25 slides from Check Point Software Technologies's earnings presentation, Oct 29, 2024
Slide 1: 2024 Third Quarter Financial Results
2024 Third Quarter Financial Results October 29th, 2024 Gil Shwed Roei Golan Kip E. Meintzer Founder & CEO CFO Global Head of IR [Confidential] ©2024 Check Point Software Technologies Ltd. 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation may contain certain forward-looking statements. These forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this report include, but are not limited to: Our expectations
Slide 3: Financial Results
Financial Results [Confidential] ©2024 Check Point Software Technologies Ltd. 3
Slide 4: Q3-24 Revenues & EPS
Q3-24 Revenues & EPS Non-GAAP* $635M Revenues – 7% Growth Actual $3 Million Above the Midpoint of our projections $632.5M $615M Midpoint $650M EPS – 9% Growth $2.25 1 Cents Above the Midpoint of Actual our projections $2.19 $2.24 $2.29 Midpoint *Non-GAAP excludes equity-based compensation charges, a
Slide 5: Revenues & Deferred Revenues
Revenues & Deferred Revenues Q3-23 Q3-24 Y/Y % Total Revenues $596M $635M 7% Security Subscription Revenues $248M $277M 12% Deferred Revenues $1,709M $1,745M 2% Calculated Billings* reached $562M up 6% YoY Current Calculated Billings $563M up 5% YoY * Calculated Billings is a measure that we def
Slide 6: Growth In Product & Subscription Revenues
Growth In Product & Subscription Revenues $396M +9% Growth Y/Y $363M Q3-23 Q3-24 [Confidential] ©2024 Check Point Software Technologies Ltd. 6
Slide 7: Strong Adoption - Industry Leading Security Platform
Strong Adoption - Industry Leading Security Platform Double-Digit Revenue Growth AI Powered & Cloud Delivered Security Platform Q3-22 Q3-23 Q3-24 [Confidential] ©2024 Check Point Software Technologies Ltd. 7
Slide 8: Global Revenue Distribution – Growth in all GEO's
Global Revenue Distribution – Growth in all GEO’s +Americas + EMEA + APAC 41% 46% 13% +3% +7% +17% Q3-23 Q3-24 Q3-23 Q3-24 Q3-23 Q3-24 [Confidential] ©2024 Check Point Software Technologies Ltd. 8
Slide 9: Strong Operating Performance
Strong Operating Performance Non-GAAP* Q3-23 Q3-24 Y/Y YOY Total Revenues $596M $635M 7% Gross Profit $534M $563M 5% Operating Expenses $265M $289M 9% Operating Income $269M $274M 2% Financial Income, Net $18M $25M Tax Expenses $44M $44M Net Income $242M $255M 5% EPS $2.07 $2.25 9% *Non-GAAP exclude
Slide 10: Third Quarter Cash Flow & Cash Position
Third Quarter Cash Flow & Cash Position $2.9 Billion Cash, Marketable Securities & $186 Million Net Cash paid for Acquisition $325 Million Short Term Deposits $249 Million Strong Operating Cash Flow Share Repurchase in the quarter [Confidential] ©2024 Check Point Software Technologies Ltd. 10
Slide 11: Financial Summary
Financial Summary – Revenues & EPS Above Midpoint of Projections – Quarterly Revenues Accelerated - Product & Subscription Revenues Growth - Strong Infinity & Harmony Email Performance – Strong Profitability & Operating Cash Flow *Non-GAAP excludes equity-based compensation charges, amortization of
Slide 12: Business Update
Business Update [Confidential] ©2024 Check Point Software Technologies Ltd. 12
Slide 13: Q3 – Exceeded Expectations
Q3 – Exceeded Expectations Great Results Expanding Portfolio – Revenues, EPS – Above Midpoint – Infinity Global Services - Strong Demand, of Projections over 3400 customers – Infinity Platform - Continued – Transforming Security Operations & Strong Demand Threat Intelligence - Cyberint Acquisition –
Slide 14: Customers Embrace Check Point
Customers Embrace Check Point United States Department of State Europe Americas Americas Europe Americas Among World’s Largest Largest Global Non-profit Federal Government Automotive Software Global Leader in Exchange Companies Medical Group Solutions Industrial Automation [Confidential] ©2024 Check
Slide 15: New Customers Choose Check Point
New Customers Choose Check Point Public Sector Financial Services Healthcare 65 New customers 40 New customers 28 New customers 40 Countries 23 Countries 17 Countries [Confidential] ©2024 Check Point Software Technologies Ltd. 15
Slide 16: Harmony Email Reached New Milestone Exceeding $100M ARR
Harmony Email Reached New Milestone Exceeding $100M ARR ! Over $100 Million ARR* Q3-21 Q3-22 Q3-23 Q3-24 *Annualized Recurring Revenue. ARR is annualized allocated revenue of all active contracts as of the final day of the reporting period. [Confidential] ©2024 Check Point Software Technologies Ltd.
Slide 17: Expanding into the Security Operations Center (SOC) - Acquired Cyberint
Expanding into the Security Operations Center (SOC) - Acquired CyberInt The Broadest External Threat Exposure Platform, including Threat Intelligence, Digital Risk Protection and External Attack Surface Management One of the fastest growing companies in the market 170 employees 200 enterprise custom
Slide 18: Check Point + Cyberint Turning Detection into Full Prevention
Check Point + Cyberint Turning Detection into Full Prevention Payments Platforms Cloud Environments Suppliers + Threat Actors Social Media Customers and Employees Development Environments Applications [Confidential] ©2024 Check Point Software Technologies Ltd. 18
Slide 19: Summary
‒ Revenues & EPS Above Midpoint of Projections ‒ Infinity Delivers Continued Strength ‒ Harmony Email Exceeded $100M ARR Summary ‒ Expanded SOC Offering & Transforming Security Operations & Threat Intelligence Through Cyberint Acquisition [Confidential] ©2024 Check Point Software Technologies Ltd. 2
Slide 20: Q4 / FY2024 Projections
Q4 / FY2024 Projections [Confidential] ©2024 Check Point Software Technologies Ltd. 22
Slide 21: Q4-2024 Projections
Q4-2024 Projections Revenues $675M - $715M Non-GAAP EPS $2.60 - $2.70 GAAP EPS is expected to be 45 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 22: Updated 2024 Projections
Updated 2024 Projections Non-GAAP Revenues $2,536M Updated $2,576M Original $2,556 $2,475M $2,625M Non-GAAP EPS $9.05 Updated $9.15 Original $9.10 $8.70 $9.30 GAAP EPS is expected to be $1.75 less Projecting future results is very challenging, there is a high level of uncertainty Results can be bett
Slide 23: Thank You!
Thank You! [Confidential] ©2024 Check Point Software Technologies Ltd. 25
Slide 24: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Amortization of Amortization of Taxes on Taxes on Stock-based intangible assets Stock-based intangible assets (In millions, except per share amounts) GAAP reco
Slide 25: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Amortization of Amortization of Taxes on Taxes on Stock-based intangible assets Stock-based intangible assets (In millions, except per share amounts) GAAP reconc