“We expect this positive trend to continue for the remainder of 2023.”

In context

“Roei Golan (CFO): Thank you, Kip. Let me share my presentation. Can you see my screen? No, no, I know, but can you see? Okay. Great. Thank you, Kip, and greetings to everyone joining the call today. I'm excited to begin the review of the second quarter of 2023. We had a very strong profitable quarter, reaching our highest level of work in over a decade. Our net income increased by 14% to $238 million, while our non-GAAP earnings per share rose by 22% to $2 per share, the highest since 2009. Our revenues were $589 million, which exceeds the midpoint of our projections by $1 million. As I mentioned, our non-GAAP earnings per share reached $2, which is $0.05 above the high end of our projections—very strong results. Now let's delve into the numbers. Revenues reached $589 million, reflecting a 3% growth year-over-year. Our deferred revenues rose to $1,774 million, which is a 7% year-over-year increase, and our current deferred revenue short-term reached $1,307 million, up 8% year-over-year. Our calculated billing reached $566 million, a 1% decline year-over-year but a 70% increase compared to Q1 2023. Our current calculated billing was $581 million, up 4% year-over-year. Similar to the previous quarter, we've observed that due to the high interest rate environment, fewer customers are willing to pay upfront for multi-year deals, leading to shorter billing durations. Additionally, as Infinity gains more importance, you will see in the upcoming slides that the flexibility in billing terms affects billing timing. Revenue growth is driven by strong subscription revenues, which grew by 14% year-over-year to $239 million, primarily due to Harmony Email security, which continues to deliver exceptional results with triple-digit growth year-over-year. However, we experienced a 12% decline in product revenues year-over-year due to longer sales cycles, project delays, and the fact that many customers are now purchasing our products for Infinity agreements, which don’t immediately reflect in revenues due to their flexible utilization allowance, typically within 12 months. It's worth noting that we enjoyed strong renewal business as our customers continue to benefit from our security services and support. As mentioned, we are seeing strong adoption of our Infinity strategy, with Infinity revenues exceeding 10% of total revenue for the first time since its launch. More customers are adapting our platform, consolidating their needs under one umbrella of products and services. Now, let's look at our revenues by geography. We experienced growth across all regions: 45% of our revenue came from EMEA, 43% from the Americas, and 12% from Asia-Pacific. Moving on to our P&L, we made significant improvements in our gross margin, which increased from 88% last year to 90% this year, thanks to enhancements in our supply chain that resulted in lower costs. Last year, we faced significant supply chain challenges that drove our margin below 90%. We expect this positive trend to continue for the remainder of 2023. Our operating expenses increased by 5%, and by 7% on a constant currency basis, mainly due to our ongoing investments in our workforce, cloud infrastructure, marketing, and heightened travel costs. Our non-GAAP operating income remained strong at $263 million, with a 45% margin compared to 44% last year. Our financial income for the quarter was $21 million as we invested more in higher interest rates over time, a trend we anticipate continuing as our security matures and we engage in higher interest deals. The non-GAAP tax rate for this quarter was about 16%, primarily due to indexation and updates in tax provisions from various worldwide assessments. Our non-GAAP net income reached $238 million or $2 per share, which is $0.05 above the high end of our guidance. Our GAAP net income stood at $202 million, or $1.70, reflecting a 25% year-over-year growth. Now, let's review our cash flow and cash position. Our cash balances at the end of the quarter were $3.5 billion, with an operating cash flow of $191 million. Our cash flow was affected by being back-end loaded this quarter; we saw our accounts receivable increase by 20% year-over-year. Compared to last year, the balance is also up by 20%. We noted significantly more bookings and billing during the last month than usual, a trend we expect to continue since the beginning of the year, or actually since Q4. During the quarter, we continued our buyback program, purchasing 2.6 million shares for $325 million at an average price of $125 per share. Over the past 12 months, we've bought back $1.3 billion in total. To summarize our results, we had very strong subscription revenue, with a growth of 40% year-over-year, driven by Harmony Email and increasing adoption of our Infinity platform. Although we faced delays in refresh projects, we experienced robust renewal business. Additionally, we noted improvements in our operating margin, leading to over 22% EPS growth, the highest since 2009. Now I’ll turn the call over to Gil.”