30 slides from Check Point Software Technologies's earnings presentation, Apr 25, 2024
Slide 1: 2024 First Quarter Financial Results
2024 First Quarter Financial Results April 25th, 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: Financial Results
Financial Results ©2024 Check Point Software Technologies Ltd. 3
Slide 4: Q1-24 Strong Profitability - 42% Operating Margin
Q1-24 Strong Profitability - 42% Operating Margin* EPS* Net $2.04 $235M Income* +13% Increase Y/Y +8% Increase Y/Y *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 t
Slide 5: Q1-24 Revenues & EPS
Q1-24 Revenues & EPS* $599M Revenues Actual $6 Million Above the Midpoint of our projections $575M $610M EPS* $2.04 4 Cents Above the Midpoint of Actual our projections $1.95 $2.05 *Non-GAAP excludes equity-based compensation charges, amortization of acquired intangibles and acquisition related expe
Slide 6: Revenues & Deferred Revenues Growth
Revenues & Deferred Revenues Growth Q1-23 Q1-24 Y/Y % Revenues $566M $599M 6% Deferred Revenues $1,797M $1,826M 2% Current Deferred Revenues $1,315M $1,347M 2% • Calculated Billings* reached $517M: 7% Growth YoY • Remaining Performance Obligation reached $2,179M: 6% Growth YoY * Calculated Billings
Slide 7: Consistently Strong Security Subscription Revenues Growth
Consistently Strong Security Subscription Revenues Growth +15% $263M +13% + +14% +12% Strong Performance of Infinity & Harmony Email Q1-21 Q1-22 Q1-23 Q1-24 ©2024 Check Point Software Technologies Ltd. 7
Slide 8: New Business Acceleration – Double-Digit Growth
New Business Acceleration – Double-Digit Growth Non-GAAP Growth of New Business Annualized Annualized New Business Bookings* Bookings* (%) Growth (%) Infinity Harmony Quantum Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 *Annualized Bookings - Represent the annualized value of non-cancelab
Slide 9: Strong Adoption - Industry Leading Infinity Security Platform
Strong Adoption - Industry Leading Infinity Security Platform AI Powered & Cloud Delivered Security Platform Q1-22 Q1-23 Q1-24 ©2024 Check Point Software Technologies Ltd. 9
Slide 10: Global Revenue Distribution
Global Revenue Distribution Q1 2023 Q1 2024 12% APAC 12% APAC 45% EMEA 43% 46% Americas EMEA 42% Americas New Business Growth Across All Geographies ©2024 Check Point Software Technologies Ltd. 10
Slide 11: Strong Operating Margin
Strong Operating Margin Non-GAAP* Q1-23 Q1-24 YOY YOY Total Revenues $566M $599M 6% Gross Profit* $502M $536M 7% Gross Margin 89% 90% Research and Development $79M $83M Selling and Marketing $165M $181M General and Administrative $20M $20M Operating Expenses $264M $284M 8% Operating Income* $238M $2
Slide 12: Net Income & EPS – Industry Leading Profitability
Net Income & EPS – Industry Leading Profitability Non-GAAP* Q1-23 Q1-24 YOY YOY Operating Income* $238M $252M 6% Financial Income, Net $19M $23M Tax Expenses $39M $40M Net Income $218M $235M 8% Net Margin 38% 39% EPS* $1.80 $2.04 13% *Non-GAAP excludes equity-based compensation charges, amortization
Slide 13: Cash Flow & Cash Position
Cash Flow & Cash Position $3.0 Billion Cash, Marketable Securities & $325 Million First Quarter Short Term Deposits Share Repurchase $361 Million Strong Operating Cash Flow ©2024 Check Point Software Technologies Ltd. 13
Slide 14: Financial Summary
• Revenues & EPS Reached Top End of Projections • Acceleration in Quarterly Revenues Financial Summary - Strong Infinity & Harmony Email Performance • Strong Acceleration In New Business - Double-Digit New Business Bookings Growth • Strong Profitability* - 6% Operating Income Growth - 8% Net Income
Slide 15: Business Update
Business Update ©2024 Check Point Software Technologies Ltd. 15
Slide 16: Q1 – Strong & Continued Momentum
Q1 – Strong & Continued Momentum Great Results New Business Activity Revenues, EPS – Top End of Double-Digit New Business Growth Projections Infinity Momentum – New Customers Double-Digit Subscription Growth & Major Public Sector Wins Aggregate Recurring Revenues Now Major Refresh – Quantum Force Re
Slide 17: Market Embracing Infinity Platform Technologies
Market Embracing Infinity Platform Technologies Public Sector US Europe Europe Asia Worldwide Industrial Supplies Mass Media & Telco Shoe Manufacturer NZ’s Largest Energy 90+ New Government Manufacturer Infrastructure Company Agencies in 40 Countries ©2024 Check Point Software Technologies Ltd. 17
Slide 18: CPX2024 – Best Check Point Conference!
