Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the third quarter ended September 30, 2022.

Third Quarter 2022:                                                         

• Total Revenue: $578 million, an 8 percent increase year over year
• Security Subscription Revenues: $216 million, a 13 percent increase year over year
• Deferred Revenues: $1,647 million, a 13 percent increase year over year
• GAAP Operating Income: $221 million, representing 38 percent of revenues
• Non-GAAP Operating Income: $263 million, representing 45 percent of revenues
• GAAP EPS: $1.47, a 5 percent increase year over year
• Non-GAAP EPS: $1.77, a 7 percent increase year over year

“We delivered strong third quarter results reflecting solid execution during the quarter. Revenues came in toward the high-end of our projections, while non-GAAP earnings per share exceeded projections. Product and Security Subscription revenues increased by thirteen percent driven by double-digit growth in Harmony, CloudGuard and Quantum network security gateways.” said Gil Shwed, Founder and CEO of Check Point Software Technologies. “During the quarter we expanded the Infinity platform with the introduction of Horizon, an industry-leading security operations solutions and services suite. Horizon for XDR, MDR and events leverages the company’s prevention-first approach to improve defenses across the network, cloud, and endpoints to prevent future cyberattacks.”

“Additionally, this is to update that starting November, Tal Payne, the company’s CFO & COO will take a six months’ sabbatical leave for a cycling tour and for traveling around the world. The company’s VP finance, Roei Golan, will serve as the company’s acting CFO in this period and assume Ms. Payne’s duties and responsibilities.” concluded, Shwed.

Financial Highlights for the Third Quarter of 2022:

• Total Revenue: $578 million compared to $534 million in the third quarter of 2021, an 8 percent increase year over year.
• GAAP Operating Income: $221 million compared to $225 million in the third quarter of 2021, representing 38 percent and 42 percent of revenues in the third quarter of 2022 and 2021, respectively.
• Non-GAAP Operating Income: $263 million compared to $261 million in the third quarter of 2021, representing 45 percent and 49 percent of revenues in the third quarter of 2022 and 2021, respectively.
• GAAP Taxes on Income: $49 million compared to $47 million in the third quarter of 2021.
• GAAP Net Income: $184 million compared to $187 million in the third quarter of 2021.
• Non-GAAP Net Income: $221 million compared to $220 million in the third quarter of 2021.
• GAAP Earnings per Diluted share: $1.47 compared to $1.40 in the third quarter of 2021, a 5 percent increase year over year.
• Non-GAAP Earnings per Diluted share: $1.77 compared to $1.65 in the third quarter of 2021, a 7 percent increase year over year.
• Deferred Revenues: As of September 30, 2022, deferred revenues were $1,647 million compared to $1,456 million as of September 30, 2021, a 13 percent increase year over year.
• Cash Balances, Marketable Securities and Short-Term Deposits: $3,570 million as of September 30, 2022, compared to $3,835 million as of September 30, 2021.
• Cash Flow: Cash flow from operations was $240 million, compared to $251 million in the third quarter of 2021.
• Share Repurchase Program: During the third quarter of 2022, we repurchased approximately 2.67 million shares at a total cost of approximately $325 million.

For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”

Video Conference Information
Check Point will host a video conference with the investment community on October 27, 2022, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.

Fourth Quarter Investor Conference Participation Schedule:

• RBC 2022 Technology, Internet, Media & Telecommunications Conference
  November 15-16, 2022, NY, NY – 1×1’s
• Credit Suisse 2022 Technology Summit
  November 28 – 30, 2022, Scottsdale, AZ – Fireside Chat & 1×1’s
• Wells Fargo 6^th Annual TMT Summit
  December 1, 2022, Las Vegas, NV – 1×1’s
• Raymond James 2022 Technology Conference
  December 5-6, 2022, NY, NY – 1×1’s
• Barclays 2022 Technology Conference
  December 7-8, 2022, SF, CA – 1×1’s

Members of Check Point’s management team anticipate attending these conferences and events to discuss the latest company strategies and initiatives. Check Point’s conference presentations if applicable will be available via webcast on the company’s web site. To hear these presentations and access the most updated information please visit the company’s web site at www.checkpoint.com/ir. The schedule is subject to change.