CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
(Translation of registrant's name into English)
5 Ha’solelim Street, Tel Aviv, Israel
(Address of principal executive offices)
|
Investors: Kip E. Meintzer
Check Point Software Technologies, Ltd.
+1.650.628.2040 ir@checkpoint.com
|
Media: Gil Messing
Check Point Software Technologies, Ltd.
+1.650.628.2260
press@checkpoint.com
|
• |
Total Revenues: $664 million compared to $638 million in the
fourth quarter of 2022, a 4 percent increase year over year.
|
• |
GAAP Operating Income: $252 million compared to $254 million in
the fourth quarter of 2022. representing 38 percent and 40 percent of revenues in the fourth quarter of 2023 and 2022, respectively.
|
• |
Non-GAAP Operating Income: $309 million compared to $289 million
in the fourth quarter of 2022, representing 47 percent and 45 percent of revenues in the fourth quarter of 2023 and 2022, respectively.
|
• |
GAAP Taxes on Income (Benefit): $21 million expenses compared to
$1 million benefit in the fourth quarter of 2022.
|
• |
GAAP Net Income & Earnings per Diluted Share: GAAP net
income was $249 million compared to $270 million in the fourth quarter of 2022. GAAP earnings per diluted share were $2.15 compared to $2.20 in the fourth quarter of 2022, a 2 percent decrease year over year.
|
• |
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP
net income was $298 million compared to $301 million in the fourth quarter of 2022. Non-GAAP earnings per diluted share were $2.57 compared to $2.45 in the fourth quarter of 2022, a 5 percent increase year over year.
|
• |
Deferred Revenues: As of December 31, 2023, deferred revenues
were $1,908 million compared to $1,878 million as of December 31, 2022, a 2 percent increase year over year.
|
• |
Cash Balances, Marketable Securities & Short-Term Deposits: $2,960 million as of December 31, 2023, compared to $3,503 million as of December 31, 2022. The decrease in cash is primarily a result of $484 million net of cash consideration utilized for the Perimeter 81, Atomsec, and rmsource acquisitions
in 2023.
|
• |
Cash Flow: Cash flow from operations was $236 million compared
to $230 million in the fourth quarter of 2022.
|
• |
Share Repurchase Program: During the fourth quarter of 2023, the
company repurchased approximately 2.2 million shares at a total cost of approximately $313 million.
|
• |
Total Revenues: $2,415 million compared to $2,330 million in
2022, a 4 percent increase year over year.
|
• |
GAAP Operating Income: $899 million compared to $884 million in
2022, representing 37 percent and 38 percent of revenues in 2023 and 2022, respectively.
|
• |
Non-GAAP Operating Income: $1,079 million compared to $1,039
million in 2022, representing 45 percent of revenues in 2023 and 2022.
|
• |
GAAP Taxes on Income: $135 million compared to $131 million in
2022.
|
• |
GAAP Net Income & Earnings per Diluted Share: GAAP net
income was $840 million compared to $797 million in 2022. GAAP earnings per diluted share were $7.10 compared to $6.31 in 2022, a 13 percent increase year over year.
|
• |
Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP
net income was $997 million compared to $935 million in 2022. Non-GAAP earnings per diluted share were $8.42 compared to $7.40 in 2022, a 14 percent increase year over year.
|
• |
Cash Flow: Cash flow from operations was $1,035 million compared
to $1,080 million in 2022. Cash flow from operations in 2023 included $25 million in acquisition related costs and $39 million of costs related to our currency hedging transactions while cash flow from operations in 2022 included $8 million
in acquisition related costs and $80 million of costs related to our currency hedging transactions. The remaining acquisition costs is included in our cash flow from investing activities.
|
• |
Share Repurchase Program: During 2023, we repurchased
approximately 9.9 million shares at a total cost of approximately $1,288 million.
