Check Point Software Technologies (CHKP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $704M, up 6% YoY and $9M above projections, with non-GAAP EPS at $2.70, at the top end of guidance.

• Full-year 2024 revenues totaled $2.565B, $15M above midpoint, with non-GAAP EPS $9.60, up 9% YoY.

• Strong demand for Quantum Force appliances and Infinity Platform agreements drove double-digit growth, with product and license revenues up 8% YoY in Q4.

• Leadership transition: Gil Shwed moved to Executive Chairman, Nadav Zafrir appointed CEO, with new CRO and CSO roles filled to enhance innovation and customer focus.

• Go-to-market organization restructured and executive team expanded to accelerate SaaS and SASE growth.

Financial highlights

• Q4 revenue was $704M (+6% YoY); non-GAAP EPS $2.70 (+5% YoY); GAAP EPS $2.30 (+7% YoY); net income $303M (+2% YoY).

• FY 2024 revenue reached $2.565B (+6% YoY); non-GAAP EPS $9.60 (+9% YoY); GAAP EPS $7.46 (+5% YoY); net income $1.039B (+4% YoY).

• Gross margin steady at 89%; non-GAAP operating margin 44% in Q4; annual operating income $1.1B.

• Calculated billings up 11% YoY to $959M in Q4; RPO up 12% to $2.516B; deferred revenues grew 5% to $2B.

• Operating cash flow for 2024 was $1.059B; cash and marketable securities at $2.8B year-end.

Outlook and guidance

• Q1 2025 revenue guidance: $619M–$649M; non-GAAP EPS $2.13–$2.23.

• FY 2025 revenue guidance: $2.66B–$2.76B; non-GAAP EPS $9.60–$10.20.

• Operating margin expected to be about 0.5% lower due to Cyberint acquisition.

• Guidance incorporates go-to-market changes and potential upside from firewall refresh cycles.

• GAAP EPS expected to be approximately $0.50 less for Q1 and $2.00 less for FY2025 compared to non-GAAP.