Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the third quarter ended September 30, 2022.
Third Quarter 2022:
- Total Revenue: $578 million, an 8 percent increase year over year
- Security Subscription Revenues: $216 million, a 13 percent increase year over year
- Deferred Revenues: $1,647 million, a 13 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: $1.47, a 5 percent increase year over year
- Non-GAAP EPS: $1.77, a 7 percent increase year over year
“We delivered strong third quarter results reflecting solid execution during the quarter. Revenues came in toward the high-end of our projections, while non-GAAP earnings per share exceeded projections. Product and Security Subscription revenues increased by thirteen percent driven by double-digit growth in Harmony, CloudGuard and Quantum network security gateways.” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “During the quarter we expanded the Infinity platform with the introduction of Horizon, an industry-leading security operations solutions and services suite. Horizon for XDR, MDR and events leverages the company’s prevention-first approach to improve defenses across the network, cloud, and endpoints to prevent future cyberattacks.”
“Additionally, this is to update that starting November, Tal Payne, the company’s CFO & COO will take a six months’ sabbatical leave for a cycling tour and for traveling around the world. The company’s VP finance, Roei Golan, will serve as the company’s acting CFO in this period and assume Ms. Payne’s duties and responsibilities.” concluded, Shwed.
Financial Highlights for the Third Quarter of 2022:
- Total Revenue: $578 million compared to $534 million in the third quarter of 2021, an 8 percent increase year over year.
- GAAP Operating Income: $221 million compared to $225 million in the third quarter of 2021, representing 38 percent and 42 percent of revenues in the third quarter of 2022 and 2021, respectively.
- Non-GAAP Operating Income: $263 million compared to $261 million in the third quarter of 2021, representing 45 percent and 49 percent of revenues in the third quarter of 2022 and 2021, respectively.
- GAAP Taxes on Income: $49 million compared to $47 million in the third quarter of 2021.
- GAAP Net Income: $184 million compared to $187 million in the third quarter of 2021.
- Non-GAAP Net Income: $221 million compared to $220 million in the third quarter of 2021.
- GAAP Earnings per Diluted share: $1.47 compared to $1.40 in the third quarter of 2021, a 5 percent increase year over year.
- Non-GAAP Earnings per Diluted share: $1.77 compared to $1.65 in the third quarter of 2021, a 7 percent increase year over year.
- Deferred Revenues: As of September 30, 2022, deferred revenues were $1,647 million compared to $1,456 million as of September 30, 2021, a 13 percent increase year over year.
- Cash Balances, Marketable Securities and Short-Term Deposits: $3,570 million as of September 30, 2022, compared to $3,835 million as of September 30, 2021.
- Cash Flow: Cash flow from operations was $240 million, compared to $251 million in the third quarter of 2021.
- Share Repurchase Program: During the third quarter of 2022, we repurchased approximately 2.67 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.”
Video Conference Information
Check Point will host a video conference with the investment community on October 27, 2022, 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.
Fourth Quarter Investor Conference Participation Schedule:
- RBC 2022 Technology, Internet, Media & Telecommunications Conference
November 15-16, 2022, NY, NY – 1×1’s
- Credit Suisse 2022 Technology Summit
November 28 – 30, 2022, Scottsdale, AZ – Fireside Chat & 1×1’s
- Wells Fargo 6th Annual TMT Summit
December 1, 2022, Las Vegas, NV – 1×1’s
- Raymond James 2022 Technology Conference
December 5-6, 2022, NY, NY – 1×1’s
- Barclays 2022 Technology Conference
December 7-8, 2022, SF, CA – 1×1’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 cyber-attacks with an industry leading catch rate of malware, ransomware, and other threats. Infinity comprises three 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 protects over 100,000 organizations of all sizes.
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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, our beliefs regarding our customers’ adoption of our products and solutions, and our participation in investor conferences during the fourth quarter of 2022. 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 products and solutions and new products and solutions; the continued effects on our business of 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. 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 14, 2022. 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.