|
• |
Wolfe Research March Madness 1x1 Conference
February 27, 2024, NY, NY |
• |
Baird Silicon Valley Slopes
February 28-29, 2024, Park City, UT |
• |
Raymond James 2024 Institutional Investor Conference
March 5, 2024, Orlando, FL |
• |
Morgan Stanley 2024 Media, Telecommunications & Technology
Conference
March 6, 2024, SF, CA |
• |
Mizuho Israel Growth Conference 2024
March 25, 2024, NY, NY |
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products and licenses
|
$
|
158.3
|
$
|
173.4
|
$
|
497.4
|
$
|
554.9
|
||||||||
Security subscriptions
|
265.8
|
231.0
|
981.2
|
858.0
|
||||||||||||
Total revenues from products and security subscriptions
|
424.1
|
404.4
|
1,478.6
|
1,412.9
|
||||||||||||
Software updates and maintenance
|
239.4
|
234.1
|
936.1
|
917.0
|
||||||||||||
Total revenues
|
663.5
|
638.5
|
2,414.7
|
2,329.9
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Cost of products and licenses
|
28.0
|
42.1
|
99.3
|
145.6
|
||||||||||||
Cost of security subscriptions
|
17.2
|
10.6
|
57.0
|
41.4
|
||||||||||||
Total cost of products and security subscriptions
|
45.2
|
52.7
|
156.3
|
187.0
|
||||||||||||
Cost of Software updates and
maintenance
|
30.5
|
28.2
|
112.3
|
105.5
|
||||||||||||
Amortization of technology
|
5.8
|
2.9
|
14.0
|
11.9
|
||||||||||||
Total cost of revenues
|
81.5
|
83.8
|
282.6
|
304.4
|
||||||||||||
Research and development
|
100.0
|
90.8
|
368.9
|
349.9
|
||||||||||||
Selling and marketing
|
200.5
|
180.0
|
747.1
|
675.2
|
||||||||||||
General and administrative
|
29.7
|
29.9
|
117.0
|
116.1
|
||||||||||||
Total operating expenses
|
411.7
|
384.5
|
1,515.6
|
1,445.6
|
||||||||||||
Operating income
|
251.8
|
254.0
|
899.1
|
884.3
|
||||||||||||
Financial income, net
|
18.4
|
15.3
|
76.5
|
44.0
|
||||||||||||
Income before taxes on income
|
270.2
|
269.3
|
975.6
|
928.3
|
||||||||||||
Taxes on income (tax benefit)
|
21.0
|
(0.6
|
)
|
135.3
|
131.4
|
|||||||||||
Net income
|
$
|
249.2
|
$
|
269.9
|
$
|
840.3
|
$
|
796.9
|
||||||||
Basic earnings per share
|
$
|
2.19
|
$
|
2.22
|
$
|
7.19
|
$
|
6.37
|
||||||||
Number of shares used in computing basic earnings per share
|
114.0
|
121.8
|
116.9
|
125.2
|
||||||||||||
Diluted earnings per share
|
$
|
2.15
|
$
|
2.20
|
$
|
7.10
|
$
|
6.31
|
||||||||
Number of shares used in computing diluted earnings per share
|
115.9
|
122.9
|
118.3
|
126.3
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues
|
$
|
663.5
|
$
|
638.5
|
$
|
2,414.7
|
$
|
2,329.9
|
||||||||
Non-GAAP operating income
|
308.6
|
288.9
|
1,079.1
|
1,038.9
|
||||||||||||
Non-GAAP net income
|
298.5
|
301.0
|
997.1
|
934.9
|
||||||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.57
|
$
|
2.45
|
$
|
8.42
|
$
|
7.40
|
||||||||
Number of shares used in computing diluted Non-GAAP Earnings per share
|
115.9
|
122.9
|
118.3
|
126.3
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP operating income
|
$
|
251.8
|
$
|
254.0
|
$
|
899.1
|
$
|
884.3
|
||||||||
Stock-based compensation (1)
|
39.9
|
30.1
|
