Greetings. I'd like to welcome everyone to our Third Quarter 2022 Financial Results Video Conference. At this time, all participants are in listen-only mode. During the formal presentation, which will be followed by a question-and-answer session. Joining me today are Gil Shwed, Founder and CEO; along with our CFO and COO, Tal Payne. As a reminder, the video conference is live on our website and is recorded for replay. To access the live conference and replay information, please visit the company's website at checkpoint.com. For your convenience, the replay will be available on our website. If you'd like to reach us after the call, please contact Investor Relations by email at [email protected]. During this presentation, Check Point's representatives may make certain forward-looking statements. These forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 include, but are not limited to, statements related to our expectations regarding our products and solutions. Our expectations regarding customer adoption of our products and solutions, expectations related to cybersecurity and other threats, expectations regarding our Q4 and full-year 2022 projections, and our projections regarding growing markets for IT security. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platforms and solutions, customer acceptance of our existing products and solutions, and new products and solutions. The continued effects of our business related to the COVID-19 pandemic. The market for IT security continuing to develop competition. From other products and services and general market, political, economic, and business conditions. I think we covered everything. These forward-looking statements are also subject to risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our annual report on Form 20-F filed with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law. In our press release, which has been posted on our website, we present GAAP and non-GAAP results, along with the reconciliation of those results as well as reasons for our presentation of non-GAAP information. And finally, now I would like to turn the call over to Tal Payne for a review of our financial results.

Thank you, Kip. Let me start the presentation. I will share this slide again in case you missed what Kip was reading to you. Okay. Now let's move to the presentation. Can you see the presentation? Excellent. Okay. So let's start with the results. Thank you, Kip. Good morning, good afternoon to everyone joining us on the call today. I'm pleased to begin another quarter, which ended up to be a great quarter. Revenues reached $578 million, which is in the top part of our projections, $8 million above the midpoint of the projections. Non-GAAP earnings per share reached $1.77, which is again $0.05 above the top end of our projection. So we see really good results, both in the revenues and the earnings per share. Before I proceed further into the numbers, let me just remind you that our GAAP financial results include stock-based compensation charges, amortization of acquired intangible assets, and acquisition-related expenses as well as the related tax effects as applicable. Non-GAAP information is presented excluding these items. Now let's dive into the results. Revenues increased from $534 million to $578 million. This revenue growth is an acceleration from the 5% that we've seen last year, reaching 8% in total. We see deferred revenues at $1.647 billion, a 13% growth year-over-year, an increase of $191 million. Billings also this quarter were strong and grew by 8%, reaching $559 million. At a high level, if we dive into the revenues, we can see that products and security subscriptions as a whole increased by 13%. This is the third consecutive quarter of double-digit growth in our product and security subscription revenues. Remember, we had the big target to have above 10% and to reach there three quarters in a row, it's very nice to see that. If we look at what drives this total growth of the 13%, we can see it's coming from both items separately. One of them is the product and license revenues, which is mainly our gateways and appliances. We see, again, the second quarter in a row of double-digit growth, 11% growth versus negative actually last year. The growth came from many appliance lines, large appliances, SMB appliances, Maestro switches, which is the hyperscale network, and also the smart one, which is the management appliances. Across the board, we've seen a nice increase in Quantum. If we look at the subscription line, also showing double-digit, 13% growth, reaching $216 million. The double-digit growth coming from Cloud and Harmony, just we've seen in the last few quarters, both of them are in double-digit growth and continuing to grow nicely. Just as a reminder, we purchased Avanan in September last year. So Q4 this year will be the year of apple-to-apple comparison when it comes to the email security acquisition. So nice results in the subscription. If I move into the revenue by geographies, we had growth across all geographies also this quarter. 44% of the revenues came from the Americas, 43% came from EMEA, and the remaining 13% from Asia Pacific, nothing dramatic here. If we look at the gross profit, gross profit this quarter increased from $474 million to $506 million which is a nice 7% growth, with gross margin remaining around 88%. It's quite impressive considering that we continue to pay additional costs for raw materials and shipping as a result of the shortages. There is some relief in the shortages, but we still pay quite a lot to get the inventory on time and be able to deliver to our customers. The storage was also about maybe between $8 million to $10 million in the cost of goods sold relating to the extra cost. Hopefully, by 2023, we'll see more relief and improvement in that number, which will help as part of next year. Although I can say that while we're starting to see relief on the shortages, we see an increase in the raw material price across many components. So I think it will end up in a lower cost, but not all the way to the original level. Having said that, the margin is amazing at 88%. So nothing to complain about. Looking at the operating expenses, if you remember, last quarter, it was 20-something percent, maybe 24%. This quarter, the year-over-year growth is 14%, so it's starting to normalize, reaching $244 million. The increase mainly comes as usual from compensation, the return to travel year-over-year, and expenses related to face-to-face interactions in the cloud. Remember, at the beginning of the year, we said that our focus is to continue to increase our workforce, both in sales and R&D and to continue the elevated investment in our initiatives as we see nice results there. In line with the plan, we increased our workforce year-over-year, both in sales and R&D. Of course, in also other departments, and we remain focused on continuing the growth in sales. Operating income actually increased slightly in dollars compared to the previous quarter, where we saw some reduction. Now we started to see an increase to $263 million operating income. The margin is higher than we planned at 45%. The plan, if you recall, was around 42% to 43%. It's a reduction from last year and an improvement from the previous quarter. Our financial income continued to increase as we invest in higher interest rates over time. So it increased from $9 million to $12 million and will likely continue to increase slightly every quarter as we've seen in the past few quarters. Tax expenses were $54 million, around 19.5%. Again, everything as usual. We continue to see the indexation of the tax provision; that's why we're higher than the original plan. So the financial income and the higher tax expense lead to a higher net, fairly similar to what we projected, resulting in a net income of $221 million and EPS of $1.77, which is $0.05 above the top line and a 7% growth year-over-year. GAAP net income was $184 million or $1.47 per diluted share. If we look at our cash position, it remains very strong. Our cash balances are $3.6 billion and our operating cash flow was strong at $240 million this quarter. Our collections from customers continue to be very healthy. Of course, payments naturally increased as a result of the elevated raw material costs that we have to pay for and investment in the workforce we've discussed. During the quarter, we continued our buyback program and purchased 2.7 million shares for $325 million at an average price of $122 per share. So to summarize, it was a strong quarter with strong revenues and earnings per share, strong billing, revenues above the midpoint. Non-GAAP EPS exceeded the top of the line, we see double-digit growth in both product and security subscription, and we continue to focus on the top line while maintaining very strong profitability. So now I'll turn the call over to Gil for his business review. Thank you.

