see a budget flush towards year end, maybe Mike every year, except one year. It was I think.

Speaker Change: The image on the other end. These days you see the level and the timeliness of security threats and you realize why do we need automatic updates.

Speaker Change: Why there is a new.

Speaker Change: There is dozens of new Cvs every months critical CBS CBS is the new threats that are discovered an error in critical software all types of software.

Speaker Change: Hum.

Mike: Towards the end of 2022, and that's the only time I didn't see a budget flush in December.

Mike: I do hope with this year will be a very good year. It started we were.

Speaker Change: And Costa and then by the way that the if you look at the number of threats that are being identified as growing.

Mike: And actually the entire industry was under pressure and budgets were tight when we've actually seen pretty big growth. The first two quarters I just want to be super clear the rest of the industry reported about pressures. We solve these pressures in 2023 and 2024, we started by getting out of these pressures.

Speaker Change: And the hecker, they're learning how to exploit them very very quickly and that's why you need the automatic updates because you don't want to leave weeks and months. When you have a known vulnerabilities that the entire world knows about it and you're vulnerable and that's why automatic updates are important so there's a clear challenge in the industry I hope everyone.

Mike: And I do hope with therefore, the indicators that we're seeing will mark a good second half.

Speaker Change: One.

Speaker Change: We learned the lesson how to on one hand do more automatic updates on the other hand make sure that the quality of these automatic updates doesn't cause.

Mike: But let's not even the macro that's the short term one or two quarters. The the bigger trends in our industry every customer that we meet with whether it's the not just the seasonal which obviously carries about cyber but the CIO. The Ceos every company. We all believe it's more cyber security is needed.

Speaker Change: Such damage and strategies out there and I think we're all humble in our industry in a row, we're learning from that let's say, that's what we need to do.

Speaker Change: Alright.

Speaker Change: I also believe it where it doesn't grow without challenges how we can make the products collaborate how we can create things that are less vendors more unified architecture, how do we fight the future Fred's brings a lot of challenges in our industry I do think that we are super well positioned to perform.

Speaker Change: Next up is Tom or Silverman from Bofa, followed by Dan Ives from Wedbush.

Tom Silverman: Hey, guys. Thank you for the question of months' Artale omni today.

Speaker Change: I just wanted to ask you talked previously about the opportunity for new business bookings to support I think revenue acceleration and maybe reach the top end of your guidance can you talk about any updated thoughts around that from last quarter trend.

Speaker Change: Fill the needs of the customers and to take advantage of these trends, but no doubt and everybody minds with cyber security remains a high priority on even when times. When people are speaking about challenges in Ciber remains the only area of it people investing.

Speaker Change: So I'll take it so I think we mentioned that also this quarter, we did see strong strong new business bookings and we did see double digit growth same as we mentioned also in the last two quarters. It is the turnaround that we talked about there from Q4.

Speaker Change: Thank you.

Speaker Change: Alright next is Rob Owens, followed by his twin brother Hamzah firewall op.

Speaker Change: And also this quarter was the strong performance, we did see a strengthened.

Rob Owens: Thanks, Kipp and good afternoon guys.

Speaker Change: Strength in the new business and that's in the end, we land with <unk>, which should translate into growth in revenues again, it needs to be consistent it should be more than two or three quarters, but in the end it will kind of be able to sustain this double digit drop in your business. It will translate it into <unk>.

Rob Owens: Was hoping maybe you could touch on perimeter 81, I know the ROI you touched on it from an opex perspective, and driving some incremental costs year over year, but what about from a revenue perspective.

Rob Owens: Where is it relative to your expectations, how additive was it through the quarter and what are you seeing competitively on that front. Thanks.

Speaker Change: Higher revenues grow.

Speaker Change: Maybe just to double click on that since he said you know you need to see a couple of consistent quarters of that does that mean that we should consider.

So I think this is a very important area for us for now and for the future I think in terms of business. It continues to operate and deliver results with our main focus is actually integrate it into our main platform. Unlike for example, our email business, which can be sold as a complete separate product for add on product separate than the network security.

Speaker Change: The back half to be more in line are you seeing less opportunity now than yourself any last quarter in terms of reaching the higher end of the guidance call.

Speaker Change: No I mean, we're still positive on the second half of it I mean, we're still positive about the second half of deal very positive about the second half with.

Rob Owens: So customers do get the benefits of the collaboration and the better security engine and so on but the buyer and the products are not the same the entire.

Speaker Change: We see the pipeline again mentioned it is still too early third quarter, because we announced this earnings a bit earlier than usual, but still the pipeline looks healthy looks good.

<unk>.

Yeah.

Speaker Change: And mainly for even for the fourth quarter it looks healthy it looks bad also.

Speaker Change: <unk> E solutions needs to be tightly integrated into the same network security platform and most of our efforts today are about integrating them as far as I understand all these R&D efforts are on plan, we plan to demonstrate where to be ready to show. This super integrated platform that I believe.

Speaker Change: Feel positive about the second the second half of DRAM that hopefully, we'll be able to show it to be in the upper end of the guidance, but again too early to say and I would say.

Speaker Change: But I'm Super positive about the second half Q3 is always kind of a sleepy quarter and you kind of look and say what's going on because everybody is on vacation and the and the everybody is afraid that the customers will be on vacation and even the deals that we will always look at the end by the way more Q3's end up pretty well because at the end.

No other vendor has.

Speaker Change: <unk> integrated network security remote access security network security from the cloud and network security in a hybrid mode and on Prem all working together I think it's on plan and the R&D teams are doing their job.

Speaker Change: The World continues to move if I look at the indicators that are for the full year by our sales force I think there are mostly very positive higher level of engagement higher level of pipelines and so on so I mean, I mean, I think over the last year and a half an hour.

Speaker Change: Alright.

Speaker Change: Next step.

Speaker Change: Bob.

Brad Zelnick: Hi, Brad Zelnick.

Speaker Change: Commercial organization in rupiah did a very good job, establishing better cadence and better processes and better measures and as far as icd's process at the macro level, it's improved significantly.

Brad Zelnick: Thank you for the intro and Gil congrats.

