Check Point Software Reports 2021 Q4 and Full Year

Check Point has announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021                                            

• Total Revenues: $599 million, a 6 percent increase year over year
• Subscription Revenues: $204 million, a 14 percent increase year over year
• Deferred Revenues (as of December 31, 2021): $1,707 million, a 15 percent increase year over year
• GAAP Operating Income: $246 million, representing 41 percent of revenues
• Non-GAAP Operating Income: $285 million, representing 47 percent of revenues
• GAAP EPS: $1.98, a 2 percent increase year over year
• Non-GAAP EPS: $2.25, a 4 percent increase year over year

Full Year 2021

• Total Revenues: $2,167 million, a 5 percent increase year over year
• Subscription Revenues: $755 million, a 13 percent increase year over year
• GAAP EPS: $6.08, a 2 percent increase year over year
• Non-GAAP EPS: $7.02, a 4 percent increase year over year

“We closed 2021 with strong financial results. This was the sixth consecutive quarter with an accelerated billings¹ reaching 14 percent growth for the quarter. Our success continues to be driven by our Infinity platform’s capabilities and the unique strengths of our key pillars: Check Point Quantum network security solutions, Check Point Harmony and Check Point CloudGuard,” said Gil Shwed, Founder & CEO of Check Point Software Technologies. “We began 2022 with initiatives focused on driving growth -

• New record breaking appliance series for the datacenter - Quantum LightSpeed
• Expansion of our CloudGuard offering into developer-first security with the acquisition of Spectral - our fifth  cloud acquisition
• Expansion of our salesforce
• New Rockets initiatives – focused on our key growth areas of cloud, e-mail security and MDR/MPR
• Introducing Check Point’s new logo and branding

Financial Highlights for the Fourth Quarter of 2021

• Total Revenues: $599 million compared to $564 million in the fourth quarter of 2020, a 6 percent increase year over year.
• GAAP Operating Income: $246 million compared to $251 million in the fourth quarter of 2020.
• Non-GAAP Operating Income: $285 million same as in the fourth quarter of 2020, representing 47 percent and 51 percent of revenues in the fourth quarter of 2021 and 2020, respectively.
• GAAP Tax Benefit: $4 million compared to $5 million in the fourth quarter of 2020.
• GAAP Net Income & Earnings per Diluted share: GAAP net income was $260 million compared to $271 million in the fourth quarter of 2020. GAAP earnings per diluted share were $1.98 compared to $1.95 in the fourth quarter of 2020, a 2 percent increase year over year.
• Non-GAAP Net Income & Earnings per Diluted share: Non-GAAP net income was $294 million compared to $301 million in the fourth quarter of 2020. Non-GAAP earnings per diluted share were $2.25 compared to $2.17 in the fourth quarter of 2020, a 4 percent increase year over year.
• Deferred Revenues: As of December 31, 2021, deferred revenues were $1,707 million compared to $1,482 million as of December 31, 2020, a 15 percent increase year over year.
• Cash Balances, Marketable Securities & Short Term Deposits: $3,783 million as of December 31, 2021, compared to $4,000 million as of December 31, 2020.
• Cash Flow: Cash flow from operations was $294 million compared to $293 million in the fourth quarter of 2020. The fourth quarter of 2021 includes $4 million of income related to our currency hedging transactions compared to $26 million in the fourth quarter of 2020.
• Share Repurchase Program: During the fourth quarter of 2021, the company repurchased approximately 2.8 million shares at a total cost of approximately $325 million.

Financial Highlights for the Year Ended December 31, 2021

• Total Revenues: $2,167 million compared to $2,065 million in 2020, a 5 percent increase year over year.
• GAAP Operating Income: $908 million compared to $904 million in 2020, representing 42 and 44 percent of revenues in 2021 and 2020, respectively.
• Non-GAAP Operating Income: $1,049 million compared to $1,035 million in 2020, representing 48 and 50 percent of revenues in 2021 and 2020, respectively.
• GAAP Taxes on Income: $134 million compared to $124 million in 2020.
• GAAP Net Income & Earnings per Diluted Share: GAAP net income was $816 million compared to $847 million in 2020. GAAP earnings per diluted share were $6.08 compared to $5.96 in 2020, a 2 percent increase year over year.
• Non-GAAP Net Income & Earnings per Diluted Share: Non-GAAP net income was $942 million compared to $963 million in 2020.  Non-GAAP earnings per diluted share were $7.02 compared to $6.78 in 2020, a 4 percent increase year over year.
• Cash Flow: Cash flow from operations was $1,183 million compared to $1,152 million in 2020.  2021 included $14 million in acquisition related costs and $1 million in currency hedge transactions while 2020 included $6 million in acquisition related costs and $25 million in currency hedge transactions income. The remaining acquisition costs is included in our cash flow from investing activities.
• Share Repurchase Program: During 2021, we repurchased approximately 10.9 million shares at a total cost of approximately $1,300 million. In the third quarter, we announced a $2 billion expansion to the share repurchase program with an authorisation to repurchase up to $325 million each quarter.