Thank you, Tal, and I'm very glad to see all of you here. Like Tal mentioned, we had another very good quarter. I would like to give you a little bit of highlights on both the state of cybersecurity and mainly about many innovations and new technologies that we've actually launched in the last couple of months, which makes us quite active. First, we all know the state of cybersecurity remains very active and very challenging. You can see here just a few attacks from the last few months; Australia was hit pretty bad. Everything from retail to telecom and in the U.S., we see a major case in the L.A. school district and healthcare systems in the U.K. Attacks are occurring every day and are pretty significant, which I think is reflected in the statistics we see. We have observed a 28% increase in average weekly cyber-attacks globally, reaching over 1,100 attacks per week per organization. Let's consider that in normal terms; we have never reached these kinds of levels. One out of every 63 organizations is impacted by ransomware, and these attacks are all over. We have seen countries being attacked as a whole. The attacks are getting more and more sophisticated, with Gen V fifth-generation cyber-attacks taking a bigger role. They are coming from everywhere and impacting virtually everyone. We believe that there is an answer to that. While many say cybersecurity is an unsolvable problem, we think it is solvable, and we believe that the Check Point Infinity architecture is uniquely positioned to solve that. It is the only prevention-first consolidated security solution that addresses all the key attack vectors on the network, in the cloud, and for the users. That's essentially the structure of our Infinity architecture. You can see the three pillars on the top: Quantum, CloudGuard, and Harmony. We handle the network, the biggest part of our network, the cloud, and the user access through Harmony. Last month, we launched a new family, Horizon, that focuses on managing the security operations. Let me go into a little detail about Horizon because it's fairly exciting. The first product in the Horizon family is what we call MDR/MPR. MDR stands for Managed Detection and Response, which means analyzing everything happening in your environment, on the network, the endpoint, and so on and trying to detect and respond to attacks. We don't like to just call it MDR; we prefer to call it MPR, Managed Prevention and Response. I think that's quite unique in the Check Point architecture with one solution that actually prevents the attack and does not just detect them. It's also — and, by the way, that's also fairly unique, the one solution that works across multiple attack vectors. Most solutions only address one vector; we know how to better combine multiple attacks. This is based on a very solid foundation that we've built in Check Point with plenty of engines and automation tools. The idea is that this can be outsourced as a SaaS solution. Most organizations can't afford having their own security operations center with security experts working 24/7. That's very difficult to find and develop, and it’s also very expensive. Something that works seven days a week, 24 hours is millions of dollars to operate. Our service provides that and outsources it as a SaaS service for organizations. We launched that earlier this year, and now we are ready for the mass market. To keep in mind, we already have a few hundred customers on our SOC platform. This is gaining traction since the start of the year, and we believe it is now ready for prime time. We are optimistic that this will allow us to access a pretty big market. Although this market is already crowded with many small companies, our Check Point Horizon, with its prevention-first approach, is seen as a game-changing feature for this market. We hope this will serve as an excellent entry point for various technologies and more products. Next, because we are committed to providing our customers with the best security, we’ve worked very hard to elevate the level of security we provide our customers. Just in the last few weeks, we launched the new Quantum Titan set of technologies for our network security customers. This is at the core of our business and is very important. Let me take two minutes to go over what's included in Quantum Titan. It's free. If you remember, our architecture is based on what we call soft blades; we’ve developed three new soft blades. The first two, DNS security and zero phishing, enhance the security for any customer. By the way, phishing and DNS represent two of the most critical attack vectors used by hackers today. DNS, which stands for Domain Name Service, resolves addresses like checkpoint.com into something that our computers can access. It must be open, and hackers are finding more ways to use this simple protocol as an attack vector, whether to transfer information between a computer and its operator or through information leakage or even for worse cases. Now we have a new blade that focuses solely on DNS; it's powered by AI and deep learning, and it can address many attacks. The zero phishing prevention blade does similarly well; a phishing attack occurs when someone redirects you to the wrong site, potentially capturing your credentials and using them against you. Many of these phishing attacks are analyzed only hours after they begin. Unfortunately, most of the damage from phishing is done in these early hours, and many malicious sites go offline shortly after being