10q10k10q10k.net
CHECK POINT SOFTWARE TECHNOLOGIES LTD

CHECK POINT SOFTWARE TECHNOLOGIES LTDCHKP決算レポート

Nasdaq · Information Technology · Services-Prepackaged Software

Check Point Software Technologies is an Israeli cybersecurity company with operations in over 60 countries. Its headquarters are located in Tel Aviv, Israel, and the company maintains a significant presence in Redwood City, California, United States. The company protects over 100,000 organizations globally and is home to the Check Point Research team. It is a partner organization of the World Economic Forum.

What changed in CHECK POINT SOFTWARE TECHNOLOGIES LTD's 20-F — 2023 vs 2024

Top changes in CHECK POINT SOFTWARE TECHNOLOGIES LTD's 2024 20-F

399 paragraphs added · 365 removed · 322 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

119 edited+27 added−15 removed163 unchanged
During this period, many organizations limited their expenditures and a significant portion of such organizations have remained reluctant to increase expenditures.
During this period, many organizations have limited their expenditures and a significant portion of such organizations have remained reluctant to increase their expenditures.
As a foreign private issuer whose shares are listed on the Nasdaq Global Select Market, we may follow certain home country corporate governance practices instead of certain Nasdaq requirements As a foreign private issuer whose shares are listed on the Nasdaq Global Select Market, we are permitted to follow certain home country corporate governance practices instead of certain requirements of the Nasdaq Stock Market Rules.
As a foreign private issuer whose shares are listed on the Nasdaq Global Select Market, we may follow certain home country corporate governance practices instead of certain Nasdaq requirements As a foreign private issuer whose shares are listed on Nasdaq, we are permitted to follow certain home country corporate governance practices instead of certain requirements of the Nasdaq Stock Market Rules.
Additional details are provided in “Item 4 – Information on Check Point”. We may not be able to successfully compete, which could adversely affect our business and results of operations The market for information and network security solutions is intensely competitive and we expect that competition will continue to increase in the future.
Additional details are provided in “Item 4 – Information on Check Point”. 5 We may not be able to successfully compete, which could adversely affect our business and results of operations The market for information and network security solutions is intensely competitive and we expect that competition will continue to increase in the future.
Bribery Act or other anti-bribery laws (either due to acts or inadvertence of our employees, or due to the acts or inadvertence of others), we could suffer criminal or civil penalties or other sanctions, which could have a material adverse effect on our business, results of operations, cash flows, financial condition, reputation and ability to win future business or maintain existing contracts.
Bribery Act, the Israeli Anti-Bribery Laws or other anti-bribery laws (either due to acts or inadvertence of our employees, or due to the acts or inadvertence of others), we could suffer criminal or civil penalties or other sanctions, which could have a material adverse effect on our business, results of operations, cash flows, financial condition, reputation and ability to win future business or maintain existing contracts.
The pursuit of acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating, and pursuing suitable acquisitions, whether or not they are consummated. Competition within our industry for acquisitions of businesses, technologies, assets and product lines has been, and may in the future continue to be, intense.
The pursuit of acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating, and pursuing suitable acquisitions, whether or not they are consummated. 8 Competition within our industry for acquisitions of businesses, technologies, assets and product lines has been, and may in the future continue to be, intense.
Current or future attempts to impose sales, income, or other taxes on commerce would likely increase the cost of doing business online and decrease the attractiveness of advertising and selling products over the internet, and could lead to significant increases in internal costs necessary to capture data and collect and remit taxes.
Current or future attempts to impose sales, income, or other taxes on e-commerce would likely increase the cost of doing business online and decrease the attractiveness of advertising and selling products over the internet, and could lead to significant increases in internal costs necessary to capture data and collect and remit taxes.
Since the war with the Hamas began on October 7, 2023, the Israel Defense Force (IDF) has called up more than 350,000 of its reserve forces to serve. Our employees who are potentially subject to military service in the IDF constitute up to 7% of our total workforce.
Since the war with the Hamas began in October 2023, the Israel Defense Force (IDF) has called up more than 350,000 of its reserve forces to serve. Our employees who are potentially subject to military service in the IDF constitute up to 7% of our total workforce.
Any hostilities involving Israel, a significant increase in terrorism or the interruption or curtailment of trade between Israel and its present trading partners, a potential boycott of any Israeli products, or a significant downturn in the economic or financial condition of Israel, could materially adversely affect our operations.
Any war or hostilities involving Israel, a significant increase in terrorism or the interruption or curtailment of trade between Israel and its present trading partners, a potential boycott of any Israeli products, or a significant downturn in the economic or financial condition of Israel, could materially adversely affect our operations.
We may need to divert the attention of our engineering personnel from our research and development efforts to address instances of errors or defects. 8 Our products are used to deploy and manage Internet security and protect information, which may be critical to organizations.
We may need to divert the attention of our engineering personnel from our research and development efforts to address instances of errors or defects. Our products are used to deploy and manage internet security and protect information, which may be critical to organizations.
We also may not be able to successfully navigate the leadership changes while maintaining key aspects of our culture, which could have a significant negative effect on our existing business and our ability to pursue future plans.
We also may not be able to successfully navigate the recent leadership changes while maintaining key aspects of our culture, which could have a significant negative effect on our existing business and our ability to pursue future plans.
Mimecast Limited, Microsoft Corp., Wiz Ltd., and Netskope, Inc., with respect to specific products that we offer. In addition, there are hundreds of small and large companies that offer security products and services that we may compete with from time to time.
Mimecast Limited, Microsoft Corp., Wiz Ltd., Netskope, Inc. and Abnormal Security Corp., with respect to specific products that we offer. In addition, there are hundreds of small and large companies that offer security products and services that we may compete with from time to time.
We may also not achieve the anticipated benefits from the acquired businesses due to a number of factors, including: • unanticipated costs or liabilities associated with the acquisition; • incurrence of acquisition-related costs; • diversion of management’s attention from other business concerns; • harm to our existing business relationships with manufacturers, distributors and customers as a result of the acquisition; • the potential loss of key employees; • use of resources that are needed in other parts of our business; • use of substantial portions of our available cash to consummate the acquisition; or • unrealistic goals or projections for the acquisition.
We may also not achieve the anticipated benefits from the acquired businesses due to a number of factors, including: • unanticipated costs, liabilities or compliance issues associated with the acquisition; • incurrence of acquisition-related costs; • diversion of management’s attention from other business concerns; • harm to our existing business relationships with manufacturers, distributors and customers as a result of the acquisition; • the potential loss of key employees; • use of resources that are needed in other parts of our business; • use of substantial portions of our available cash to consummate the acquisition; or • unrealistic goals or projections for the acquisition.
Risks Related to Our Business and Our Market • If the market for information and network security solutions does not continue to grow, our business will be adversely affected. • We may not be able to successfully compete, which could adversely affect our business and results of operations. • If we fail to enhance our existing products, develop or acquire new and more technologically advanced products, or fail to successfully commercialize these products, our business and results of operations will suffer. • We may need to change our pricing models to compete successfully. • Our business, results of operations and financial condition are subject to the risks of earthquakes, fire, floods, pandemics such as COVID 19 pandemic and other natural events, as well as manmade problems such as power disruptions or terrorism or war, such as the war and hostilities between Israel and Hamas and Israel and Hezbollah have been and may continue to be adversely affected. • Prolonged economic uncertainties or downturns, globally or in certain regions or industries, could materially adversely affect our business. • If our products fail to protect against attacks and our customers experience security breaches, our reputation and business could be harmed. 3 • Product defects may increase our costs and impair the market acceptance of our products and technology. • We are subject to risks relating to acquisitions. • We are dependent on a limited number of product families. • Competition for highly skilled personnel is intense.
Risks Related to Our Business and Our Market • If the market for information and network security solutions does not continue to grow, our business will be adversely affected. • We may not be able to successfully compete, which could adversely affect our business and results of operations. • If we fail to enhance our existing products, develop or acquire new and more technologically advanced products, or fail to successfully commercialize these products, our business and results of operations will suffer. • We may need to change our pricing models to compete successfully. • Our business, results of operations and financial condition are subject to, have been and may continue to be adversely affected by the risks of earthquakes, fire, floods, pandemics such as the COVID-19 pandemic and other natural events, as well as manmade problems such as power disruptions or terrorism or war, such as the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen. • Prolonged economic uncertainties or downturns, globally or in certain regions or industries, could materially adversely affect our business. • If our products fail to protect against attacks and our customers experience security breaches, our reputation and business could be harmed. • Product defects may increase our costs and impair the market acceptance of our products and technology. • We are subject to risks relating to acquisitions. • We are dependent on a limited number of product families. • Competition for highly skilled personnel is intense.
We also have incorporated machine learning and other artificial intelligence technologies into aspects of our products, services, and business, and may continue to incorporate additional artificial technologies into our offerings and otherwise in our business and operations in the future.
We also have incorporated machine learning and other artificial intelligence technologies into aspects of our products, services, and business, and may continue to incorporate additional artificial technologies into our products and services and otherwise in our business and operations in the future.
Other matters that influence customer confidence and spending, such as, political unrest, public health crises, including global pandemic such as COVID-19, terrorist attacks, armed conflicts (such as the war and hostilities between Israel and Hamas and Israel and Hezbollah and the ongoing conflict between Russia and Ukraine), rising energy costs, and natural disasters, could also negatively affect our customers’ spending on our products and services.
Other matters that influence customer confidence and spending, such as, political unrest, public health crises, including global pandemic such as COVID-19, terrorist attacks, armed conflicts (such as the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, and the ongoing conflict between Russia and Ukraine), rising energy costs, and natural disasters, could also negatively affect our customers’ spending on our products and services.
The results of our operations may be adversely affected in relation to foreign exchange fluctuations. During 2023, we entered into forward contracts to hedge against some of the risk of foreign currency exchange rates fluctuations resulting in changes in future cash flow from payments of payroll and related expenses denominated in Israeli Shekels and Euros.
The results of our operations may be adversely affected in relation to foreign exchange fluctuations. During 2024, we entered into forward contracts to hedge against some of the risk of foreign currency exchange rates fluctuations resulting in changes in future cash flow from payments of payroll and related expenses denominated in Israeli Shekels and Euros.
Any change in export or import regulations, economic sanctions or related legislation, shift in the enforcement or scope of existing regulations, or change in the countries, governments, persons, or technologies targeted by such regulations, could result in decreased use of our products by, or in our decreased ability to export or sell our products to, existing or potential end-customers with international operations.
Any change in export or import regulations, economic sanctions or related legislation, shift in the enforcement or scope of existing regulations, or change in the countries, governments, persons, or technologies targeted by such regulations or protectionist measures, could result in decreased use of our products by, or in our decreased ability to export or sell our products to, existing or potential end-customers with international operations.
Additionally, the increasing prevalence of cloud and SaaS delivery models offered by us and our competitors may unfavorably impact pricing in both our on-premise enterprise software business and our cloud business, as well as overall demand for our on-premise software product and service offerings, which could reduce our revenues and profitability.
Additionally, the increasing prevalence of cloud and SaaS delivery models offered by us and our competitors may unfavorably impact pricing in both our on-premises enterprise software business and our cloud business, as well as overall demand for our on-premises software product and service offerings, which could reduce our revenues and profitability.
Continued growth of this market will depend, in large part, upon: • the continued expansion of Internet usage and the number of organizations adopting or expanding intranets; • the continued adoption of “cloud” infrastructure by organizations; • the ability of the infrastructures implemented by organizations to support an increasing number of users and services; • the continued development of new and improved services for implementation across the Internet and between the Internet and intranets; • the adoption of data security measures as it pertains to data encryption and data loss prevention technologies; • continued access to mobile API’s, APPs and application stores with Apple, Google and Microsoft; • government regulation of the Internet and governmental and non-governmental requirements and standards with respect to data security and privacy; and 5 • economic, social, or political conditions, including conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations, inflation, global pandemics such as the COVID-19 pandemic, global supply chain disruptions and conditions resulting from geopolitical uncertainty and instability or war, including the war and hostilities between Israel and Hamas and Israel and Hezbollah, the Russia-Ukraine armed conflict and the tension between China and Taiwan.
Continued growth of this market will depend, in large part, upon: • the continued expansion of internet usage and the number of organizations adopting or expanding intranets; • the continued adoption of “cloud” infrastructure by organizations; • the ability of the infrastructures implemented by organizations to support an increasing number of users and services; • the continued development of new and improved services for implementation across the internet and between the internet and intranets; • the adoption of data security measures as it pertains to data encryption and data loss prevention technologies; • continued access to mobile APIs, APPs and application stores with Apple, Google and Microsoft; • government regulation of the internet and governmental and non-governmental requirements and standards with respect to data security privacy and data protection; and • economic, social, or political conditions, including conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations, inflation, global pandemics such as the COVID-19 pandemic, global supply chain disruptions and conditions resulting from geopolitical uncertainty and instability or war, including the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, and the Russia-Ukraine armed conflict and the tension between China and Taiwan.
Our international sales and operations subject us to many potential risks inherent in international business activities, including, but not limited to: • technology import and export license requirements; • costs of localizing our products for foreign countries, and the lack of acceptance of localized products in foreign countries; • varying economic and political instability or war, including the war and hostilities between Israel and Hamas and Israel and Hezbollah and the significant military action against Ukraine launched by Russia; 14 • potential tariffs, sanctions, fines or other trade restrictions, including any political or economic responses and counter-responses or otherwise by various global actors to the significant military action against Ukraine launched by Russia; • imposition of or increases in tariffs or other payments on our revenues in these markets; • greater difficulty in protecting intellectual property; • difficulties in managing our overseas subsidiaries and our international operations; • economic, social, or political conditions, including conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations and inflation; • political instability and civil unrest which could discourage investment and complicate our dealings with governments; • widespread health emergencies or pandemics, such as the COVID-19 pandemic; • difficulties in complying with a variety of foreign laws and legal standards and changes in regulatory requirements; • expropriation and confiscation of assets and facilities; • difficulties in collecting receivables from foreign entities or delayed revenue recognition; • recruiting and retaining talented and capable employees; • differing labor standards; • increased tax rates; • potentially adverse tax consequences, including taxation of a portion of our revenues at higher rates than the tax rate that applies to us in Israel; • fluctuations in currency exchange rates and the impact of such fluctuations on our results of operations and financial position; and • the introduction of exchange controls and other restrictions by foreign governments.
