Check Point Software Reports Over 22% Eps Growth in the Second Quarter

SAN CARLOS, Calif., July 26, 2023 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the second quarter ended June 30, 2023.

Second Quarter 2023:

• Total Revenues: $589 million, a 3 percent increase year over year
• Product and License Revenues: $117 million, a 12 percent decrease year over year
• Security Subscription Revenues: $239 million, a 14 percent increase year over year
• Deferred Revenues: $1,774 million, a 7 percent increase year over year
• GAAP Operating Income: $221 million, representing 38 percent of revenues
• Non-GAAP Operating Income: $263 million, representing 45 percent of revenues
• GAAP EPS: $1.70, a 25 percent increase year over year
• Non-GAAP EPS: $2.00, a 22 percent increase year over year

“The second quarter delivered robust profitability with over 22 percent growth in EPS. Our platform security strategy realized continued success, as Infinity revenues surpassed 10 percent of total revenues for the quarter,” said Gil Shwed, Founder and CEO of Check Point Software. “This was further emphasized by a 14 percent increase in security subscription revenues that encompasses our advanced security solutions such as ThreatCloud AI, CloudGuard, and Harmony E-mail. This mitigated some of the impact from customers delaying network security refresh projects. As we move forward, our priority remains driving revenue growth by delivering a prevention-first approach, with a focus on collaborative cyber security where multiple products work in concert to protect against the most sophisticated threats."

Financial Highlights for the Second Quarter of 2023:

• Total Revenues:$589 million compared to $571 million in the second quarter of 2022, a 3 percent increase year over year.
• GAAP Operating Income: $221 million compared to $209 million in the second quarter of 2022, representing 38 percent and 37 percent of total revenues in the second quarter of 2023 and 2022, respectively.
• Non-GAAP Operating Income: $263 million compared to $249 million in the second quarter of 2022, representing 45 percent and 44 percent of total revenues in the second quarter of 2023 and 2022, respectively.
• GAAP Taxes on Income: $41 million compared to $45 million in the second quarter of 2022.
• GAAP Net Income: $202 million compared to $174 million in the second quarter of 2022.
• Non-GAAP Net Income: $238 million compared to $209 million in the second quarter of 2022.
• GAAP Earnings Per Diluted Share: $1.70 compared to $1.36 in the second quarter of 2022, a 25 percent increase year over year.
• Non-GAAP Earnings Per Diluted Share: $2.00 compared to $1.64 in the second quarter of 2022, a 22 percent increase year over year.
• Deferred Revenues: As of June 30, 2023, deferred revenues were $1,774 million compared to $1,666 million as of June 30, 2022, a 7 percent increase year over year.
• Cash Balances, Marketable Securities and Short-Term Deposits: $3,515 million as of June 30, 2023, compared to $3,676 million as of June 30, 2022.
• Cash Flow: Cash flow from operations of $191 million compared to $212 million in the second quarter of 2022. The second quarter of 2023 includes $16 million of expenses related to our currency hedging transactions and $22 million of tax expenses compared to $47 million of expenses related to our currency hedging transactions and $30 million of tax expenses in the second quarter of 2022.
• Share Repurchase Program: During the second quarter of 2023, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.

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 July 26, 2023, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.

Third Quarter Investor Conference Participation Schedule:

• KeyBanc Technology Leadership Forum
  August 6-8, 2023, Vail, CO – Fireside Chat & 1x1’s
• Oppenheimer 26^h Annual Virtual Technology, Internet & Communications Conference
  August 8-9, 2023 – Virtual 1x1’s
• Deutsche Bank 2023 Technology Conference
  August 30 - 31, 2023, Dana Point, CA – Fireside Chat & 1x1’s
• Goldman Sachs 2023 Communicopia + Technology Conference
  September 5, 2023, San Francisco, CA – Fireside Chat &1x1’s
• Citi 2023 Global Technology Conference
  September 6-8, 2023, New York, NY – Fireside Chat & 1x1’s
• Piper Sandler 2023 Growth Frontiers Conference
  September 11-13, 2023, Nashville, TN – 1x1’s

Members of Check Point's management team anticipate attending these conferences and events to discuss the latest company strategies and initiatives. Check Point’s conference presentations if applicable will 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.

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading provider of cyber security solutions to corporate enterprises and governments globally. Check Point Infinity’s portfolio of solutions protects enterprises and public organizations from 5th generation cyberattacks with an industry leading catch rate of malware, ransomware, and other threats. Infinity comprises four core pillars delivering uncompromised security and generation V threat prevention across enterprise environments: Check Point Harmony, for remote users; Check Point CloudGuard, to automatically secure clouds; and Check Point Quantum, to protect network perimeters and datacenters, all controlled by the industry’s most comprehensive, intuitive unified security management; Check Point Horizon, a prevention-first security operations suite. Check Point protects over 100,000 organizations of all sizes.

Follow Check Point via:
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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

©2023 Check Point Software Technologies Ltd. All rights reserved.

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 expectations regarding our products and solutions and driving revenue growth, expectations related to cybersecurity and other threats, and our participation in investor conferences during the third quarter of 2023. 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; and general market, political, economic and business conditions, including as a result of the impact of the Covid-19 pandemic. 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 27, 2023. 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.