Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the quarter ended March 31st, 2023.
First Quarter 2023:
- Total Revenues: $566 million, a 4 percent increase year over year
- Security Subscription Revenues: $228 million, a 13 percent increase year over year
- Deferred Revenues: $1,797 million, an 8 percent increase year over year
- GAAP Operating Income: $200 million, representing 35 percent of total revenues
- Non-GAAP Operating Income: $238 million, representing 42 percent of total revenues
- GAAP EPS: $1.52, a 17 percent increase year over year
- Non-GAAP EPS: $1.80, a 15 percent increase year over year
“We are pleased to report good financial results with 15 percent growth in non-GAAP EPS and 13 percent growth in security subscription revenues. This double-digit growth was driven by our CloudGuard and Harmony E-mail product families. The economic slowdown has resulted in extended product sales cycles, while recurring revenues were healthy and reached over 80 percent of total revenues for the first time.” said Gil Shwed, Founder & CEO of Check Point Software Technologies. “Our Infinity platform revenue grew over 140 percent during the quarter, underscoring the strength of the platform as the future of cyber security. The Infinity platform implements the key essential principles of effective cyber security – the 3 Cs: Comprehensive, Consolidated and Collaborative security.”
Financial Highlights for the First Quarter of 2023
- Total Revenues: $566 million compared to $543 million in the first quarter of 2022, a 4 percent increase year over year.
- GAAP Operating Income: $200 million same as in the first quarter of 2022, representing 35 percent and 37 percent of total revenues in the first quarter of 2023 and 2022, respectively.
- Non-GAAP Operating Income: $238 million compared to $239 million in the first quarter of 2022, representing 42 percent and 44 percent of total revenues in the first quarter of 2023 and 2022, respectively.
- GAAP Taxes on Income: $35 million compared to $38 million in the first quarter of 2022.
- GAAP Net Income & Earnings per Diluted share: GAAP net income was $184 million compared to $169 million in the first quarter of 2022. GAAP earnings per diluted share were $1.52 compared to $1.30 in the first quarter of 2022, a 17 percent increase year over year.
- Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $218 million compared to $204 million in the first quarter of 2022. Non-GAAP earnings per diluted share were $1.80 compared to $1.57 in the first quarter of 2022, a 15 percent increase year over year.
- Deferred Revenues: As of March 31, 2023, deferred revenues were $1,797 million compared to $1,666 million as of March 31, 2022, an 8 percent increase year over year.
- Cash Balances, Marketable Securities & Short-Term Deposits: $3,619 million as of March 31, 2023, compared to $3,503 million as of December 31, 2022.
- Cash Flow: Cash flow from operations of $386 million compared to $398 million in the first quarter of 2022.
- Share Repurchase Program: During the first quarter of 2023, the company repurchased approximately 2.6 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.”
Conference Call & Video Cast Information
Check Point will host a conference call with the investment community on May 1, 2023, at 8:30 AM ET/5:30 AM PT. To listen to the live webcast or replay, please visit the website www.checkpoint.com/ir.
Second Quarter 2023 Investor Conference Participation Schedule
- J.P. Morgan 51st Annual Technology, Media, and Telecom Conference
May 22-24, 2023, Boston, MA – 1×1’s
- Cowen 51st Annual TMT Conference
May 31-June 1, 2023, NY, NY – Fireside Chat & 1×1’s
- Bank of America Merrill Lynch 2023 Global Technology Conference
June 6-8, 2023, SF, CA – Fireside Chat & 1×1’s
- Nasdaq Investor Conference
June 13, 2023, London, UK – 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.