Our international sales and operations subject us to many potential risks inherent in international business activities, including, but not limited to: • technology import and export license requirements; • costs of localizing our products for foreign countries, and the lack of acceptance of localized products in foreign countries; • varying economic and political instability or war, including the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen and the significant military action against Ukraine launched by Russia; • potential tariffs, sanctions, fines or other trade restrictions, including any political or economic responses and counter-responses or otherwise by various global actors to the significant military action against Ukraine launched by Russia, as well as the possibility of further international trade disputes that result in tariffs and other protectionist measures; • imposition of or increases in tariffs or other payments on our revenues in these markets; • greater difficulty in protecting intellectual property; • difficulties in managing our overseas subsidiaries and our international operations; • economic, social, or political conditions, including conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations and inflation; • political instability and civil unrest which could discourage investment and complicate our dealings with governments; • widespread health emergencies or pandemics, such as the COVID-19 pandemic; • difficulties in complying with a variety of foreign laws and legal standards and changes in regulatory requirements; • expropriation and confiscation of assets and facilities; • difficulties in collecting receivables from foreign entities or delayed revenue recognition; • recruiting and retaining talented and capable employees; • differing labor standards; 14 • increased tax rates; • potentially adverse tax consequences, including taxation of a portion of our revenues at higher rates than the tax rate that applies to us in Israel; • fluctuations in currency exchange rates and the impact of such fluctuations on our results of operations and financial position; and • the introduction of exchange controls and other restrictions by foreign governments.
Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policies and increases our costs of compliance Changing laws, regulations and standards relating to accounting, corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), new SEC regulations, amendments to the Israeli Companies Law and Nasdaq Global Select Market rules are creating increased compliance costs and uncertainty for companies like ours.
Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policies and increases our costs of compliance Changing laws, regulations and standards relating to accounting, corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), new SEC regulations, amendments to the Israeli Companies Law and Nasdaq rules are creating increased compliance costs and uncertainty for companies like ours.
In connection with our Annual Report for fiscal 2023, our management assessed our internal control over financial reporting, and determined that our internal control over financial reporting was effective as of December 31, 2023, and our independent auditors have expressed an unqualified opinion over the effectiveness of our internal control over financial reporting as of December 31, 2023.
In connection with our Annual Report for fiscal 2024, our management assessed our internal control over financial reporting, and determined that our internal control over financial reporting was effective as of December 31, 2024, and our independent auditors have expressed an unqualified opinion over the effectiveness of our internal control over financial reporting as of December 31, 2024.
Further, if the necessary infrastructure or complementary products and services are not developed in a timely manner and, consequently, the enterprise security, data security, Internet or intranet markets fail to grow or grow more slowly than we currently anticipate, our business, results of operations and financial condition may be materially adversely affected.
Further, if the necessary infrastructure required to operate our industry or complementary products and services are not developed in a timely manner and, consequently, the enterprise security, data security, internet or intranet markets fail to grow or grow more slowly than we currently anticipate, our business, results of operations and financial condition may be materially adversely affected.
We are subject to risks relating to acquisitions We have made acquisitions in the past, including the acquisitions of Perimeter 81, Atmosec and rmsource in 2023, Spectral in 2022 and Avanan in 2021, and we may make additional acquisitions in the future.
We are subject to risks relating to acquisitions We have made acquisitions in the past, including the acquisitions of Cyberint in 2024, Perimeter 81, Atmosec and rmsource in 2023, Spectral in 2022 and Avanan in 2021, and we may make additional acquisitions in the future.
In addition, an actual or perceived security breach or theft of the sensitive data of one of our customers, regardless of whether the breach is attributable to the failure of our products, could adversely affect the market’s perception of our security products.
In addition, an actual or perceived security breach or theft of the confidential data of one of our customers, regardless of whether the breach is attributable to the failure of our products, could adversely affect the market’s perception of our security products.
The negative economic conditions in the global economy or certain regions, including conditions resulting from financial and credit market fluctuations (including rising interest rates), exchange rate fluctuations, or inflation, and the potential for regional or global recessions could cause a decrease in corporate spending on cybersecurity software.
The negative economic conditions in the global economy or certain regions, including conditions resulting from financial and credit market fluctuations (including rising interest rates), exchange rate fluctuations, or inflation, and the potential for regional or global recessions could cause a decrease in corporate spending on cyber security software.
Furthermore, there has been an industry trend toward consolidation among distributors, and we expect this trend to continue in the near future which could further increase our reliance on a small number of distributors for a significant portion of our sales.
We expect that a small number of distributors will continue to generate a significant portion of our sales. Furthermore, there has been an industry trend toward consolidation among distributors, and we expect this trend to continue in the near future which could further increase our reliance on a small number of distributors for a significant portion of our sales.
In addition, a foreign private issuer must disclose in its annual reports filed with the Securities and Exchange Commission each such requirement that it does not follow and describe the home country practice followed by the issuer instead of any such requirement. Accordingly, our shareholders may not be afforded the same protection as provided under Nasdaq’s corporate governance rules. 21
In addition, a foreign private issuer must disclose in its annual reports filed with the SEC each such requirement that it does not follow and describe the home country practice followed by the issuer instead of any such requirement. Accordingly, our shareholders may not be afforded the same protection as provided under Nasdaq’s corporate governance rules. 21
Changes in our products or changes in export and import regulations may create delays in the introduction of our products into international markets, prevent our end-customers with international operations from deploying our products globally or, in some cases, prevent or delay the export or import of our products to certain countries, governments, or persons altogether.
Changes in our products or changes in export and import regulations for whatever reason may create delays in the introduction of our products into international markets, prevent our end-customers with international operations from deploying our products globally or, in some cases, prevent or delay the export or import of our products to certain countries, governments, or persons altogether.
We are currently monitoring the local legislations in the relevant jurisdictions and awaiting further guidance and future local legislation expected to be enacted in Israel and its effective fiscal year to take into effect. Indirect taxes including Digital Service tax (DST) measures as adopted unilaterally in certain countries could also adversely affect our tax obligations.
We are currently monitoring the local legislations in the relevant jurisdictions and awaiting further guidance and future local legislation expected to be enacted in Israel and its effective fiscal year to take into effect date. Indirect taxes, including digital service tax (DST) measures as unilaterally adopted by certain jurisdiction, could also adversely affect our tax obligations.
Although we have internal policies and procedures, including a code of ethics and proper business conduct, reasonably designed to promote compliance with anti-bribery laws, we cannot assure that our employees or other agents will not engage in prohibited conduct and render us responsible under the FCPA, the U.K. Bribery Act or any similar anti-bribery laws in other jurisdictions.
Although we have internal policies and procedures, including a code of ethics and proper business conduct, reasonably designed to promote compliance with anti-bribery laws, we cannot assure that our employees or other agents will not engage in prohibited conduct and render us responsible under the FCPA, the U.K.
Had we reported the cumulative changes in the fair value of our fixed income securities as part of our income, our reported net income for the year ended December 31, 2023, would have decreased by $40 million. Currency fluctuations may affect the results of our operations or financial condition Our functional and reporting currency is the U.S. dollar.
Had we reported the cumulative changes in the fair value of our fixed income securities as part of our income, our reported net income for the year ended December 31, 2024, would have decreased by $13 million. Currency fluctuations may affect the results of our operations or financial condition Our functional and reporting currency is the U.S. dollar.
Your rights and responsibilities as a shareholder are, and will continue to be, governed by Israeli law which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies The rights and responsibilities of the holders of our ordinary shares are governed by our articles of association and by Israeli law.
Shareholder rights and responsibilities are, and will continue to be, governed by Israeli law which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies The rights and responsibilities of the holders of our ordinary shares are governed by our articles of association and by Israeli law.
In addition, acts of terrorism or war (including the war and hostilities between Israel and Hamas and Israel and Hezbollah and the significant military action against Ukraine launched by Russia and any related political or economic responses and counter-responses or otherwise by various global actors or general effect on the global economy) could cause disruptions to our or our customers’ businesses or the economy as a whole.
In addition, acts of terrorism or war (including the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, and the significant military action against Ukraine launched by Russia and any related political or economic responses and counter-responses or otherwise by various global actors or general effect on the global economy) have caused disruptions and could in the future cause disruptions to our or our customers’ businesses or the economy as a whole.
Additionally, we are subject to audit by taxing authorities in many jurisdictions, and tax laws may be interpreted differently by the competent tax authorities and courts, which could lead to an increase of our tax burden and increased costs to us to comply with new laws and interpretations thereof and tax auditors.
Finally, we are subject to audit by taxing authorities in several jurisdictions, and tax laws may be interpreted differently by the competent tax authorities and courts, which could lead to an increase of our tax burden and increased costs to us to comply with new laws and interpretations thereof and tax auditors.
We generate a majority of our revenues and expenses in U.S. dollars. In 2023, we incurred approximately 47% of our expenses in foreign currencies, primarily Israeli Shekels and Euros. As such, changes in exchange rates may have a material adverse effect on our business, results of operations and financial condition.
We generate a majority of our revenues and expenses in U.S. dollars. In 2024, we incurred approximately 44% of our expenses in foreign currencies, primarily Israeli Shekels and Euros. As such, changes in exchange rates may have a material adverse effect on our business, results of operations and financial condition.
These privacy and data protection related laws and regulations, as demonstrated by the examples below, continue to evolve. New or modified laws and regulations are proposed and implemented frequently and existing laws and regulations subject to new or different interpretations.
These laws and regulations, as demonstrated by the examples below, continue to evolve. New or modified laws and regulations relating to privacy, data protection and security are proposed and implemented frequently and existing laws and regulations subject to new or different interpretations.
Our cash, cash equivalents, short-term bank deposits and fixed-income marketable securities totaled $2,960 million as of December 31, 2023. The performance of the debt capital markets affects the market values of funds that are held in marketable securities.
Our cash, cash equivalents, short-term bank deposits and fixed-income marketable securities totaled $ 2,784 million as of December 31, 2024. The performance of the debt capital markets affects the market values of funds that are held in marketable securities.
The tax benefits available to us require us to meet several conditions, and may be terminated or reduced in the future, which would increase our taxes For the year ended December 31, 2023, our effective tax rate was 14%.
The tax benefits available to us require us to meet several conditions, and may be terminated or reduced in the future, which would increase our taxes For the year ended December 31, 2024, our effective tax rate was 13%.
We may also be subject to increasing risks in connection with geopolitical events and conflicts, such as the Russia-Ukraine and Hamas-Israel conflicts, including risks of a security breach or incident, ransomware, destructive malware, and distributed denial-of-service attacks, as well as fraud, spam and fake accounts, cyber-attacks or other threats or illegal activity.
We may also be subject to increasing risks in connection with geopolitical events and conflicts, such as the Russia-Ukraine and the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, including risks of a security breach or incident, ransomware, destructive malware, and distributed denial-of-service attacks, as well as fraud, spam and fake accounts, cyber attacks or other threats or illegal activity.
Our actual or perceived failure to adequately protect personal data could subject us to sanctions and damages and could harm our reputation and business A variety of state, national, foreign, and international laws and regulations apply to the collection, use, retention, protection, disclosure, transfer, and other processing of personal data.
Our actual or perceived failure to adequately protect personal data or customer data, or to otherwise comply with data privacy and protection laws and regulations, could subject us to sanctions and damages and could harm our reputation and business A variety of state, national, foreign, and international laws and regulations apply to the collection, use, retention, protection, disclosure, transfer, and other processing of personal data and customer data.
California voters also passed the California Privacy Rights Act (“CPRA”) into law on November 3, 2020, which became effective on January 1, 2023. The CPRA, amongst other things, added new privacy rights and increased regulation on online advertising.
California voters also passed the California Privacy Rights Act (“CPRA”) into law on November 3, 2020, The CPRA became effective on January 1, 2023, and among other things, added new privacy rights and increased regulation of online advertising.
Terrorist attacks and hostilities within Israel; the hostilities between Israel and Hezbollah and between Israel and Hamas; as well as tensions between Israel and Iran, have also heightened these risks. In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets.
Terrorist attacks and hostilities within Israel; and the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, have also heightened these risks. In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets.
In the last few years, global and regional economies around the world and financial markets remained volatile as a result of a multitude of factors, including economic and political uncertainty, the war and hostilities between Israel and Hamas and Israel and Hezbollah, rising interest rates, inflation, terrorist groups in Yemen, which are threatening to limit the movement of marine shipments to Israel through the Red Sea, global pandemics such as COVID-19, the war in Ukraine, terrorism, governmental instability and other factors.
In the last few years, global and regional economies around the world and financial markets have remained volatile largely as a result of economic and political uncertainty, the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen, rising interest rates, inflation, terrorist groups in Yemen, which are currently limiting the movement of marine shipments to Israel through the Red Sea, global pandemics such as COVID-19, the war in Ukraine, terrorism, governmental instability and other factors.
As of December 31, 2023, our total outstanding forward contracts that hedge against these fluctuations in foreign currency exchange rates were $207 million. In addition, we entered into forward contracts to hedge the impact of fluctuations in exchange rates on assets and liabilities denominated in Israeli Shekels and other currencies.
As of December 31, 2024, our total outstanding forward contracts that hedge against these fluctuations in foreign currency exchange rates was $359 million. In addition, we entered into forward contracts to hedge the impact of fluctuations in exchange rates on assets and liabilities denominated in Israeli Shekels and other currencies.
Our efforts to comply with such measures may be costly and time consuming. We take precautions to ensure that we and our partners comply with all relevant sanctions-related regulations, any alleged or actual failure by us or our partners to comply with such laws and regulations could have negative consequences for us, including reputational harm, government investigations and penalties.
We take precautions to ensure that we and our partners comply with all relevant sanctions-related regulations, any alleged or actual failure by us or our partners to comply with such laws and regulations could have negative consequences for us, including reputational harm, government investigations and penalties.
Our information technology systems, networks and products and services have been, and may continue to be, subject to various security threats Our information technology systems, networks, products, and services may be subject to various security threats or cybersecurity incidents, including from computer malware, ransomware, viruses, social engineering (including phishing attacks), denial of service or other attacks, human error, employee theft or misuse and general hacking.
Our information technology systems, networks and products and services have been, and may continue to be, subject to various security threats and cyber security incidents Our information technology systems, networks, products, and services have in the past and may in the future be subject to various security threats or cyber security incidents, including from computer malware, ransomware, viruses, social engineering (including phishing attacks), denial of service or other attacks, human error, technical errors, employee theft or misuse and general hacking.
A small number of shareholders own a substantial portion of our ordinary shares, and they may make decisions with which you or others may disagree As of February 29, 2024, our directors and executive officers owned approximately 22.4% of the voting power of our outstanding ordinary shares, or 26.2% of our outstanding ordinary shares if the percentage includes options currently exercisable or exercisable within 60 days of February 29, 2024 and RSUs and PSUs vesting within 60 days of February 29, 2024.
A small number of shareholders own a substantial portion of our ordinary shares, and they may make decisions with which you or others may disagree As of February 28, 2025, our directors and executive officers owned approximately 23.1% of the voting power of our outstanding ordinary shares, or 26.1% of our outstanding ordinary shares if the percentage includes options currently exercisable or exercisable within 60 days of February 28, 2025 and RSUs and PSUs vesting within 60 days of February 28, 2025.
Our failure to establish and maintain successful relationships with distributors would likely materially adversely affect our business, results of operations and financial condition. We purchase several key components and finished products from limited sources, and we are increasingly dependent on contract manufacturers for our hardware products.
Our distributors may choose not to offer our products exclusively or at all. Our failure to establish and maintain successful relationships with distributors would likely materially adversely affect our business, results of operations and financial condition. We purchase several key components and finished products from limited sources, and we are increasingly dependent on contract manufacturers for our hardware products.
As of December 31, 2023, the total amount of outstanding forward contracts that did not qualify for hedge accounting, was $242 million.
