27 slides from Check Point Software Technologies's earnings presentation, Jul 26, 2023
Slide 1: 2023 Second Quarter Financial Results
2023 Second Quarter Financial Results July 26, 2023 Gil Shwed Roei Golan Kip E. Meintzer Founder & CEO CFO Global Head of IR ©2023 Check Point Software Technologies Ltd. 1
Slide 2: Forward Looking Statement
Forward Looking Statement 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 Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 include but are n
Slide 3: 30 Years. $30B. On to the next 30!
30 Years. $30B. * On to the next 30! * Accumulative total revenues 1993 – 2023 (YTD) ©2023 Check Point Software Technologies Ltd. 3
Slide 4: Strong Profitability – 14% Growth in Net Income
Strong Profitability – 14% Growth in Net Income Non-GAAP Net Income $238M +14% EPS $2.00 +22% Non-GAAP excludes equity-based compensation charges, amortization of acquired intangibles and acquisition related expenses and their related tax effects. A reconciliation of non-GAAP to GAAP can be found in
Slide 5: EPS Grew By 22% - The Highest Since 2009
EPS Grew By 22% - The Highest Since 2009 Non-GAAP $589M Revenues Actual $1 Million Above the Mid-point Mid Point of our projections $570M $588M $605M EPS $2.00 Actual 5 Cents Above the Top-end of our projections $1.85 $1.90 $1.95 Non-GAAP excludes equity-based compensation charges, amortization of a
Slide 6: Current Calculated Billings & Deferred Revenue Continue Growing
Current Calculated Billings & Deferred Revenue Continue Growing Q2-22 Q2-23 Y/Y % Total Revenues $571M $589M 3% Deferred Revenues $1,666M $1,774M 7% Current Deferred Revenues $1,211M $1,307M 8% Calculated Billings* reached $566M Current Calculated Billings $581M up 4% YoY * Calculated Billings i
Slide 7: Security Subscription Revenues Growth and Harmony Email
Security Subscription Double Digit Revenues Growth + Harmony Email 14% Delayed Refresh Resulted in Product Revenues Decline Triple Digit $239M Growth 14% Q2-21 Q2-22 12% Q2-23 12% -3% Q2-20 Q2-21 Q2-22 Q2-23 -12% ©2023 Check Point Software Technologies Ltd. 7
Slide 8: Strong Adoption Of Our Infinity Strategy
Strong Adoption Of Our Infinity Strategy Exceeded 10% of Revenues Consolidated Security Platform Q2-20 Q2-21 Q2-22 Q2-23 ©2023 Check Point Software Technologies Ltd. 8
Slide 9: Q2-23 Revenues Increased Across All Geographies
Q2-23 Revenues Increased Across All Geographies Q2-2023 Q2-2022 12% APAC 12% APAC 44% 45% EMEA EMEA 44% Americas 43% Americas ©2023 Check Point Software Technologies Ltd. 9
Slide 10: Strong Margin Performance
Strong Margin Performance Non-GAAP Q2-22 Q2-23 YOY YOY Total Revenues $571M $589M 3% Gross Profit $501M $527M 5% Gross Margin 88% 90% Research and Development* $74M $74M - Selling and Marketing $159M $169M 7% General and Administrative $19M $21M 10% Operating Expenses $252M $264M 5% Operating Income
Slide 11: Net Income & EPS – Industry Leading Profitability
Net Income & EPS – Industry Leading Profitability Non-GAAP Q2-22 Q2-23 YOY YOY Operating Income $249M $263M 6% Financial Income, Net $10M $21M 120% Tax Expenses $49M $46M -6% Net Income $209M $238M 14% EPS $1.64 $2.00 22% Non-GAAP excludes equity-based compensation charges, amortization of acquired
Slide 12: Cash Flow & Cash Position
Cash Flow & Cash Position $3.5 Billion Cash, Marketable Securities & $325 Million Share Repurchase for the Quarter Short Term Deposits $191 Million $1.3 Billion In the past 12 Months Strong Operating Cash Flow ©2023 Check Point Software Technologies Ltd. 12
Slide 13: Financial Summary
