Check Point Software Technologies Ltd. Reports Strong Fourth Quarter and Full Year Financial Results for 2024

Check Point Software Technologies reported increased revenues and earnings for Q4 and full-year 2024, highlighting strong growth in cybersecurity solutions.

Quiver AI Summary

Check Point Software Technologies Ltd. reported strong financial results for the fourth quarter and full year ending December 31, 2024, with fourth-quarter billings increasing by 11% to $959 million and total revenues rising by 6% to $704 million. The company achieved a GAAP operating income of $254 million, and both GAAP and non-GAAP earnings per share saw year-over-year growth. Full-year results showed a 9% increase in calculated billings to $2.66 billion and a 6% rise in total revenues to $2.57 billion. CEO Nadav Zafrir emphasized his commitment to understanding customer challenges and boosting market share amid a shifting cybersecurity landscape, while founder Gil Shwed acknowledged the contributions of the Check Point team. As part of an executive reshuffle, Itai Greenberg was appointed Chief Revenue Officer, and Roi Karo became the Chief Strategy Officer, while President Rupal Hollenbeck will conclude her role after Q1 2025. The company maintains a strong financial position with cash balances totaling $2.78 billion.

Potential Positives

• Calculated Billings reached $959 million in Q4 2024, an 11% year-over-year increase.
• Total Revenues for the fourth quarter were $704 million, a 6% increase year over year.
• Security Subscriptions Revenues increased by 13% year over year, totaling $1,104 million for the full year 2024.
• Check Point repurchased approximately 7.7 million shares for about $1.3 billion throughout 2024, reflecting confidence in the company's financial health.

Potential Negatives

• Despite increases in revenues and earnings per share, the overall cash balance decreased from $2,960 million in 2023 to $2,784 million in 2024, primarily due to cash spent on acquisitions, which may raise concerns about liquidity and financial health.
• The announcement of several executive changes, including the departure of Rupal Hollenbeck as President after three successful years, signals potential instability in leadership that could affect company operations and strategy moving forward.
• The company's reliance on non-GAAP financial measures and the notable adjustments they require, such as significant stock-based compensation, may lead to concerns among investors regarding the transparency and accuracy of financial performance reporting.

FAQ

What were Check Point's fourth quarter financial results for 2024?

Check Point reported total revenues of $704 million and calculated billings of $959 million for the fourth quarter of 2024.

How did Check Point perform in the full year of 2024?

For the full year 2024, Check Point achieved total revenues of $2,565 million, with calculated billings reaching $2,658 million.

What changes occurred in Check Point's executive team?

Nadav Zafrir became the new CEO, while Itai Greenberg was appointed Chief Revenue Officer and Roi Karo became Chief Strategy Officer.

What was Check Point's GAAP EPS for 2024?

The GAAP EPS for Check Point in 2024 was $7.46, reflecting a 5 percent increase year over year.

When will Check Point host its next conference call?

Check Point will host a conference call on January 30, 2025, at 8:30 AM ET.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$CHKP Hedge Fund Activity

We have seen 302 institutional investors add shares of $CHKP stock to their portfolio, and 325 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• DNB ASSET MANAGEMENT AS added 1,774,058 shares (+inf%) to their portfolio in Q3 2024, for an estimated $342,056,122
• CAUSEWAY CAPITAL MANAGEMENT LLC added 1,226,772 shares (+570.6%) to their portfolio in Q3 2024, for an estimated $236,533,909
• ALTRINSIC GLOBAL ADVISORS LLC removed 429,320 shares (-34.8%) from their portfolio in Q3 2024, for an estimated $82,777,189
• VOYA INVESTMENT MANAGEMENT LLC added 403,125 shares (+103.0%) to their portfolio in Q3 2024, for an estimated $77,726,531
• GEODE CAPITAL MANAGEMENT, LLC removed 307,514 shares (-27.2%) from their portfolio in Q3 2024, for an estimated $59,291,774
• FMR LLC added 252,581 shares (+28.7%) to their portfolio in Q3 2024, for an estimated $48,700,142
• FIRST TRUST ADVISORS LP removed 246,757 shares (-13.7%) from their portfolio in Q3 2024, for an estimated $47,577,217

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

TEL AVIV, Israel, Jan. 30, 2025 (GLOBE NEWSWIRE) --

Check Point® Software Technologies Ltd.

(NASDAQ: CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth




Quarter 202




4




Highlights

• 
  Calculated Billings* reached $959 million, an 11 percent increase year over year
  


• 
  Remaining Performance Obligation (RPO)**: $2.5 billion, a 12 percent increase year over year
  


• 
  Total Revenues: $704 million, a 6 percent increase year over year
  


• 
  Product, License & Subscription Revenues: $463 million, a 9 percent increase year over year
  


• 
  GAAP Operating Income: $254 million, representing 36 percent of revenues
  


• 
  Non-GAAP Operating Income: $306 million, representing 44 percent of revenues
  


• 
  GAAP EPS: $2.30, a 7 percent increase year over year
  


• 
  Non-GAAP EPS: $2.70, a 5 percent increase year over year
  

Full Year 202




4




Highlights

• 
  Calculated Billings* reached $2,658 million, a 9 percent increase year over year
  


• 
  Total Revenues: $2,565 million, a 6 percent increase year over year
  


• 
  Security Subscriptions Revenues: $1,104 million, a 13 percent increase year over year
  


• 
  GAAP EPS: $7.46, a 5 percent increase year over year
  


• 
  Non-GAAP EPS: $9.16, a 9 percent increase year over year
  

“We delivered exceptional fourth quarter results, a wonderful way to transition into my new Executive Chairman role. The success in the quarter was underscored by strong 8 percent revenue growth in our core Quantum Force appliance business, our industry leading Harmony E-mail solution, and expanded adoption of the Infinity platform,” said, Gil Shwed, Founder and Chairman of the Board of Check Point Software. “I would like to thank Check Point’s customers, partners, and the Global Check Point Team for their contributions to our continued success. I look forward to Check Point achieving new heights under the leadership of our new Chief Executive Officer, Nadav Zafrir,” concluded, Mr. Shwed.