As of December 31, 2024, the total amount of outstanding forward contracts that did not qualify for hedge accounting, was $254 million.
We also have significant operations in other regions that have experienced natural disasters. A significant natural disaster occurring at our facilities in Israel or the United States or elsewhere, or where our channel partners are located, could have a material adverse impact on our business, results of operations and financial condition.
A significant natural disaster occurring at our facilities in Israel or the United States or elsewhere, or where our channel partners are located, could have a material adverse impact on our business, results of operations and financial condition.
Our business, results of operations and financial condition are subject to the risks of earthquakes, fire, floods, pandemics such as COVID 19 pandemic and other natural events, as well as manmade problems such as power disruptions or terrorism or war, such as the war and hostilities between Israel and Hamas and Israel and Hezbollah have been and may continue to be adversely affected.
Our business, results of operations and financial condition are subject to, have been and may continue to be adversely affected by the risks of earthquakes, fire, floods, pandemics such as the COVID-19 pandemic and other natural events, as well as manmade problems such as power disruptions or terrorism or war, such as the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen We operate our business primarily from Israel, we sell our products and have operations worldwide.
The GDPR also includes potentially severe penalties for failure to comply, inter alia, a fine up to 20 million Euros or up to 4% of the annual worldwide turnover, whichever is greater, which can be imposed.
The GDPR also includes potentially severe penalties for failure to comply, inter alia, a fine up to 20 million EUR / 17.5 million GBP (as applicable) or up to 4% of the annual worldwide turnover, whichever is greater, which can be imposed.
In China, Personal Information Protection Law of the People’s Republic of China (“PIPL”) took effect on November 1, 2021. The PIPL has parallels with the GDPR given that is has extra-territorial effect, applying to data processing activities in China and outside of China in certain circumstances.
In China, Personal Information Protection Law of the People’s Republic of China (“PIPL”) applies and has parallels with the GDPR given that is has extra-territorial effect, applying to data processing activities in China and outside of China in certain circumstances.
If challenging conditions continue or worsen, it may cause our customers to reduce or postpone their technology spending significantly, which could result in reductions in sales of our products, longer sales cycles, slower adoption of new technologies and increased price competition.
If these challenging macroeconomic conditions continue or worsen, our customers may reduce or postpone their technology spending, which could result in significant reductions in sales of our products, longer sales cycles, slower adoption of new technologies or increased price competition.
Risks Related to Tax, Legal and Regulatory Matters We are the defendants in various lawsuits and have been subject to tax disputes and governmental proceedings, which could adversely affect our business, results of operations and financial condition As a global company we are subject to taxation in Israel, the United States and various other countries.
Disruptions to these servers or facilities could interrupt our ability to provide our products and services and materially adversely affect our business and results of operations. 10 Risks Related to Tax, Legal and Regulatory Matters We are the defendants in various lawsuits and have been subject to tax disputes and governmental proceedings, which could adversely affect our business, results of operations and financial condition As a global company we are subject to taxation in Israel, the United States and various other countries.
Any litigation of this sort in the future could result in substantial costs and a diversion of management’s attention and resources. 12 We are subject to governmental export and import controls that could subject us to liability or impair our ability to compete in international markets Because we incorporate encryption technology into our products, certain of our products are subject to U.S. export controls and may be exported outside the U.S. only with the required export license or through an export license exception.
We are subject to governmental export and import controls that could subject us to liability or impair our ability to compete in international markets Because we incorporate encryption technology into our products, certain of our products are subject to U.S. export controls and may be exported outside the U.S. only with the required export license or through an export license exception.
The ITA therefore demanded the payment of additional taxes in the aggregate amount of NIS 479 million (approximately $132 million), not including an amount of NIS 421 million (approximately $116 million) related to expenses that will be deductible in future years, with respect of these four tax years (these amounts include interest and indexation through December 31, 2023).
The ITA therefore demanded the payment of additional taxes in the aggregate amount of NIS 517 million (approximately $141 million), not including an amount of NIS 459 million (approximately $126 million) related to expenses that will be deductible in future years, with respect of these four tax years (these amounts include interest and indexation).
We received an inquiry from the SEC relating to our use of SolarWinds Orion software and our public disclosures relating to such software in light of access obtained to a limited testing environment of ours as a result of one or more vulnerabilities in such software, which we believed was immaterial.
We received an inquiry from the United States Securities and Exchange Commission (the “SEC”) relating to our use of SolarWinds Orion software and our public disclosures relating to such software in light of access obtained to a limited testing environment of ours as a result of one or more vulnerabilities in such software.
Moreover, in case we would like to liquidate some of our investments into cash – we are dependent on market conditions and liquidity opportunities, which may be impacted by economic, social, or political conditions, including, without limitation, conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations, inflation, global pandemics such as the COVID-19 pandemic, global supply chain disruptions and conditions resulting from geopolitical uncertainty and instability or war, including the war and hostilities between Israel and Hamas and Israel and Hezbollah and the significant military action against Ukraine launched by Russia.
Moreover, in case we would like to liquidate some of our investments into cash – we are dependent on market conditions and liquidity opportunities, which may be impacted by economic, social, or political conditions, including, without limitation, conditions resulting from a decline in the macroeconomic environment, rising interest rates, exchange rate fluctuations, inflation, global pandemics, global supply chain disruptions and conditions resulting from geopolitical uncertainty and instability or wars.
If these distributors reduce the amount of their purchases from us for any reason, including because they choose to focus their efforts on the sales of the products of our competitors, our business, results of operations and financial condition could be materially adversely affected.
If these distributors reduce the amount of their purchases from us for any reason, including because they choose to focus their efforts on the sales of the products of our competitors, our business, results of operations and financial condition could be materially adversely affected. 9 Our future success is highly dependent upon our ability to establish and maintain successful relationships with our distributors.
Despite our best efforts, there is no guarantee that our products will be free of flaws or vulnerabilities, and even if we discover these weaknesses, we may not be able to correct them promptly, if at all. Our customers may also misuse our products, which could result in a breach or theft of business data.
Despite our best efforts, there is no guarantee that our products will be free of flaws or vulnerabilities, and even if we discover these weaknesses, we may not be able to correct them promptly, if at all.
Our future results of operations will depend upon our ability to enhance our current products and to develop and introduce new products on a timely basis; to address the increasingly sophisticated needs of our customers; and to keep pace with technological developments, new competitive product offerings, and emerging industry standards.
Further, we must continuously improve our products to protect our customers’ data and networks from evolving security threats. 6 Our future results of operations will depend upon our ability to enhance our current products and to develop and introduce new products on a timely basis; to address the increasingly sophisticated needs of our customers; and to keep pace with technological developments, new competitive product offerings, and emerging industry standards.
Such requirements include amongst other things, obligations to: i) provide data subjects with fulsome disclosures about the processing of personal information; ii) adhere to reasonable data retention limits; iii) comply with deletion requirements and requests; iv) comply with mandatory notification requirements in the case of a data breach and v) adhere to elevated standards regarding valid consent in some specific cases of data processing and vi) comply with stringent data transfer obligations (which have, since 2020, become more challenging to address).
Such requirements include amongst other things, obligations to: i) provide data subjects with fulsome disclosures about the processing of personal information; ii) adhere to reasonable data retention limits; iii) comply with individual requests in relation to their personal data, including access and deletion requests; iv) ensure suitable security / protection of personal data and comply with mandatory notification requirements in the case of a data breach; v) adhere to elevated standards regarding valid consent in some specific cases of data processing; and vi) comply with stringent data transfer obligations, including in relation to international transfers of personal data.
Our business depends on our current and prospective customers’ ability and willingness to invest money in our products and security, which in turn is dependent upon their overall economic health and the strength of the broader macroeconomic environment.
Prolonged economic uncertainties or downturns, globally or in certain regions or industries, could materially adversely affect our business Our business depends on our current and prospective customers’ ability and willingness to invest money in our products and security, which in turn is dependent upon their overall economic health and the strength of the broader macroeconomic environment.
Shwed will assume the role of Executive Chairman once the new Chief Executive Officer is appointed. The loss of one or more of our executive officers or other key employees could adversely affect our business. Changes in our executive management team may also cause disruptions in, and adverse impacts to, our business.
The loss of one or more of our executive officers or other key employees could adversely affect our business. Changes in our executive management team may also cause disruptions in, and adverse impacts to, our business.
Interest rates are highly sensitive to many factors, including governmental monetary policies and domestic and international economic and political conditions, such as the war and hostilities between Israel and Hamas and Israel and Hezbollah and the significant military action against Ukraine launched by Russia and any related political or economic responses and counter-responses or otherwise by various global actors or general effect on the global economy.
Interest rates are highly sensitive to many factors, including governmental monetary policies and domestic and international economic and political conditions, such as the wars and significant military actions around the globe and any related political or economic responses and counter-responses or otherwise by various global actors or general effect on the global economy.
To the extent any of the foregoing causes disruptions or result in delays or cancellations of customer orders, our research and development efforts or the deployment of our products, our business and results of operations would be materially and adversely affected. 7 In addition, following the Russia-Ukraine armed conflict, the United States and other countries imposed economic sanctions and severe export control restrictions against Russia and Belarus, and the United States and other countries could impose wider sanctions and export restrictions and take other actions should the conflict further escalate, which affect our exports or sales into Russia and Belarus and create difficulties in business planning and forecasting due to the uncertainty of the impact of the war on aspects of our business, such as on our distributors, resellers and end-customers.
In addition, following the Russia-Ukraine armed conflict, the United States and other countries imposed economic sanctions and severe export control restrictions against Russia and Belarus, and the United States and other countries could impose wider sanctions and export restrictions and take other actions should the conflict further escalate, which affect our exports or sales into Russia and Belarus and create difficulties in business planning and forecasting due to the uncertainty of the impact of the war on aspects of our business, such as on our distributors, resellers and end-customers.
Our principal place of business is located in Tel Aviv, Israel, which is approximately 40 miles from the nearest point of the border with the Gaza Strip. There can be no assurance that attacks launched from the Gaza Strip will not reach our facilities, which could result in a significant disruption of our business.
Our principal place of business is located in Tel Aviv, Israel, and there can be no assurance that attacks launched will not reach our facilities, which could result in a significant disruption of our business.
In order for us to successfully compete and grow, we must attract, recruit, retain and develop personnel, at an appropriate cost, with requisite qualifications to provide expertise across the entire spectrum of our intellectual capital and business needs.
Competition for highly skilled personnel is intense We compete in a market marked by rapidly changing technologies and an evolving competitive landscape. In order for us to successfully compete and grow, we must attract, recruit, retain and develop personnel, at an appropriate cost, with requisite qualifications to provide expertise across the entire spectrum of our intellectual capital and business needs.
If the economic conditions of the general economy or industries in which we operate continue to worsen from present levels, our business, results of operation and financial condition could be adversely affected.
Further, customers or channel partners may be more likely to refrain from making payments and/or make late payments in worsening economic conditions. If the economic conditions of the general economy or industries in which we operate continue to worsen from present levels, our business, results of operation and financial condition could be adversely affected.
The terrorist groups in Yemen, which are threatening to limit the movement of marine shipments to Israel through the Red Sea, and the armed conflict involving Russia and Ukraine has resulted in sanctions which restrict the selling of goods, services, or technology in affected regions. The instability in these regions could further exacerbate the macroeconomic impacts on a global scale.
The terrorist groups in Yemen, which are currently limiting the movement of marine shipments to Israel through the Red Sea, and the armed conflict involving Russia and Ukraine has resulted in sanctions which restrict the selling of goods, services, or technology in affected regions.
Our servers, data centers and other facilities are also vulnerable to damage or interruption from fires, natural disasters, terrorist attacks, power loss, telecommunications failures, pandemics or similar catastrophic events. Disruptions to these servers or facilities could interrupt our ability to provide our products and services and materially adversely affect our business and results of operations.
Problems faced by our third-party providers, including technological or business-related disruptions, could adversely impact our business and results of operations, including by adversely impacting our products and services. Our servers, data centers and other facilities are also vulnerable to damage or interruption from fires, natural disasters, terrorist attacks, power loss, telecommunications failures, pandemics or similar catastrophic events.
In particular, the personal computer hardware environment is characterized by a wide variety of non-standard configurations that make pre-release testing for programming or compatibility errors very difficult and time-consuming.
They may contain undetected hardware or software errors or defects, especially when new or acquired products are introduced or when new versions are released. In particular, the personal computer hardware environment is characterized by a wide variety of non-standard configurations that make pre-release testing for programming or compatibility errors very difficult and time-consuming.
In addition, the ITA has issued tax assessment for the 2020 tax year, presenting similar arguments as those in the orders for the tax years 2016-2019, in which it demanded the payment of additional taxes in the aggregate amount of NIS 84 million (approximately $23 million), not including an amount of NIS 95 million (approximately $26 million) related to expenses that will be deductible in future years, with respect to this year (these amounts include interest and indexation through December 31, 2023).
In addition, the ITA has issued tax assessment for the 2020 tax year in which it demanded the payment of additional taxes in the aggregate amount of NIS 89 million (approximately $24 million), not including an amount of NIS 101 million (approximately $28 million) related to expenses that will be deductible in future years, with respect to the 2020 tax year (these amounts include interest and indexation).
Any failure to obtain licenses to intellectual property or any exposure to liability as a result of incorporating third-party technology into our products could materially and adversely affect our business, results of operations and financial condition. 10 Failures of the third-party servers, cloud service providers and other third-party hardware, software and infrastructure on which we rely could adversely affect our business We rely on servers, cloud service providers and other third-party hardware, software and infrastructure to support our operations.
Any failure to obtain licenses to intellectual property or any exposure to liability as a result of incorporating third-party technology into our products could materially and adversely affect our business, results of operations and financial condition.
Any of the following could have a material effect on our overall effective tax rate: • Some programs may be discontinued, • We may be unable to meet the requirements for continuing to qualify for some programs, • These programs and tax benefits may be unavailable at their current levels, or 20 • We may be required to refund previously recognized tax benefits if we are found to be in violation of the stipulated conditions.
Any of the following could have a material effect on our overall effective tax rate: • Some programs may be discontinued, • We may be unable to meet the requirements for continuing to qualify for some programs, • These programs and tax benefits may be unavailable at their current levels, or • We may be required to refund previously recognized tax benefits if we are found to be in violation of the stipulated conditions. 20 Additional details are provided in “Item 5 – Operating and Financial Review and Prospects” under the caption “Taxes on income”, in “Item 10 – Additional Information” under the caption “Israeli taxation, foreign exchange regulation and investment programs” and in Note 11 to our Consolidated Financial Statements.
We operate our business primarily from Israel, we sell our products and have operations worldwide. For example, our headquarters in the United States, as well as certain of our research and development operations, are located in the Silicon Valley area of Northern California, a region known for seismic activity.
For example, our headquarters in the United States, as well as certain of our research and development operations, are located in the Silicon Valley area of Northern California, a region known for seismic activity. We also have significant operations in other regions that have experienced natural disasters.