launched. Our zero-phishing technology does this analysis in real-time, evaluating many elements around the sites and blocking access to the wrong site. With zero phishing, we achieve a fourfold improvement in blocking phishing sites compared to signature-based technologies. Meanwhile, the DNS blade blocks five times more attacks than signature-based technologies. I think these are very impressive results built upon advanced AI and deep learning technology. Last but not least is the Quantum IoT Protect software, which goes beyond merely improving technology on the main gateway. It represents a whole new system for protecting IoT devices. IoT devices pose significant threats to networks because they are inherently difficult to control. Many are simple devices that constitute an opportunity for attackers to exploit and gain access to enterprises. While many IoT security vendors are our partners, our approach to IoT security is focused on discovery. It automatically maps your network, providing an inventory of all devices. I recently met a customer who told me they were monitoring 30,000 IoT devices on their network. After gathering that information, the question remains, what do we do with it? It takes months to map them and assess the threats associated with each one. By the time that's done, there are new devices added and new threats emerge. That’s where we excel with Quantum IoT Protect: it's a unique offering in the marketplace. It automatically maps the data it gathers into a security profile and security rules that restricts each IoT device's access, significantly reduces its attack surface, and eliminates the ability for anyone to exploit that device or use it as a launching point for additional attacks. This is part of a more comprehensive IoT solution that we offer at Check Point, enhancing device security, firmware and analysis while providing excellent security solutions for IoT devices on the network. We are very proud of that launch just a couple of weeks ago, and we believe it can serve as a solid platform for market expansion. And remember, all these free blades I described do not require customers to use different vendors to build a new set of systems. This is all plug-and-play with the existing Check Point Quantum gateways and the quality management services they have. Again, this represents another breakthrough in this industry, and the recognition we’ve received from customers is encouraging. We have a large automotive customer in Germany stating the solution works effectively. Clarks in the U.S. have used the two new blades and found them valuable. Additionally, we have received recognition from various analysts, such as Forrester, which places us back in the leading quadrant of the Forrester wave. More significantly, we have maintained this leadership for many years, with many analysts highlighting our customer obsession and admirable vision for prevention. We also see notable product recognition for our CloudGuard posture management and our Harmony Connect SaaS solution, which are moving fast in the market. Furthermore, we are proud to be recognized as one of the world’s best employers by Forbes for three consecutive years, and we rank number one among cyber companies, which is something we take great pride in. In summary, we finished the quarter with strong financial results, with revenues above our midpoint and exceeding expectations. EPS was even better than anticipated at $1.77. More importantly, we have demonstrated innovation this quarter by delivering on our vision and mission with the Horizon platform, Quantum Titan, and continuously elevating the security level we deliver to our customers. I would like to thank you for being with us. Before we open it to your questions, let me speak about our projections for the fourth quarter and update the ranges for the year. No big surprises here, and I think this is generally positive. We expect revenue to be between $608 million and $658 million, very much in line with our initial projections. Despite the existing market turmoil, we are seeing steady and very solid results. Non-GAAP EPS is expected to be between $2.22 and $2.42. GAAP EPS is expected to be approximately $0.31 lower. I believe these are all very solid and healthy numbers. I always remind you that projecting into the future is always very challenging due to high levels of uncertainty. Particularly now, we see good feedback from our channel partners; the need for cybersecurity is crystal clear. Nevertheless, we cannot ignore the economic uncertainties surrounding us, which pose higher risks now than ever. I hope the encouraging signs we see from the channel, combined with our technological advancements, will lead to favorable results. Finally, let me summarize how that fits into our full-year projections. You can see in gray the full-year ranges from $2.2 billion to $2.375 billion. Based on the guidance for the fourth quarter, you can see that the updated range for the year will be from $2.299 billion to $2.349 billion. This places us at the high end of our projections from the beginning of the year. No surprises, but we take pride in that. Similarly, the original range for non-GAAP EPS was $6.90 to $7.50, and the updated range is $7.20 to $7.40, which again is at the high end of EPS expectations. GAAP EPS is expected to be $1.22 lower. This concludes the update on our projections, which shows we have positive indicators. Thank you very much, and I would love to open the call for your questions.

