Check Point® Software Technologies Ltd. announced its financial results for the second quarter ended June 30, 2024, and the appointment of Nadav Zafrir as Check Point Chief Executive Officer.
Second Quarter 2024:
- Total Revenues: $627 million, a 7 percent increase year over year
- Security Subscription Revenues: $272 million, a 14 percent increase year over year
- GAAP Operating Income: $209 million, representing 33 percent of revenues
- Non-GAAP Operating Income: $265 million, representing 42 percent of revenues
- GAAP EPS: $1.74, a 3 percent increase year over year
- Non-GAAP EPS: $2.17, an 8 percent increase year over year
“I’m excited to share great news. Check Point delivered an outstanding second quarter as customers continued to embrace the AI driven, cloud delivered Infinity Platform to achieve the highest levels of security,” said Gil Shwed, Check Point founder and CEO. “The success of Infinity during the quarter was underscored by its double-digit growth and significant deals with Fortune Global 500 organizations.”
New CEO Appointment:
For the past 10 years, Nadav Zafrir has been a co-founder and managing partner at Team8, a global venture creation and venture capital fund. Team8 establishes and invests in companies focused on cyber security, Data & AI, Fintech and digital health. He built, invested and chaired 17 cyber security companies in addition to dozens of other technology companies he has consulted and mentored. He previously served 25 years in the IDF, retiring as a Brigadier General. Since 2019, he has served as Chairman of the Board of SolarEdge Technologies, a Nasdaq traded smart energy company. Mr. Zafrir will assume the CEO role in December 2024 and will join Check Point’s Board of Directors upon shareholder approval at Check Point’s next Annual General Meeting. Gil Shwed will become Executive Chairman of the Board.
“We are concluding a thorough CEO search process after examining candidates from around the world and found the perfect individual. Nadav has been a key leader in the global cyber security ecosystem for over a decade. Having lived in New York and Tel Aviv, he became one of the most respected figures within the global CISO community. He established and led multiple cyber security companies and partnered with the world’s largest security vendors. I admire his achievements and leadership skills and I am excited about his appointment, and believe he is the right leader to take Check Point to new heights,” concluded Mr. Shwed.
“I am honored to join Check Point, a pioneer that shaped modern cyber security, and a hotbed for entrepreneurship,” said Nadav Zafrir. “Over the last decade, I’ve collaborated with global cyber security leaders and teams, witnessing firsthand their incredible efforts to safeguard global networks from sophisticated attackers. I am in awe of the work of security practitioners and their organizations deserve the best security. In our turbulent world, on the brink of another acceleration point as AI redefines our lives, cutting-edge cyber security is more critical than ever. Check Point is uniquely positioned to lead development of the next stage of security for our complex world. I look forward to working with the company’s accomplished leadership team and Gil to write the next chapter in Check Point’s growth,” concluded Mr. Zafrir.
Financial Highlights for the Second Quarter of 2024:
- Total Revenues: $627 million compared to $589 million in the second quarter of 2023, a 7 percent increase year over year.
- GAAP Operating Income: $209 million compared to $221 million in the second quarter of 2023.
- Non-GAAP Operating Income: $265 million compared to $263 million in the second quarter of 2023.
- GAAP Taxes on Income: $36 million compared to $41 million in the second quarter of 2023.
- GAAP Net Income: $197 million compared to $202 million in the second quarter of 2023.
- Non-GAAP Net Income: $246 million compared to $238 million in the second quarter of 2023.
- GAAP Earnings Per Diluted Share: $1.74 compared to $1.70 in the second quarter of 2023, a 3 percent increase year over year.
- Non-GAAP Earnings Per Diluted Share: $2.17 compared to $2.00 in the second quarter of 2023, an 8 percent increase year over year.
- Deferred Revenues: As of June 30, 2024, deferred revenues were $1,818 million compared to $1,774 million as of June 30, 2023, a 2 percent increase year over year.
- Cash Balances, Marketable Securities and Short-Term Deposits: $3,058 million as of June 30, 2024, compared to $3,515 million as of June 30, 2023.
- Cash Flow: Cash flow from operations of $200 million compared to $191 million in the second quarter of 2023.
- Share Repurchase Program: During the second quarter of 2024, the company repurchased approximately 2.1 million shares at a total cost of approximately $325 million. On July 11, 2024, the company announced that the 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.