Check Point Software Reports 2021 Fourth Quarter and Full Year Results

New Delhi  : Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021                                           

• Total Revenues: $599 million, a 6 percent increase year over year

• Subscription Revenues: $204 million, a 14 percent increase year over year

• Deferred Revenues (as of December 31, 2021): $1,707 million, a 15 percent increase year over year

• GAAP Operating Income: $246 million, representing 41 percent of revenues

• Non-GAAP Operating Income: $285 million, representing 47 percent of revenues

• GAAP EPS: $1.98, a 2 percent increase year over year

• Non-GAAP EPS: $2.25, a 4 percent increase year over year

Full Year 2021

• Total Revenues: $2,167 million, a 5 percent increase year over year

• Subscription Revenues: $755 million, a 13 percent increase year over year

• GAAP EPS: $6.08, a 2 percent increase year over year

• Non-GAAP EPS: $7.02, a 4 percent increase year over year

“We closed 2021 with strong financial results. This was the sixth consecutive quarter with an accelerated billings1 reaching 14 percent growth for the quarter. Our success continues to be driven by our Infinity platform’s capabilities and the unique strengths of our key pillars: Check Point Quantum network security solutions, Check Point Harmony and Check Point CloudGuard,” said Gil Shwed, Founder & CEO of Check Point Software Technologies. “We began 2022 with initiatives focused on driving growth:

• New record breaking appliance series for the datacenter – Quantum LightSpeed
• Expansion of our CloudGuard offering into developer-first security with the acquisition of Spectral – our fifth  cloud acquisition
• Expansion of our salesforce
• New Rockets initiatives – focused on our key growth areas of cloud, e-mail security and MDR/MPR
• Introducing Check Point’s new logo and branding

All of the above initiatives further underscore the Check Point differentiators and new tag line – You Deserve the Best Security.”

Financial Highlights for the Fourth Quarter of 2021

• Total Revenues: $599 million compared to $564 million in the fourth quarter of 2020, a 6 percent increase year over year.

• GAAP Operating Income: $246 million compared to $251 million in the fourth quarter of 2020.

• Non-GAAP Operating Income: $285 million same as in the fourth quarter of 2020, representing 47 percent and 51 percent of revenues in the fourth quarter of 2021 and 2020, respectively.

• GAAP Tax Benefit: $4 million compared to $5 million in the fourth quarter of 2020.

• GAAP Net Income & Earnings per Diluted share: GAAP net income was $260 million compared to $271 million in the fourth quarter of 2020. GAAP earnings per diluted share were $1.98 compared to $1.95 in the fourth quarter of 2020, a 2 percent increase year over year.

• Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $294 million compared to $301 million in the fourth quarter of 2020. Non-GAAP earnings per diluted share were $2.25 compared to $2.17 in the fourth quarter of 2020, a 4 percent increase year over year.

• Deferred Revenues: As of December 31, 2021, deferred revenues were $1,707 million compared to $1,482 million as of December 31, 2020, a 15 percent increase year over year.

• Cash Balances, Marketable Securities & Short Term Deposits: $3,783 million as of December 31, 2021, compared to $4,000 million as of December 31, 2020.

• Cash Flow: Cash flow from operations was $294 million compared to $293 million in the fourth quarter of 2020. The fourth quarter of 2021 includes $4 million of income related to our currency hedging transactions compared to $26 million in the fourth quarter of 2020.

• Share Repurchase Program: During the fourth quarter of 2021, the company repurchased approximately 2.8 million shares at a total cost of approximately $325 million.

Financial Highlights for the Year Ended December 31, 2021

• Total Revenues: $2,167 million compared to $2,065 million in 2020, a 5 percent increase year over year.

• GAAP Operating Income: $908 million compared to $904 million in 2020, representing 42 and 44 percent of revenues in 2021 and 2020, respectively.

• Non-GAAP Operating Income: $1,049 million compared to $1,035 million in 2020, representing 48 and 50 percent of revenues in 2021 and 2020, respectively.

• GAAP Taxes on Income: $134 million compared to $124 million in 2020.

• GAAP Net Income & Earnings per Diluted Share: GAAP net income was $816 million compared to $847 million in 2020. GAAP earnings per diluted share were $6.08 compared to $5.96 in 2020, a 2 percent increase year over year.

• Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $942 million compared to $963 million in 2020.  Non-GAAP earnings per diluted share were $7.02 compared to $6.78 in 2020, a 4 percent increase year over year.

• Cash Flow: Cash flow from operations was $1,183 million compared to $1,152 million in 2020.  2021 included $14 million in acquisition related costs and $1 million in currency hedge transactions while 2020 included $6 million in acquisition related costs and $25 million in currency hedge transactions income. The remaining acquisition costs is included in our cash flow from investing activities.

• Share Repurchase Program: During 2021, we repurchased approximately 10.9 million shares at a total cost of approximately $1,300 million. In the third quarter, we announced a $2 billion expansion to the share repurchase program with an authorization to repurchase up to $325 million each quarter.

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 and Webcast Information

Check Point will host a conference call with the investment community on February 3, 2022, 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.

First Quarter 2022 Investor Conference Participation Schedule

• Raymond James 2021 Institutional Investor Conference

March 7, 2022 – Fireside Chat & 1×1 Meetings.

• Morgan Stanley 2021 Media, Telecommunications & Technology Conference

March 9-10, 2022 – 1×1 Meetings Only

Members of Check Point’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to 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.