CPX2024 – Best Check Point Conference! • 18,000 Physical / Virtual Attendance – Customers, Partners, Employees • New Sell-Side Analyst Track • Product Launches and Announcements • Record-High Satisfaction Levels ©2024 Check Point Software Technologies Ltd. 18
Slide 19: Check Point 2024: The Platform Company
Check Point 2024 The Platform Company Since 2018 Cloud-Delivered AI-Powered Comprehensive | Consolidated | Collaborative ©2024 Check Point Software Technologies Ltd. 19
Slide 20: True Collaboration Delivers
True Collaboration Delivers The Best Threat Prevention Platform Collaboration The Brain Automation and Behind the Best Response Threat Prevention For Best Security ©2024 Check Point Software Technologies Ltd. 20
Slide 21: Q1 New Products
Q1 New Products Maximizing the power of AI and Cloud AI Copilot Force SaaS Your Most Powerful 10 New Network Protecting Your SaaS Security Teammate Security Gateways Platforms and Data ©2024 Check Point Software Technologies Ltd. 21
Slide 22: The New Quantum Force Security Gateway Line
The New Quantum Force 29200 63.5 Gbps Security Gateway Line 29100 47.4 Gbps 99.8% Over 50 19200 36.9 Gbps Best Prevention AI-Based Engines 19100 28.8 Gbps 9800 9700 20 Gbps 9400 16.6 Gbps 9300 11 Gbps 9200 28000 9100 9 Gbps 6.6 Gbps 30 Gbps 5 Gbps 26000 16200 24 Gbps 7000 15 Gbps 9.5 Gbps 6900 6700
Slide 23: Infinity AI Copilot
Infinity AI Copilot 10X More Effective Security Management Powerful, Generative AI engine Embedded in the Infinity Platform Assistant for Security Admins and Security Analysts Across Infinity Platform: Quantum, Harmony, CloudGuard ©2024 Check Point Software Technologies Ltd. 23
Slide 24: Speaking of AI ... A Major AI Partnership
Speaking of AI ... A Major AI Partnership ©2024 Check Point Software Technologies Ltd. 24
Slide 25: AI Cloud Protect
Secure AI Cloud Infrastructure Partnership AI Cloud Protect World’s First AI Infrastructure Firewall ©2024 Check Point Software Technologies Ltd. 25
Slide 26: Summary: Strong Start to 2024
Summary Strong Start to 2024 • Infinity Platform Investments Delivering Returns • Revenues, EPS – Top End of Projections The Platform Company Since 2018 • Continued Strong Subscription Growth • Strong Quantitative & Qualitative New Business Growth ©2024 Check Point Software Technologies Ltd. 26
Slide 27: Q2 Projections
Q2 Projections ©2024 Check Point Software Technologies Ltd. 27
Slide 28: Q2-24 Revenues & EPS
Q2-24 Revenues & EPS* Revenues $607M $637M EPS* $2.10 $2.20 GAAP EPS is expected to be 44 cents less *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
Slide 29: Thank You!
Thank You! ©2024 Check Point Software Technologies Ltd. 29
Slide 30: Q1-2024: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation
Q1-2024: GAAP to Non-GAAP Consolidated Statement of Income Reconciliation Three Months Ended March 31, 2024 Three Months Ended March 31, 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