145.3
|
131.4
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
16.9
|
4.8
|
34.7
|
23.2
|
||||||||||||
Non-GAAP operating income
|
$
|
308.6
|
$
|
288.9
|
$
|
1,079.1
|
$
|
1,038.9
|
||||||||
GAAP net income
|
$
|
249.2
|
$
|
269.9
|
$
|
840.3
|
$
|
796.9
|
||||||||
Stock-based compensation (1)
|
39.9
|
30.1
|
145.3
|
131.4
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
16.9
|
4.8
|
34.7
|
23.2
|
||||||||||||
Taxes on the above items (3)
|
(7.5
|
)
|
(3.8
|
)
|
(23.2
|
)
|
(16.6
|
)
|
||||||||
Non-GAAP net income
|
$
|
298.5
|
$
|
301.0
|
$
|
997.1
|
$
|
934.9
|
||||||||
Diluted GAAP Earnings per share
|
$
|
2.15
|
$
|
2.20
|
$
|
7.10
|
$
|
6.31
|
||||||||
Stock-based compensation (1)
|
0.34
|
0.24
|
1.23
|
1.04
|
||||||||||||
Amortization of intangible assets and acquisition related expenses (2)
|
0.15
|
0.04
|
0.29
|
0.18
|
||||||||||||
Taxes on the above items (3)
|
(0.07
|
)
|
(0.03
|
)
|
(0.20
|
)
|
(0.13
|
)
|
||||||||
Diluted Non-GAAP Earnings per share
|
$
|
2.57
|
$
|
2.45
|
$
|
8.42
|
$
|
7.40
|
||||||||
Number of shares used in computing diluted Non-GAAP Earnings per share
|
115.9
|
122.9
|
118.3
|
126.3
|
||||||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of products and licenses
|
$
|
0.1
|
$
|
0.1
|
$
|
0.4
|
$
|
0.4
|
||||||||
Cost of software updates and maintenance
|
2.4
|
1.2
|
7.3
|
5.0
|
||||||||||||
Research and development
|
14.2
|
9.9
|
48.7
|
42.0
|
||||||||||||
Selling and marketing
|
15.2
|
9.7
|
56.3
|
43.2
|
||||||||||||
General and administrative
|
8.0
|
9.2
|
32.6
|
40.8
|
||||||||||||
39.9
|
30.1
|
145.3
|
131.4
|
|||||||||||||
(2) Amortization of intangible assets and acquisition related expenses:
|
||||||||||||||||
Amortization of technology-cost of revenues
|
5.8
|
2.9
|
14.0
|
11.9
|
||||||||||||
Research and development
|
2.0
|
0.8
|
7.0
|
7.1
|
||||||||||||
Selling and marketing
|
9.1
|
1.1
|
13.7
|
4.2
|
||||||||||||
16.9
|
4.8
|
34.7
|
23.2
|
|||||||||||||
(3) Taxes on the above items
|
(7.5
|
)
|
(3.8
|
)
|
(23.2
|
)
|
(16.6
|
)
|
||||||||
Total, net
|
$
|
49.3
|
$
|
31.1
|
$
|
156.8
|
$
|
138.0
|
December 31,
|
December 31,
|
|||||||
2023
(Unaudited)
|
2022
(Audited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
537.7
|
$
|
196.0
|
||||
Marketable securities and short-term deposits
|
992.3
|
1,441.6
|
||||||
Trade receivables, net
|
657.7
|
644.2
|
||||||
Prepaid expenses and other current assets
|
70.0
|
50.0
|
||||||
Total current assets
|
2,257.7
|
2,331.8
|
||||||
Long-term assets:
|
||||||||
Marketable securities
|
1,429.7
|
1,865.6
|
||||||
Property and equipment, net
|
80.4
|
82.8
|
||||||
Deferred tax asset, net
|
81.8
|
77.6
|
||||||
Goodwill and other intangible assets, net
|
1,748.5
|
1,295.5
|
||||||
Other assets
|
97.4
|
71.5
|
||||||
Total long-term assets
|
3,437.8
|
3,393.0
|
||||||
Total assets
|
$
|
5,695.5
|
$
|
5,724.8
|
Current liabilities:
|
||||||||
Deferred revenues
|
$
|
1,413.8
|
$
|
1,363.4
|
||||
Trade payables and other accrued liabilities
|
502.3
|
