Check Point Software Technologies (CHKP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $627 million, up 7% year-over-year, with strong double-digit growth in product, subscription, and Infinity platform revenues and bookings.

• Nadav Zafrir appointed as incoming CEO, effective December 2024, following a global search for leadership with strong cyber industry credentials; Gil Shwed to become Executive Chairman.

• Infinity and Harmony platforms delivered robust performance, including large 8-figure deals and continued public sector momentum, with 92 government agencies in 32 countries expanding adoption.

• Leadership transition expected to bring new energy and customer focus, with management optimistic about continued growth and innovation.

Financial highlights

• Non-GAAP revenues were $627 million, up 7% year-over-year, exceeding the midpoint of projections by $5 million; non-GAAP EPS was $2.17, up 8%.

• Net income rose 4% to $246 million; operating cash flow was $200 million.

• Deferred revenues increased 2% to $1.818 billion; calculated billings up 10% to $620 million.

• Gross profit reached $557 million, with an 89% gross margin; operating income was $265 million.

• Cash, marketable securities, and deposits totaled $3.1 billion at quarter end.

Outlook and guidance

• Q3 2024 non-GAAP revenue projected at $615–$650 million; non-GAAP EPS expected between $2.19–$2.29.

• Full-year 2024 guidance unchanged, trending toward upper end after strong first half; management expresses strong optimism for H2, citing healthy pipeline and positive sales force indicators.

• Forward-looking statements highlight expectations for continued platform development, customer adoption, and leadership transition.