Check Point Software Technologies

Areas of activity

• Firewall
• Consolidate offices into a single network (secure VPN)
• IPS protection (segment protection)
• Web Proxy, Replacing MS TMG\ISA
• Traffic control, prohibition of external mailers
• Protect mobile users and data
• Data Loss Prevention
• Data Center Protection
• Protect against DDOS attacks
• PCS protection

Financial performance

The company's fiscal year ends on December 31.

2020: Revenue growth 4%, to $2.07 billion

Check Point Software Technologies completed 2020 with annual revenue of $2.07 billion, which surpassed sales by 4% in 2019.

Most of the turnover in 2020 came from the implementation of products and subscriptions to information security solutions. The corresponding revenue reached $1.19 billion against $1.12 billion. In particular, the supply of products and software licenses brought Check Point Software Technologies revenues of $513.6 million against $510.8 million in 2019, and earnings on subscriptions during this time rose from $610.3 million to $671.1 million.

Sales of support services and updates for software added $880.2 million to Check Point Software Technologies revenue at the end of 2020. In 2019, the indicator was measured at $873.7 million.

Net profit of Check Point Software Technologies at the end of 2020 amounted to $846.6 million, which is more than a year ago profit of $825.7 million.

By December 31, 2021, Check Point Software Technologies' deferred revenue reached $1.48 billion, up 7% year-on-year. About $4 billion of money has accumulated on the company's balance sheet.

Check Point Software Technologies CEO Gil Shwed noted that sales of information security products for protecting cloud environments, networks and remote access have grown sharply in 2020, as a hybrid working environment that combines work from home and in the office has become a new normal in the context of the COVID-19 pandemic. This trend is likely to continue after the coronavirus crisis, he said.

According to Shwed, Check Point Software Technologies is working to combine its technologies into a single product package capable of protecting home and work computers, as well as mobile networks.

Most companies are not sufficiently protected, and we will begin to see the consequences of this, - said Shwed, adding that the business still spent a lot of money on cybersecurity, despite a difficult 2020.[1]

Business in Russia

Main article: Check Point Russia and CIS

Check Point deliveries to Russia and the CIS began in 1997.

Check Point Partner Program

Main article: Check Point Partner Program

History

2024: Nadav Zafrir's appointment as new CEO

On July 24, 2024, Check Point Software Technologies, a provider of cybersecurity solutions, announced the appointment of a new CEO. It was Nadav Zafrir, who will replace the founder Gil Shwed in this post. Read more here

2022: Acquisition of Israeli cloud protection developer Spectrum

Check Point, one of Israel's largest providers of cybersecurity solutions, announced on February 1, 2022, the acquisition of Spectrum, a firm specializing in code security during development. Read more here.

2021: Acquisition of cloud protection developer and e-mail Avanan

Information security company Check Point Software on August 30, 2021 announced the acquisition of Avanan, a provider of email and Solutions SaaS protection. Read more here.

2020: Purchase of information security company Odo Security

On September 17, 2020, Check Point Software Technologies announced the acquisition of Odo Security. The deal is scheduled to close within days. The financial component of the agreement was not disclosed by the company. According to Israeli media, we are talking about an amount of $30 million. Read more here.

2019

Revenue growth by 4%, to $2 billion

In 2019, Check Point Software Technologies revenue amounted to almost $2 billion, an increase of 4% compared to 2018. This rise was facilitated by subscriptions to information security solutions, as well as sales of products to counter cyber threats in cloud infrastructures.

We ended the decade with revenues of almost $2 billion and more than $1 billion in operating income. Over 10 years, we have introduced the new Security-as-a-Service model, which provides the most advanced technologies in the field of cybersecurity. In 2019, subscription revenue reached more than $600 million [$610.3 million versus $542.3 million in 2018 - note TAdviser], which was facilitated by cloud, mobile and other leading technologies to prevent zero-day threats, says Check Point founder and CEO Gil Shwed, summing up 2019. - We began the new decade by introducing Infinity NEXT, the industry's most comprehensive cybersecurity platform with more than 60 security technologies that support more than 50 types of assets, including operating systems, cloud workloads, any type of network, IoT, and mobile devices.

In 2019, software updates and support services brought the Israeli vendor about $873.7 million in revenue, which exceeds the one-year-old figure of $848.6 million. Sales of products and licenses decreased from $525.6 million to $510.8 million.

Check Point's 2019 net profit was $825.7 million versus $821.3 million in profit a year earlier. This growth was due in part to cost optimization.