Any such requirement to disclose our source code or other confidential information related to our products could materially and adversely affect our competitive position and impact our business, results of operations and financial condition. 13 If a third-party asserts that we are infringing its intellectual property, whether successful or not, it could subject us to costly and time-consuming litigation or expensive licenses, which could harm our business There is considerable patent and other intellectual property development activity in our industry.
If a third-party asserts that we are infringing its intellectual property, whether successful or not, it could subject us to costly and time-consuming litigation or expensive licenses, which could harm our business There is considerable patent and other intellectual property development activity in our industry.
Further, artificial intelligence technologies may be used in connection with certain cybersecurity attacks, resulting in heightened risks of security breaches and incidents.
The use of artificial intelligence technologies may create additional cyber security risks or increase cyber security risks, and may result in security breaches or other types of cyber security incidents. Further, artificial intelligence technologies may be used in connection with certain cyber security attacks, resulting in heightened risks of security breaches and incidents.

… 81 more changes not shown on this page.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

76 edited+19 added−14 removed33 unchanged
Harmony unifies security products to deliver complete remote workspace user security. • Harmony SaaS discovers all your SaaS services, reduces your attack surface and automatically prevents SaaS-based threats using machine learning engines. • Harmony SASE converges network security capabilities into a single solution with unified management, internet security, and comprehensive Zero Trust network access. • Harmony Endpoint protects users’ PCs from ransomware, phishing, and malware, and minimizes breach impact with autonomous detection and response capability. • Harmony Mobile protects employees’ mobile devices against malicious apps and network or operating systems attacks. 25 • Harmony Email & Collaboration secures users’ email clients and gives protection for Microsoft Office 365, Exchange, Google G, and others.
Harmony unifies security products to deliver complete remote workspace user security. • Harmony SaaS discovers all your SaaS services, reduces your attack surface and automatically prevents SaaS-based threats using machine learning engines. • Harmony SASE converges network security capabilities into a single solution with unified management, internet security, and comprehensive Zero Trust network access. • Harmony Endpoint protects users’ PCs from ransomware, phishing, and malware, and minimizes breach impact with autonomous detection and response capability. • Harmony Mobile protects employees’ mobile devices against malicious apps and network or operating systems attacks. • Harmony Email & Collaboration secures users’ email clients and gives protection for Microsoft Office 365, Exchange, Google G, and others.
Check Point’s Quantum SD-WAN takes a security-first approach to networking by delivering advanced threat prevention along with optimized internet connectivity. 24 • Quantum Rugged (Industrial/OT): Quantum Rugged Security Gateways are specifically engineered to protect against attacks directed at Industrial Control Systems (ICS) and Operational Technology (OT) networks. These firewalls are purpose-built for industrial, manufacturing, and critical infrastructure environments.
Check Point’s Quantum SD-WAN takes a security-first approach to networking by delivering advanced threat prevention along with optimized internet connectivity. • Quantum Rugged (Industrial/OT): Quantum Rugged Security Gateways are specifically engineered to protect against attacks directed at Industrial Control Systems (ICS) and Operational Technology (OT) networks. These firewalls are purpose-built for industrial, manufacturing, and critical infrastructure environments.
Check Point Quantum Rugged security gateways deliver proven, integrated AI security, high-speed secure 5G connectivity and more for deployments in harsh environments as part of a complex end-to-end ICS security solution. • CloudGuard: Prevention-First Cloud Security From code to cloud, Check Point CloudGuard delivers comprehensive cloud native security (CNAPP), across applications, workloads, and network to prevent threats and reduce risks at cloud speed and scale.
Check Point Quantum Rugged security gateways deliver proven, integrated AI security, high-speed secure 5G connectivity and more for deployments in harsh environments as part of a complex end-to-end ICS security solution. • CloudGuard: Prevention-First Cloud Security From code to cloud, Check Point CloudGuard delivers comprehensive cloud native security, across applications, workloads, and network to prevent threats and reduce risks at cloud speed and scale.
AI engines deliver industry leading threat prevention to stop the most sophisticated attacks including Zero Day Malware, Phishing and DNS. • Consolidated Security Operations and Unified Management: Leverage a unified security management platform for efficient security operations to deliver threat prevention to seal security gaps and enable automatic, immediate threat intelligence sharing across all security environments. • Collaborative True collaboration across the security platform is essential to gain advantage over attackers.
AI engines deliver industry leading threat prevention to stop the most sophisticated attacks including zero day malware, phishing and DNS spoofing. • Consolidated Security Operations and Unified Management: Leverage a unified security management platform for efficient security operations to deliver threat prevention to seal security gaps and enable automatic, immediate threat intelligence sharing across all security environments. • Collaborative True collaboration across the security platform is essential to gain advantage over attackers.
All Check Point security gateways receive immediate threat data from Check Point’s ThreatCloud AI global threat intelligence system. • Announcing Quantum Force AI-Powered Security Gateways In February 2024, Check Point introduced a major addition to its enterprise security gateway product line - the new Quantum Force series.
All Check Point security gateways receive immediate threat data from Check Point’s ThreatCloud AI global threat intelligence system. • Quantum Force AI-Powered Security Gateways In February 2024, Check Point introduced a major addition to its enterprise security gateway product line - the new Quantum Force series.
Security that Automatically Responds to Every Threat: AI-powered security engines applied to any attack vector, shared real-time threat intelligence, and anomaly detection with ThreatCloud AI, automated threat response and orchestration with XDR and Playblocks, and API-based third-party integration.
Security that automatically responds to every threat: AI-powered security engines applied to any attack vector, shared real-time threat intelligence, and anomaly detection with Infinity ThreatCloud AI, automated threat response and orchestration with Infinity XDR/XDR and Infinity Playblocks, and API-based third-party integration.
Further, with the Infinity Platform, customers obtain these advanced core competencies: AI-powered Check Point utilizes real-time AI-powered comprehensive threat prevention across all attack vectors from code to cloud, networks, users, Email and IoT. Leveraging over 50+ AI engines to deliver industry-leading threat prevention to stop the most sophisticated attacks including Zero Day Malware, Phishing and DNS.
With the Infinity Platform, customers obtain these advanced core competencies: AI-powered Check Point utilizes real-time, AI-powered comprehensive threat prevention across all attack vectors from code to cloud, networks, users, email and IoT. Leveraging over 50+ AI engines to deliver industry-leading threat prevention to stop the most sophisticated attacks including zero day malware, phishing and DNS spoofing.
Argentina Check Point Software Technologies (Australia) PTY Limited Australia Check Point Software Technologies (Austria) GmbH Austria Check Point Software Technologies Belarus LLC Belarus Check Point Software Technologies (Belgium) Belgium Check Point Software Technologies (Brazil) LTDA Brazil Check Point Software Technologies (Hong Kong) Ltd. (Guangzhou office) (1) China Hong Kong SAR Check Point Software Technologies (Hong Kong) Ltd.
Argentina Check Point Software Technologies (Australia) PTY Limited Australia Check Point Software Technologies (Austria) GmbH Austria Check Point Software Technologies Belarus LLC (2) Belarus Check Point Software Technologies (Belgium) Belgium Check Point Software Technologies (Brazil) LTDA Brazil Check Point Software Technologies (Hong Kong) Ltd. (Guangzhou office) (1) China Hong Kong SAR Check Point Software Technologies (Hong Kong) Ltd.
From Firewall-1, the first stateful firewall to dynamic security innovations and to the emergence of the AI-powered, Cloud-driven Check Point Infinity Platform, Check Point has demonstrated its ability to defend and prevent what is coming. Check Point delivers collaborative security across an organization’s security architecture of the Network, Cloud, and the Workspace.
From Firewall-1, the first stateful firewall to dynamic security innovations and to the emergence of the AI-powered, cloud-delivered Check Point Infinity Platform, Check Point has demonstrated its ability to defend and prevent what is coming. Check Point delivers collaborative security across an organization’s security architecture of the Network, Cloud, and the Workspace.
Comprehensive family of on-premise security gateways, hyperscale orchestrator, SD-WAN networking, DDoS security, automated prevention for IoT, and Cloud Security Management. • Secure the Cloud with CloudGuard Unified, prevention-first cloud native security across your applications, workloads, and network-giving the confidence to automate security, prevent threats, and manage posture-at cloud speed and scale. • Secure the Workspace with Harmony Prevents sophisticated attacks across the IT workspace including emails, web applications, devices and remote corporate access. • Collaborative Security Operations with Infinity Core Services Collaborative prevention first security operations and unified management including Extended Prevention and Response (XDR), orchestration, automation, ThreatCloud AI and generative AI copilot, supported by Check Point 24/7 managed security services, consulting and training.
Comprehensive family of on-premises security gateways, hyperscale orchestrator, SD-WAN networking, DDoS security, automated prevention for IoT, and cloud security management. • Cloud Security with CloudGuard Unified, prevention-first cloud native security across your applications, workloads, and network-giving the confidence to automate security, prevent threats, and manage posture-at cloud speed and scale. • Workspace Security with Harmony Prevents sophisticated attacks across the IT workspace including emails, web applications, devices and remote corporate access. • Collaborative Security Operations with Infinity Platform Services Collaborative prevention first security operations and unified management including Extended Prevention and Response (XDR), orchestration, automation, ThreatCloud AI and generative AI copilot, supported by Check Point 24/7 managed security services, consulting and training.
As a global brand with material social and economic influence, we recognize that our success can only be built alongside the success of our stakeholders – including, our channel partners, customers, suppliers and employees. We aim to achieve high ESG standards while continuing to develop our business and executing on our strategy. Our Commitment.
As a global brand with material environmental, social and economic influence, we recognize that our success can only be built alongside the success of our stakeholders – including, our channel partners, customers, suppliers and employees. We aim to achieve high ESG standards while continuing to develop our business and executing our strategy. 29 Our Commitment.
Environmental, Social and Governance (ESG) Practices Since Check Point’s inception, our sole focus has been on making the world a safer place to live and work. For over 30 years, we have worked to fulfill our vision of making the Internet secure, reliable, and available for corporations and consumers.
Environmental, Social and Governance (ESG) Practices Since Check Point’s inception, our sole focus has been on making the world a safer place to live and work. For over 30 years, we have worked to fulfill our vision of making the digital sphere secure, reliable, and available for corporations and consumers.
Effect of Government Regulation on our Business Information concerning regulation is provided in “Item 5 – Operating and Financial Review and Products” under the caption “Taxes on income” and in “Item 10 – Additional Information” under the caption “Israeli taxation, foreign exchange regulation and investment programs”. 30 Organizational Structure We are organized under the laws of the State of Israel.
Effect of Government Regulation on our Business Information concerning regulation is provided in “Item 5 – Operating and Financial Review and Prospects” under the caption “Taxes on income” and in “Item 10 – Additional Information” under the caption “Israeli taxation, foreign exchange regulation and investment programs”. Organizational Structure We are organized under the laws of the State of Israel.
Further details regarding the material events in the development of our business since the beginning of 2020 are provided in “Item 5 – Operating and Financial Review and Prospects” under the caption “Overview”.
Further details regarding the material events in the development of our business since the beginning of 2022 are provided in “Item 5 – Operating and Financial Review and Prospects” under the caption “Overview”.
Cloud-driven Infinity leverages the cloud to achieve speed, agility, and scalability. Prevention-first cloud native security across applications, workloads, and network gives customers the confidence to automate security, prevent threats, and manage posture-at cloud speed and scale.
Cloud-driven The Check Point Infinity Platform leverages the cloud to achieve speed, agility, and scalability. Prevention-first cloud native security across applications, workloads, and network gives customers the confidence to automate security, prevent threats, and manage posture-at cloud speed and scale.
Organizations of any size can benefit from Maestro’s intelligent load balancing firewall cluster design. • Quantum Lightspeed: Data center firewalls, designed for the most demanding environments in the world. • Quantum Titan (R81.20) (security operating system / software): All Quantum Force security gateways and firewalls share the same underlying security operating system.
Organizations of any size can benefit from Maestro’s intelligent load balancing firewall cluster design. • Quantum Lightspeed: Data center firewalls, designed for the most demanding environments in the world. • Quantum Firewall Software R82 (security operating system / software): All Quantum Force security gateways and firewalls share the same underlying security operating system.
Check Point's innovative cybersecurity software revolutionizes cyber security and policy management by leveraging AI-powered, cloud-delivered advanced threat prevention, cloud services, integrated IoT security and SD-WAN, and firewall performance auto-scaling to secure mission critical applications. • Quantum Security Gateways and firewalls deliver comprehensive security beyond any Next Generation Firewall (NGFW) and are designed to manage the most complex security policy requirements and prevent the 5 th generation of cyber-attacks.
Check Point's innovative cyber security software revolutionizes cyber security and policy management by leveraging AI-powered, cloud-delivered advanced threat prevention, cloud services, integrated IoT security and SD-WAN, and firewall performance auto-scaling to secure mission critical applications. • Quantum Network Security Quantum Network Security delivers security gateways and firewalls that provide comprehensive security beyond any Next Generation Firewall (NGFW) and are designed to manage the most complex security policy requirements and prevent the 5 th generation of cyber attacks.
Our technical assistance centers in the United States, Israel, Canada, Japan, India, China and Australia offer support worldwide, 24-hour service, seven days per week. As of December 31, 2023, we had 1,060 employees and subcontractors in our technical services organization.
Our technical assistance centers in the United States, Israel, Canada, Japan, India, China and Australia offer support worldwide, 24-hour service, seven days per week. As of December 31, 2024, we had 1,139 employees and subcontractors in our technical services organization.
Check Point is committed to making the world a safer and more secure place. In the digital era, this commitment applies to our work both on the internet and the physical world alike.
Check Point is committed to making the world a safer and more secure place. In the digital era, this commitment applies to our work both in the digital realm and the physical world alike.
We believe that a diverse workforce encourages a wider variety of skills, talents, and viewpoints, leading to further creativity and innovation. • Training and Employee Development Policy –Investing in the training and development of our employees, managers and groups within the company contributes not only to them, but also to Check Point as a whole.
We believe that a diverse workforce encourages a wider variety of skills, talents, and viewpoints, leading to further creativity and innovation. • Training and Employee Development Policy –Investing in the training and development of our employees, managers and groups within the company contributes not only to their personal and professional growth, but also to Check Point as a whole.
In addition, managed and professional services fortify your defense with a comprehensive suite of managed and professional cyber security services including managed detection and response, incident response, security architecture design, consulting and training.
In addition, managed and professional services fortify your defenses with a comprehensive suite of cyber security services including managed detection and response (MDR), incident response, security architecture design, consulting, and training.
Our teams are committed to creating a conscious culture that promotes open communication with the goal of a more equitable outcome for all.
Our teams are committed to creating a conscious culture that promotes open communication with the goal of achieving more equitable outcomes for all.
Research and Product Development We believe that our future success will depend upon our ability to enhance our existing products, and to develop, acquire and introduce new products to address the increasingly sophisticated needs of our customers. As of December 31, 2023, we had 1,956 employees and subcontractors dedicated to research and development activities and quality assurance.
Research and Product Development We believe that our future success will depend upon our ability to enhance our existing products, and to develop, acquire and introduce new products to address the increasingly sophisticated needs of our customers. As of December 31, 2024, we had 2,036 employees and subcontractors dedicated to research and development activities and quality assurance.
