CHECK POINT SOFTWARE TECHNOLOGIES LTD.
(Translation of registrant's name into English)
|
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
|
INVESTOR CONTACT:
Kip E. Meintzer
Check Point Software Technologies
+1.650.628.2040
ir@checkpoint.com
|
MEDIA CONTACT:
Gil Messing
Check Point Software Technologies
+1.650.628.2260
press@checkpoint.com
|
• |
Total Revenues: $571 million, a 9 percent increase year over year
|
• |
Product & License Revenues: $133 million, a 12 percent increase year over year
|
• |
Security Subscription Revenues: $210 million, a 14 percent increase year over year
|
• |
Deferred Revenues: $1,666 million, a 13 percent increase year over year
|
• |
GAAP Operating Income: $209 million, representing 37 percent of revenues
|
• |
Non-GAAP Operating Income: $249 million, representing 44 percent of revenues
|
• |
GAAP EPS: $1.36, a 1 percent decrease year over year
|
• |
Non-GAAP EPS: $1.64, a 2 percent increase year over year
|
• |
Total Revenues: $571 million compared to $526 million in the second
quarter of 2021, a 9 percent increase year over year.
|
• |
GAAP Operating Income: $209 million compared to $222 million in the
second quarter of 2021, representing 37 percent and 42 percent of revenues in the second quarter of 2022 and 2021, respectively.
|
• |
Non-GAAP Operating Income: $249 million compared to $257 million in
the second quarter of 2021, representing 44 percent and 49 percent of revenues in the second quarter of 2022 and 2021, respectively.
|
• |
GAAP Taxes on Income: $45 million compared to $47 million in the
second quarter of 2021.
|
• |
GAAP Net Income: $174 million compared to $186 million in the second
quarter of 2021.
|
• |
Non-GAAP Net Income: $209 million compared to $217 million in the
second quarter of 2021.
|
• |
GAAP Earnings Per Diluted Share: $1.36 compared to $1.38 in the
second quarter of 2021, a 1 percent decrease year over year.
|
• |
Non-GAAP Earnings Per Diluted Share: $1.64 compared to $1.61 in the
second quarter of 2021, a 2 percent increase year over year.
|
• |
Deferred Revenues: As of June 30, 2022, deferred revenues were $1,666
million compared to $1,472 million as of June 30, 2021, a 13 percent increase year over year.
|
• |
Cash Balances, Marketable Securities and Short-Term Deposits: $3,676
million as of June 30, 2022, compared to $4,002 million as of June 30, 2021.
|
• |
Cash Flow: Cash flow from operations of $212 million compared to
$264 million in the second quarter of 2021. The second quarter of 2022 includes $47 million of expenses related to our currency hedging transactions and $30 million of tax expenses compared to $6 million of income related to our currency
hedging transactions and $25 million of tax expenses in the second quarter of 2021.
|
• |
Share Repurchase Program: During the second quarter of 2022, the
company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.
|
• |
KeyBanc Technology Leadership Forum
August 7-9, 2022, Vail, CO – Fireside Chat & 1x1’s |
• |
Oppenheimer 25th Annual Virtual Technology, Internet & Communications Conference
August 10, 2022 – Virtual 1x1’s |
• |
Deutsche Bank 2022 Technology Conference
August 30 - September 1, 2022, Las Vegas, NV – Fireside Chat & 1x1’s |
• |
Citi 2022 Global Technology Virtual Conference
September 6-8, 2022, New York, NY – 1x1’s |
• |
Piper Sandler 2022 Global Technology Conference
September 12-14, 2022, Nashville, TN – 1x1’s |
• |
Goldman Sachs 2022 Communicopia + Technology Conference
September 15, 2022, San Francisco, CA – 1x1’s |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
133.2
|
$
|
119.1
|
$
|
249.1
|
$
|
228.4
|
||||||||
Security subscriptions
|
209.9
|
183.7
|
411.5
|
361.1
|
||||||||||||
Total revenues from products and security subscriptions
|
343.1
|
302.8