In 2019, Check Point repurchased 11.2 million shares worth about $1.28 billion. The company intends to continue returning capital to investors in this format.^[2]

Purchase of Protego serverless security software developer

In early December 2019, Check Point announced the purchase of Protego. The financial component of the agreement was decided to be kept secret by the company. Read more here.

Buying a developer to protect IoT equipment from complex cyberattacks Cymplify

In mid-November 2019, Check Point Software Technologies announced the acquisition of Cymplify. How much this purchase cost the manufacturer of cybersecurity solutions is not reported. Read more here.

Microsoft brought Check Point to the big cloud market

Joint sales with Microsoft of Check Point to protect the cloud infrastructure have become the fastest growing and largest area of ​ ​ the cloud business of the latter. TAdviser was told about this in February 2019 by Itai Greenberg, vice president of product management at Check Point. He estimates that sales with Microsoft generate approximately 30-40% of the revenue from the entire Check Point cloud destination.

The joint sales model implies that Microsoft, together with the cloud platform Azure , offers its customers a solution Check Point CloudGuard IaaS designed to protect the cloud infrastructure. In turn, Check Point offers the Azure platform to its customers. Such cooperation ensures the mutual generation of leads (potential buyers), Greenberg notes.

As part of this collaboration, Microsoft introduced special incentive payments to its sales managers for sales of Check Point solutions along with Azure, according to a Check Point spokesperson.

A tool has been created where Microsoft sales managers can flag a purchase requisition for the Check Point solution when selling Azure. After entering the requisition, the managers of Check Point itself are connected to close the transaction. After that, Microsoft pays a commission to its seller for a closed deal with Check Point, says Itay Greenberg. Azure Marketplace is also involved in the promotion, where customers can test the Check Point solution.

Microsoft and Check Point have been collaborating for many years, but Check Point's joint sales partnership for cloud solutions began to develop especially actively in 2017. According to Greenberg, then it was allocated inside Check Point as strategic.

In 2018, the collaboration was continued, including participation in joint events and training customers of Microsoft cloud products on protection using Check Point solutions. Microsoft began to act as the general sponsor at Check Point conferences.

Joint sales began with the Check Point vSEC solution for network protection of cloud and virtual infrastructures along with a subscription to the Microsoft Azure platform. It was later renamed CloudGuard IaaS and incorporated into Check Point's revamped cloud product line in 2018.

Greenberg explains the interest in such cooperation from Microsoft by the fact that the sale of infrastructure protection services can stimulate the sale of cloud services.

If customers see that the cloud platform is protected, they are ready to host more applications in it, he argues.

Check Point is working to sell its other cloud security solutions in conjunction with Microsoft, Itai Greenberg said. For example, offer CloudGuard SaaS with Office 365 to protect cloud applications.

One of the biggest partners is also Amazon, where CloudGuard IaaS is sold with the cloud platform Amazon Web Services, Greenberg says. Many customers use both Amazon Web Services and Microsoft Azure at the same time.

Sales with Amazon Web Services are catching up with Microsoft by volume, largely due to the fact that Check Point acquired the Israeli company Dome9 in 2018, explains Greenberg. According to him, with the purchase of Dome9 by Check Point, it received a large number of customers on Amazon. Prior to that, Microsoft's gap in the Check Point cloud business, he said, was larger.

At the same time, in the case of Amazon, the promotion model is somewhat different from the partnership with Microsoft, says Itay Greenberg: security solutions are promoted mainly through the Amazon marketplace, here there are fewer joint sales.

Co-founder and CEO of Dome9 Zohar Alon, who after acquiring the company took the position of head of cloud products at Check Point, told TAdviser that in the future of several years Check Point expects to bring the share of the cloud business in total turnover to about 25%. In 2018, it was at the level of 5-10%, cited data in the company.

The strengthening of the cloud direction at the company over the past two years is largely due to the development of the new cybersecurity architecture Infinity, which Check Point introduced in 2017. It provides consolidated security that protects data across the network, cloud, and mobile devices.

Purchase API and web application security software developer ForceNock Security

In mid-January 2019, Check Point Software Technologies announced the acquisition of ForceNock Security, but did not disclose the financial component of the agreement. It is assumed that this deal will allow the buyer to strengthen the advanced capabilities of cyber defense based on machine learning. Read more here.

2018

Revenue growth by 3% to $1.92 billion

At the end of 2018, Check Point Software Technologies raised $1.92 billion, which is 3% more than the previous year.