V. Ethics – How we value what is right – Check Point promotes core values of honest and ethical conduct, integrity, open communication, equal opportunity and diversity. • Code of Ethics and Business Conduct – Check Point is a worldwide leader in developing security solutions to protect business and consumer transactions, and communications over the internet.
VI. Ethics – How we value what is right – Check Point promotes core values of honest and ethical conduct, integrity, open communication, equal opportunity, and diversity. • Code of Ethics and Business Conduct – Check Point is a worldwide leader in developing security solutions to protect business and consumer transactions, and communications in the digital realm.
The contents of our website are not incorporated by reference into this Annual Report. This Annual Report is available on our website. If you would like to receive a printed copy via mail, please contact our Investor Relations department at 100 Oracle Parkway, Suite 800, Redwood City, CA 94065, U.S.A., Tel.: +16506282040, email: ir@checkpoint.com.
The contents of our website are not incorporated by reference into this Annual Report. This Annual Report is available on our website at www.checkpoint.com. If you would like to receive a printed copy via mail, please contact our Investor Relations department at 100 Oracle Pkwy, Suite 800, Redwood City, CA 94065, U.S.A., Tel.: 650-628-2050, email: ir@us.checkpoint.com.
The committee reviews our environmental performance on a periodic basis. Governance Standards: IV.
The committee reviews our environmental performance on a periodic basis. Governance Standards : V.
By putting our commitment in writing we clearly set out the business practices that we follow and set clear standards of behavior for everyone associated with our organization. • Privacy Policy – Our Privacy Policy explains how Check Point treats personal information that Check Point collects or generates both in relation to the Check Point website (www.checkpoint.com) and our products and services. • Whistle Blower Procedure – Check Point strives to promote its values and establish uniformity within the company.
By putting our commitment in writing we clearly set out the business practices that we follow and establish clear standards of behavior for the various groups of stakeholders associated with our organization. • Privacy Policy – Our Privacy Policy sets out how Check Point handles personal information that it collects or generates both in relation to the Check Point website (www.checkpoint.com), our products, and services. • Whistle Blower Procedure – Check Point strives to promote its values and establish uniformity within the company.
We comply with the applicable environmental laws and regulations and strive to be a leader in the environmental sustainability field. • Board oversight - Our board of directors has a dedicated committee for overseeing environmental, social, and governance (ESG) matters (the Nominating, Sustainability and Corporate Governance Committee), which is responsible for ensuring that our environmental policies and practices are consistent with our overall business strategy.
We comply with the applicable environmental laws and regulations and endeavor to engage in leading environmental sustainability practices. • Board oversight - Our board of directors has a dedicated committee for overseeing environmental, social, and governance (ESG) matters (the Nominating, Sustainability and Corporate Governance Committee), which is responsible for ensuring that our environmental policies and practices are consistent with our overall business strategy.
In order to eradicate such behavior, Check Point has adopted a Conflicts Minerals Policy. Environmental Standards: III.
In order to eradicate such behavior, Check Point has adopted a Conflicts Minerals Policy. 30 Environmental Standards : IV.
Check Point’s commitment includes closely monitoring its compliance with international standards and local laws in all of our locations around the world to ensure that the rights of our employees are protected. • Workforce Diversity and Equality Statement – As a leading cyber security company, we are committed to nurturing diversity and equality while breaking the bias in the workplace when hiring, training, and evaluating our employees.
Check Point’s commitment includes closely monitoring its compliance with international standards and local laws in all of our locations around the world to ensure that the rights of our employees and stakeholders are protected. • Workforce Diversity and Equality Statement – As a leading cyber security company, we are committed to nurturing diversity and equality while removing bias in hiring, training, and employee evaluation practices.
As part of Check Point’s corporate responsibility guidelines, Check Point identified ESG issues that are of highest relevance to its business activity and its stakeholders.
As part of Check Point’s corporate responsibility program, Check Point identified ESG issues that are of highest relevance to its business activities and its stakeholders.
No additional payments are due under such long-term lease. Our international headquarters building contains approximately 332,000 square feet of office space. In addition, we lease approximately 80,000 square feet of additional space substantially all in Tel Aviv, Israel.
No additional payments are due under such long-term lease. Our international headquarters building contains approximately 323,000 square feet of office space. In addition, we lease approximately 59,000 square feet of additional space substantially all in Tel Aviv, Israel and around.
On the diversity side, a described in Item 6, four senior executive officers reporting to the CEO are female executives. Oversight of our risks, strategies, policies, programs and practices related to ESG matters is conducted by our nominating, sustainability and corporate governance committee, and our ESG Manager leads the day-to-day management of ESG matters.
With respect to diversity, as described in Item 6, two senior executive officers reporting to the CEO are female executives. Oversight of our risks, strategies, policies, programs, and practices related to ESG matters is conducted by our Nominating, Sustainability and Corporate governance committee, and our ESG Manager leads the day-to-day management of ESG matters.
The Infinity Platform includes the following: • Secure Mesh Networks with Quantum Hyperscale AI-powered threat prevention for securing mesh networks including the data center, perimeter, branch and remote users.
The Check Point Infinity Platform includes the following: • On-premises Security with Quantum Hyperscale AI-powered threat prevention for securing mesh networks including the data center, perimeter, branch and remote users.
By providing our employees and managers with learning and development activities, we enable the company to achieve its business targets, and the people to constantly grow professionally. • Anti-Slavery Policy – Check Point has zero tolerance towards modern slavery. II.
By providing our employees and managers with learning and development opportunities, we enable the company to achieve its business targets, and our employees to constantly grow professionally. • Anti-Slavery Policy – Check Point has zero tolerance towards modern slavery across our workforce and in our supply chain. III.
As we aspire to achieve a more sustainable future for all, we have set out the following practices and guidelines which our employees and stakeholders are expected to adhere to: Social Standards: I. Community – How we value each other – We believe in creating a more sustainable future for our stakeholders and for the world.
As we aspire to achieve a more sustainable future for all, we have set out the following practices and guidelines for our ESG practices, and which address the various interests of our key stakeholders: Social Standards : I. Community – How we value each other – We believe in creating a more sustainable future.
(12) Israel Check Point Software Technologies South Africa PTY. Ltd South Africa Check Point Software (Kenya) Limited Kenya Check Point Software Technologies B.V Nigeria Ltd. (5) Nigeria Check Point Public Cloud Security Ltd. (12) Israel Check Point Web Applications and API Protection Ltd. Israel Protego Labs, Inc. United States of America (Delaware) Check Point IOT Security Ltd.
Ltd South Africa Check Point Software (Kenya) Limited Kenya Check Point Software Technologies B.V Nigeria Ltd. (5) Nigeria Check Point Web Applications and API Protection Ltd. (10) Israel Protego Labs, Inc. United States of America (Delaware) Check Point IOT Security Ltd. (10) Israel Check Point Serverless Security Ltd. (6) Israel Check Point Email Security Ltd. (7) Israel Avanan, Inc.
Gain visibility of effective permissions identify over permissive entitlements and implement suggested roles. • Cloud Workload Protection : seamless vulnerability assessment and runtime protection of modern cloud workloads, including serverless functions and containers. • Cloud Web Application Protection : powered by contextual-AI, protects web applications and APIs from the most sophisticated types of threats. • Cloud Detection and Response: cloud native threat security forensics through rich machine learning visualization, giving real-time context of threats and anomalies across your multi-cloud environment. • Harmony: Securing the Workspace Check Point Harmony protects employees, devices, and internet connectivity from malicious attacks, while ensuring secure, remote zero-trust access at any scale to any corporate application.
Gain visibility of effective permissions identify over permissive entitlements and implement suggested roles. • Cloud Detection and Response: cloud native threat security forensics through rich machine learning visualization, giving real-time context of threats and anomalies across your multi-cloud environment. • Harmony: Securing the Workspace Check Point Harmony protects employees, devices, and internet connectivity from malicious attacks, while ensuring secure, remote Zero Trust access at any scale to any corporate application.
(former name: Protect Data AB) (5) Subsidiary of Check Point Holding (Singapore) PTE Ltd. and Check Point Yazilim Teknolojileri Pazarlama A.S. (6) Subsidiary of Protego Labs, Inc (7) Subsidiary of Avanan, Inc. (8) Subsidiary of Check Point Holding AB (9) Branch of Check Point Software Technologies (Sweden) AB. (10) Subsidiary of Check Point Software Technologies Inc.
(former name: Protect Data AB) (5) Subsidiary of Check Point Holding (Singapore) PTE Ltd. and Check Point Yazilim Teknolojileri Pazarlama A.S. (6) Subsidiary of Protego Labs, Inc; Under intercompany transfer process (7) Subsidiary of Avanan, Inc. (8) Subsidiary of Check Point Software Technologies Inc. (9) Subsidiary of R&M Computer Consultants, Inc.
The breakdown in the various geographies is as follows: Location Space (square feet) Israel 413,000 *) Americas 135,000 Europe, Middle East and Africa 61,000 Asia Pacific 43,000 *) We acquired ownership of our international headquarters located in Tel Aviv, Israel pursuant to a pre-paid 49 year long-term lease on the land with the City of Tel Aviv – Jaffa.
The breakdown in the various geographies (excluding external data centers) is as follows: Location Space (square feet) Israel 382,032*) Americas 107,425 Europe, Middle East and Africa 65,019 Asia Pacific 77,215 * ) We acquired ownership of our international headquarters located in Tel Aviv, Israel pursuant to a pre-paid 49 year long-term lease on the land with the City of Tel Aviv – Jaffa.
CloudGuard secures cloud workloads in multiple environments including Amazon AWS, Microsoft Azure, Google, and others providing relevant capabilities for each cloud environment. • Cloud Network Security : advanced threat prevention and network security through a virtual security gateway—automated and unified across all multi-cloud and on-premises environments. • Cloud Native Application Protection Platform (CNAPP): secure the entire application lifecycle from code-to-cloud.
CloudGuard secures cloud workloads in multiple environments including AWS, Microsoft Azure, Google, and others providing relevant capabilities for each cloud environment. • Cloud Network Security : advanced threat prevention and network security through a virtual security gateway—automated and unified across all multi-cloud and s environments. • Cloud Web Application and API Security : powered by contextual-AI, protects web applications and APIs from the most sophisticated types of threats. • Cloud Native Application Protection Platform (CNAPP): secure the entire application lifecycle from code-to-cloud.
Corporate Governance – How we value our method – We have adopted corporate governance guidelines to assist our Board in carrying out its responsibilities and serving the interests of our company and its shareholders. • Corporate Governance Guidelines – Our board of directors has adopted Corporate Governance Guidelines to assist the board of directors in carrying out its responsibilities and serving the interests of the Company and its shareholders in a manner that is consistent with the board of director’s fiduciary duties. 29 • Committee Charters – We have adopted written charters specifying the duties and responsibilities of each of our Audit Committee, Compensation Committee and Nominating, Sustainability and Corporate Governance Committee to assist the committee members in carrying out their responsibilities.
Corporate Governance – How we value our method – We operate according to high standards of responsible business conduct and base our approach on a strong corporate governance structure to maintain full accountability, integrity, and transparency in our business practices. • Corporate Governance Guidelines – Our board of directors has adopted Corporate Governance Guidelines to assist the board of directors in carrying out its responsibilities and serving the interests of the Company and its shareholders in a manner that is consistent with the board of director’s fiduciary duties. • Committee Charters – We have adopted written charters specifying the duties and responsibilities of each of our Audit Committee, Compensation Committee and Nominating, Sustainability and Corporate Governance Committee to assist the committee members in carrying out their responsibilities.
Adversaries exploited zero-day vulnerabilities by employing disruptive wipers that utilize emerging RaaS (Ransomware-as-a-Service) tactics and target edge devices, amplifying the complexity of cyber threats. The threat landscape became even more complex as cybercriminals have adopted artificial intelligence (AI) to fuel their cyber exploits. In response, Check Point has evaluated how to best prevent, detect, and respond to elevated cyber attacks.
In 2024, adversaries exploited zero day vulnerabilities by employing disruptive wipers that utilize emerging RaaS (Ransomware-as-a-Service) tactics and target edge devices, amplifying the complexity of cyber threats. The threat landscape became even more complex as cyber criminals have utilized AI to fuel their cyber exploits.
Netherlands Check Point Holding (Singapore) PTE Ltd. Singapore Check Point Holding (Singapore) PTE Ltd. – Rep office Indonesia (1) Singapore Check Point Holding (Singapore) PTE Ltd. –US, NY Branch (2) Singapore Israel Check Point Software Technologies Ltd. China (3) China Check Point Holding AB (4) Sweden Check Point Advanced Threat Prevention Ltd. (12) Israel Check Point Mobile Security Ltd.
Netherlands Check Point Holding (Singapore) PTE Ltd. Singapore Check Point Holding (Singapore) PTE Ltd. – Rep office Indonesia (1) Singapore Check Point Holding (Singapore) PTE Ltd. –US, NY Branch (2) Singapore Israel Check Point Software Technologies Ltd. China (3) China Check Point Holding AB (4) Sweden Cyberint Technologies Ltd. (10) Israel Check Point Software Technologies South Africa PTY.
Check Point was mentioned in over 170 analyst reports in 2023.
Check Point was mentioned in over 188 analyst reports in 2024.
In 2022, the Global Commercial Organization (GCO) was formed to further unify sales and marketing. As of December 31, 2023, we had 3,038 employees and subcontractors in our sales and marketing organization, with a majority of them dedicated to pre sales and marketing support located in various jurisdictions.
As of December 31, 2024, we had 3,096 employees and subcontractors in our sales and marketing organization, with a majority of them dedicated to pre sales and marketing support located in various jurisdictions.
Spain Check Point Software Technologies (Switzerland) AG Switzerland Check Point Software Technologies (Taiwan) Ltd. Taiwan Check Point Yazilim Teknolojileri Pazarlama A.S. Turkey Check Point Software Technologies (UK) Ltd.
Spain Check Point Software Technologies (Switzerland) AG Switzerland Check Point Software Technologies (Taiwan) Ltd. Taiwan Check Point Yazilim Teknolojileri Pazarlama A.S. Turkey Check Point Software Technologies (UK) Ltd. United Kingdom (1) Representative office of Check Point Software Technologies (Hong Kong) Ltd.
Check Point clearly sets out the business practices that we follow and set clear standards of behavior for everyone associated with our organization. Our culture and values help us build trust with our customers, business partners, investors, other organizations and governments, and trust and integrity is the core of our business and operations.
Check Point clearly sets out our expectations regarding ethical and permissible business practices including set clear standards of behavior for all of the various stakeholders associated with our organization. Our culture of integrity and steadfast values help us build trust with our customers, business partners, investors, other organizations and governments, establishing trust in our business and operations.