Speaker Change: I plan to new CEO and for the strong results I think if we step back a little bit. It does seem like there's a lot of things that are reflected in your chart. When you just had double digit billings growth. The channel feedback has been positive lately, you've launched a number of new products and now you've appointed no dominance as the next CEO, who as many people know us very well respected.

Speaker Change: Great. Thank you so much.

Speaker Change: Alright, thanks, well it looks like Dan Ives has on a television show series that will be making it in today, but we have Gabriela Borges from Goldman Sachs, followed by Rob Owens.

Speaker Change: And the venture community has had a lot of <unk>.

Speaker Change: Successful exits recently with Talon dig in others.

Gabriela Borges: Hey, good evening I'll follow up on the macro question from Kevin Ryan I'm trying to reconcile that.

Speaker Change: And Michael It helps checkpoint a lot on the M&A front. So my question really is when you talk to that.

Speaker Change: Could I ask companies to submit comments I am thinking about pipeline with your comments from last quarter on around budget, something generally tight and under pressure how should we think about from a macro standpoint, if one each at a macro level comment on a little bit under pressure I cannot comment on a checkpoint comment can react.

Michael: And our checkpoint over the next five years.

Michael: He is very different from you in terms of style or are we thinking more of a radical transformation.

Speaker Change: Building on the existing strategy that you have.

Speaker Change: <unk> been executing for the last year or so.

First I think it's too early to say thinking about rejoin he will learn he will provide his experience I think we've already spent a lot of time together. So I think we will have bigger changes and hopefully.

Speaker Change: We did bring up a strong or unusual project Bosch and attack what our second half yeah. Thank you.

Speaker Change: First again, I'm always saying predicting the future is always a there's a big risk can began known invert and vets and art I don't know we've seen years. When you know like every year, we see a budget flush toward year end, maybe Mike every year, except one year. It was I think.

Im pushing for bigger changes, but I do think the checkpoint built an amazing foundation and we should use that foundation. That's the strength that we have we have loyal customers with loves us for many years, we have quality products that people love. So it's not that we need to know.

Speaker Change: Hum.

Speaker Change: Towards the end of 2022, and that's the only time I didn't see a budget flush in December.

Speaker Change: To take it to a different direction, we need to strengthen the things that work and augment them with additional things so that where these ideas IV my ideas. So far these ideas actually coincide quite well so we are.

Speaker Change: I do hope with this year will be a very good year. It started with when actually the entire industry was under pressure and budget. We're tight when we've actually seen pretty big growth. The first two quarters, but just wanted to be super clear the rest of the industry reported about pressures we solve these pressures in 2023 and 2024.

Speaker Change: So I think we are and again coincides means that some of them we already committed in checkpoint and we are doing them and some of them, we still need to think about them and analyze them and I think it's too early to say, which direction we will choose.

Speaker Change: We started by getting out of these pressures.

Speaker Change: And I do hope with therefore, the indicators that we're seeing will mark a good the second half.

Speaker Change: But I think we will do more than I think.

Speaker Change: In every respect and innovation and in.

Speaker Change: In go to market and M&A I think I'm looking to.

Speaker Change: But let's not even the macro that's the short term one or two quarters. The the bigger trends in our industry every customer that we meet with whether it's the larger the seesaw, which obviously carries about cyber but the CIO. The Ceos every company. We all believe it's more cyber security is needed we also.

Speaker Change: Energizer and do more in checkpoint.

Speaker Change: Thank you.

Speaker Change: All right next up we have Brad Zelnick, followed by Roger Boyd.

Speaker Change: Great.

Speaker Change: Thank you.

Brad Zelnick: Congrats guys on all the success.

Speaker Change: Believe it where it doesn't grow without challenges how we can make the products collaborate how we can create things that are less vendor is more a unified architecture, how do we fight the future Fred's.

Brad Zelnick: I don't know if <unk>, it's good to see the continued investments in sales and marketing and the results clearly paying off.

Speaker Change: Should we think about where we are in the go to market investment cycle and can you give us some color on sales versus marketing, maybe direct versus indirect and if anything structurally is changing in terms of channel rebates or anything else that it ultimately.

Speaker Change: A lot of challenges in our industry I do think that we are super well positioned to.

Speaker Change: Fulfilled the needs of the customers and to take advantage of these trends, but no doubt and everybody minds with cyber security remains a high priority on even when times. When people are speaking about challenges in Ciber remains the only area of its people investing.

Speaker Change: Ends up on that line. Thank you.

Speaker Change: Or you can try it yeah, yeah. So on the sales and marketing investments. So we keep investing I think we all keep I think it would keep buying cell says it till we actually grew our self.

Speaker Change: Thank you.

Speaker Change: All right up next is Rob Owens, followed by his twin brother Hamzah firewalls.

Speaker Change #100: <unk> say in the last few quarters again not in the same pace that we've done.

Robbie David Owens: Thanks, Kipp and good afternoon guys.

Speaker Change #100: We've done a year ago, two years ago, but we're investing a lot.

Robbie David Owens: Was hoping maybe you could touch on perimeter 81, I know the ROI you touched on it from an Opex perspective.

And good luck on that we will continue we're going to continue to think that in the end, we see much better productivity from the sales force because as we talked a few quarters ago. We mentioned that we added many new sales folks that joined US say 12 months ago nine months ago and it takes time to be productive we see these productivity now in the last two quarters already been talking about this.

Robbie David Owens: Driving some of the incremental costs year over year, but what about from a revenue perspective, where is it relative to your expectations. How additive was it through the quarter and what are you seeing competitively on that front. Thanks.

Speaker Change: So I think this is a very important area for us for now and for the future I think in terms of business. It continues to operate and deliver results with our main focus is actually integrate it into our main platform. Unlike for example, our email business, which can be sold as a complete separate products for add on product separate than the network security.

Speaker Change #100: Quarter, we do see the productivity.

Speaker Change #100: The much better productivity that the.

Speaker Change #100: From the sales force.

Speaker Change #100: In terms of.

Speaker Change #100: And in the electrode again, we continue to invest significantly also on marketing in direct marketing and we was part of the plan to invest more in marketing.

Speaker Change: So customers do get the benefits of the collaboration and the better security engine and so on but the buyer and the products are not the same the entire.