The company earned $525.6 million on the sale of products and licenses against $559 million in 2017. The sale of subscriptions to information security products increased from $480.4 million to $542.3 million. Another source of income is support services and software updates: here in 2018, the income of the Israeli vendor was measured at $848.6 million, while in 2017, earnings were $815.3 million. According to Reuters, subscriptions bring Check Point Software about 70% of revenue.

According to Check Point Software CEO Gil Shwed, the company's security subscription business has continued to grow thanks to cloud and mobile technologies, as well as advanced solutions to prevent cyber threats.

According to the company's forecasts, its cloud business will continue to grow in 2019 largely due to the acquisition of startup Dome9 (the deal was concluded in 2018), which provides technologies to protect cloud processes. In 2018, sales of mobile products were Dome9 small but growing, Gil Shwed stressed.

According to him, the cost of cybersecurity in the world increased in 2018 by 11%, but a third of consumers still lose their data, since companies do not protect their systems from cyberattacks should.

In 2018, Check Point Software's net profit rose to $821 million from $803 million a year earlier. Free cash flow from operations rose during this time from $1.09 billion to $1.13 billion. At the end of 2018, the company bought out about 10.3 million shares totaling $1.1 billion and paid taxes on income in the amount of $158 million.^[3]

After the publication of the financial results, Check Point Software shares fell 0.6% on the New York stock exchange.

Partnership with BlackBerry

On September 13, 2018, BlackBerry Limited and Check Point Software Technologies Ltd announced a global partnership under the ISV (Independent Software Vendor) program for independent software vendors. The agreement provides for joint planning of the release and sale of Check Point SandBlast Mobile for protection against mobile threats, as well as BlackBerry UEM and BlackBerry Dynamics systems.

To make it easier to work with customers, BlackBerry specialists will undergo full training in Check Point SandBlast Mobile to continue selling the product and provide unified support and professional service.

Organizations around the world are deploying mobility solutions to improve operational efficiency and implement digital transformation projects. At the same time, issues of ensuring mobile security often go unnoticed despite the fact that the complexity and level of danger of cyber threats is growing. A recent Check Point study found that 94% of security professionals question their companies' ability to prevent employees from hacking mobile devices.

The modern world of hypercommunication requires ultra-security. Too often we hear about businesses thinking about a security mobility strategy too late, when it may be the weakest link. BlackBerry and Check Point create a framework that revolves around cybersecurity, and with each company bringing different industry solutions, partnerships are a natural approach and a great addition to our ISV ecosystem.

Companies need to use consistent, comprehensive protection against threats on mobile devices to prevent them from becoming a door for intruders. With Check Point and BlackBerry joining forces to prevent mobile cyber attacks, we provide the mobile threat prevention technologies that every business needs.

Check Point SandBlast Mobile works with the BlackBerry Dynamics platform it is integrated and the BlackBerry Unified Endpoint Management (UEM) system. SandBlast Mobile 3.0 reflects mobile phishing attacks, and also records the arrival of harmful network traffic to and from devices in order to ensure the security of information and employees. Users will be able to run downloaded to phones tablets applications and in a virtual cloudy environment to analyze their behavior. After such a check ON , it is marked as approved or malicious. Other features of SandBlast Mobile are protecting the network from the device by tracking and controlling incoming and outgoing network traffic, blocking phishing attacks in all applications, and browsers breaking connections with malicious commands. servers

2015

Revenue growth by 9% to $1.63 billion

At the global level, the company's annual revenue grew by 9% to $1.63 billion. GAAP operating income was $840 million, up 4.8% from $801 million in 2014. Non-GAAP operating income was $927 million, up 7% from $866 million for 2014. Non-GAAP earnings per share were $4.17, up 12% from $3.72 for 2014.

Buying Lacoon Mobile

The first half of 2015 was marked for Check Point by the acquisition of Hyperwise, a startup that developed CPU-level threat prevention technology, and Lacoon Mobile Security, whose advanced mobile threat prevention technologies have complemented Check Point's mobile security solutions. The amount of the transaction was not disclosed.

In August 2015, Check Point introduced Mobile Threat Prevention, a platform for countering mobile threats on iOS and Android devices. Over the summer, the company also expanded its Industrial Control System (ICS) security product line and launched a new hardware 1200R security gateway.

As part of an enhanced partnership with VMware, Check Point has released a vSEC solution integrated with the VMware NSX network virtualization platform that allows customers to systematically monitor the security of all data center traffic.

In September 2015, the company announced a new solution to prevent SandBlast threats, and in the first quarter of 2016 released a version of SandBlast Agent for advanced protection of the network and user devices from zero-day threats.

Q2 2015

On July 27, 2015, Check Point Software Technologies Ltd. announced its financial results for the second quarter of 2015.