As always please limit your questions to just one, so the rest of the analysts don't have to step up later on. Our first question is going to come from Keith Bachman from BMO, followed by Hamza Fodderwala from Morgan Stanley. Keith?

Thank you, Kip. Good morning, good afternoon, and good evening everyone. I have a question for either Tal or Gil. Can you share what the path to achieving double-digit billings looks like? You had a solid quarter with 8% billings growth, which seems to exceed typical seasonal patterns. What steps are necessary to reach the double-digit mark we've discussed for some time? Additionally, could you provide an update on current demand trends? Specifically, as you look toward December, have trends improved? Has demand in the industry gotten better, remained steady, or declined? I would appreciate any insight as you work towards double-digit billings growth. That's all from me. Thank you.

Maybe I'll start by addressing the double-digit question. When we discuss billing, it's important to note that we don't disclose it due to its fluctuations. Essentially, if billing were an annualized figure, it should align with our revenues over time. For us to achieve double-digit billing, revenues need to reach that threshold as well. It may happen slightly earlier, but I want to avoid the fluctuations that can occur between quarters when a deal closes early or is recognized later. Generally, to ensure stable double-digit growth, we need consistent revenues in that range. Excluding multiyear agreements, we saw strong revenue growth in Q4 last year as an example. It indicated constant double-digit growth, partly due to a few multiyear deals. Q4 often provides the opportunity for a significant influx. In summary, sustaining double-digit growth requires revenues to consistently stay within that range. The positive aspect is that we achieved double-digit growth in both products and subscriptions. Support, however, remains in the low single-digits. Therefore, to achieve overall double-digit growth, we must accelerate in product and subscription areas.