Speaker Change #100: And so that said definitely also we see the way we see the investment there and hopefully we will see also the accelerated growth coming from that.

Speaker Change: A <unk> E solutions needs to be tightly integrated into the same network security platform and most of our efforts today are about integrating them as far as I understand all these R&D efforts are on plan, we plan to demonstrate where to be ready to show this super.

Speaker Change #100: And that said that again, we see the results and we hopefully will see their results also in the next few quarters.

Speaker Change #100: Gail you want to add something though.

Gail: We hear good feedback from the channel partners about the new channel program and again some of it I don't think it's just.

Gail: Financial parameters I think its the relationship I think it's the flexibility I think it's tackling the joint challenge that we have which is providing better security to more customers and if we do that right I think the opportunities are huge.

Speaker Change: Our integrated platform at I believe no other vendor has of integrated network security remote access security network security from the cloud and network security in a hybrid mode and on Prem all working together I think it's on plan and the R&D teams are doing their job.

Gail: Thank you.

Gail: Alright next step as Roger Boyd, followed by <unk> Kalia.

Gail: Thanks, Kip Gil the partners, we're talking to are suggesting the SaaS interest is starting to pick up again and as you get closer to being able to sell the full single vendor SaaS SSD product would love to just come back to SaaS fee per second and get your comments on the pipeline your ability and the confidence you have in selling into the install base will just any any update you can.

Speaker Change: Alright.

Speaker Change: Yeah.

Speaker Change: Next up.

Speaker Change: Bob.

Brad Alan Zelnick: Hi, Brad Zelnick.

And thank you for the intro and Gil Congrats on a plan to the CEO and for the strong results I think if we step back a little bit. It does seem like there is lot of things that are reflecting a checkpoint you just had double digit billings growth. The channel feedback has been positive lately, you've launched a number of new products.

Speaker Change #102: When you see that starting to contribute.

Speaker Change #103: So we hear similar feedbacks us it remains a very interesting area I think customers at the end, we'll need a unified platform. They don't want five network security platform one for remote employees one for site to site one for cloud access one for data centers. They will want one I don't think that there is any other vendor with <unk>.

Speaker Change: And now you've appointed <unk> as the next CEO, who as many people know us very well respected in the venture community has had a lot of.

Speaker Change: Successful exits recently with Talon dig and others.

Speaker Change #104: Apply one we are working on it we've acquired the right technologies and were investing in making it one we do make progress in selling sausage stand alone.

Speaker Change: And Michael It helps checkpoint a lot on the M&A front. So my question really is when you talk to that.

Speaker Change #104: But the main kind of thing that we need to achieve is with the integrated platform and I hope it will be reach it but we'll reach it.

Speaker Change: And our check point over the next five years.

Speaker Change: You said he is very different from you in terms of style or are we thinking more of a radical transformation.

Speaker Change #104: Faster than they are and some people expect.

Speaker Change: Building on the existing strategy that you've been executing for the last year or so.

Speaker Change #105: All right next up is second to Leah followed by Joe P Fishbein Junior.

Speaker Change: First I think it's too early to say thinking about rejoined he will learn he will provide his experience I think we've already spent.

Speaker Change: Spent a lot of time together, so I think we will have bigger changes and hopefully I.

Leah: Okay, Great Hey, guys. Thanks for taking my question here and Echo my congrats on bringing the Dov onboard.

Speaker Change: I'm pushing for bigger changes, but I do think the checkpoint built an amazing foundation and we should use that foundation. That's the strength that we have we have loyal customers that loves us for many years, we have quality products that people love. So it's not that we need to take it to a different direction, we need to strengthen the things that.

Speaker Change #107: Or maybe maybe my question is for you can we just talk about what percentage of billings is coming from from Infinity and congrats by the way and those three very sizable deals can you talk about maybe how much of the $130 million in PCB impacted billings as well in the quarter.

Speaker Change: Work and augment them with additional things so that where these ideas ivs are my ideas. So far these ideas actually coincide quite well so we are.

Speaker Change #108: Yeah. So I'll start with the second question. So in terms of the PCB. So one of these deals actually the third largest one well effected the billing because it was upfront billing multiyear billing and the other one didn't affect significantly because again it was upfront one year upfront so it's not something yet.

Speaker Change: So I think we are and again coincides means that some of them we already committed in checkpoint and we are doing them and some of them, we still need to think about them and analyze them in the I think it's too early to say, which direction we will choose.

Speaker Change #108: It's again something like Illinois.

Speaker Change #108: In terms of your next question about the Infinity billing it tough to quantify it I would say that again, because the infinity, becoming more and more significant.

Speaker Change: But I think we will do more and I think.

Speaker Change: In every respect and innovation and in go to market in M&A, I think I'm looking to add.

Speaker Change #113: <unk> of the business, we mentioned last quarter about 50% of our business.

Energizer and do more in checkpoint.

In terms of bookings and revenue and Thats. All in terms of revenues is infinity actually in bookings and much more than that so again the thing with infinity. There is lumpiness in some fluctuation in the billing because it really depends on the payment down the billings terms and so there. So again, it's and also depends on some time on the customer needs.

Speaker Change: Thank you.

Speaker Change: Alright next step we have Brad Zelnick, followed by Roger Boyd.

Speaker Change: Great.

Speaker Change: Thank you.

Speaker Change: Congrats guys on all the success.

Speaker Change: And I don't know if our gilroy, it's good to see and our continued investments in sales and marketing and the results clearly paying off how should we think about where we are in the go to market investment cycle and can you give us some color on sales versus marketing, mainly direct versus indirect and if anything structurally is changing in terms of channel reach.

And when he needs to the product, which will utilize the allowance at the bank. So that they can be useful. So I think this quarter, we did see that.

Speaker Change #108: Very strong demand for the infinity.

Speaker Change #108: Also in terms of utilization of the allowances.

Speaker Change #109: Did they have so I think that also affected the billing.

Speaker Change: <unk> or anything else that it ultimately.

Speaker Change #109: But I think again in the end the bidding grow and besides the billing pool because of the strong performance this quarter.

Speaker Change: Ends up on that line. Thank you.

