Check Point Software Technologies (CHKP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $704M, up 6% YoY, with strong demand for Quantum Force appliances and Infinity Platform agreements; product, license & subscription revenues rose 9%.

• Leadership transition: Gil Shwed moved to Executive Chairman, Nadav Zafrir became CEO, with new CRO and CSO roles filled, emphasizing innovation, AI, and customer-centric go-to-market changes.

• All geographies showed double-digit growth in new business bookings, with APAC up 19%, Americas up 6%, and EMEA up 3% YoY in Q4.

• Calculated billings for Q4 reached $959M, up 11% YoY; RPO at $2.5B, up 12%.

• Executive team expanded to enhance go-to-market and customer-facing functions.

Financial highlights

• Q4 revenue was $704M, $9M above midpoint; non-GAAP EPS $2.70 at the top end of projections; GAAP EPS $2.30, up 7% YoY.

• FY 2024 revenue was $2.565B, $15M above midpoint; non-GAAP EPS $9.16, up 9% YoY; GAAP EPS $7.46, up 5% YoY.

• Gross margin stable at 89%; non-GAAP operating margin at 44%; Q4 GAAP operating income $254M, non-GAAP $306M.

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

• Share buybacks totaled $1.3B for the year, with $325M in Q4.

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; no significant FX benefit anticipated.

• Guidance range widened to reflect go-to-market changes and ongoing momentum.

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