25 slides from Check Point Software Technologies's earnings presentation, Jul 24, 2024
Slide 1: 2024 Second Quarter Financial Results
2024 Second Quarter Financial Results July 24th, 2024 Gil Shwed Roei Golan Kip E. Meintzer Founder & CEO CFO Global Head of IR ©2024 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: Welcome Nadav Zafrir, CEO!
Welcome Nadav Zafrir, CEO! – Global Cyber Security Ecosystem Leader – Co-Founder of Team8, Established 17 Cyber Companies – Trusted Advisor of CISOs, C-Suites & BODs of the World’s Largest Companies – Vast Experience Running Large Operations in the Public and Private Sectors ©2024 Check Point Softwa
Slide 4: Financial Results
Financial Results ©2024 Check Point Software Technologies Ltd. 4
Slide 5: Q2-24 Revenues & EPS
Q2-24 Revenues & EPS Non-GAAP* $627M Revenues Actual $5 Million Above the Midpoint of our projections $607M $637M EPS $2.17 2 Cents Above the Midpoint of Actual our projections $2.10 $2.20 *Non-GAAP excludes equity-based compensation charges, amortization of acquired intangibles and acquisition rela
Slide 6: Revenues & Deferred Revenues
Revenues & Deferred Revenues Q2-23 Q2-24 Y/Y % Revenues $589M $627M 7% Deferred Revenues $1,774M $1,818M 2% Current Deferred Revenues $1,307M $1,342M 3% Calculated Billings $566M $620M 10% Current Calculated Billings $581M $622M 7% * Calculated Billings is a measure that we defined as total revenues
Slide 7: Double-Digit Growth in Product & Subscription Revenues
Double-Digit Growth in Product & Subscription Revenues 10% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Products & Subscription ©2024 Check Point Software Technologies Ltd. 7
Slide 8: Strong Adoption - Industry Leading Security Platform
Strong Adoption - Industry Leading Security Platform Double-Digit Revenue Growth AI Powered & Cloud Delivered Security Platform Q2-22 Q2-23 Q2-24 ©2024 Check Point Software Technologies Ltd. 8
Slide 9: Global Revenue Distribution
Global Revenue Distribution Q2 2023 Q2 2024 12% 11% APAC APAC 45% 46% EMEA EMEA 43% Americas 43% Americas ©2024 Check Point Software Technologies Ltd. 9
Slide 10: Strong Operating Performance
Strong Operating Performance Non-GAAP* Q2-23 Q2-24 YOY YOY Total Revenues $589M $627M 7% Gross Profit $527M $557M 6% Gross Margin 90% 89% Operating Expenses $264M $292M 11% Operating Income $263M $265M 1% Financial Income, Net $21M $24M Tax Expenses $46M $43M Net Income $238M $246M 4% EPS $2.00 $2.1
Slide 11: Share Repurchase Program
Share Repurchase Program Expansion of $2 Billion Up to $325 Million a quarter ©2024 Check Point Software Technologies Ltd. 11
Slide 12: Cash Flow & Cash Position
Cash Flow & Cash Position $3.1 Billion Cash, Marketable Securities & Short Term Deposits $325 Million $200 Million Second Quarter Share Repurchase Strong Operating Cash Flow ©2024 Check Point Software Technologies Ltd. 12
Slide 13: Financial Summary
Financial Summary – Revenues & EPS Above Midpoint of Projections – Quarterly Revenues Accelerated - Double-Digit Growth in Product & Subscription Revenues - Strong Infinity & Harmony Email Performance – Strong Profitability with Growth In EPS and Operating Cash Flow *Non-GAAP excludes equity-based c
Slide 14: Business Update
Business Update ©2024 Check Point Software Technologies Ltd. 14
Slide 15: Q2 – Building Momentum
Q2 – Building Momentum Great Results Continued Momentum – Revenues, EPS – Above Midpoint – Large 8-Figure Infinity Deals of Projections – Continued Strong Performance of – Double-Digit Growth in Product & Harmony Email Subscription Revenues – Quantum Force Driving Product – Strong Double-Digit Growt
Slide 16: Customers Embrace Infinity Platform Technologies
Customers Embrace Infinity Platform Technologies Asia US Asia Europe NZ’s Largest Telecom Stock Exchange Global Airline Workplace Pensions Provider Provider ©2024 Check Point Software Technologies Ltd. 16
Slide 17: Fortune Global 500 Deals
Infinity Platform Drives Large Deal Momentum 3 Fortune Global 500 Deals Over $130 Million in Bookings! ©2024 Check Point Software Technologies Ltd. 17
Slide 18: Public Sector Momentum Continues
Public Sector Momentum Continues 92 New Government Agencies in 32 Countries ©2024 Check Point Software Technologies Ltd. 18
Slide 19: Everywhere Delivers Security & Simplicity
Everywhere Delivers Security & Simplicity AI Assistant for Security 4 New AI Based Threat AI Powered Fully Automated Enable & Secure Usage of Admins Prevention Engines Web Application Firewall Gen-AI Applications (over 50) ©2024 Check Point Software Technologies Ltd. 19
Slide 20: Summary: Strong Quarter & New CEO
Summary Strong Quarter & New CEO • New CEO – Nadav Zafrir The Platform Company • Starting December 2024 Since 2018 • Q2 Above Midpoint of Projections • Infinity Delivers Continued Strength • Double-Digit Growth in Products & Subscriptions • New & Innovative Technologies AI, Quantum, Harmony, CloudGu
Slide 21: Q3 Projections
Q3 Projections ©2024 Check Point Software Technologies Ltd. 21
Slide 22: Q3-2024 Projections
Q3-2024 Projections Non-GAAP* Revenues $615M - $650M EPS $2.19 - $2.29 GAAP EPS is expected to be 43 cents less Full Year 2024 Projections Remain Unchanged Projecting future results is very challenging, there is a high level of uncertainty Results can be better or worse than our projections *Non-GAA
Slide 23: Thank You!
Thank You! ©2024 Check Point Software Technologies Ltd. 23
Slide 24: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 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 25: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 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