Speaker Change: Or you can try yeah, so on the sales and marketing and investing so we keep investing I think we all keep I think it would keep buying self bill. It says it till we actually grew our self.

Speaker Change #111: Congrats thanks guys.

Speaker Change #110: Alright, Joe P. Fishbein junior followed by John the Fuji.

Speaker Change #112: Thanks for taking the question Gil for you you mentioned a lot of new AI initiatives and security obviously, it's been a pretty hot topic. What I'm curious to know is is this driving incremental revenue or do you see this as just.

Speaker Change: <unk> say in the last few quarters again not in the same pace that we've done we've done a year ago two years ago, but we're investing a lot and we're investing a lot on that we will continue we're going to continue to think that in the end, we see much better productivity from the self help because as we talked a few quarters ago. We mentioned that we added many new sales voltage.

Speaker Change #114: Gaining competitive differentiation from a product perspective.

That's the 12 months ago nine months ago, and it takes time to be productive we see this productivity now in the last two quarters or even talking about this quarter, we do see the productivity and the much better productivity that the compound is helpful.

Speaker Change #115: I think right now it's competitive differentiation, it's not yet at the revenue stage again Infinity Copilot. For example is already used by hundreds of customers, but I don't think that it's even have any revenue impact right now.

Speaker Change #115: Look three five years from now I think that we can drive a lot of value and generate.

Speaker Change: In terms of.

Speaker Change: And in the electro those again, we continue to invest significantly on marketing in direct marketing and we was part of the plan to invest more in marketing.

Speaker Change #115: More revenue based on visibility.

Speaker Change #116: Thank you.

Speaker Change #118: Alright next step as John the Fucci, followed by Ben Bolan.

Speaker Change: And so that said definitely also we see the way we see the investment there and hopefully we will see also the accelerated growth that come from that.

John: Thanks Kipp.

Speaker Change #118: Well Gil it's nice feedback covering you.

Speaker Change #117: I remember your vision for Infinity.

Speaker Change: And that said that again, we see that.

More than five years ago.

Speaker Change: And we hopefully will see their results also in the next few quarters.

And the world didn't seem like it was ready for it then and I'm not even sure that checkpoint was really ready to provide it though the vision was there and now it's even sort of been copied by some of your peers out there I guess.

Gil: Gil you want to add something or not I think we hear good feedback from the channel partners about the new channel program and again some of it I don't think it's just a financial parameters I think its the relationship I think it's the flexibility I think it's tackling the joint challenge that we have which is providing better security to more customers.

Speaker Change #123: Because youre hearing Roy's mentioned infinity several times in the strength and you have to is the market now ready is it time for sort of an inflection point.

Speaker Change #120: In this or should we continue to think that this is still going to take further years for customers to evolve and just continue to grind forward towards this vision.

Speaker Change: If we do that right I think the opportunities are huge.

Speaker Change: Thank you.

Speaker Change: Alright next step as Roger Boyd, followed by <unk> Kalia.

Speaker Change #121: It's a very good question.

Roger Boyd: Thanks, Kip Gil the partners, we're talking to you are suggesting the SaaS interest is starting to pick up again and as you get closer to being able to sell the full single vendor Saatchi <unk> Saatchi product would love to just come back to SaaS It per second and get your comments on.

Speaker Change #122: I hope with that we are more we are more ready now than we were before and I hope it customers are more ready now than they were before I definitely think that the world needs. It when you do hear from every CSO virtual Wan and they want the best security on the upper hand, I do want to consolidate vendors for example, I do see that from security value. The fact that you have.

Speaker Change: The pipeline you're building the confidence you have in selling into the install base and just any any update you can on when you see that starting to contribute.

Speaker Change #122: <unk> or even 50 different security technologies, if they don't collaborate.

Speaker Change: So we hear similar feedback sassy remains a very interesting area I think customers at the end, we will need a unified platform. They don't want five network security platform one for remote employees one for site to site one for cloud access one for data centers. They will want one I don't think that there is any other vendor with cancer.

Speaker Change #122: It's not only that you don't get the full value from the technologies required to create the same hole.

Speaker Change #122: Blocking malware from getting you an email doesn't mean that you cannot downloaded 22. Your GMA for example, because one is E mail security and one is web download security and another one is the security to your mobile device and another one is the number of Victor when if I can get into the company. So I think the value, but we are.

Speaker Change: One we are working on it we've acquired the right technologies and were investing in making it one we do make progress in selling sassy stand alone.

Speaker Change: But the main kind of the thing that we need to achieve is with the integrated platform and I hope it will be reach it but we'll reach it.

Speaker Change #124: Providing with our platform the collaboration the consolidation.

Speaker Change #124: Is very very important for our customers that all signs by the way for the mid size and small ones. They can't afford multiple system for the large one it's a big savings and not only that it's additional securities. So each customer can see from different perspective, how far are we in the world and that I think we're still in the single digit of customers.

Faster than they are and some people expect.

Alere: All right next up is second Alere, followed by Joe P Fishbein Junior.

Speaker Change #124: But actually standardize on fewer number of vendors and I think the potential is for that to be.

Speaker Change: Okay, Great Hey, guys. Thanks for taking my question here.

Speaker Change: Echo my congrats on bringing the Dov onboard.

Speaker Change #124: <unk> bigger or more.

Speaker Change: Our immediate maybe my question is for you can we just talk about what percentage of billings is coming from from Infinity and congrats by the way and those three very sizable deals can you talk about maybe how much of the $130 million in PCV impacted billings as well in the quarter.

Speaker Change #124: A big percentage of customers will standardize on the on the more consolidated architectures.

Speaker Change #124: Thank you Gill and by the way I really like the combination of U and adopt because I know in too. So that's wonderful good luck. Thank you.

Speaker Change: Yeah. So I'll start with the second question. So in terms of the PCB. So one of these deals actually the third largest one or effected the billing because it was upfront billing multiyear billing and the other one didn't affect significantly because again it was upfront one year upfront slick markdown king it it's again something Greg, Illinois in terms of.

Speaker Change #125: Alright, guys.

Speaker Change #125: Ben Bolan, followed by and June Winski.