Supply Chain – How we value the process – We assure the high standards of our supply chain conduct by ensuring that the working conditions in our operations and supply chain are safe and that business operations are conducted ethically • Supply Chain Code of Conduct –We demand our suppliers of products and services to comply with our high standards and values. • Supply Chain Policy – Check Point considers honesty, integrity, transparency and open communication core values of our business and operations. • Conflicts Minerals Policy – In certain conflict areas around the world, such as the Democratic Republic of the Congo and adjoining countries, the trade of certain minerals and derivative metals can be used to support corruption, money laundering and human rights abuses.
Supply Chain – How we value the process – We implement high standards of conduct across our supply chain by ensuring that the working conditions in our operations and supply chain are safe and that business operations are conducted ethically. • Supply Chain and Business Partner Code of Conduct –We require our suppliers of products and services, vendors, and business partners to comply with the standards of business, labor, environmental, and ethical conduct set out in our policy and based, in principle, on the Responsible Business Alliance (“RBA”) Code of Conduct guidelines. • Supply Chain Policy – Check Point highly values its relationships with its suppliers, vendors, and business partners, and therefore strives to ensure that all relationships with such stakeholders are conducted according to our principles of honesty, integrity, transparency, and open communication, in addition to respect for human rights, labor practices, and environmental sustainability. • Conflicts Minerals Policy – In certain conflict areas around the world, such as the Democratic Republic of the Congo and adjoining countries, the trade of rare minerals and derivative metals can be used to support corruption, money laundering, and human rights abuses.
The average malware block rate for Check Point competitors was 69.2%. 26 Acquisition and other Corporate Information In September 2023, we acquired 100% of the share capital of Perimeter 81 Ltd., a privately held Israeli company and a leading provider of Zero Trust Network Access (ZTNA) and Secure Service Edge (SSE).
In September 2023, we acquired 100% of the share capital of Perimeter 81 Ltd., a privately held Israeli company and a leading provider of Zero Trust Network Access (ZTNA) and Secure Service Edge (SSE) software.
(13) United States of America (Delaware) Check Point SSE Solutions Ltd.(12) Israel Perimeter 81 LLC (13) United States of America (Delaware) (1) Representative office of Check Point Holding (Singapore) PTE Ltd. (2) Branch of Check Point Holding (Singapore) PTE Ltd. (3) Representative office of Check Point Software Technologies Ltd. (4) Subsidiary of Check Point Holding (Singapore) PTE Ltd.
(11) United States (Delaware) Cyberint Ltd. (11) UK (1) Representative office of Check Point Holding (Singapore) PTE Ltd. (2) Branch of Check Point Holding (Singapore) PTE Ltd. (3) Representative office of Check Point Software Technologies Ltd. (4) Subsidiary of Check Point Holding (Singapore) PTE Ltd.
(11) Subsidiary of R&M Computer Consultants, Inc. (12) Under intercompany merger process into Check Point Software Technologies Ltd. (13) Under intercompany transfer and/or merger processes. 31 Check Point Software Technologies (Netherlands) B.V. acts as a holding company.
(10) Under intercompany merger process into Check Point Software Technologies Ltd. (11) Subsidiary of Cyberint Technologies Ltd.; Under intercompany merger or dissolution process. (12) Under intercompany merger or dissolution process. (13) Subsidiary of Check Point Holding AB (14) Branch of Check Point Software Technologies (Sweden) AB. 32 Check Point Software Technologies (Netherlands) B.V. acts as a holding company.
We are extremely involved in the community and we invest greatly in volunteering and donations activities in an attempt to make the world a better place. • Corporate Responsibility Policy – Check Point strongly believes that creating a positive economic, social and environmental impact advances its mission of developing security solutions to protect business and consumer transactions, and creating a more sustainable future for its stakeholders and the for the world.
We are involved in the community and we invest in volunteering and donations activities to share our good will with society at large, striving to make the world a better place. • Corporate Responsibility Policy – Check Point strongly believes that investing in activities that promote positive economic, social and environmental impacts advances its mission of creating a safe, sustainable, and secure future for its stakeholders.
This is crucial for our high standards and values. • Insider Trading Policy – This policy provides guidelines to employees, consultants, contractors, officers and directors of Check Point with respect to transactions in Check Point’s securities. • Anti-Corruption, Bribery and Money Laundering Policy – Check Point’s goodwill and reputation are affected by what we do every day.
To support the adherence to our Code of Ethics and Business Conduct as well as other policies, we provide various channels for reporting, including the possibility of filing anonymous reports, which are outlined in the Whistle Blower Procedure. • Insider Trading Policy – This policy provides guidelines to employees, consultants, contractors, officers, and directors of Check Point with respect to transactions in Check Point’s securities. • Anti-Corruption, Bribery and Money Laundering Policy – Check Point’s goodwill and reputation are affected by what we do every day.
Each of the three Cs plays a significant role in providing threat prevention and security across all attack vectors. • Comprehensive Real-time Threat Prevention: Real-time AI-powered comprehensive threat prevention across all attack vectors from code to cloud, networks, users, email and IoT.
Business Overview The 3 Cs to Provide the Effective Threat Prevention and Security The Check Point Infinity Platform provides a comprehensive, consolidated, and collaborative security platform to provide threat prevention and security across all attack vectors. • Comprehensive Real-time Threat Prevention: Real-time AI-powered comprehensive threat prevention across all attack vectors from code to cloud, networks, users, email and IoT.
Our efforts to protect our patent rights and other proprietary rights may not be adequate and our competitors may independently develop technology that is similar.
Check Point and its subsidiaries have 147 issued patents in the U.S. and in other regions and 19 pending patent applications worldwide. Our efforts to protect our patent rights and other proprietary rights may not be adequate and our competitors may independently develop technology that is similar.
The rise of new attack vectors also necessitated that Check Point adopt its prevention-first security solutions approach. 22 Largest partner and expert ecosystem Our integrated approach ties innovation together with 3,500 security experts of our world-acclaimed research and intelligence unit, and a broad ecosystem of business and technology partners.
Check Point allows its customers to prevent advanced threats with a high level of accuracy and efficacy Largest partner and expert ecosystem Our integrated approach ties our advanced innovations together with the 3,500 security experts of our world-acclaimed research and intelligence unit as well as a broad ecosystem of business and technology partners.
Protect against exposed API keys, tokens, and credentials, as well as identify and stop misconfigurations. • Security and Posture Management : automates governance across multi-cloud assets and services including visualization and assessment of security posture, misconfiguration detection, and enforcement of security best practices and compliance frameworks. prevent threats and achieve high fidelity posture management. • Cloud Identity and Entitlement : optimize user and workload access and privilege management to ensure a least privilege state and eliminate overly permissive roles.
Protect against exposed API keys, tokens, and credentials, as well as identify and stop misconfigurations. • Cloud Infrastructure and Entitlement Management : optimize user and workload access and privilege management to ensure a least privilege state and eliminate overly permissive roles.
Instead of relying on past security strategies, organizations can thwart advanced cyberthreats with Check Point’s comprehensive cyber security platform solution. Check Point Infinity Platform Product Solutions Customer security requirements can change rapidly, such as the explosive growth of AI.
Instead of relying on outdated and inadequate security strategies, organizations can thwart advanced cyberthreats with Check Point’s comprehensive cyber security platform solution, Check Point Infinity Platform. 23 Check Point Infinity Platform Product Solutions Customer security requirements can change rapidly, as we have most recently seen with the explosive growth of AI as a means to create more complex and difficult to detect social engineering attacks and as a method to develop more dangerous attack methods.
But, as sophisticated 5 th generation zero-day cyberattacks appeared, conventional detection security began to lag. Detecting a breach after the fact, is too late.
But, as sophisticated 5 th generation zero day cyber attacks appeared, conventional detection security began to lag. However, advances in detection and prevention have enabled threats to be identified and stopped before they enter an endpoint. In real terms, detecting a breach after the fact, is too late.
Our ESG report that detail our philosophy and the various initiatives under each of the standards above is available on our website at https://www.checkpoint.com/about-us/esg/; neither the report nor the contents of our website are incorporated by reference into this Annual Report.
Our ESG report that details our philosophy, and the various initiatives pursued according to the topics outlined above is available on our website at https://www.checkpoint.com/about-us/esg/; Neither the report nor the contents of our website are incorporated by reference into this Annual Report. 31 Proprietary Rights Check Point relies on a combination of copyright and trademark laws, trade secrets, confidentiality procedures and contractual provisions to protect its proprietary rights.
United Kingdom (1) Representative office of Check Point Software Technologies (Hong Kong) Ltd. 32 Property and Equipment As of December 31, 2023, we own our headquarters located in Tel Aviv, Israel and we lease offices in various locations throughout the world.
(2) Under dissolution process 33 Property, Plants and Equipment As of December 31, 2024, we own our headquarters located in Tel Aviv, Israel and we lease offices in various locations throughout the world.
Further, Check Point generally enters into confidentiality agreements with employees, consultants, customers and potential customers, and limits access and distribution of materials and information that the company considers proprietary. Check Point and its subsidiaries have 137 issued patents in the U.S. and in other regions and 20 pending patent applications worldwide.
Check Point relies on trade secrets and copyright laws to protect its software, documentation, and other written materials. Further, Check Point generally enters into confidentiality agreements with employees, consultants, customers and potential customers, and limits access and distribution of materials and information that the company considers proprietary.
These 3 Cs are the core of Check Point offerings and they are clearly achieved through our Infinity Platform and the four strategic solution areas. • Quantum: Secure Your Network and Data Center security for perimeter and datacenter Aimed to secure and effectively manage datacenter environments.
These 3Cs are the core of Check Point offerings and they are clearly achieved through the Check Point Infinity Platform and the four strategic solution areas. • Quantum: Secure Your Network and Data Center security for Perimeter and Datacenter Check Point Quantum Network Security provides effective and ultra-scalable protection against the most dangerous cyber-attacks targeting customers' networks, cloud, data center, IoT devices, and employees across the enterprise.
Add to this Infinity Core Services that provides the comprehensive technical services to fulfill the cyber security needs of its global customers. The 3 Cs to Provide the Effective Threat Prevention and Security The Check Point Infinity Platform provides a comprehensive, consolidated, and collaborative security platform.
Through its Infinity Global Services product, Check Point provides comprehensive technical services to fulfill the cyber security needs of its global customers.
Check Point Quantum Security Gateways deliver comprehensive security beyond any Next Generation Firewall (NGFW) and manage the most complex security policy requirements.
Aimed to secure and effectively manage datacenter environments. Check Point Quantum Security Gateways deliver comprehensive security beyond any Next Generation Firewall (NGFW) and manage the most complex security policy requirements. Powered with over 60 security services, these gateways are designed to prevent the most evasive and sophisticated 5th generation cyber attacks.
(10) United States of America (California) R&M Computer Consultants, Inc. (10) United States of America (North Carolina) RM Source Australia PTY Ltd. (11) (13) Australia Check Point SAAS Security Ltd. (12) Israel Atmosec, Inc.
United States of America (Delaware) Zone Labs, L.L.C. (8) United States of America (California) Check Point Software Technologies (Sweden) AB. (13) Sweden Check Point Software Technologies (Sweden) AB. – Dubai Branch (14) Sweden R&M Computer Consultants, Inc. (8) United States of America (North Carolina) RM Source Australia PTY Ltd. (9) (12) Australia Cyberint Singapore Pte Ltd. (11) Singapore Cyberint Inc.
Our marketing efforts include building our brand through a newly launch thought leadership campaign with the theme “Security in Action.” Check Point marketing includes corporate marketing, as well marketing for products, partners, field promotions, digital promotions, and solutions-oriented thought leadership. In 2023, we continued to invest in sales and marketing resources.
In addition to corporate and demand generation marketing, Check Point marketing also includes marketing for products, partners, field promotions, digital promotions, and solutions-oriented thought leadership. In 2024, we continued to invest in sales and marketing resources.
We support our channel partners with a dedicated team of experienced sales professionals including account managers, channel managers and sales engineers.
Sales and Marketing We mostly sell our products and services through a two-tier distribution model; distributors that sell to resellers and to service providers and MSSPs, who sell to end-customers. We support our channel partners with a dedicated team of experienced sales professionals including account managers, channel managers and sales engineers.
Protecting the World from Sophisticated Cyber Security Attacks Over the last three decades, the technologies behind cyber attacks and the ensuing preventative measures have advanced rapidly, especially with the rise and availability of Generative AI. 2023 was yet another year for an increasing number of cyber attacks targeting organizations of all sizes and across all industries.
Protecting the World from Sophisticated Cyber Security Attacks Over the last three decades, the technologies behind cyber attacks and the ensuing protective measures have advanced considerably, accelerating most recently with the rise and availability of Generative AI as both a threat tool and as another tool to advance detection and prevention capabilities.
Revenues by Category of Activity The following table presents our revenues for the last three fiscal years by category of activity: Year Ended December 31, 2023 2022 2021 (in millions) Category of Activity: Products and licenses $ 497.4 $ 554.9 $ 513.9 Security subscriptions $ 981.2 $ 858.0 $ 755.2 Software updates and maintenance $ 936.1 $ 917.0 $ 897.7 Total revenues $ 2,414.7 $ 2,329.9 $ 2,166.8 27 Sales and Marketing We mostly sell our products and services through a two-tier distribution model; distributors that sell to resellers and to service providers and MSSPs, who sell to end-customers.
Our agent for service of process in the United States is CT Corporation System, 818 West Seventh Street, Los Angeles, CA 90017 U.S.A.; Tel: 213-627-8252. 28 Revenues by Category of Activity The following table presents our revenues for the last three fiscal years by category of activity: Year Ended December 31, 2024 2023 2022 (in millions) Category of Activity: Products and licenses $ 507.9 $ 497.4 $ 554.9 Security subscriptions $ 1,104.2 $ 981.2 $ 858.0 Software updates and maintenance $ 952.9 $ 936.1 $ 917.0 Total revenues $ 2,565.0 $ 2,414.7 $ 2,329.9 For information regarding our revenue by geographic market, please refer to “Item 5 – Operating and Financial Review and Prospects” under the caption “Overview”.
Environment – How we value our surroundings – We take an active part in helping to ensure the sustainability of the world’s resources and environment. • Environmental Policy – Check Point understands that climate change and the global warming have observable effects on the environment. Check Point’s impact on the environment is generally through our products, services and facilities.
Environment – How we value our surroundings – We strive for the sustainability of our operations and promote a responsible relationship with the environment. • Environmental Policy – Check Point understands that climate change has real and observable effects on the environment.
Below are some of the highlight reviews: Forrester • The Forrester Wave™: Zero Trust Platform Providers, Q3 2023 • The Forrester Wave™: Enterprise Email Security, Q2 2023 Frost & Sullivan • Company of The Year Award 2023 “Best In Class Global Next Generation Firewall Industry • Radar for Cloud Native Protection Platform 2023 • Radar for Cloud Workload Protection Platforms 2023 • Radar for Endpoint Security 2023 • Radar Extended Detection & Response 2023 GigaOm • Next Generation Firewall Radar • Radar for Cloud Security Posture Management 2023 • Radar for Cloud Network Security, 2023 • Radar for Ransomware Prevention 2023 • Radar for Endpoint Detection & Response (EDR) 2023 Omdia • Universal Radar for Email Security 2023 Miercom • For the second consecutive year, Check Point attained Secure Certification with its #1 position in Miercom’s 2024 Security Benchmark Report.