Yes. And Tal, any comments on just how the demand trends fared during the quarter? Companies like Microsoft have called out incremental weakness in demand trends; ServiceNow, not so much. Any changes in aggregate demand that you're sensing during Q3 or as you look into Q4?

I think September was very strong for us. However, it's very challenging to gauge because the majority of our bookings stem from the final month of the cycle. September and Q3 is quite a small quarter due to vacations, so it's hard to draw conclusions. Also, when looking towards Q4, most of the number comes in the final month and week. So it's very difficult to have visibility for Q3 and Q4 as well, which is a massive quarter for us. Hence, assessing that is tough.

Our next question is coming from Hamza Fodderwala from Morgan Stanley. Please proceed.

Well, thank you so much for taking my question. And Tal, congrats on a well-earned sabbatical. I'll keep it to one. Tal, can you remind us what the pricing impact on the growth rate looks like after discounting? Any thoughts you have around pricing going forward, considering the dollar has strengthened and you price in U.S. dollars for many regions?

That's a good question because, on one hand, modeling it in an Excel file should create a nice tailwind. With the increase in pricing and the strengthening dollar, it might appear favorable. However, for many of our European and Asian customers, their budgets effectively shrink due to the dollar’s strength. We've seen some customers struggle to adjust in their budgets. When I look at Q3, it seems to have balanced out; we didn’t experience an increase in the discount rate likely because one negated the other. Looking into Q4, again, it’s a big quarter. Q3 may not be indicative for broader trends because it was relatively small.

Next up is Rob Owens, followed by Michael Turits.

Thank you very much, and thanks for taking my question. I'll take the opposite side of Hamza's question and ask about FX relative to OpEx. Can you remind us of the breakdown of OpEx: shekel versus non-U.S. dollars versus dollars? Also, regarding your hedging policies for the shekel, can you discuss what hedges you have in place, when they expire, and the impact of rehedging?

Sure. Putting aside any balance sheet hedge because that affects cash flow, the impact on our P&L is negligible. Regarding operations, we hedged the entire exposure regarding shekel and Euro in the beginning of the year. Together, they make up about 50% of the exposure, with the shekel being approximately 30%. Over the past year, we encountered various hurdles including increased raw material, cost surges, and unfavorable currency movements against us. We had hedged around an exchange rate of 3.1, if I recall correctly. Therefore, if the dollar stays strong, that should benefit us next year. We enjoyed some advantages this quarter, but nothing significant since most amounts were hedged. We reaped the benefits from currencies we were not hedged against, but that is a smaller percentage since the majority of our exposure is in Israel with shekel or in Europe with Euro, which we had hedged.

Our next caller is Michael Turits, followed by Andrew Nowinski.

Hi, thanks everyone. A solid quarter in a tough environment. I’d like to revisit Keith Bachman’s question about double-digit growth. Tal, thanks for your clarification on revenues and billings. But fundamentally, what would catalyze that acceleration to growth to what we consider billings or revenue over 10%? With so many positive factors about your product line, is the main trigger for fueling that sales growth more on the sales and marketing side?

Over the last few months, we've built significant infrastructure. Part of it, of course, is having better products and better technologies, which have always been our strong point. However, much of this is also about our sales execution. Just to remind you about what we did this year, we've established a new structural initiative with rockets to push new technologies. We have created a new go-to-market or commercial organization, led by a new Head, Rupal, who joined us in March. We are heavily investing in increasing our frontline sales team to connect with customers and promote our portfolio. I believe we are making significant progress in all these initiatives. While you are correct that there remains ample potential, I feel optimistic about both the midterm and long-term outlook for our business. In the short term, we are witnessing solid signs within the business as we strive to close the fourth quarter.

Next up is Andrew Nowinski, followed by Fatima Boolani.