Kip Gil: Thanks Kip good at.

Ben Bolan: Afternoon, everyone.

I was hoping you could share any perspective, you have on new logo momentum in particular and how.

Speaker Change #128: Any changes that you've made to direct and partner incentives. This year may be influencing that.

Next question about the infinity billing it tough to quantify it I will say that again with the infinity, becoming more and more significant and awful lot of the business, we mentioned last quarter about 50% of our business.

Speaker Change #128: That pipeline through year end and the 2025.

Speaker Change #129: We do we have any data yes. So in terms of new logo, Ed we had a good quarter in terms of new logo continuing the trend that we had also in the Q1 actually on our business from new logo and all nicely this quarter compared to last year.

Speaker Change: In terms of bookings and revenue and therefore in terms of revenues is infinity actually in bookings and much more than that.

Speaker Change: So again the thing with Infinity, there is lumpiness in some fluctuation in the bidding because it really depends on the payment down the billing them.

Speaker Change #129: And we see very nice traction in America with very nice new logos.

Speaker Change: So there so again, it's and also depends on some time on the customer needs and when he needs to the product to utilize the the allowance at the bank. So that they can meet useful. So I think this quarter, we did see that.

Speaker Change #129: On the government side.

Speaker Change #129: So I think again, a very good quarter in terms of new logo in terms of the program for channels. So we are we started already from that in the second half of last deal.

Speaker Change: Very strong demand for the infinity.

Speaker Change #129: And we have it.

Speaker Change #129: Special <unk> special program for brink for partners for bringing new logos and together with the new partner program that we launched that give them even more incentive to bring new logos. So I think the incentive become even more attractive and we see right now I mean again based on the last two quarters, we do see a very.

Speaker Change: Also in terms of utilization of the allowances that they did they had something that also affected the billing.

Speaker Change: But I think again in the end the bidding grow and beside the billing pool because of the strong performance this quarter.

Speaker Change: Congrats thanks guys.

Speaker Change: Alright, Joe P. Fishbein junior followed by John the Fuji.

Speaker Change #129: The positive momentum.

Speaker Change #129: From new logos again, we think that we should bring much more new logos and in terms of the.

Gil: Thanks for taking the question Gil for you you mentioned that a lot of new AI initiatives and security, obviously, it's been a pretty hot topic.

Speaker Change #129: In terms of a quantity and value, but still we do see a very nice improvement compared to the first half of last year.

Speaker Change: I'm curious to know is is this driving incremental revenue or do you see this as just.

Speaker Change #130: Thank you I will join <unk> and say that I think we're seeing some good trends I've been doing reviews for all our different countries around the world in different areas and see what's airplanes I think theyre all understand the importance of winning more.

Speaker Change: Gaining competitive differentiation from a product perspective.

Speaker Change: Right now its competitive differentiation, it's not tier kit revenue stage again Infinity Copilot. For example is already used by hundreds of customers, but I don't think that it's even have any revenue impact by now I think if we look for five years from now I think that we can drive a lot of value and generate.

Speaker Change #131: More new logos, they're doing a good job and we can do so much more.

Speaker Change #131: So I'm actually I like these calls because I see that people understand put it as a priority and I think we all realize that we can do more.

Speaker Change #131: Alright.

Speaker Change #131: <unk>.

Speaker Change: More revenue based on visibility.

Speaker Change #132: <unk> and junior Winski, followed by Joshua Tilton.

Speaker Change: Thank you.

Speaker Change: Alright next step as John the Fucci, followed by Ben Bolan.

Joshua Tilton: Okay. Good afternoon, everyone. So thank you for taking my question and congrats on a nice quarter.

John Fucci: Thanks Kipp.

Speaker Change #134: You had a lot of a positive improvements.

John Fucci: Well Gil it's nice feedback covering you.

Speaker Change #135: This quarter highlighted by the large deal activity I think but I wanted to ask about your EBIT and your free cash flow because both had pretty lackluster growth. This quarter. So I'm, just wondering how youre expecting EBIT and free cash flow growth over the next one to two years as you turn the company over to <unk> CEO.

Gil: I remember your vision for Infinity.

Gil: More than five years ago.

Speaker Change: And the world didn't seem like it was ready for it then and I'm not even sure that checkpoint was really ready to provide it though the vision was there and now it's even sort of been copied by some of your peers out there I guess it on because youre hearing Roy's mentioned infinity several times in the strength and you have to is the market now.

Speaker Change #136: But I can comment about the Dci about 2024, and again I think that the EBITDA and.

Speaker Change #137: So it gets really don't provide any any absolute don't provide any any guidance for EBITDA and free cash flow but.

Speaker Change: Already is it time for sort of an inflection point in this or should we continue to think that this is still going to take further years for customers to evolve and just continue to grind forward towards this vision.

Speaker Change #138: But I can tell you that we discussed when we gave you the guidance at the beginning of this was I mean, the numbers are on plan in terms of operating margin in terms of EBIT. We mentioned it would be between the area between 42% to 43% in 2024 because of the acquisition that we had and the investment that we're doing around integration of parameter 81.

Speaker Change: So very good question.

Speaker Change: I hope with that we are more we are more ready now than we were before and I hope it customers are more ready now than they were before I definitely think that the world needs. It when you do hear from every C. So virtual Wan and they want the best security on the other hand, I do want to consolidate vendors for example, I do see that from security value. The fact that you have.

Speaker Change #138: We discuss it in the last day, we had somewhere in discussions about the products. So there is a lot of investments around it. So we knew that 2024.

Speaker Change #138: I would see it.

See more investment that will cause the margin to be in this area in terms of free cash flow, it's really on the bidding and this quarter. We all operating cash flow grew by 5% free cash flow I think 4%, so and again this quarter, we see that the bidding came by 10%. So hopefully if we can keep the trend.

Speaker Change: <unk> or even 50 different security technologies. They don't collaborate you don't it's not only that you don't get the full value from the technologies required to create the same whole.

Speaker Change: Blocking malware from getting you an email doesn't mean that you cannot download a 'twenty two your GMA for example, because one is E mail security and one is web download security and another one is the security to your mobile device and another one is the number of Victor when it filed can get into the company. So I think the value what we are.