“I would like to thank Gil and the Board for the opportunity to lead such an exemplary organization. 2024 was a successful year and provides a great springboard for 2025 and beyond,” stated Nadav Zafrir, Chief Executive Officer of Check Point Software. “My first one hundred days are focused on meeting with customers and partners to understand the key challenges they face in today’s unprecedented threat environment. From my conversations so far, I have become increasingly confident that Check Point is uniquely positioned to address the cybersecurity demands of enterprises worldwide. Check Point’s future is bright, and we are focused on driving market share expansion and taking growth to the next levels,” stated Mr. Zafrir.

“After a successful fourth quarter and 2024, we are starting 2025 with an expanded executive team to balance our corporate and Go-To-Market leadership roles, and bring even more attention to customer facing functions,” said Nadav Zafrir, CEO of Check Point Software. Among the new roles joining the executive team is that of Chief Revenue Officer. Itai Greenberg will serve in this role, driving our global top-line revenue across our platform worldwide. He brings more than two decades of experience in product management and sales roles, having most recently served as Check Point’s Chief Strategy Officer and head of the Cloud and SASE businesses. Replacing Itai in the role of Chief Strategy Officer, we welcome Roi Karo to Check Point. Roi brings more than two decades of expertise in security, AI, and big data with a focus on strategy and planning.

In conclusion, after three successful years as Check Point’s President, Rupal Hollenbeck has chosen to conclude her tenure at the end of the first quarter and will remain available to support the smooth transition of the new executive team members. “I want to thank Rupal for her incredible work and dedication over the last three years during which the Go-To-Market organizations composition, reach, and focus was transformed all around the world. We wish her all the best in her future endeavors,” said Nadav Zafrir, CEO of Check Point Software. “We welcome Itai and Roi into their new executive team roles. I am excited about the opportunities before us, and I am more confident than ever that the best of Check Point is yet to come,” concluded, Mr. Zafrir.

Financ




ial Highlights Commentary

• 
  
  Cash Balances, Marketable Securities & Short-Term Deposits:
  
  $2,784 million as of December 31, 2024, compared to $2,960 million as of December 31, 2023. The decrease in cash is primarily a result of $186 million net of cash consideration utilized for Cyberint Ltd. acquisition in 2024.
  


• 
  
  Share Repurchase Program:
  
  During the fourth quarter of 2024, the company repurchased approximately 1.7 million shares at a total cost of approximately $325 million. During full year 2024, we repurchased approximately 7.7 million shares at a total cost of approximately $1,300 million.
  


• 
  
  Cash Flow:
  
  Cash flow from operations was $1,059, which included $18 million of costs related to our currency hedging transactions, and acquisition-related costs were insignificant. This compares to $1,035 million in 2023, which included $39 million of costs related to our currency hedging transactions and $25 million in costs related to acquisitions.
  
  
  

For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”

Conference Call and Webcast Information



Check Point will host a conference call with the investment community on January 30, 2025, at 8:30 AM ET/5:30 AM PT. To listen to the live webcast or replay, please visit the website

www.checkpoint.com/ir

.




First Quarter 202




5




Investor Conference Participation Schedule

• 
  
  Wolfe Research March Madness 1x1 Conference
  
  
  
  February 27, 2025, NY, NY – 1x1 meetings
  


• 
  
  Susquehanna Technology Conference
  
  
  
  February 27, 2025, NY, NY – 1x1 meetings
  


• 
  
  Raymond James 202
  
  
  5
  
  
  Institutional Investor Conference
  
  
  
  March 3, 2025, Orlando, FL – Fireside & 1x1 meetings
  


• 
  
  Morgan Stanley 202
  
  
  5
  
  
  Media, Telecommunications & Technology Conference
  
  
  
  March 4, 2025, SF, CA – Fireside & 1x1 meetings
  


• 
  
  Roth Capital Partners 37
  
  
  
  ^th
  
  
  
  Annual Conference
  
  
  
  March 17-18, 2025, Dana Point
  
  ,
  
  CA – 1x1 meetings
  
  
  

Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at

www.checkpoint.com/ir

. The schedule is subject to change.

Follow Check Point via:



Twitter:


http://www.twitter.com/checkpointsw




Facebook:


https://www.facebook.com/checkpointsoftware




Blog:


http://blog.checkpoint.com




YouTube:

http://www.youtube.com/user/CPGlobal



LinkedIn:

https://www.linkedin.com/company/check-point-software-technologies

About Check Point Software Technologies Ltd.



Check Point Software Technologies Ltd. (



http://www.checkpoint.com



) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services.

Legal Notice Regarding Forward-Looking Statements




This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our management transitions, expectations regarding our products and solutions, and our participation in investor conferences and Check Point Experience (CPX) events and other events during the first quarter of 2025. 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 platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other 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 on April 2, 2024. The forward-looking statements in this press release 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.

Use of Non-GAAP Financial




Information




In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

* Calculated Billings is a measure that we defined as total revenues recognized in accordance with GAAP plus the change in Total Deferred Revenues during the period

** Remaining Performance Obligation (RPO) is a measure that represents the total value of


non-cancellable


contracted products and/or services that are yet to be recognized as Revenue as of the period

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.