Check Point Software Technologies Ltd. today appointed venture capitalist Nadav Zafrir as its new chief executive officer.

The cybersecurity provider announced the leadership change in conjunction with the release of its quarterly financial results. For the three months ended June 30, Check Point delivered revenue and adjusted earnings that both topped the consensus estimate. The company’s shares jumped more than 5% in trading today on the strong results and, perhaps, the new CEO.

Check Point has been led by co-founder and CEO Gil Shwed (pictured, left) since its launch in 1993. The executive, who announced plans to step down earlier this year, will hand over the reins to Zafrir (right) in December. Shwed will subsequently become executive chair.

Zafrir was previously the managing director of Team8, a venture capital firm he had co-founded in 2015. The firm counts Microsoft Corp., Walmart Inc. and other large enterprises among its backers. It invests in startups across the cybersecurity, financial technology and digital health segments.

Team8 has backed dozens of startups since launch. One of its portfolio companies, Gem Security Inc., was acquired by Wiz Inc. earlier this year in a deal reportedly worth $350 million. Cisco Systems Inc., Palo Alto Networks Inc. and PayPal Holdings Inc. also acquired Team8 portfolio companies over the years.

The leadership change at Check Point follows a quarter in which it managed to top financial expectations across the board. Adjusted earnings per share rose 8% year-over-year to $2.17, surpassing the $2.16 consensus estimate. The company’s sales grew 7% in the same time frame to reach $627 million, topping the $623.14 expected by analysts.

Check Point’s revenue momentum was driven in significant part by increased demand for its subscription-based cybersecurity products. The company sells software for securing cloud environments, enterprise networks, employee devices and other technology assets. Revenue from subscription-based products grew 14% year-over-year in the second quarter, or twice as fast as Check Point’s total sales, to reach $272 million.

The company detailed that there were multiple eight-figure purchases of its Infinity offering in the second quarter. Infinity allows organizations to buy several of Check Point’s cybersecurity products through a single subscription, which streamlines procurement. According to the company, its Harmony Email inbox security tool and Quantum Force firewall appliance series also experienced strong growth in the quarter. 

“The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations,” Shwed said.

In the current quarter, Check Point expects sales of between $615 million and $650 million. The company estimates that its adjusted earnings will range from $2.19 to $2.29 per share. 

Photo: Check Point Software