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
+1.650.628.2040
ir@checkpoint.com
|
MEDIA CONTACT:
Gil Messing
Check Point Software
+1.650.628.2260
press@checkpoint.com
|
• |
Total Revenues: $596 million, a 3 percent increase year over year
|
• |
Security Subscriptions Revenues: $248 million, a 15 percent increase year over year
|
• |
Deferred Revenues: $1,709 million, a 4 percent increase year over year
|
• |
GAAP Operating Income: $226 million, representing 38 percent of revenues
|
• |
Non-GAAP Operating Income: $269 million, representing 45 percent of revenues
|
• |
GAAP EPS: $1.75, a 19 percent increase year over year
|
• |
Non-GAAP EPS: $2.07, a 17 percent increase year over year
|
• |
Total Revenues: $596 million compared to $578 million in the third quarter of 2022, a 3 percent increase year over year.
|
• |
GAAP Operating Income: $226 million compared to $221 million in the third quarter of 2022, representing 38 percent of revenues in the third quarter of 2023 and 2022, respectively.
|
• |
Non-GAAP Operating Income: $269 million compared to $263 million in the third quarter of 2022, representing 45 percent of revenues in the third quarter of 2023 and 2022, respectively.
|
• |
GAAP Taxes on Income: $39 million compared to $49 million in the third quarter of 2022.
|
• |
GAAP Net Income: $205 million compared to $184 million in the third quarter of 2022.
|
• |
Non-GAAP Net Income: $242 million compared to $221 million in the third quarter of 2022.
|
• |
GAAP Earnings per Diluted share: $1.75 compared to $1.47 in the third quarter of 2022, a 19 percent increase year over year.
|
• |
Non-GAAP Earnings per Diluted share: $2.07 compared to $1.77 in the third quarter of 2022, a 17 percent increase year over year.
|
• |
Deferred Revenues: As of September 30, 2023, deferred revenues were $1,709 million compared to $1,647 million as of September 30, 2022, a 4 percent increase year over year.
|
• |
Cash Balances, Marketable Securities and Short-Term Deposits: $2,989 million as of September 30, 2023, compared to $3,570 million as of September 30, 2022.
|
• |
Cash Flow: During the quarter we acquired Perimeter 81, a pioneering Security Service Edge (SSE) company, and Atmosec, an early-stage SaaS security vendor, for $477 million net cash consideration. Cash flow from operations was
$222 million, compared to $240 million in the third quarter of 2022. The operating cash flow for the quarter included a cost of $22 million related to acquisitions.
|
• |
Share Repurchase Program: During the third quarter of 2023, we repurchased approximately 2.48 million shares at a total cost of approximately $325 million.
|
• |
J.P. Morgan RBC Equity Opportunities Forum
November 6-7, 2023, South Beach Miami, FL – 1x1’s |
• |
Stifel Midwest One-on-One Growth Conference
November 9, 2023, Chicago, IL – 1x1’s |
• |
RBC 2023 Technology, Internet, Media & Telecommunications Conference
November 15, 2023, NY, NY – 1x1’s |
• |
2023 UBS Global Technology Conference
November 28, 2023, Scottsdale, AZ – 1x1’s |
• |
Wells Fargo 7th Annual TMT Summit
November 29, 2023, Rancho Palos Verdes, CA – 1x1’s |
• |
Jefferies 2023 Security Summit
December 5, 2023, SF, CA |
• |
Scotiabank 1st US Technology Conference
December 5, 2023, SF, CA |
• |
Nasdaq 49th Investor Conference
December 6, 2023, London, UK |
• |
BTIG Virtual Software Forum
December 12, 2023, Virtual 1x1’s |
• |
Twitter: http://www.twitter.com/checkpointsw
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• |
Facebook: http://www.facebook.com/checkpointsoftware
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• |
Blog: http://blog.checkpoint.com/
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• |
YouTube: http://www.youtube.com/user/CPGlobal
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• |
LinkedIn: https://www.linkedin.com/company/check-point-software-technologies
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Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
114.2
|
$
|
132.4
|
$
|
339.1
|
$
|
381.5
|
||||||||