• revenue: $395 million, up 9% from the second quarter of 2014;
• operating income (non-GAAP): $221 million, up 7% from the same period in 2014;
• earnings per share (non-GAAP): $0.99, up 11% from a year ago;
• future revenues: $780 million, which is 18% more than last year.

"We maintained good financial results in the second quarter. Total revenue from software blade products and licenses shows an 11% increase driven by strong demand from industry and business. Data center security devices, Super High-End and SMART-1 have driven product revenue growth. The increase in license revenue was driven by demand for our new and innovative technologies, including Threat Emulation and Threat Extraction, designed to combat advanced cyber attacks, "said Gil Shwed, founder and CEO of Check Point Software Technologies.

The main financial results of the second quarter of 2015:

• revenue: $395 million, compared to $363 million in the second quarter of 2014.
• operating income (GAAP): $199 million, compared to $190 million in the second quarter of 2014.
• operating income (non-GAAP): $221 million, compared to $207 million in the second quarter of 2014.
• net income and earnings per diluted share (GAAP): GAAP net income was $163 million, compared to $160 million in the second quarter of 2014. Earnings per diluted share (GAAP) were $0.88, down from $0.83 in the second quarter of 2014.
• net income and earnings per diluted share (non-GAAP): net income not at GAAP $183 million, compared to $172 million in the second quarter of 2014. Earnings per diluted share (non-)GAAP $0.99, compared to $0.89 in the second quarter of 2014.
• deferred income: as of June 30, 2015, deferred income amounted to $780 million, compared to $660 million as of June 30, 2014.
• Cash flow: Cash flow from core business increased to $193 million from $168 million in the second quarter of 2014.
• share repurchase program: during the second quarter of 2015, the company bought back 2.9 million shares for a total value of $255 million, compared to $194 million in the second quarter of 2014.
• cash balance and value of market securities: as of June 30, 2015 amounted to $3,611 million, compared to $3,643 million as of June 30, 2014. The change reflects active cash flow offset by the company's expanded share buyback program and recent acquisitions.

2013: Revenue growth to $1.39 billion, profit to $620 million, leadership in EMEA

U.S. GAAP net income for Israeli company Check Point rose 5% in 2013, to 652.8 million, up from $620 dollars million in 2012. Revenue in the reporting period increased by 4% to $1.39 billion from $1.34 billion in 2012. Earnings per share were dollar 3.27, up from $2.96 in 2012. Operating income in 2013 was $760.9 million, compared to $746.5 million in 2012.

The security market of the region, Europe the Middle East Africa and () EMEA grew by 2.4% compared to 2012 and amounted to 2.5 billion dollars. The largest and fastest growing segment of the market under consideration, analysts call multifunctional software and hardware complexes for protecting computer networks - UTM solutions (Unified threat management). At the same time IDC , it predicts that the technical means market information security will reach $4.2 billion in value terms by 2018, with an average annual growth of 5.4%.

At the end of 2013, Check Point held a leading position among suppliers in terms of information security technology sales in the EMEA region. According to IDC, the vendor's revenue in this segment for this year increased by 3.8% to $374.64 million, which corresponds to a market share of 19.3%.

2012: Revenue growth by 8% to RUB 1.34 bn

Key financial performance results for 2012 (ended 31 December 2012)

• Revenue: $1 342.7 million, up 8% from $1 247.0 million in 2011.

• Operating income (GAAP): $746.5 million, up 16% from $642.2 million in 2011. Current earnings (GAAP) were 56%, compared to 51% in 2011.

• Operating income (non-GAAP): $798.9 million, up 10% from $725.9 million in 2011. Current earnings (non-GAAP) were 59%, compared to 58% in 2011.

• Net income and income per diluted share (GAAP): Net income was $620.0 million, a 14% increase from $544.0 million in 2011. Revenue per diluted share (GAAP) was dollar $2.96, up 17% from $2.54 in 2011.

• Net income and income per diluted share (non-GAAP): Net income was $667.9 million, a 9% increase from $613.6 million in 2011. Revenue per diluted share (non-GAAP) was $3.19, an 11% increase from $2.87 in 2011.

• Cash flow: Cash flow from operations was US $815.8 million, representing a 14% increase from US $714.9 million in 2011.

• Share repurchase program: During 2012, the company bought back 9.5 million shares for a total value of $466.2 million.

2011: Revenue growth 14% to $1.09 billion

Financial highlights for 2011 ended 31 December 2011

• Revenue: $1,247 million, up 14% from $1,097.9 million in 2010.