Speaker Change #138: In the buildings and do it on the Gulf of the billing the free cash flow will grow also so it depends on the billing and as long as we see the broke into billing.

Speaker Change #138: Also the free cash flow to go in terms of the next two years.

Speaker Change #138: Too early to say about 2025.

Speaker Change: Providing with our platform the collaboration the consolidation.

Speaker Change #139: Again, I think we have a very healthy operating margin very healthy habit margin. So.

Speaker Change: Is very very important for customers of all sizes by the way for the mid size and small ones. They can't afford multiple system for the large one it's a big savings and not only that it's additional securities. So each customer can see it from different perspective, how far are we in the world and that I think we're still in the single digit of customers.

Speaker Change #139: We've discussed probably 2025.

Speaker Change #139: And next will in the next two quarters.

Speaker Change #140: Thank you.

Speaker Change #141: Alright next step is Joshua Tilton, followed by Greg Moscowitz.

Joshua Tilton: Hey, guys.

Speaker Change: That actually standardize on fewer number of vendors and I think the potential is for that to be.

Joshua Tilton: Thank you for taking my question.

Speaker Change #142: I kind of want to go back to <unk> question I thought it was very important but maybe ask it a little bit more directly.

Speaker Change: <unk> bigger or more right.

Speaker Change: A big percentage of customers will standardize on the on the more consolidated architectures.

Speaker Change #143: <unk> was clearly a sales guy.

Speaker Change #144: He comes from a VC that you sold a bunch of portfolio companies to one of your competitors do investors need to expect or should they prepare for a big investment salesforce or maybe any changes to how you guys think about M&A over the next few years.

Speaker Change: Thank you Gill and by the way I really like the combination of U and adopt because I know in too so good.

Doug: First it's a very good question I think I will let Doug joined learn understand and develop better plans I think is not just the sales guy he's definitely a strategist he knows how to work with large teams. He knows how to encourage people to innovation in these I think is the real CEO material from being very raw.

Gill: Good luck. Thank you.

Speaker Change: Alright, guys, we have Ben Bolan, followed by and junior Winski.

Speaker Change: Thank you Sir.

Ben Bolan: Good afternoon, everyone.

Speaker Change: I was hoping you could share any perspective, you have on new logo momentum in particular and how.

Speaker Change #146: Rounded and his skills and what he did remember it wasn't just we see the last 10 years, you had a much longer career and even in the VC carrier. He's got much more involved in some portfolio companies in helping them and building them when just been just investing.

Any changes that you've made to direct and partner incentives. This year may be influencing that pipeline through year end into 2025.

Speaker Change: We do have any data, yes. So in terms of new logo, Ed we had a good quarter in terms of new logo continuing the trend that we had also in the Q1 actually on our business from new logo adds.

Speaker Change #151: I do feel that by the way a big believer in sales and marketing I do think that our industry is not at all.

Speaker Change: And all nicely this quarter compared to last year.

Speaker Change #148: It was work that way, but at least according to my book investment in sales and sales and marketing should have a very good ROI.

Speaker Change: And we see very nice traction in America, we'd very nice new logos and mainly on the government side.

Speaker Change #146: And enterprise salesperson should generate one.

Speaker Change: And so I think again, a very good quarter in terms of new logo in terms of the program for channels. So we are we started already from that in the second half of last deal and.

Speaker Change #146: $2 million in business so.

Speaker Change #146: If you look at the calculation, even if it takes a year to ramp up there.

Speaker Change #147: In the enterprise space. It should have a very positive ROI, where if we can hire and if we should hire more people as an example, and the biggest investment is hiring so again I can't comment about our futures our future plans for 2025 2026, I can tell you that we want to make checkpoint better when it was not.

Speaker Change: We have it.

Speaker Change: <unk> special program for brink for partners for bringing new logos and together with the new partner program that we launched that give them even more incentive to bring new logos. So I think the incentives become even more attractive and we see right now.

Speaker Change: Again based on the last two quarters, we do see a.

Speaker Change #147: Not the other way around and if we can grow faster I think we will that's the number one priority that we all have.

Very positive momentum for Matt from New logos again, we think that we should bring much more new logos and in terms of the in terms of a quantity and value, but Steve we do see really nice improvement compared to the first half of last year.

Speaker Change #149: Super helpful and congrats on the appointment.

Speaker Change #149: Alright next step as Gregg Moscowitz, followed by tied to drawn.

Steve: Thank you I will join their ROI and sales I think we're seeing some good trends I have been doing reviews for all our different countries around the world in different areas and see what's airplanes I think they're all understand the importance of winning more and.

Gregg Moscowitz: Alright, well congratulations on the results and for adding the Dod as well on <unk>. You mentioned that you saw a lot of infinity utilization of allowances this quarter, where many of these allowances expiring or was there. Some other reason why you saw more of this activity in the Q2 and then also what are your expectations on the pace of utilization coming.

Speaker Change: More new logos, they're doing a good job and we can do so much more so.

Speaker Change: So I'm actually I like these calls because I see that people understand put it as a priority and I think we all realize that we can do more.

Speaker Change #153: Alright. Thanks.

Speaker Change #152: So in terms of that some of them its infinity agreement debt.

Speaker Change #155: Agreement that are expiring maybe next quarter some of them not related really on the demand that the customer I can tell you that the majority of that came up again its all from agreements that will find in Q1. So it's not something that is expiring.

Speaker Change: Alright.

Speaker Change: Yes.

Speaker Change: <unk> and Juno Whiskey, followed by Joshua Tilton.

Joshua Alexander Tilton: Okay. Good afternoon, everyone. So thank you for taking my question and congrats on a nice quarter.

Speaker Change: You had a lot of a positive improvements.

Speaker Change #152: In terms of how it should look in the next few quarters again, the number the amount of allowances the amount of Infinity business is growing every quarter.

Speaker Change: This quarter highlighted by the large deal activity I think but I wanted to ask about your EBIT and your free cash flow because both had pretty lackluster growth. This quarter. So I'm, just wondering how youre expecting EBIT and free cash flow growth over the next one or two years as you turn the company over to a new CEO.

