Check Point Software Technologies (CHKP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues grew 7% year-over-year to $635 million, exceeding projections, driven by strong demand for Infinity and Harmony Email platforms.

• Non-GAAP EPS increased 9% to $2.25, above guidance; GAAP EPS was $1.83, up 4% year-over-year.

• Infinity platform now represents 15% of total revenues, and Harmony Email ARR exceeded $100 million with over 50% year-over-year growth.

• Acquisition of Cyberint for $186 million expanded SOC and AI-powered threat intelligence capabilities.

• Revenue growth observed across all geographies: Americas up 3–7%, EMEA up 3–7%, APAC up 17%.

Financial highlights

• Subscription revenue rose 12% to $277 million; product and subscription revenues grew 9% to $396 million.

• Calculated billings increased 6% year-over-year to $562 million; deferred revenues totaled $1,745 million, up 2% year-over-year.

• Gross profit was $563 million with an 89% gross margin.

• Operating expenses rose 9% to $289 million, mainly due to workforce investments and acquisitions.

• Operating cash flow was $249 million; cash, marketable securities, and short-term deposits totaled $2.9 billion.

Outlook and guidance

• Q4 2024 revenue guidance: $675 million–$715 million; non-GAAP EPS: $2.60–$2.70.

• Full-year 2024 revenue guidance raised to $2,536 million–$2,625 million; non-GAAP EPS expected between $9.05–$9.30.

• GAAP EPS for FY2024 expected to be $1.75 lower than non-GAAP.

• Anticipated Q4 billings benefit from deals delayed in Q3.