New Delhi, February 13, 2023 — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022                                        

  • Total Revenues: $638 million, a 7 percent increase year over year
  • Security Subscription Revenues: $231 million, a 13 percent increase year over year
  • Deferred Revenues: $1,878 million, a 10 percent increase year over year
  • : $254 million, representing 40 percent of revenues
  • : $289 million, representing 45 percent of revenues
  • : $2.20, an 11 percent increase year over year
  • 2.45, a 9 percent increase year over year

Full Year 2022

  • Total Revenues: $2,330 million, an 8 percent increase year over year
  • Security Subscription Revenues: $858 million, a 14 percent increase year over year
  • GAAP EPS: $6.31, a 4 percent increase year over year
  • Non-GAAP EPS: $7.40, a 5 percent increase year over year

“We delivered solid fourth quarter and 2022 full year financial results despite a volatile year-end macro-environment. Revenue and non-GAAP earnings per share came in at the top end of our projections,” said Gil Shwed, Founder & CEO of Check Point Software Technologies. “We continued building the future of cyber security with the prevention-first Infinity architecture and realized triple-digit growth in Infinity revenues. Building on this success we are driving security innovation with a focus on the 3Cs of the Best Security – a Comprehensive set of technologies that address the key attack vectors; a Consolidated set of solutions with a unified management portal, with Collaborative security technologies - to prevent the next cyber-attack.”

Financial Highlights for the Fourth Quarter of 2022

  • ·Total Revenues: $638 million compared to $599 million in the fourth quarter of 2021, a 7 percent increase year over year.
  • $254 million compared to $246 million in the fourth quarter of 2021.
  • $289 million compared to $285 million in the fourth quarter of 2021, representing 45 percent and 47 percent of revenues in the fourth quarter of 2022 and 2021, respectively.
  • Benefit: $1 million compared to $4 million in the fourth quarter of 2021.
  • GAAP net income was $270 million compared to $260 million in the fourth quarter of 2021. GAAP earnings per diluted share were $2.20 compared to $1.98 in the fourth quarter of 2021, an 11 percent increase year over year.
  • Non-GAAP net income was $301 million compared to $294 million in the fourth quarter of 2021. Non-GAAP earnings per diluted share were $2.45 compared to $2.25 in the fourth quarter of 2021, a 9 percent increase year over year.
  • : As of December 31, 2022, deferred revenues were $1,878 million compared to $1,707 million as of December 31, 2021, a 10 percent increase year over year.
  • $3,503 million as of December 31, 2022, compared to $3,783 million as of December 31, 2021.
  • Cash flow from operations was $230 million compared to $294 million in the fourth quarter of 2021. The fourth quarter of 2022 includes $3 million of costs related to our currency hedging transactions compared to $4 million of income in the fourth quarter of 2021.
  • During the fourth quarter of 2022, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million. In a press release today, the company’s board of directors authorized a $2 billion expansion of the company’s on-going share repurchase program. Under the extended share repurchase program, Check Point will be authorized to continue repurchasing its shares up to $325 million each quarter.

Financial Highlights for the Year Ended December 31, 2022

  • Total Revenues: $2,330 million compared to $2,167 million in 2021, an 8 percent increase year over year.
  • GAAP Operating Income: $884 million compared to $908 million in 2021, representing 38 and 42 percent of revenues in 2022 and 2021, respectively.
  • Non-GAAP Operating Income: $1,039 million compared to $1,049 million in 2021, representing 45 and 48 percent of revenues in 2022 and 2021, respectively.
  • GAAP Taxes on Income: $131 million compared to $134 million in 2021.
  • GAAP Net Income & Earnings per Diluted Share: GAAP net income was $797 million compared to $816 million in 2021. GAAP earnings per diluted share were $6.31 compared to $6.08 in 2021, a 4 percent increase year over year.
  • Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $935 million compared to $942 million in 2021.  Non-GAAP earnings per diluted share were $7.40 compared to $7.02 in 2021, a 5 percent increase year over year.
  • Cash Flow: Cash flow from operations was $1,080 million compared to $1,183 million in 2021. 2022 included $8 million in acquisition related costs and $80 million of costs related to our currency hedging transactions while 2021 included $14 million in acquisition related costs and $1 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 2022, we repurchased approximately 10.3 million shares at a total cost of approximately $1,300 million.

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