Dan Mccabe: So in Dan Mccabe.

Dan Mccabe: Mathematically it should actually should grow every quarter, but again it really depends it's we cannot control it it really depends on on the customer on each needs and sometime they decide not to not be utilizing specific quarter and sometimes we see more significant utilization in certain quarters. So again, that's I think the benefit of the infinity that a customer.

Speaker Change: But I can comment about the Dcs about 2024, and again I think that the EBITDA and free.

Speaker Change #100: I guess really don't provide any any absolute uncle at any any guidance for EBITDA and free cash flow, but.

Speaker Change #156: They have the we'll have the flexibility to utilize when Italy needs they need but just to augment what were you, saying, which is actually very positive if most of the spending as customers make purchased in Q1 and started utilizing we're utilizing more in Q2, what's the best thing to do customers buy because they need don't buy because we have excess budget we don't.

Speaker Change #101: But I can tell you that we discussed when we guide gave you the guidance at the beginning of this was I mean, the numbers are on plan in terms of operating margin in terms of EBIT and we mentioned that it would be between the area between 42% to 43% in 2024 because of the acquisition that we add and the investment that we're doing around integration of parameter 81.

Speaker Change #157: Because they like how nice we are they buy because this fulfills our real needs and that's at the NDA move.

Speaker Change #101: We discussed it in the last day, we had some discussions about the products. So there is a lot of investment around it. So we knew that 2024.

Speaker Change #158: What we do invest the best proof to our quality of our business.

Thai: Very helpful. Thank you guys. All right next up is tied to drawn followed by Peter Levine, If we can get a quick one and Thai alright. Thanks, Tim appreciate it maybe a question on the firewall business.

Speaker Change #102: We'll see and we'll see.

Speaker Change #102: See a more investment that will cause the margin to be in this area in terms of free cash flow, it's really on the beating and this quarter. We all operating cash flow grew by 5% free cash flow and 4% So and again this quarter, we see that the bidding came by 10%. So hopefully if we can keep the trend.

Peter Levine: Can you give us what was the growth of the firewall business on a year over year basis, how do we think about the progression of quantum force within that portfolio and maybe you can talk about the pricing in firewalls. Paolo is has a refresh as well if its firewall any changes there on the on the pricing environment.

Speaker Change #102: In the buildings and do it on the Gulf of the billing the free cash flow will grow also so.

Speaker Change #102: On the billing and as long as we see the growth and the billing and also the free cash flow guide.

Speaker Change #102: In terms of the next two years.

Speaker Change #102: Too early to say about 2025.

Peter Levine: We greatly appreciate it yes.

Speaker Change #161: Yes, so in terms of the family we did see we mentioned that we launched the quantum falls in the beginning book Vale actually in the end of 2023 and the beginning of 2024, we do see really nice demand for the quantum force I think we do see this start to follow the product revenue, which is mainly coming from the appliances, mainly coming fall from the firewall appliances, we do.

Speaker Change #102: Again, I think we have a very healthy operating margin very healthy habit margin. So.

Speaker Change #102: And we will discuss <unk> 2025.

Speaker Change #102: And next will in the next two quarters.

Speaker Change #103: Thank you.

Speaker Change #106: Alright next step is Joshua Tilton, followed by Greg Moscowitz.

Speaker Change #161: We do see growth again, only 1%, but on terms of bookings the bookings.

Joshua Alexander Tilton: Hey, guys.

Speaker Change #161: Higher than the 1% that we see in revenues again, because some of them are coming from and Feeney some of the bookings for the firewall upcoming for Infinity and you don't see it in the revenues yet it say.

Joshua Alexander Tilton: Thank you for taking my question.

Speaker Change #104: I kind of want to go back to <unk> question I thought it was very important but maybe ask it a little bit more directly.

Speaker Change #105: Madonna's clearly a sales guy.

Speaker Change #161: As I mentioned in the previous split in the previous question. We had some time it can comment quarter. After farm income hopefully quarter festival, but in general when we're looking on the bookings for the first two quarters, we do see.

Speaker Change #108: He comes from a VC that you sold a bunch of portfolio companies to one of your competitors do investors need to expect or should they prepare for a big investment salesforce or maybe any changes to how you guys think about M&A over the next few years.

Speaker Change #161: The significant improvement in the demand for appliances again, I would say it is something that we that even more than what we expected because of the launch of the ponca false.

Speaker Change #107: First it's a very good question I think I will let no dove joined learn understand and develop better plans I think is not just a sales guy is definitely a strategy. He knows how to work with large teams. He knows how to encourage people to innovation in these I think is the real CEO material from being very raw.

Speaker Change #162: And I can also add that in terms of the pricing.

Speaker Change #162: We didn't see any significant.

Speaker Change #162: The pressure on the pricing I mean, when youre looking on the ESP on the average selling price of our appliances no significant change in I mean, I can talk only about the second quarter nothing significant that we've seen.

Speaker Change #109: Rounded in his skills and what he did remember it wasn't just received the last 10 years, you had much longer career and even in the VC carrier. He's got much more involved in some portfolio companies in helping them and building them than just than just investing.

Speaker Change #163: Discounts arrange.

Speaker Change #163: Nothing that I can comment that they did they did they see any significant change to date again as of today on the price and demand and the pricing used to be competitive and it still competitive it's not easy.

Speaker Change #109: I do feel that I'm by the way a big believer in sales and marketing I do think with our industry. It doesn't always work that way, but at least according to my book investment in sales and sales and marketing should have a very good ROI.

Speaker Change #163: The tight pricing environment.

Speaker Change #164: Appreciate it.

Speaker Change #164: Alright last question. If you can make a quick as Peter Levine Alright. Thanks, guys for squeezing me in so maybe just to piggyback off of last one.

Speaker Change #110: And enterprise salesperson should generate 1 million.

Speaker Change #110: $2 million in business so.

Peter Levine: I don't know if you can kind of give us some color about your thoughts into hitting double digit growth next year, and obviously any conviction around we're getting closer to more of a massive kind of refresh cycle that youre seeing from from your conversations your pipeline because they know that as part of the equation to hitting that double digit number for next year. Thanks guys.