|
660.6
|
589.5
|
||||||||||||
Software updates and maintenance
|
228.0
|
223.3
|
453.2
|
444.2
|
||||||||||||
Total revenues
|
571.1
|
526.1
|
1,113.8
|
1,033.7
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
36.7
|
23.2
|
68.1
|
44.8
|
||||||||||||
Cost of security subscriptions
|
9.5
|
8.7
|
19.5
|
16.7
|
||||||||||||
Total cost of products and security subscriptions
|
46.2
|
31.9
|
87.6
|
61.5
|
||||||||||||
Cost of Software updates and
maintenance
|
25.7
|
25.6
|
51.2
|
50.9
|
||||||||||||
Amortization of technology
|
2.9
|
1.7
|
6.1
|
3.4
|
||||||||||||
Total cost of revenues
|
74.8
|
59.2
|
144.9
|
115.8
|
||||||||||||
Research and development
|
86.3
|
67.5
|
172.8
|
135.9
|
||||||||||||
Selling and marketing
|
170.6
|
148.9
|
329.2
|
288.9
|
||||||||||||
General and administrative
|
30.6
|
28.2
|
57.9
|
56.0
|
||||||||||||
Total operating expenses
|
362.3
|
303.8
|
704.8
|
596.6
|
||||||||||||
Operating income
|
208.8
|
222.3
|
409.0
|
437.1
|
||||||||||||
Financial income, net
|
9.7
|
10.4
|
16.8
|
23.0
|
||||||||||||
Income before taxes on income
|
218.5
|
232.7
|
425.8
|
460.1
|
||||||||||||
Taxes on income
|
44.9
|
46.7
|
82.8
|
91.2
|
||||||||||||
Net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
|
||||||||
Basic earnings per share
|
$
|
1.37
|
$
|
1.39
|
$
|
2.69
|
$
|
2.74
|
||||||||
Number of shares used in computing basic earnings per share
|
126.5
|
133.7
|
127.4
|
134.8
|
||||||||||||
Diluted earnings per share
|
$
|
1.36
|
$
|
1.38
|
$
|
2.66
|
$
|
2.71
|
||||||||
Number of shares used in computing diluted earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Revenues
|
$
|
571.1
|
$
|
526.1
|
$
|
1,113.8
|
$
|
1,033.7
|
||||||||
Non-GAAP operating income
|
248.7
|
257.1
|
487.3
|
503.4
|
||||||||||||
Non-GAAP net income
|
209.3
|
217.0
|
412.9
|
428.2
|
||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.64
|
$
|
1.61
|
$
|
3.21
|
$
|
3.15
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
GAAP operating income
|
$
|
208.8
|
$
|
222.3
|
$
|
409.0
|
$
|
437.1
|
||||||||
Stock-based compensation (1)
|
33.7
|
29.9
|
66.1
|
56.5
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.2
|
4.9
|
12.2
|
9.8
|
||||||||||||
Non-GAAP operating income
|
$
|
248.7
|
$
|
257.1
|
$
|
487.3
|
$
|
503.4
|
||||||||
GAAP net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
|
||||||||
Stock-based compensation (1)
|
33.7
|
29.9
|
66.1
|
56.5
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.2
|
4.9
|
12.2
|
9.8
|
||||||||||||
Taxes on the above items (3)
|
(4.2
|
)
|
(3.8
|
)
|
(8.4
|
)
|
(7.0
|
)
|
||||||||
Non-GAAP net income
|
$
|
209.3
|
$
|
217.0
|
$
|
412.9
|
$
|
428.2
|
||||||||
Diluted GAAP Earnings per share
|
$
|
1.36
|
$
|
1.38
|
$
|
2.66
|
$
|
2.71
|
||||||||
Stock-based compensation (1)
|
0.26
|
0.22
|
0.51
|
0.42
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.05
|
0.04
|
0.10
|
0.07
|
||||||||||||
Taxes on the above items (3)
|
(0.03
|
)
|
(0.03
|
)
|
(0.06
|
)
|
(0.05
|
)
|
||||||||
Diluted Non-GAAP Earnings per share
|
$
|
1.64
|
$
|
1.61
|
$
|
3.21
|
$
|
3.15
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
127.7
|
134.8
|
128.8
|
136.1
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.2
|
$
|
0.2
|
||||||||
Cost of software updates and maintenance
|
1.3
|
1.1
|
2.3
|
2.0
|
||||||||||||
Research and development
|
10.3
|
7.2
|
20.8
|
13.7
|
||||||||||||
Selling and marketing
|
10.3
|
10.5
|
21.4
|
18.8
|
||||||||||||
General and administrative
|
11.7
|
11.0
|
21.4
|
21.8
|
||||||||||||
33.7
|
29.9
|
66.1
|
56.5
|
|||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
2.9
|
1.7
|
6.1
|
3.4
|
||||||||||||
Research and development
|
2.2
|
1.3
|
4.2
|
2.6
|
||||||||||||
Selling and marketing
|
1.1
|
1.9
|
1.9
|
3.8
|
||||||||||||
6.2
|
4.9