Thank you. Congrats on the nice quarter this morning. I wanted to explore Infinity and some of the enhancements made to that subscription. You mentioned Horizon could be a game changer, and you've launched some other enhancements to Quantum. Do you believe these new product launches and enhancements will be sufficient for your subscription growth to accelerate in the future? Is there enough in the portfolio now to maintain growth?

Our portfolio today is extensive and deep, with no other vendor matching it in terms of security needs. The challenge we have today lies in educating the market to ensure the adoption of the Infinity architecture. We are receiving great feedback from customers and channels regarding Infinity, and we are witnessing that resonance grow. We are still in the early stages of this. Given our business growth potential, we are focusing on maintaining that momentum for subscription growth. It remains our top priority.

Next up is Fatima Boolani, followed by Brad Zelnick.

Hi, this question is for Tal. Thank you so much for your partnership, and I hope you have a productive sabbatical. I wanted to focus on product growth performance during the quarter. I understand there are numerous factors at play, especially with pricing. I'd like you to break this down for us. You mentioned that appliance families performed well. I'd appreciate any guidance on pricing actions this year—how much impact they've had on performance and historical customer purchases of Infinity packages that may have influenced product revenue recognition.

Infinity is now incorporated into the model. Every quarter, we sign new deals and recognize revenue from deals within that cycle. There isn’t much discrepancy currently between signing and recognition. In terms of product performance, we’ve had solid results across the board. If you look from the start of the year, product growth has been consistent in both units and dollars. While all product families have not performed equally, it’s important to note that we had a strong quarter with particular appliances seeing better results. Regarding pricing, we did implement two price hikes this year—the first at the beginning of the year and the second at the start of this quarter. While I think the first was around 7%, the range for the second was similar, but adjustments depended on the appliance and discounts. Ultimately, it balanced itself out.

Next up is Brad Zelnick, followed by Jonathan Ho.

Great, thanks so much, and good morning everybody. Congrats, Gil and Tal, on the strong execution even if Q3 isn't necessarily seasonally indicative of what’s happening out there. I wanted to revisit the investments you've made into sales and marketing capacity. Can you remind us where you stand, specifically regarding the productivity ramp and how it's aligned with your expectations? Additionally, how should we think about additional capacity coming online next year?

I won’t specify, for competitive reasons, where we specifically stand in each area. However, in terms of productivity, I don’t anticipate improved productivity right away, since our new hires typically come in with very low productivity rates and it takes 6 to 12 months for them to ramp up. Our primary focus this year has been in increasing the number of frontline salespeople who connect with customers. I believe that is a crucial element of our strategy. I can confirm that I have observed a considerably higher number of customers visiting our locations and being positively engaged. Existing customers continue to express their satisfaction, while new customers are expressing interest in our vision. Increased presence in offices is needed to strengthen connections with both potential customers and those who may have forgotten about us over the years.

Next up is Jonathan Ho, followed by Saket Kalia.

Thanks and let me echo my congratulations as well, Tal, on your well-deserved sabbatical. I wanted to inquire a bit about your announcement regarding Horizon MDR and MPR. How are you approaching the market with that product? Is there a need to educate the channel on your capabilities here? This does appear to be a slightly different approach to market compared to traditional product offerings.

You're absolutely correct, and we have been working on that since the beginning of the year. The positive side is we already have substantial traction. When people hear about Horizon, they are interested and often initiate trials. Many begin with smaller engagements before scaling up. The demand is there already. We established a Rocket organization focused on this initiative to ensure it receives proper attention. The feedback from our channel partners has actually been very positive. Most channel partners cannot provide the same level of service we offer, so they prefer solidifying that market presence with us rather than facing competition from us. Overall, reactions continue to be positive, but as you note, this is still a nascent aspect of our business.

Next up is Saket Kalia, followed by Shaul Eyal.

Okay. Great. Hey, thanks for taking my question here and congrats, Tal. Gil, maybe for you. Just to zoom out a little bit, you've experienced several firewall cycles over the decades you've been in the industry. Based on your customer conversations, do you feel like there are drivers for healthy growth in firewall going into next year? Or are you seeing a normalization? I know that various factors could affect those dynamics, but how do you feel about growth prospects for firewalls next year?