475.8
|
||||||
Total current liabilities
|
1,916.1
|
1,839.2
|
||||||
Long-term liabilities:
|
||||||||
Long-term deferred revenues
|
493.9
|
514.4
|
||||||
Income tax accrual
|
436.1
|
419.7
|
||||||
Other long-term liabilities
|
28.4
|
22.2
|
||||||
958.4
|
956.3
|
|||||||
Total liabilities
|
2,874.5
|
2,795.5
|
||||||
Shareholders’ equity:
|
||||||||
Share capital
|
0.8
|
0.8
|
||||||
Additional paid-in capital
|
2,732.5
|
2,500.7
|
||||||
Treasury shares at cost
|
(13,041.2
|
)
|
(11,802.1
|
)
|
||||
Accumulated other comprehensive gain (loss)
|
(39.2
|
)
|
(97.9
|
)
|
||||
Retained earnings
|
13,168.1
|
12,327.8
|
||||||
Total shareholders’ equity
|
2,821.0
|
2,929.3
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,695.5
|
$
|
5,724.8
|
||||
Total cash and cash equivalents, marketable securities, and short-term deposits
|
$
|
2,959.7
|
$
|
3,503.2
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
$
|
249.2
|
$
|
269.9
|
$
|
840.3
|
$
|
796.9
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
5.7
|
6.1
|
23.1
|
22.7
|
||||||||||||
Amortization of intangible assets
|
13.5
|
3.4
|
24.3
|
13.5
|
||||||||||||
Stock-based compensation
|
39.9
|
30.1
|
145.3
|
131.4
|
||||||||||||
Realized loss on marketable securities
|
-
|
-
|
6.7
|
-
|
||||||||||||
Increase in trade and other receivables, net
|
(324.3
|
)
|
(332.7
|
)
|
(61.0
|
)
|
(44.8
|
)
|
||||||||
Increase in deferred revenues, trade payables and other accrued liabilities
|
270.6
|
253.3
|
65.5
|
160.8
|
||||||||||||
Deferred income taxes, net
|
(18.8
|
)
|
(0.1
|
)
|
(9.5
|
)
|
(0.5
|
)
|
||||||||
Net cash provided by operating activities
|
235.8
|
230.0
|
1,034.7
|
1,080.0
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Payment in conjunction with acquisitions, net of acquired cash
|
(3.8
|
)
|
-
|
(458.8
|
)
|
(48.3
|
)
|
|||||||||
Investment in property and equipment
|
(4.7
|
)
|
(6.5
|
)
|
(18.6
|
)
|
(22.1
|
)
|
||||||||
Net cash used in investing activities
|
(8.5
|
)
|
(6.5
|
)
|
(477.4
|
)
|
(70.4
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
16.0
|
20.7
|
133.7
|
141.1
|
||||||||||||
Purchase of treasury shares
|
(313.2
|
)
|
(324.9
|
)
|
(1,287.6
|
)
|
(1,299.9
|
)
|
||||||||
Payments related to shares withheld for taxes
|
(1.2
|
)
|
(1.1
|
)
|
(11.0
|
)
|
(9.2
|
)
|
||||||||
Net cash used in financing activities
|
(298.4
|
)
|
(305.3
|
)
|
(1,164.9
|
)
|
(1,168.0
|
)
|
||||||||
Unrealized gain (loss) on marketable securities, net
|
42.1
|
15.4
|
64.1
|
(121.8
|
)
|
|||||||||||
Decrease in cash and cash equivalents, marketable securities, and short-term deposits
|
(29.0
|
)
|
(66.4
|
)
|
(543.5
|
)
|
(280.2
|
)
|
||||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period
|
2,988.7
|
3,569.6
|
3,503.2
|
3,783.4
|
||||||||||||
Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period
|
$
|
2,959.7
|
$
|
3,503.2
|
$
|
2,959.7
|
$
|
3,503.2
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD.
|
|
By: /s/ Roei Golan
Roei Golan
Chief Financial Officer
|