Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) beat the analysts in its financial results published today for the fourth quarter and full year 2024. The company, now managed by CEO Nadav Zafrir reported $704 million revenue in the fourth quarter and non-GAAP earnings per share of $2.70, while analysts had forecasted $699 million revenue and non-GAAP earnings per share of $2.65.
Revenue growth in the fourth quarter was 6.5%, with growth in all segments in which the company operates. GAAP net profit in the fourth quarter was $258 million, up 3.3% from the corresponding quarter. Non-GAAP net profit was $303 million, up 1.6%. Non-GAAP earnings per share of $2.70 was 5.1% up from the corresponding quarter of 2023.
Shwed: "A wonderful way to transition to my new executive chairman role"
In 2024, which was largely managed by outgoing CEO Gil Shwed, who became executive chairman last month, revenue amounted to $2.57 billion, up 6.2% from 2023 - higher growth than the 4% in 2024 from 2023. The company's revenue from security subscribers surpassed the $1 billion mark on an annual basis after growing by 12.5% to $1.1 billion.
The company GAAP net profit of $846 million, and non-GAAP net profit of over $1 billion, which is $9.16 per share. Check Point recognized costs of approximately $150 million in 2024 for stock-based compensation for the company's employees.
The company generated nearly $1.1 billion from operating activities during the past year, of which $249 million was the last quarter. Check Point ended 2024 with nearly $2.8 billion in cash, down from the previous year, mainly due to the acquisition of Israeli cybersecurity company Cybernet for a net $186 million.
Check Point executive chairman Gil Shwed said, "We delivered exceptional fourth quarter results, a wonderful way to transition into my new executive chairman role. The success in the quarter was underscored by strong 8 percent revenue growth in our core Quantum Force appliance business, our industry leading Harmony E-mail solution, and expanded adoption of the Infinity platform," said, Gil Shwed, Founder and Chairman of the Board of Check Point Software. "I would like to thank Check Point’s customers, partners, and the Global Check Point Team for their contributions to our continued success. I look forward to Check Point achieving new heights under the leadership of our new Chief Executive Officer, Nadav Zafrir."
Zafrir said, "2024 was a successful year and provides a great springboard for 2025 and beyond. My first one hundred days are focused on meeting with customers and partners to understand the key challenges they face in today’s unprecedented threat environment. From my conversations so far, I have become increasingly confident that Check Point is uniquely positioned to address the cybersecurity demands of enterprises worldwide. Check Point’s future is bright, and we are focused on driving market share expansion and taking growth to the next levels.
Zafrir announced the appointment of Itai Greenberg as Check Point's new chief revenue officer. He was formerly chief strategy officer where he will be replaced by Roi Karo.
Check Point is traded on Nasdaq with a market cap of $22.4 billion after rising 27.2% over the past year. Yesterday, Check Point leapfrogged Teva as Israel's most valuable company after the pharmaceutical company's share price fell sharply after its fourth quarter 2024 results and 2025 financial guidance.
Published by Globes, Israel business news - en.globes.co.il - on January 30, 2025.
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