• Operating income (GAAP): $642.2 million, up 20% from $535.0 million in 2010. Current earnings (GAAP) were 51%, an increase from 49% in 2010.

• Operating income (non-GAAP): $725.9 million, up 17% from $622.7 million in 2010. Current earnings (non-GAAP) were 58%, an increase from 57% in 2010.

• Net income and income per diluted share (GAAP): Net income was $544.0 million, a 20% increase from $452.8 million in 2010. Revenue per diluted share (GAAP) was $2.54, up 19% from $2.13 in 2010.

• Net income and income per diluted share (non-GAAP): Net income was $613.6 million, up 16% from $528 million in 2010. Revenue per diluted share (non-GAAP) was $2.87, up 16% from $2.48 in 2010.

• Cash flow: Cash flow from operations was $714.9 million, compared to $674.1 million in 2010.

2010

Fin results for the year: turnover growth by 19%

Key financial results for the year ended 2010 December 31, 2010:

• Total revenue: $1,097.9 million, up 19 percent from 924.4 million in 2009.

• Operating margin - by GAAP standards: $535.0 million, up 29 percent from 415.0 million in 2009. GAAP's net income was 49 percent, down from 45 percent in 2009.

• Operating margin - not by GAAP standards: $622.7 million, up 23 percent from 505.7 million in 2009. GAAP's net income was 57 percent, down from 55 percent in 2009.

• GAAP net income and earnings per diluted share: GAAP net income was $452.8 million, up 27 percent from $357.5 million for 2009. Revenue per diluted share by GAAP standards was $2.13, up 26 percent from $1.68 for 2009.

• Non-GAAP net income and earnings per diluted share: Non-GAAP net income was $528.0 million, a 21 percent increase from $435.3 million for 2009. Non-GAAP diluted share revenue was $2.48, up 21 percent from $2.05 for 2009.
• Cash flow: Cash from core activities was $674.1 million, up 23 percent from $548.7 million for 2009.

Fin results for the 4th quarter: turnover growth by 17%

Key financial performance results for the fourth quarter of 2010 ended 31 December 2010:

• Total revenue: $318.5 million, up 17 percent from $272.1 million for the fourth quarter of 2009.
• Operating margin - by GAAP standards: $162.0 million, up 24 percent from $130.6 million for the fourth quarter of 2009. GAAP net income was 51 percent, compared to 48 percent in the fourth quarter of 2009.
• Operating margin - not by GAAP standards: $183.6 million, up 20 percent from $152.7 million for the fourth quarter of 2009. Non-GAAP net income was 58 percent, compared to 56 percent in the fourth quarter of 2009.
• GAAP net income and diluted earnings per share: GAAP net income was $137.4 million, up 25 percent from $109.5 million for the fourth quarter of 2009. GAAP-standard diluted earnings per share were 0.64, up dollar 25 percent from $0.51 for the fourth quarter of 2009.
• Non-GAAP net income and diluted earnings per share: Non-GAAP net income was $156.2 million, up 21 percent from $129.5 million for the fourth quarter of 2009. Diluted earnings per share outside GAAP standards were $0.73, up 20 percent from $0.61 for the fourth quarter of 2009.
• Deferred revenue: $464.6 million USA at December 31, 2010, a 9 percent increase from $425.3 million at December 31, 2009.
• Cash flow: Cash from core activities was $162.8 million, an 18 percent increase from $138.1 million for the fourth quarter of 2009.
• Share repurchase program: In the fourth quarter of 2010, we repurchased 1.16 million shares with a total value of $50 million.
• Cash and interest-generating investments: $2,414.9 million at December 31, 2010, an increase of $567.9 million from $1847.0 million at December 31, 2009.

2008:11% increase in turnover to $808 million

Check Point's gross revenue for fiscal year 2008 was $808.5 million, up 11% from $730.9 million in 2007. GAAP operating income was $356.5 million ($370.6 million in 2007). GAAP net income reached $324 million, up 15% from $281.1 million for 2007. Non-GAAP net income was $386 million, up 8% from $358.7 million for the prior year.

GAAP revenue per diluted share was $1.5, up 20% from $1.25 for 2007; A similar non-GAAP measure was $1.78, up 12% from $1.59 for 2007. Cash flow was $429.9 million, up 16% from $371.6 million in 2007. Cash and investment as of December 31, 2008 was $1.444 billion.

During 2008, Check Point bought back only about 10.9 million shares totaling $239.5 million.

See also

• Antivirus
• Malware

Links

• Check Point Software Technologies Official Website
• Check Point FY2008 revenue up 11%

Notes