Below are some of the highlight reviews: Gartner o Gartner® Magic Quadrant™ Leader for Network Firewalls becoming the only vendor to be listed as a Leader for the 23rd time, 2024 o Gartner® Magic Quadrant™ Visionary for Endpoint Protection Platforms, 2024 o Gartner® Magic Quadrant™ Leader for Email Security Platforms, 2024 Forrester o The Forrester Wave™: Enterprise Firewall Solutions, Q4 2024 o The Forrester® Wave™ Leader for Mobile Threat Protection, 2024 o The Forrester® Wave™ Strong Performer for Cloud Workload Security, 2024 Frost & Sullivan o Frost & Sullivan® Radar Leader for Mobile Detection and Response, 2024 o Frost & Sullivan® Radar Leader for Email Security, 2024 o Frost & Sullivan® Radar Leader for Cloud Security Posture Management, 2024 GigaOm o GigaOm® Radar Leader for Cloud Network Security, 2024 o GigaOm® Radar Leader for Cloud Workload Security, 2025 o GigaOm® Radar Leader for CNAPP, 2024 o GigaOm® Radar Leader for App and API Security, 2024 o GigaOm® Radar Leader for Security Policy as Code, 2024 o GigaOm® Radar Leader for Enterprise Firewall, 2024 o GigaOm® Radar Leader for OT Security, 2024 o GigaOm® Radar Leader for Anti-Phishing, 2024 27 Miercom o For the third consecutive year, Check Point attained Secure Certification in Miercom Enterprise & Hybrid Mesh Firewall Benchmark Report 2025.
In this way, Check Point’s extended family protects organizations of all sizes across all industry verticals in 88 countries, realizing a safer internet experience. Check Point’s Key Platform Components Yesterday’s security is no match for today’s advanced threats. Managing complex and disparate security tools from various vendors is becoming an artifact of the past.
In this way, Check Point’s extended family protects organizations of all sizes across all industry verticals in 88 countries, helping them to realize a safer internet experience and uninterrupted business operations. 22 Check Point’s Key Platform Components The hyperconnected world, with 5.5 billion internet users and 15 billion connected devices, has led to impressive innovations but also new threats.
Miercom lab tests showed 99.8% prevention of unknown attacks and 100% of phishing attacks.
Miercom lab tests showed 99.9% malware block rate against Zero+1 Day attacks, 99.7% of phishing attacks, and 98% intrusion prevention for high & critical threats.
Check Point’s employees and business partners are expected to adhere to and follow the standards and principles we set. In order to support the adherence to our Code of Ethics and Business Conduct as well as other policies, we provide different channels for reporting, which include the Whistle Blower Procedure.
Check Point’s employees and business partners are expected to adhere to and follow the established standards and principles.
Removed
To defend against rapidly evolving cyber threats in an AI-driven world, organizations need a new strategy to recalibrate their cyber defenses.
Added
Hackers are leveraging AI to enhance the frequency and sophistication of their attacks, including unique AI threats like prompt injection, LLM manipulation, and data poisoning. CISOs face challenges like a growing attack surface, complexity, costly breaches, fragmented tools, reactive security, limited visibility, and talent shortages. Every device, connection, and endpoint must be safeguarded.
Removed
Realizing this, Check Point developed the Infinity Platform that provides customers with key benefits, including: • Comprehensive enterprise-grade security across the data center, network, cloud, branch office, and remote users with unified management. • A simplified and consolidated approach to securing their entire IT infrastructure with organizations of all sizes.
Added
The Check Point Infinity Platform offers a comprehensive security platform powered by AI, built on a hybrid mesh network security architecture, with unified management across data centers, perimeter, cloud, endpoint, mobile, IoT, and OT.

… 29 more changes not shown on this page.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

42 edited+9 added−6 removed27 unchanged
We may experience future fluctuations or declines in operating margins from historical levels due to several factors, as described above in “Item 3 – Key Information” under the caption “Risk Factors – Risks Related to Our Business and Our Market”. Financial Income, Net Net financial income consists primarily of interest earned on cash equivalents, short-term deposits and marketable securities.
We may experience future fluctuations or declines in operating margins from historical levels due to several factors, as described above in “Item 3 – Key Information” under the caption “Risk Factors – Risks Related to Our Business and Our Market”. 39 Financial Income, Net Net financial income consists primarily of interest earned on cash equivalents, short-term deposits and marketable securities.
We sell our products primarily through channel partners including distributors, resellers, Original Equipment Manufacturers (“OEMs”), system integrators and Managed Security Service Providers (“MSPs”), all of whom are considered end users. Security subscriptions provide customers with access to its suite of security solutions and is sold as a service.
We sell our products primarily through channel partners including distributors, resellers, Original Equipment Manufacturers (“OEMs”), system integrators and Managed Security Service Providers (“MSSPs”), all of whom are considered end users. Security subscriptions provide customers with access to its suite of security solutions and is sold as a service.
Since most of our investments are U.S. dollars denominated securities, our net financial income is heavily dependent on prevailing U.S. interest rates changes and the market expectations to such changes. The increase in net financial income in 2023 was primarily due to higher interest rates and yield on marketable securities, short-term deposits and cash equivalents.
Since most of our investments are U.S. dollars denominated securities, our net financial income is heavily dependent on prevailing U.S. interest rates changes and the market expectations to such changes. The increase in net financial income in 2024 was primarily due to higher interest rates and yield on marketable securities, short-term deposits and cash equivalents.
Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold.
AFS debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold.
In 2023 and 2022 no impairment in our marketable securities was recorded. For further risk related to our portfolio see also Item 3, “Risk Factors – Risks Related to Our Business and Our Market – Our cash balances and investment portfolio have been, and may continue to be, adversely affected by market conditions and interest rates”.
In 2024 and 2023 no impairment in our marketable securities was recorded. For further risk related to our portfolio see also Item 3, “Risk Factors – Risks Related to Our Business and Our Market – Our cash balances and investment portfolio have been, and may continue to be, adversely affected by market conditions and interest rates”.
Under the repurchase programs, we may purchase our ordinary shares from time to time, depending on market conditions, share price, trading volume and other factors. We repurchased ordinary shares in the amount of $1,288 million in 2023 and $1,300 million in 2022.
Under the repurchase programs, we may purchase our ordinary shares from time to time, depending on market conditions, share price, trading volume and other factors. We repurchased ordinary shares in the amount of $1,300 million in 2024 and $1,288 million in 2023.
Additional details are provided in this Item 5, under the caption “Results of Operations”. Trend Information Additional details are provided in this Item 5, under the caption “Results of Operations”. 40
Trend Information Additional details are provided in this Item 5, under the caption “Results of Operations”.
The following table presents the percentage of total consolidated revenues that we derive from sales in each of the regions shown: Year Ended December 31, 2023 2022 2021 Region: Americas, principally U.S. 43 % 43 % 43 % Europe, Middle East and Africa 46 % 45 % 45 % Asia-Pacific 11 % 12 % 12 % For information on the impact of foreign currency fluctuations, please refer to “Item 11 – Quantitative and Qualitative Disclosures about Market Risk – Foreign Currency Risk”.
The following table presents the percentage of total consolidated revenues that we derive from sales in each of the regions shown: Year Ended December 31, 2024 2023 2022 Region: Americas, principally U.S. 42% 43% 43% Europe, Middle East and Africa 47% 46% 45% Asia-Pacific 11% 11% 12% For information on the impact of foreign currency fluctuations, please refer to “Item 11 – Quantitative and Qualitative Disclosures about Market Risk – Foreign Currency Risk”.
Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, recorded in other comprehensive income (loss). Amortization of premium, discount and interest is recorded in our statements of income. Our liquidity could be negatively affected by a decrease in demand for our products and services, or increase in employment costs.
AFS securities are carried at fair value, with the unrealized gains and losses, net of tax, recorded in other comprehensive income (loss). Amortization of premium, discount and interest is recorded in our statements of income. Our liquidity could be negatively affected by a decrease in demand for our products and services, or increase in employment costs.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS For discussion related to our financial condition, changes in financial condition, and the results of operations for 2022 compared to 2021, refer to Part I, Item 5.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS For discussion related to our financial condition, changes in financial condition, and the results of operations for 2023 compared to 2022, refer to Part I, Item 5.
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the U.S. Securities and Exchange Commission on April 27, 2023 and which is hereby incorporated by reference .
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the U.S. Securities and Exchange Commission on April 2, 2024 and which is hereby incorporated by reference .
Our cost of security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and cost of customer support related to these services. Our cost of software updates and maintenance include mainly the cost of post-sale customer support. Cost of products and licenses was $99 million in 2023 and $146 million in 2022.
Our cost of security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and cost of customer support related to these services. Our cost of software updates and maintenance include mainly the cost of post-sale customer support. Cost of products and licenses was $98 million in 2024 and $99 million in 2023.
Net financial income was $77 million in 2023 and $44 million in 2022. As we generally hold debt securities until maturity, our current portfolio’s yield is derived primarily from interest rates and the yield on securities at time of purchase.
Net financial income was $96 million in 2024 and $77 million in 2023. As we generally hold debt securities until maturity, our current portfolio’s yield is derived primarily from interest rates and the yield on securities at time of purchase.
Our long-term interest bearing investments were $1,430 million as of December 31, 2023 and $1,866 million as of December 31, 2022. The majority of our financial assets are held and managed through the parent company in Israel and our subsidiaries in Singapore, Canada and the U.S.
Our long-term interest bearing investments were $1,412 million as of December 31, 2024 and $1,430 million as of December 31, 2023. The majority of our financial assets are held and managed through the parent company in Israel and our subsidiaries in Singapore, Canada and the U.S.
Allowance for credit losses on AFS debt securities are recognized in our consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders’ equity. 35 We measure our money market funds and marketable securities at fair value.
Allowance for credit losses on AFS debt securities are recognized in our consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders’ equity. We measure our money market funds and marketable securities at fair value. Money market funds are classified within Level 1.
During each of 2023, 2022 and 2021, we derived approximately 56%, 59%, and 57%, respectively, of our sales from our ten largest channel partners. In 2023, 2022 and 2021, our three largest distributors accounted for approximately 40%, of our sales.
During each of 2024, 2023 and 2022, we derived approximately 56%, 56%, and 59%, respectively, of our sales from our ten largest channel partners. In 2024, 2023 and 2022, our three largest distributors accounted for approximately 39%, 40% and 40% respectively, of our sales.
We generated net cash from operations of $1,038 million in 2023 and $1,098 million in 2022. Net cash from operations for 2023 and 2022 consisted primarily of net income adjusted for non-cash activity. The decrease in our cash from operations was derived mostly from the lower increase in our deferred revenues compared to last year.
We generated net cash from operations of $1,052 million in 2024 and $1,038 million in 2023. Net cash from operations for 2024 and 2023 consisted primarily of net income adjusted for non-cash activity. The increase in our cash from operations was derived mostly from the increase in our deferred revenues compared to last year.
We continued to deliver increasingly more of our latest security offerings as subscriptions resulting in increased sales of our security subscription packages, including advance threat protection, Infinity CloudGuard, and Harmony. As a result, security subscription revenues increased by $123 million, or 14%, from $858 million in 2022 to $981 million in 2023.
We continued to deliver increasingly more of our latest security offerings as subscriptions resulting in increased sales of our security subscription packages, including advance threat protection, Infinity CloudGuard, and Harmony. As a result, security subscription revenues increased by $123 million, or 13%, from $981 million in 2023 to $1,104 million in 2024.
The accounting policies that reflect our more significant estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results, include the following: • Revenue recognition; • Accounting for income taxes; • Impairment of marketable securities; • Loss Contingencies; and • Manufacturing Partner and Supplier Liabilities.
The accounting policies that reflect our more significant estimates, judgments and assumptions and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results, include the following: • Revenue recognition; • Accounting for income taxes; • Impairment of marketable securities; and • Business combination.
Our capital expenditures amounted to $19 million in 2023 and $22 million in 2022, and consisted primarily of computer equipment, software and leasehold improvements. 39 Net cash used in financing activities was $1,165 million in 2023 and $1,168 million in 2022. In 2023 and 2022, net cash used in financing activities was attributed primarily to the repurchase of ordinary shares.
Our capital expenditures amounted to $24 million in 2024 and $19 million in 2023, and consisted primarily of computer equipment, software and leasehold improvements. Net cash used in financing activities was $1,060 million in 2024 and $1,165 million in 2023. In 2024 and 2023, net cash used in financing activities was attributed primarily to the repurchase of ordinary shares.
We re-issued the repurchased shares to settle exercises of options and restricted share unit awards to our employees and directors. Proceeds from such activities were $134 million and $141 million in 2023 and 2022, respectively. Our investments in marketable securities are classified as available-for-sale.
We re-issued the repurchased shares to settle exercises of options and restricted share unit awards to our employees and directors. Proceeds from such activities were $259 million and $134 million in 2024 and 2023, respectively. Our investments in marketable securities are classified as AFS.
Our business is subject to the effects of general global economic conditions and, in particular, market conditions in the IT, Internet security and data security industries. If general economic and industry conditions deteriorate, demand for our products could be adversely affected. 33 We derive our sales primarily through indirect channels.
Our business is subject to the effects of general global economic conditions and, in particular, market conditions in the IT, internet security and data security industries. If general economic and industry conditions deteriorate, demand for our products could be adversely affected.
Net Income Net income increased by $43 million to $840 million in 2023 compared to $797 million in 2022. Liquidity and Capital Resources During 2023 and 2022, we financed our operations through cash generated from operations.
Net Income Net income increased by $6 million to $846 million in 2024 compared to $840 million in 2023. Liquidity and Capital Resources During 2024 and 2023, we financed our operations through cash generated from operations.
The decrease in our operating margin was primarily due to an increase in our workforce related expenses, cloud expenses and amortization of intangibles expenses in related to our acquisitions.
Operating Income Margin In 2024, our operating margin was 34% compared to 37% in 2023. The decrease in our operating margin was primarily due to an increase in our workforce related expenses, cloud expenses and amortization of intangibles expenses in related to our acquisitions.
Cost of security subscriptions was $57 million in 2023 and $41 million in 2022. Cost of software updates and maintenance was $112 million in 2023 and $106 million in 2022. In 2023, amortization of technology was $14 million compared to $12 million in 2022. The increase in 2023 is attributed to the acquisitions made during 2023 and 2022.
Cost of security subscriptions was $73 million in 2024 and $57 million in 2023. Cost of software updates and maintenance was $124 million in 2024 and $112 million in 2023. In 2024, amortization of technology was $25 million compared to $14 million in 2023. The increase in 2024 is attributed to the acquisitions made during 2024 and 2023.
Our total cash and cash equivalents, short-term investments and long-term interest bearing investments, were $2,960 million as of December 31, 2023 and $3,503 million as of December 31, 2022. Our cash and cash equivalents and short-term investments were $1,530 million as of December 31, 2023 and $1,638 million as of December 31, 2022.