It’s a very good question. One mistake we've made in the past years is thinking we should invest more in other technologies and less in the firewall space. We are experiencing healthy demand for firewalls today as organizations realize their importance. Increasingly, organizations are understanding that as we talk about advanced technology and multi-environment solutions, the network remains a critical vector to defend the enterprise. This is particularly important as we deal with more applications and more IoT devices in the marketplace. I can’t say we have substantial indicators for the next year, but I am very positive about our potential. We have ample opportunity not only to grow with the trends but also to seize market share. Coupled with the robust security solutions we offer with Quantum Titan and the improvements being implemented on our Quantum platform, we need to elevate our differentiation in our gateways, as they currently do far more than any other solution in the market.

Next question comes from Shaul Eyal, followed by Joel Fishbein.

Thank you. Good afternoon guys. Congrats. Tal, a quick question. Two quarters ago, you shared with us your RPO number, indicating you would be providing it only once. Before you head off on your sabbatical, can you provide any additional color on it? If I recall correctly, Gil mentioned that you had some mega deals back in Q4 of '21. How should we think about this in the context of your updated Q4 '22 guidance?

We previously stated we would not provide detailed RPO breakdown as it is affected by multiple factors including multiyear transactions. However, we can share that it's seeing double-digit growth as well.

Got it. Double-digit growth. Thank you. Congrats.

You will see the detailed RPO in our annual report, of course, as part of our financial reports.

We'll have to wait patiently until February.

Next question will come from Joel Fishbein, followed by Tal Liani from BofA.

Thank you for taking my question and Tal, congrats again on your upcoming sabbatical. I’m looking to understand if there's visibility into '23. Have there been any deals pulled into Q3 or renewed early? We've heard that happening in this environment.

I haven't observed significant deals being pulled from Q3 into Q4; rather, we did notice some deals pulled into Q1 and Q2 from Q3 and Q4. However, those kinds of shifts happen regularly depending on customer budgets. There were indeed some multiyear accounts that came to fruition in Q4.

Great. Are there still mega deals in the pipeline for this 4Q? Perhaps there is a hole compared to last 4Q?

There are many large deals in the pipeline, as Q4 is typically heavy on such agreements. However, the availability of multiyear contracts often depends on customer decisions, which can cause fluctuations. With high interest rates, it's less attractive for clients to pay upfront now.

Next question will come from Tal Liani's line, and it appears to be his associate, followed by Gregg Moskowitz, who will be our last question.

Yes, hey. This is Tomer Zilberman for Tal Liani. Just a quick one for me. EMEA growth was a little bit lower this quarter than the past few quarters. Is there anything specific to call out? And how is the new sales leadership across the region progressing?

The slower growth in EMEA is mainly due to the situation in Russia, where revenues are significantly impacted by political considerations. Russia had been a strong market for us in the past, but revenues now are very minimal. Apart from that, Europe is doing well. The sales leadership updates saw new leaders added in both the U.S. and the European regions, with newly elevated directors and VPs focusing on restructuring and maximizing efficiency.

Got it. Thank you, and congrats, Tal.

And last question of the day will come from Gregg Moskowitz. Please proceed.

Thank you, Kip. I extend my congratulations to Tal. One thing I find interesting, Tal, would be comparing the miles that you log over the next six months against the hours that each of us spend processing earnings calls at the same time. My question for you is on net new business. I recall noting that you showcased double-digit growth in net new business in Q2. I'm curious about the trends in Q3? Additionally, any commentary around new customers as part of the pipeline will be appreciated. Thank you.

From my recollection, net new business for Q3 is definitely high single-digit. As for the second part, it’s essential to note that we have acquired a fair share of new customers this quarter; however, the overall share remains inconsistent. Our focus is on areas to expand and improve our volume with new accounts. The investments in sales earlier in the year were aimed at maximizing that potential, specifically with dedicated hires targeting new business.

You're welcome. Well, thank you, everyone, for joining us today. We appreciate your participation in our earnings call and we look forward to seeing you throughout the quarter and into the New Year. Take care and goodbye.

Thank you very much. Goodbye.