Security subscriptions
|
248.3
|
215.5
|
715.4
|
627.0
|
||||||||||||
Total revenues from products and security subscriptions
|
362.5
|
347.9
|
1,054.5
|
1,008.5
|
||||||||||||
Software updates and maintenance
|
233.8
|
229.7
|
696.7
|
682.9
|
||||||||||||
Total revenues
|
596.3
|
577.6
|
1,751.2
|
1,691.4
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
22.5
|
35.4
|
71.3
|
103.5
|
||||||||||||
Cost of security subscriptions
|
13.9
|
11.3
|
39.8
|
30.8
|
||||||||||||
Total cost of products and security subscriptions
|
36.4
|
46.7
|
111.1
|
134.3
|
||||||||||||
Cost of Software updates and Maintenance
|
27.7
|
26.1
|
81.8
|
77.3
|
||||||||||||
Amortization of technology
|
3.0
|
2.9
|
8.2
|
9.0
|
||||||||||||
Total cost of revenues
|
67.1
|
75.7
|
201.1
|
220.6
|
||||||||||||
Research and development
|
90.0
|
86.3
|
268.9
|
259.1
|
||||||||||||
Selling and marketing
|
183.3
|
166.0
|
546.6
|
495.2
|
||||||||||||
General and administrative
|
29.8
|
28.3
|
87.3
|
86.2
|
||||||||||||
Total operating expenses
|
370.2
|
356.3
|
1,103.9
|
1,061.1
|
||||||||||||
Operating income
|
226.1
|
221.3
|
647.3
|
630.3
|
||||||||||||
Financial income, net
|
17.7
|
11.9
|
58.1
|
28.7
|
||||||||||||
Income before taxes on income
|
243.8
|
233.2
|
705.4
|
659.0
|
||||||||||||
Taxes on income
|
38.8
|
49.2
|
114.3
|
132.0
|
||||||||||||
Net income
|
$
|
205.0
|
$
|
184.0
|
$
|
591.1
|
$
|
527.0
|
||||||||
Basic earnings per share
|
$
|
1.77
|
$
|
1.48
|
$
|
5.01
|
$
|
4.15
|
||||||||
Number of shares used in computing basic earnings per share
|
116.0
|
124.3
|
117.9
|
127.1
|
||||||||||||
Diluted earnings per share
|
$
|
1.75
|
$
|
1.47
|
$
|
4.96
|
$
|
4.11
|
||||||||
Number of shares used in computing diluted earnings per share
|
117.3
|
125.0
|
119.2
|
128.3
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues
|
$
|
596.3
|
$
|
577.6
|
$
|
1,751.2
|
$
|
1,691.4
|
||||||||
Non-GAAP operating income
|
269.0
|
262.7
|
770.5
|
750.0
|
||||||||||||
Non-GAAP net income
|
242.4
|
221.0
|
698.6
|
633.9
|
||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.07
|
$
|
1.77
|
$
|
5.86
|
$
|
4.94
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
117.3
|
125.0
|
119.2
|
128.3
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP operating income
|
$
|
226.1
|
$
|
221.3
|
$
|
647.3
|
$
|
630.3
|
||||||||
Stock-based compensation (1)
|
36.5
|
35.2
|
105.4
|
101.3
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.4
|
6.2
|
17.8
|
18.4
|
||||||||||||
Non-GAAP operating income
|
$
|
269.0
|
$
|
262.7
|
$
|
770.5
|
$
|
750.0
|
||||||||
GAAP net income
|
$
|
205.0
|
$
|
184.0
|
$
|
591.1
|
$
|
527.0
|
||||||||
Stock-based compensation (1)
|
36.5
|
35.2
|
105.4
|
101.3
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
6.4
|
6.2
|
17.8
|
18.4
|
||||||||||||
Taxes on the above items (3)
|
(5.5
|
)
|
(4.4
|
)
|
(15.7
|
)
|
(12.8
|
)
|
||||||||
Non-GAAP net income
|
$
|
242.4
|
$
|
221.0
|
$
|
698.6
|
$
|
633.9
|
||||||||
Diluted GAAP Earnings per share
|
$
|
1.75
|
$
|
1.47
|
$
|
4.96
|
$
|
4.11
|
||||||||
Stock-based compensation (1)
|
0.31
|
0.28
|
0.88
|
0.79
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.06
|
0.05
|
0.15
|
0.14
|
||||||||||||
Taxes on the above items (3)
|
(0.05
|
)
|
(0.03
|
)
|
(0.13
|
)
|
(0.10
|
)
|
||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.07
|
$
|
1.77
|
$
|
5.86
|
$
|
4.94
|
||||||||
Number of shares used in computing diluted Non-GAAP earnings per share
|
117.3
|
125.0
|
119.2
|
128.3
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.3
|
$
|
0.3
|
||||||||
Cost of software updates and maintenance
|
1.9
|
1.5
|
4.9
|
3.8
|
||||||||||||
Research and development
|
12.1
|
11.3
|
34.5
|
32.1
|
||||||||||||
Selling and marketing
|
15.0
|
12.1
|
41.1
|
33.5
|
||||||||||||
General and administrative
|
7.4
|
10.2
|
24.6
|
31.6
|
||||||||||||
36.5
|
35.2
|
105.4
|
101.3
|
|||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
3.0
|
2.9
|
8.2
|
9.0
|
||||||||||||
Research and development
|
1.1
|
2.1
|
5.0
|
6.3
|
||||||||||||
Selling and marketing
|
2.3
|
1.2
