“We expect a headwind of approximately 0.5 to 1 point if the U.S. dollar remains at these levels.”

In context

“Roei Golan (CFO): Great, okay. Sorry for the delay. So as Nadav indicated, we had a great quarter. I think our revenues exceeded our projection, achieving $665 million, which was $3 million above the midpoint of our guidance. Our non-GAAP EPS was $2.37 in the midpoint of our projection, representing 9% growth year-over-year. Moving to the results, our revenues grew by 6%. This was mainly driven by another strong quarter for product revenues, which were buoyed by strong customer demand for our new appliances and a higher volume of product refreshes. I must say this refresh cycle reflects continuous investment in our platform and broader adoption of our latest technologies, especially our Quantum Force technology released a year ago. Due to these refreshes, a larger portion of our deals was bundled, including subscription and support, which were offered at higher discount levels compared to standalone renewals. This dynamic led to a slight de-acceleration in our subscription revenues and a slight decline in support revenues for the quarter. However, we view this as a positive trend for the long term, as it's strengthening the customer relationship, expanding our installed base, and positioning us for increased renewal, install revenues, and upsell opportunities in the future. Regarding the billing, calculated billing grew by 4% to $642 million this quarter. Our RPO grew by 6% and reached $2.4 billion this quarter. As noted, this quarter was heavily back-end loaded, with several deals pushed from late June to early July. These deals alone, we're talking about huge 7-digit transactions that affect our billing by approximately 3 points, benefitting us in the third quarter. In the same quarter last year, we had 3 multi-year deals totaling $130 million, which had a significant impact on our RPO last year. Moving to our revenues by geography, our Americas and EMEA grew by 5% this quarter, while APAC had a strong quarter with double-digit growth of 15% year-over-year. Moving into our P&L, our gross profit increased from $557 million to $585 million, representing a gross margin of 88%. Our operating expenses increased by 7%, primarily due to our continued investment in our workforce and the impacts related to the Cyberint and Veriti acquisitions. Our non-GAAP operating income remains strong at $271 million, equating to a 41% margin. I think it's important to discuss the FX impact, as the U.S. dollar is weakening against most currencies, especially the Israeli shekel. Approximately 50% of our operating expenses are denominated in non-USD currencies, particularly the shekel, and we're not hedging 100% of these expenses. This currency movement resulted in an estimated 0.5 point headwind to our margin this quarter. For the second half of the year, although a significant portion of our foreign exchange exposure is evident, we will still experience an impact because we aren't hedging 100% of our foreign currency. We expect a headwind of approximately 0.5 to 1 point if the U.S. dollar remains at these levels. This could increase our operating expenses next year by $50 million to $60 million if these FX rates remain. Moving into our cash flow, we had a strong operating cash flow this quarter, achieving $262 million, a 31% growth year-over-year. This includes a $50 million benefit from hedging transactions, offset by $6 million related to our Veriti acquisition. Our cash balance was $2.9 billion, and we continue our buyback, purchasing 1.5 million shares at an average price of $220. We also acquired Veriti during the quarter, which was a net cash outflow of around $90 million. We need to mention two items relevant for the next quarter concerning cash flow. First, we recently announced the acquisition of land for building our new Check Point campus in Tel Aviv, which cost a total of $160 million. We do not expect any significant additional investments in CapEx in connection with this campus until early 2027. Secondly, as part of a tax settlement signed last week for previous years, we'll pay approximately $66 million during the third quarter to settle this tax dispute, which may show a significant positive impact on our third-quarter P&L and EPS. This potential impact is not reflected in the guidance I will share in the next few slides. To summarize, our second-quarter revenues and EPS were in line with projections, showing continued strong demand for Quantum Force appliances, with another quarter of double-digit growth, and solid demand for email, SASE, and ERM. We also had another profitable quarter with robust operating margins and strong operating cash flow. Before moving to Q&A, I'll now share guidance for the next quarter. As Nadav indicated, we started July strong. We have internal indicators showing a positive outlook, and the deals pushed from Q2, along with those already closed in July, prompt optimism for Q3 and the rest of the year. Our guidance for the third quarter is between $657 million to $687 million, with the midpoint at $672 million. Our non-GAAP EPS is projected between $2.40 to $2.50, while GAAP EPS is expected to be approximately $0.68 less. We are not changing the full-year guidance; it remains the same as provided at the start of the year. We feel positive about finishing at the high end of the guidance, but the range stays the same for both EPS and revenues, with GAAP EPS expected to be around $2.30 less. Thank you. Kip?”