• 14% Growth in Subscription Revenues • Harmony Email with Triple Digit Growth • Continued Strong Adoption of Infinity Platform Financial Summary • While refresh projects have experienced delays, the renewal business remains strong and healthy • Strong Operating Margin Resulted in Over 22% EPS Growt
Slide 14: Business Update
BUSINESS UPDATE ©2023 Check Point Software Technologies Ltd. 14
Slide 15: Q2-2023 Highlights
Q2-2023 Highlights Good Financial Results Growth Despite Economy Strong Subscription Business Over 22% EPS Growth Robust Renewals Business Triple-Digit Growth in Harmony Email Despite Delays in Refresh Revenues Above Mid-point Projects Infinity Exceeded 10% of Total Revenues Positive trend in Americ
Slide 16: More Organizations Benefit from the Best Security
More Organizations Benefit from the Best Security Consolidated Security Platform – Sample Customers Financial Services Education Healthcare • Expanded Network Security • Replaced Outdated • Satisfied Quantum Customer with Maestro Competitive Vendor Products • Consolidated across Networks, • Selected
Slide 17: Email Security
Email Security Continued Growth. Market Recognition Large Pharmaceutical Chose Harmony Email Due to Highest Catch Rate vs. Competition Large Bank Existing Solution Missed Phishing Emails. Selected Harmony Email For Security Efficacy – Onboarded in Less than 5 Minutes! ©2023 Check Point Software Tech
Slide 18: Prevent Attacks with the Best Security
Prevent Attacks with the Best Security COMPREHENSIVE CONSOLIDATED COLLABORATIVE Prevention across all Unified management Best security engines easily attack vectors applied to any attack vector Unified security operations From code to cloud, networks, for your entire security stack Real-time shared
Slide 19: Collaborative Prevention Makes the Difference
Collaborative Prevention Makes the Difference Multiple products work together to protect against the most sophisticated threats AI POWERED ENGINES DETECT A USER RECEIVED AN EMAIL WITH THAT THE ENDPOINT WAS COLLABORATIVE PREVENTION ATTACHMENT AND OPENED IT COMPROMISED ISOLATE THE ENDPOINT 1 PROACTIVE
Slide 20: Summary
• Financial Results • Over 22% EPS Growth • 14% Growth in Security Subscription SUMMARY Revenues • High Growth in Harmony Email Security • High Growth with Infinity • Collaborative Security in Action ©2023 Check Point Software Technologies Ltd. 20
Slide 21: Thank you!
Thank you! ©2023 Check Point Software Technologies Ltd. 21
Slide 22: Projections
. ‘GS @ cueck POINT 6 PROJECTIONS YOU DESERVE THE BEST SECU
Slide 23: 2023 Projections
2023 Projections Revenues $2,340M - $2,510M Non-GAAP EPS $7.70 - $8.30 GAAP EPS is expected to be $1.22 less Projecting future results is very challenging, there is a high level of uncertainty Results can be better or worse than our projections *Non-GAAP excludes equity-based compensation charges, a
Slide 24: Q3-2023 Projections
Q3-2023 Projections Revenues $570M - $605M Non-GAAP EPS $1.97 - $2.07 GAAP EPS is expected to be 35 cents less Projecting future results is very challenging, there is a high level of uncertainty Results can be better or worse than our projections *Non-GAAP excludes equity-based compensation charges,
Slide 25: Thank You!
. ‘GS @ cueck POINT 6 THANK YOU! YOU DESERVE THE BEST SECU
Slide 26: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Amortization of Amortization of intangible assets Taxes on intangible assets Taxes on Stock-based Stock-based (In millions, except per share amounts) GAAP and acquisitio
Slide 27: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Amortization of Amortization of intangible assets Taxes on intangible assets Taxes on Stock-based Stock-based (In millions, except per share amounts) GAAP and acquisition re