“I think in general, we saw very positive indicators in Q3, and we see positive momentum also going to Q4.”

In context

“Roei Golan (CFO): Thank you, Gil. And thank you for everyone for joining the call today. I'm excited to be with you and begin the review of the third quarter for 2023. We had another strong profitable quarter with 17% growth in EPS, both double-digit growth in net income and EPS. In the net income for the second quarter in a row, and in the EPS for the third quarter in a row, very strong results. In terms of revenues, the revenues reached $596 million, $9 million above the midpoint of our projection, while our EPS, as mentioned, reached $2.07 at the top end of our projection. Let's go now to the numbers. So deferred revenues grew by 4% to $1.709 billion. Our current deferred revenues, actually the short-term deferred revenue, grew by 6% to $1.246 billion. Our calculated billing reached $531 million, while our current calculated billing, the short-term calculated billing reached $535 million. It's important to note that the calculated billing includes $8 million related to the acquisition of Perimeter 81. Same as in the previous quarter, due to the high interest rate environment, we saw fewer customers willing to pay upfront for multi-year deals, which was already in shorter billing duration year-over-year. Additionally, Infinity is becoming more and more significant to our business, and the billing terms in these deals are more flexible. Some of them are on a monthly basis, and some of them on a quarterly basis. So that also affects our duration. It is important to note that we saw many positive indicators this quarter. We saw that it's something that we are monitoring, the annualized booking actually grew year-over-year, and our RPO grew by mid-single digits year-over-year. So I think in general, we saw very positive indicators in Q3, and we see positive momentum also going to Q4. Okay. So our security subscription revenues grew by 15%, actually the highest growth that we had since 2017. This growth was driven by strong demand for the Harmony product family and mainly for Harmony Email Security; we keep seeing a very strong demand for the Harmony products, and that's driving this growth. On the product side, we still see delays in executing refresh projects, resulting in a decline of product revenues by 14% year-over-year. It is important to note that we did see strong and healthy renewal business as our customers continue to benefit from our security and support. We do see a stronger pipeline for Q4 that includes also refresh projects that were postponed from prior quarters. So we hope that we are going to see the positive turnaround in Q4. In terms of Infinity, so Infinity had another great quarter, continuing to flow and accelerating the way to the revenues, with strong double-digit growth year-over-year. In the third quarter, the revenues from Infinity exceeded 10% of the total revenue. We can see more and more customers adopting our platform, which answers their needs with their one umbrella of products and services. As for the revenues by geography, so 46% of revenue came from EMEA, 43% from the Americas, while the remaining 11% came from Asia Pacific. Now let's move to the P&L. So our gross profit increased from $507 million to $534 million, representing a gross margin of 90% compared to an 88% margin last year. This is due to significant improvement in our supply chain this year, which had been challenging in 2022. Our operating expenses increased by 9%, and this increase is mainly a result of our continued investment in our workforce, cloud infrastructure, marketing and travel costs. In total, our non-GAAP operating income continues to be strong at $269 million, or a 45% margin, the same as we had last year. Very strong profitability. Financial income this quarter reached $18 million as we keep investing in higher interest rates over time. Our non-GAAP tax rate for this quarter was around 15%, mainly due to indexation and an update in tax provision because of several tax assessments we had worldwide. Our non-GAAP net income increased to $242 million, or $2.07 per diluted share, reaching the top end of our position and a 17% growth year-over-year. Our GAAP net income was $205 million, or $1.75 per diluted share, a 19% growth year-over-year. Moving to our cash flow and cash position. So our cash balances as of the end of the quarter was $3 billion. Our operating cash flow was strong at $222 million this quarter, and it includes $22 million founder rollback in connection with an acquisition that we did this quarter. Excluding this effect, our cash flow grew by 2% year-over-year to $244 million. During the quarter, we acquired Perimeter 81 and Atmosec for a total cash amount of $477 million. We also continued our buyback program and purchased 2.5 million shares for $325 million at an average price of $131. Now to summarize our financial disclosure, very strong subscription revenues with 15% growth, the highest growth since 2017, continued strong adoption of our Infinity platform. And while we see refresh projects that have experienced delay, we see a very strong and healthy renewal business. And again, strong profitability with a 17% growth in EPS. Now, I turn the call over to Gil.”