Speaker Change #110: If you look at the calculation, even if it takes a year to ramp up the there in the enterprise space. It should have a very positive ROI, where if we can hire and if we should hire more people as an example, and the biggest investment is hiring so again I can't comment about our futures our future plans for 2025 2026.

Speaker Change #165: I think we're doing a lot of things to get there and I think we're doing it for quite some time and the indicators are positive.

Speaker Change #110: I can tell you that we want to make checkpoint better when it was not too.

Speaker Change #166: I think the new change in our leadership, it's definitely going to help augment where it will give people more energy than in than.

Speaker Change #110: The other way around and if we can grow faster I think we will that's the number one priority that we all have.

Speaker Change #166: And then not more customer focus and so on so that's a positive and I think if the economy will go in the same direction I think we will have a very good.

Speaker Change #111: Super helpful and congrats on the appointment.

Speaker Change #111: Alright next step as Gregg Moscowitz, followed by a die get drawn.

Speaker Change #166: We can have a very good year and next year. If all these things will happen. It's a good question I'm positive and I'm optimistic about that.

Speaker Change #112: Alright, well congratulations on the results and for adding the Dod as well on <unk>. You mentioned that you saw a lot of infinity utilization of allowances this quarter.

Speaker Change #167: All right, we'd like to thank you all for joining us today.

Speaker Change #113: Many of these allowances expiring or was there. Some other reason why you saw more of this activity into Q2, and then also what are your expectations on the pace of utilization going forward. Thanks.

Speaker Change #167: We appreciate it we will see you during the quarter without a doubt and we.

Speaker Change #167: We will need here and probably a little over three months or so once again.

Speaker Change #114: So in terms of that some of them I'd say its infinity agreement that agreement at all expanding maybe next quarter some of them not related really on the demand that the customer I can tell you that the majority of the hemophilia DAU Amit.

Speaker Change #167: Have a great day. Thank you.

Speaker Change #167: Thank you very much.

Speaker Change #115: On agreements that will find in Q1, so it's not something that is expiring.

Speaker Change #115: In terms of our it should look in the next few quarters again, the number the amount of allowances the amount of Infinity business is growing every quarter.

Speaker Change #115: So in the end mathematically it should actually should grow every quarter, but again it really depends if we cannot control. It it really depends on on the customer on each needs and sometimes they decide not to not be utilizing specific quarter and somehow we see more significant utilization in certain quarters. So again, that's I think the benefit.

Speaker Change #116: Of the infinity that a customer like they have to have the flexibility to utilize whenever they need it they need but just to augment what worries, saying, which is actually very positive. If most of the spending is customers who have purchased in Q1 and started utilizing we're utilizing more in Q2, what's the best thing to do customers buy because they need don't buy because.

Speaker Change #117: We have excess budget, we don't buy because they like how nice we are they buy because this fulfilled the real needs and that's at the NDA will fare well.

Speaker Change #118: What we do invest the best proof to our quality of our business.

Peter Levine: Very helpful. Thank you guys Alright next step is tied to drawn followed by Peter Levine, If we can get a quick one and Thai alright. Thanks, Tim I appreciate it maybe a question on the firewall business.

Speaker Change #120: Can you give us what was the growth of the firewall business on a year over year basis, how do we think about the progression of quantum force within their portfolio and may begin to talk about the pricing in firewalls.

Speaker Change #121: <unk> has a refresh as well if its firewall any changes there on the on the pricing environment will be greatly appreciate it yes.

Speaker Change #122: Yes, so in terms of the family we did see and we mentioned that we launched the quantum falls in the beginning both Vale actually at the end of 2023 and the beginning of 2024, we do see really nice demand for the quantum of all that we do see this start to follow the product revenue, which is mainly coming from the appliances, mainly coming fall from the firewall Atlantis we do.

Speaker Change #122: We do see growth again, only 1%, but on terms of booking the booking growth or higher than the 1% that we see in revenues again, because some of them are coming twin feeney some of the bookings for the firewall or coming from Infinity and you don't see it in the revenues yet say come up as I mentioned in the previous in the previous.

Speaker Change #123: Question, we had some time it can come in quarter after banking income hopefully quarter festival, but in general when we're looking on the bookings for the first two quarters, we do see.

Speaker Change #124: Significant improvement in the demand for appliances again, I would say it is something that we that even more than what we expected because of the launch of the quant awful.

Speaker Change #125: And I can also add in terms of the pricing.

Speaker Change #126: We didn't see any significant.

Speaker Change #126: The pressure on the pricing I mean, when you are looking on the ESP on the average selling price of our appliances no significant change in I mean, I can talk only about the second quarter nothing significant that we've seen a similar discounts a range.

Speaker Change #126: Nothing that I can comment that they need that did they see any significant change to date again as of today on the price.

Speaker Change #126: And tomorrow, and the pricing used to be competitive and it still competitive it's not an easy yes.

Speaker Change #126: Tighter pricing environment.

Appreciate it.

Speaker Change #126: Last question, if you can make a quick as Peter Levine Alright, Thanks, guys for squeezing me in so maybe just to piggyback off of last one.

Peter Levine: I don't know if you can kind of give us some color about your thoughts into hitting double digit growth next year, and obviously any conviction around we're getting closer to more of a massive kind of a refresh cycle that youre seeing from from your conversations your pipeline because they know that as part of the equation to hitting that double digit number offer next year. Thanks guys.

Speaker Change #127: I think we're doing a lot of things to get there and I think we're doing it for quite some time and the indicators are positive I think the new change in our leadership, it's definitely going to help and augment that it will give people more energy and and and the lot more customer focused and so on so that's a positive and I think if the economy.

Speaker Change #127: We'll go in the same direction I think we will have a very good day.

Speaker Change #127: We can have a very good year and next year. If all these things will happen. It's a good question I'm positive and I'm optimistic about that.

Speaker Change #128: All right, we'd like to thank you all for joining us today.

Speaker Change #128: We appreciate it we will see you during the quarter without a doubt and.

Speaker Change #128: We will need here and probably a little over three months or so once again.

Speaker Change #128: Have a great day. Thank you.

Speaker Change #128: Thank you very much.

Speaker Change #128: Goodbye.