|
4.6
|
3.1
|
||||||||||||
6.4
|
6.2
|
17.8
|
18.4
|
|||||||||||||
(3) Taxes on the above items
|
(5.5
|
)
|
(4.4
|
)
|
(15.7
|
)
|
(12.8
|
)
|
||||||||
Total, net
|
$
|
37.4
|
$
|
37.0
|
$
|
107.5
|
$
|
106.9
|
September 30,
|
December 31,
|
|||||||
2023
(Unaudited)
|
2022
(Audited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
294.4
|
$
|
196.0
|
||||
Marketable securities and short-term deposits
|
1,162.1
|
1,441.6
|
||||||
Trade receivables, net
|
355.0
|
644.2
|
||||||
Prepaid expenses and other current assets
|
53.4
|
50.0
|
||||||
Total current assets
|
1,864.9
|
2,331.8
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
1,532.2
|
1,865.6
|
||||||
Property and equipment, net
|
81.5
|
82.8
|
||||||
Deferred tax asset, net
|
63.5
|
77.6
|
||||||
Goodwill and other intangible assets, net
|
1,760.8
|
1,295.5
|
||||||
Other assets
|
99.0
|
71.5
|
||||||
Total long-term assets
|
3,537.0
|
3,393.0
|
||||||
Total assets
|
$
|
5,401.9
|
$
|
5,724.8
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,246.3
|
$
|
1,363.4
|
||||
Trade payables and other accrued liabilities
|
475.2
|
475.8
|
||||||
Total current liabilities
|
1,721.5
|
1,839.2
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
462.6
|
514.4
|
||||||
Income tax accrual
|
407.1
|
419.7
|
||||||
Other long-term liabilities
|
26.5
|
22.2
|
||||||
896.2
|
956.3
|
|||||||
Total liabilities
|
2,617.7
|
2,795.5
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,682.4
|
2,500.7
|
||||||
Treasury shares at cost
|
(12,733.8
|
)
|
(11,802.1
|
)
|
||||
Accumulated other comprehensive loss
|
(84.1
|
)
|
(97.9
|
)
|
||||
Retained earnings
|
12,918.9
|
12,327.8
|
||||||
Total shareholders’ equity
|
2,784.2
|
2,929.3
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,401.9
|
$
|
5,724.8
|
||||
Total cash and cash equivalents, marketable securities and short-term deposits
|
$
|
2,988.7
|
$
|
3,503.2
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
205.0
|
$
|
184.0
|
$
|
591.1
|
$
|
527.0
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
5.2
|
6.1
|
17.4
|
16.6
|
||||||||||||
Amortization of intangible assets
|
4.6
|
3.4
|
10.8
|
10.1
|
||||||||||||
Stock-based compensation
|
36.5
|
35.2
|
105.4
|
101.3
|
||||||||||||
Realized loss on marketable securities
|
6.0
|
-
|
6.7
|
-
|
||||||||||||
Decrease in trade and other receivables, net
|
38.1
|
41.0
|
263.3
|
287.9
|
||||||||||||
Decrease in deferred revenues, trade payables and other accrued liabilities
|
(75.8
|
)
|
(26.7
|
)
|
(205.1
|
)
|
(92.5
|
)
|
||||||||
Deferred income taxes, net
|
2.7
|
(2.7
|
)
|
9.3
|
(0.4
|
)
|
||||||||||
Net cash provided by operating activities
|
222.3
|
240.3
|
798.9
|
850.0
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
(455.0
|
)
|
-
|
(455.0
|
)
|
(48.3
|
)
|
|||||||||
Investment in property and equipment
|
(6.1
|
)
|
(4.2
|
)
|
(13.9
|
)
|
(15.6
|
)
|
||||||||
Net cash used in investing activities
|
(461.1
|
)
|
(4.2
|
)
|
(468.9
|
)
|
(63.9
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
32.6
|
25.0
|
117.7
|
120.4
|
||||||||||||
Purchase of treasury shares
|
(324.6
|
)
|
(325.0
|
)
|
(974.4
|
)
|
(975.0
|
)
|
||||||||
Payments related to shares withheld for taxes
|
(2.1
|
)
|
(1.6
|
)
|
(9.8
|
)
|
(8.1
|
)
|
||||||||
Net cash used in financing activities
|
(294.1
|
)
|
(301.6
|
)
|
(866.5
|
)
|
(862.7
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
6.1
|
(41.0
|
)
|
22.0
|
(137.2
|
)
|
||||||||||
Decrease in cash and cash equivalents, marketable securities and short term deposits
|
(526.8
|
)
|
(106.5
|
)
|
(514.5
|
)
|
(213.8
|
)
|
||||||||
Cash and cash equivalents, marketable securities and short term deposits at the beginning of the period
|
3,515.5
|
3,676.1
|
3,503.2
|
3,783.4
|
||||||||||||
Cash and cash equivalents, marketable securities and short term deposits at the end of the period
|
$
|
2,988.7
|
$
|
3,569.6
|
$
|
2,988.7
|
$
|
3,569.6
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD. | |||
By:
|
/s/ Roei Golan | ||
Roei Golan | |||
October 30, 2023
|
Chief Financial Officer |