Check Point Software Reports Over 22% Eps Growth In The Second Quarter

 Check Point Software Technologies announced its financial results for the second quarter ended June 30, 2023.

Second Quarter 2023: 

• Total Revenues: $589 million, a 3 percent increase year over year
• Product and License Revenues: $117 million, a 12 percent decrease year over year
• Security Subscription Revenues: $239 million, a 14 percent increase year over year
• Deferred Revenues: $1,774 million, a 7 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: $1.70, a 25 percent increase year over year
• Non-GAAP EPS: $2.00, a 22 percent increase year over year

“The second quarter delivered robust profitability with over 22 percent growth in EPS. Our platform security strategy realized continued success, as Infinity revenues surpassed 10 percent of total revenues for the quarter,” said Gil Shwed, Founder and CEO of Check Point Software. “This was further emphasized by a 14 percent increase in security subscription revenues that encompasses our advanced security solutions such as ThreatCloud AI, CloudGuard, and Harmony E-mail. This mitigated some of the impact from customers delaying network security refresh projects. As we move forward, our priority remains driving revenue growth by delivering a prevention-first approach, with a focus on collaborative cyber security where multiple products work in concert to protect against the most sophisticated threats.”

Financial Highlights for the Second Quarter of 2023:

• Total Revenues: $589 million compared to $571 million in the second quarter of 2022, a 3 percent increase year over year.
• GAAP Operating Income: $221 million compared to $209 million in the second quarter of 2022, representing 38 percent and 37 percent of total revenues in the second quarter of 2023 and 2022, respectively.
• Non-GAAP Operating Income: $263 million compared to $249 million in the second quarter of 2022, representing 45 percent and 44 percent of total revenues in the second quarter of 2023 and 2022, respectively.
• GAAP Taxes on Income: $41 million compared to $45 million in the second quarter of 2022.
• GAAP Net Income: $202 million compared to $174 million in the second quarter of 2022.
• Non-GAAP Net Income: $238 million compared to $209 million in the second quarter of 2022.
• GAAP Earnings Per Diluted Share: $1.70 compared to $1.36 in the second quarter of 2022, a 25 percent increase year over year.
• Non-GAAP Earnings Per Diluted Share: $2.00 compared to $1.64 in the second quarter of 2022, a 22 percent increase year over year.
• Deferred Revenues: As of June 30, 2023, deferred revenues were $1,774 million compared to $1,666 million as of June 30, 2022, a 7 percent increase year over year.
• Cash Balances, Marketable Securities and Short-Term Deposits: $3,515 million as of June 30, 2023, compared to $3,676 million as of June 30, 2022.
• Cash Flow: Cash flow from operations of $191 million compared to $212 million in the second quarter of 2022. The second quarter of 2023 includes $16 million of expenses related to our currency hedging transactions and $22 million of tax expenses compared to $47 million of expenses related to our currency hedging transactions and $30 million of tax expenses in the second quarter of 2022.
• Share Repurchase Program: During the second quarter of 2023, the company repurchased approximately 2.6 million shares at a total cost of approximately $325 million.