Gil Shvid, the CEO of cyber security company Check Point for over 30 years, has announced his intention to step down and assume the role of active chairman. This announcement came as part of the company’s release of their financial statements. Shvid co-founded Check Point in 1993 with Shlomo Kramer and Marius Nacht and has been at the helm throughout its journey from a young start-up to a Wall Street-listed company. Currently, the company has a market value of $18.8 billion and its stock is trading near its all-time high.
Shvid marked the company’s 30th anniversary in 2023 and noted that it was a year of growth in nearly all aspects. He expressed confidence in the strength of the company’s defense platform and team. Shvid believes that it is an appropriate time for him to focus on Check Point’s future and the overall cyber industry in his new role as active chairman. The search for a new CEO will begin, and upon its completion, Shvid will transition to his new role. He is looking forward to 2024 with a positive technological outlook and an energetic global team.
Last year, a similar transition occurred at another Israeli cyber security company, Cyberark, where the founder and CEO Udi Mokdi moved to the position of active chairman after 18 years.
The company exceeded forecasts in its fourth-quarter report
Check Point also released its fourth quarter and 2023 annual reports, in which it exceeded analysts’ forecasts and its own profit prediction. The company reported quarterly revenues of $664 million and Non-GAAP net profit of $2.57 per share. The year ended with an approximately 4% revenue growth to over $2.4 billion and a 14% increase in Non-GAAP net profit to $8.42 per share compared to 2022.
The company’s fourth quarter revenues represent a 3.9% growth compared to the same period in the previous year. It reported a GAAP net profit of $249 million, a decrease of 7.7%, and a non-GAAP net profit of $299 million. In its annual summary, the Non-GAAP net profit neared $1 billion, reaching $997 million, a 6.7% increase from 2022.
By the end of 2023, Check Point had approximately $3 billion in cash after spending $484 million net on acquisitions and continuing to buy back its own shares. Shvid was pleased with the strong year-end results, noting a 14% increase in earnings per share and a 45% operating profitability rate, one of the highest among public companies. The company’s defense platform, Infinity, boosted by artificial intelligence and cloud delivery, saw a 15% growth in defense subscriptions sales in the fourth quarter. Shvid also praised the research and development organization for its high levels of protection and AI innovation, and the sales team for generating double-digit growth in new transactions in the quarter.
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