|
12.2
|
9.8
|
|||||||||||||
(3) Taxes on the above items
|
(4.2
|
)
|
(3.8
|
)
|
(8.4
|
)
|
(7.0
|
)
|
||||||||
Total, net
|
$
|
35.7
|
$
|
31.0
|
$
|
69.9
|
$
|
59.3
|
June 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
242.8
|
$
|
271.9
|
||||
Marketable securities and short-term deposits
|
1,428.8
|
1,421.8
|
||||||
Trade receivables, net
|
344.0
|
597.8
|
||||||
Prepaid expenses and other current assets
|
55.0
|
46.4
|
||||||
Total current assets
|
2,070.6
|
2,337.9
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
2,004.5
|
2,089.7
|
||||||
Property and equipment, net
|
84.3
|
83.4
|
||||||
Deferred tax asset, net
|
70.2
|
51.7
|
||||||
Goodwill and other intangible assets, net
|
1,302.1
|
1,257.2
|
||||||
Other assets
|
81.4
|
80.3
|
||||||
Total long-term assets
|
3,542.5
|
3,562.3
|
||||||
Total assets
|
$
|
5,613.1
|
$
|
5,900.2
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,210.7
|
$
|
1,257.4
|
||||
Trade payables and other accrued liabilities
|
457.3
|
454.7
|
||||||
Total current liabilities
|
1,668.0
|
1,712.1
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
455.2
|
449.7
|
||||||
Income tax accrual
|
440.2
|
454.9
|
||||||
Other long-term liabilities
|
25.2
|
26.4
|
||||||
920.6
|
931.0
|
|||||||
Total liabilities
|
2,588.6
|
2,643.1
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,405.6
|
2,276.7
|
||||||
Treasury shares at cost
|
(11,168.0
|
)
|
(10,550.7
|
)
|
||||
Accumulated other comprehensive gain
|
(87.8
|
)
|
(0.6
|
)
|
||||
Retained earnings
|
11,873.9
|
11,530.9
|
||||||
Total shareholders’ equity
|
3,024.5
|
3,257.1
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,613.1
|
$
|
5,900.2
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
3,676.1
|
$
|
3,783.4
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
173.6
|
$
|
186.0
|
$
|
343.0
|
$
|
368.9
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
5.5
|
5.5
|
10.5
|
10.2
|
||||||||||||
Amortization of intangible assets
|
3.4
|
2.1
|
6.7
|
4.2
|
||||||||||||
Stock-based compensation
|
33.7
|
29.9
|
66.1
|
56.5
|
||||||||||||
Realized gain on marketable securities
|
-
|
(0.2
|
)
|
-
|
(1.5
|
)
|
||||||||||
Decrease (increase) in trade and other receivables, net
|
(6.5
|
)
|
(24.9
|
)
|
246.9
|
175.3
|
||||||||||
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities
|
1.0
|
63.3
|
(65.8
|
)
|
24.0
|
|||||||||||
Deferred income taxes, net
|
1.0
|
1.9
|
2.3
|
0.5
|
||||||||||||
Net cash provided by operating activities
|
211.7
|
263.6
|
609.7
|
638.1
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
-
|
-
|
(48.3
|
)
|
-
|
|||||||||||
Investment in property and equipment
|
(6.7
|
)
|
(3.3
|
)
|
(11.4
|
)
|
(7.1
|
)
|
||||||||
Net cash used in investing activities
|
(6.7
|
)
|
(3.3
|
)
|
(59.7
|
)
|
(7.1
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
28.5
|
14.4
|
95.4
|
47.5
|
||||||||||||
Purchase of treasury shares
|
(325.0
|
)
|
(324.7
|
)
|
(650.0
|
)
|
(649.6
|
)
|
||||||||
Payments related to shares withheld for taxes
|
(5.8
|
)
|
(4.9
|
)
|
(6.5
|
)
|
(5.8
|
)
|
||||||||
Net cash used in financing activities
|
(302.3
|
)
|
(315.2
|
)
|
(561.1
|
)
|
(607.9
|
)
|
||||||||
Unrealized loss on marketable securities, net
|
(26.9
|
)
|
(6.0
|
)
|
(96.2
|
)
|
(20.7
|
)
|
||||||||
Increase (decrease) in cash and cash equivalents, marketable securities and short term deposits
|
(124.2
|
)
|
(60.9
|
)
|
(107.3
|
)
|
2.4
|
|||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,800.3
|
4,062.9
|
3,783.4
|
3,999.6
|
||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
3,676.1
|
$
|
4,002.0
|
$
|
3,676.1
|
$
|
4,002.0
|
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|
By:
|
/s/ Tal Payne
|
|
August 1, 2022
|
Tal Payne
Chief Financial Officer & Chief Operating Officer
|