Our total cash and cash equivalents, short-term investments and long-term interest bearing investments, were $2,784 million as of December 31, 2024 and $2,960 million as of December 31, 2023. Our cash and cash equivalents and short-term investments were $1,372 million as of December 31, 2024 and $1,530 million as of December 31, 2023.
Taxes on Income Total taxes on income were $135 million in 2023 and $131 million in 2022. Our effective tax rate was 14% in each of the years 2023 and 2022. See Note 11 to our consolidated financial statements for further information on our statutory rates.
Taxes on Income Total taxes on income were $126 million in 2024 and $135 million in 2023. Our effective tax rate was 13% in 2024 and 14% in 2023. See Note 11 to our consolidated financial statements for further information on our statutory rates.
In 2023, net cash provided by investing activities was increased compared to 2022, primarily due to increase in proceeds from sale of marketable securities offset by cash paid in conjunction with acquisitions, net of acquired cash, and lower investment in short term deposit. Our net cash paid for acquisitions amounted to $459 million in 2023 and $48 million in 2022.
In 2024, net cash provided by investing activities decreased compared to 2023, primarily due to decrease in proceeds from sale of marketable securities offset by cash paid in conjunction with acquisitions, net of acquired cash, and higher investment in short term deposit. Our net cash paid for acquisitions amounted to $186 million in 2024 and $459 million in 2023.
Selling and marketing expenses were $747 million in 2023 and $675 million in 2022, which represented 31% of revenues in 2023 and 29% of revenues in 2022. 38 The net increase of $72 million in selling and marketing costs in 2023 primarily stems from rises in compensation expenses for personnel and marketing activities.
Selling and marketing expenses were $863 million in 2024 and $747 million in 2023, which represented 34% of revenues in 2024 and 31% of revenues in 2023. The net increase of $116 million in selling and marketing costs in 2024 primarily stems from rises in compensation expenses for personnel and marketing activities.
Software updates and maintenance revenues increased by $19 million, or 2%, from $917 million in 2022 to $936 million in 2023, primarily as a result of renewals of existing and sales of new maintenance contracts. Cost of Revenues Total cost of revenues was $283 million in 2023 and $304 million in 2022.
Software updates and maintenance revenues increased by $17 million, or 2%, from $936 million in 2023 to $953 million in 2024, primarily as a result of renewals of existing and sales of new maintenance contracts and professional services. 38 Cost of Revenues Total cost of revenues was $319 million in 2024 and $283 million in 2023.
Research and Development Research and development expenses were $369 million in 2023 and $350 million in 2022, and represented 15% of revenues in each of the years 2023 and 2022. Research and development expenses consist primarily of salaries and other related expenses for personnel as well as the cost of facilities and deprecation of capital equipment.
Research and Development Research and development expenses were $395 million in 2024 and $369 million in 2023, and represented 15% of revenues in each of the years 2024 and 2023. Research and development expenses consist primarily of salaries and other related expenses for personnel as well as the cost of our cloud infrastructure expenses.
We generated net cash from investing activities of $469 million in 2023 compared to net cash used in investing activities of $6 million in 2022.
Net cash used in investing activities was $24 million in 2024 compared to net cash generated from investing activities of $469 million in 2023.
Results of Operations The following table presents information concerning our results of operations in 2023 and 2022: Year Ended December 31, 2023 2022 (in millions) Revenues: Products and licenses $ 497.4 $ 554.9 Security subscriptions 981.2 858.0 Software updates and maintenance 936.1 917.0 Total revenues 2,414.7 2,329.9 Operating expenses (*): Cost of products and licenses 99.3 145.6 Cost of security subscriptions 57.0 41.4 Cost of software updates and maintenance 112.3 105.5 Amortization of technology 14.0 11.9 Total cost of revenues 282.6 304.4 Research and development 368.9 349.9 Selling and marketing 747.1 675.2 General and administrative 117.0 116.1 Total operating expenses 1,515.6 1,445.6 Operating income 899.1 884.3 Financial income, net 76.5 44.0 Income before taxes on income 975.6 928.3 Taxes on income 135.3 131.4 Net income $ 840.3 $ 796.9 36 (*) Including pre-tax charges for stock-based compensation, amortization of intangible assets and acquisition related expenses in the following items: Year Ended December 31, 2023 2022 (in millions) Amortization of intangible assets and acquisition related expenses Amortization of technology $ 14.0 $ 11.9 Research and development 7.0 7.1 Selling and marketing 13.7 4.2 Total amortization of intangible assets and acquisition related expenses $ 34.7 $ 23.2 Stock-based compensation Cost of products and licenses $ 0.4 $ 0.4 Cost of software updates and maintenance 7.3 5.0 Research and development 48.7 42.0 Selling and marketing 56.3 43.2 General and administrative 32.6 40.8 Total stock-based compensation $ 145.3 $ 131.4 The following table presents information concerning our results of operations as a percentage of revenues for the periods indicated: Year Ended December 31, 2023 2022 Revenues: Products and licenses 20 % 24 % Security subscriptions 41 37 Software updates and maintenance 39 39 Total revenues 100 % 100 % Operating expenses: Cost of products and licenses 4 6 Cost of security subscriptions 2 2 Cost of software updates and maintenance 5 5 Amortization of technology 1 — *) Total cost of revenues 12 13 Research and development 15 15 Selling and marketing 31 29 General and administrative 5 5 Total operating expenses 63 62 Operating income 37 38 Financial income, net 3 2 Income before taxes on income 40 40 Taxes on income 6 6 Net income 35 % 34 % *) Less than 1%. 37 Revenues We derive our revenues mainly from the sale of products and licenses, security subscriptions and software updates and maintenance.
Results of Operations The following table presents information concerning our results of operations in 2024 and 2023: Year Ended December 31, 2024 2023 (in millions) Revenues: Products and licenses $ 507.9 $ 497.4 Security subscriptions 1,104.2 981.2 Software updates and maintenance 952.9 936.1 Total revenues 2,565.0 2,414.7 Operating expenses (*): Cost of products and licenses 97.8 99.3 Cost of security subscriptions 72.6 57.0 Cost of software updates and maintenance 123.9 112.3 Amortization of technology 25.0 14.0 Total cost of revenues 319.3 282.6 Research and development 394.9 368.9 Selling and marketing 862.9 747.1 General and administrative 111.9 117.0 Total operating expenses 1,689.0 1,515.6 Operating income 876.0 899.1 Financial income, net 96.1 76.5 Income before taxes on income 972.1 975.6 Taxes on income 126.4 135.3 Net income $ 845.7 $ 840.3 37 (*) Including pre-tax charges for stock-based compensation, amortization of intangible assets and acquisition related expenses in the following items: Year Ended December 31, 2024 2023 (in millions) Amortization of intangible assets and acquisition related expenses Amortization of technology $ 25.0 $ 14.0 Research and development 6.5 7.0 Selling and marketing 40.3 13.7 Total amortization of intangible assets and acquisition related expenses $ 71.8 $ 34.7 Stock-based compensation Cost of products and licenses $ 0.4 $ 0.4 Cost of software updates and maintenance 8.2 7.3 Research and development 53.1 48.7 Selling and marketing 58.2 56.3 General and administrative 29.8 32.6 Total stock-based compensation $ 149.7 $ 145.3 The following table presents information concerning our results of operations as a percentage of revenues for the periods indicated: Year Ended December 31, 2024 2023 Revenues: Products and licenses 20 % 20 % Security subscriptions 43 41 Software updates and maintenance 37 39 Total revenues 100 % 100 % Operating expenses: Cost of products and licenses 4 4 Cost of security subscriptions 3 2 Cost of software updates and maintenance 5 5 Amortization of technology 1 1 Total cost of revenues 13 12 Research and development 15 15 Selling and marketing 34 31 General and administrative 4 5 Total operating expenses 66 63 Operating income 34 37 Financial income, net 4 3 Income before taxes on income 38 40 Taxes on income 5 5 Net income 33 % 35 % Revenues We derive our revenues mainly from the sale of products and licenses, security subscriptions and software updates and maintenance.
Our revenues were $2,415 million in 2023 and $2,330 million in 2022. Total revenues in 2023 increased by 4% compared to 2022. Product and license revenues were $497 million in 2023 and $555 million in 2022.
Our revenues were $2,565 million in 2024 and $2,415 million in 2023. Total revenues in 2024 increased by 6% compared to 2023. Product and license revenues were $508 million in 2024 and $497 million in 2023.
We recognize revenues from sales of products and licenses, under Topic 606, upon shipment when control of the promised goods is transferred to the customer, or upon electronic transfer of the Certificate Key to the customer.
Therefore, we identify a contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to each performance obligation in the contract and recognize revenues when (or as) we satisfy a performance obligation. 35 We recognize revenues from sales of products and licenses, under Topic 606, upon shipment when control of the promised goods is transferred to the customer, or upon electronic transfer of the Certificate Key to the customer.
Software updates and maintenance provide customers with rights to unspecified software product upgrades released during the term of the agreement and include maintenance services to end-user customers, through primarily telephone access to technical support personnel as well as hardware support services. 34 We recognize revenues under the core principle that transfer of control to our customers should be depicted in an amount reflecting the consideration we expect to receive in revenue.
Software updates and maintenance provide customers with rights to unspecified software product upgrades released during the term of the agreement and include maintenance services to end-user customers, through primarily telephone access to technical support personnel as well as hardware support services.
Cost of revenues includes cost of product and licenses, cost of security subscriptions and cost of software updates and maintenance and amortization of technology. Our cost of products and licenses includes mainly cost of software and hardware production, packaging and shipping. In 2023 we have seen a significant improvement in the supply chain which had been challenging last year.
Cost of revenues includes cost of product and licenses, cost of security subscriptions and cost of software updates and maintenance and amortization of technology. Our cost of products and licenses includes mainly cost of software and hardware production, packaging and shipping.
Our principal sources of liquidity consist of our cash and cash equivalents, short-term bank deposits and marketable securities (which aggregated $2,960 million as of December 31, 2023) and our cash flow from operations. We believe that these sources of liquidity will be sufficient to satisfy our present capital expenditure requirements. Research and Development, Patents and Licenses, etc.
Our principal sources of liquidity consist of our cash and cash equivalents, short-term bank deposits and marketable securities (which aggregated $2,784 million as of December 31, 2024) and our cash flow from operations.
This rise was partially offset by a $4 million benefit due to fluctuations of various currencies against the U.S. dollar, which mitigated the gross increase. Our selling and marketing expenses worldwide are paid in local currencies and are reported in U.S. dollars.
This rise was partially offset by a $3 million benefit related to currency exchange and hedging. Our selling and marketing expenses worldwide are paid in local currencies and are reported in U.S. dollars. Therefore, changes to the exchange rates between the local currencies and the U.S. dollar have affected, and may in the future affect, our expense level.
Money market funds and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Loss Contingencies We are currently involved in various claims and legal proceedings. We review the status of each matter and assess its potential financial exposure.
Marketable securities are classified within Level 2 or Level 3. This is because these assets are mostly valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs, or based on unobservable inputs.
The net increase of $19 million in research and development expenses in 2023 primarily resulted from increases in compensation and related expenses for personnel, along with elevated expenses in our cloud infrastructure. The gross increase was partially offset by a $16 million benefit resulting from the strengthening of the U.S. dollar against the Israeli Shekel, which mitigated the gross increase.
The $26 million increase in 2024 is primarily a result of an increase in compensation and related expenses for personnel and in our cloud infrastructure expenses. The gross increase was partially offset by a $9 million benefit related to currency exchange and hedging.
Therefore, changes to the exchange rates between the local currencies and the U.S. dollar have affected, and may in the future affect, our expense level. General and Administrative General and administrative expenses consist primarily of salaries and other related expenses for personnel, professional fees, insurance costs, legal and other expenses.
General and Administrative General and administrative expenses consist primarily of salaries and other related expenses for personnel, professional fees, insurance costs, legal and other expenses. General and administrative expenses were $112 million in 2024 and $117 million in 2023, which represented 4% of revenues in 2024 and 5% of revenues in 2023.
Removed
Therefore, we identify a contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to each performance obligation in the contract and recognize revenues when (or as) we satisfy a performance obligation.
Added
Information concerning the effect of governmental regulation on our business is provided in “Item 5 – Operating and Financial Review and Prospects” under the caption “Taxes on income” and in “Item 10 – Additional Information” under the caption “Israeli taxation, foreign exchange regulation and investment programs”. 34 We derive our sales primarily through indirect channels.
Removed
Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we modified our impairment model for available-for-sale (“AFS”) debt securities and discontinued using the concept of “other than temporary” impairment on AFS debt securities.
Added
We recognize revenues under the core principle that transfer of control to our customers should be depicted in an amount reflecting the consideration we expect to receive in revenue.
Removed
If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Manufacturing Partner and Supplier Liabilities We purchase manufactured products from its original design manufacture (“ODM”). We generally do not own the manufactured products.
Added
Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Level 3 Corporate debt security was structured and issued by a global financial institution and valued based on issuer risk, sovereign credit risk and interest rates.
Removed
ODM’s provide services of design, manufacture, orders fulfillment and support with a full turn-key solution to meet our detailed requirements. If the actual demand is significantly lower than forecast, we record a liability for its commitment in excess of the actual demand.
Added
The Financial income related to the instrument during 2024 was insignificant. Business combination We apply the provisions of ASC 805, Business Combinations and allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed or incurred, and intangible assets acquired based on their estimated fair values.
Removed
As of December 31, 2023 and 2022, we have not accrued any significant liability in respect to this exposure.
Added
The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.
Removed
General and administrative expenses were $117 million in 2023 and $116 million in 2022, which represented 5% of revenues in each of the years 2023 and 2022. Operating Income Margin In 2023, our operating margin was 37% compared to 38% in 2022.
Added
When determining the fair values of assets acquired and liabilities assumed or incurred, management makes significant estimates and assumptions, especially with respect to intangible assets. 36 Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired technology, and customer relationships from a market participant perspective, useful lives and discount rates.
Added
We also apply the provisions of ASU 2021-08, Business Combinations (Topic 805)(“ASU 2021-08”) which requires that we recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”) and that at the acquisition date, we account for related revenue contracts in accordance with ASC 606 as if we had originated the contracts.
Added
Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
Added
We believe that these sources of liquidity will be sufficient to meet our normal operating requirements during the next 12 months and the foreseeable future and to fund capital expenditures. 40 Research and Development, Patents and Licenses, etc. Additional details are provided in this Item 5, under the caption “Results of Operations”.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

82 edited+22 added−8 removed67 unchanged
Chelouche is a board member of Tower Semiconductor Ltd., Malam Team Ltd., and until February 2024 served as an external director of the Tel Aviv Stock Exchange (TASE). Mr. Chelouche earned B.A. in Economics and Statistics from Tel Aviv University, and an M.B.A. from INSEAD University in Fontainebleau, France.
Chelouche is a board member of Tower Semiconductor Ltd., Malam Team Ltd., and until February 2024 served as an external director of the Tel Aviv Stock Exchange (TASE). Mr. Chelouche earned a B.A. in Economics and Statistics from Tel Aviv University, and an M.B.A. from INSEAD University in Fontainebleau, France.
The administrator also has the authority to accelerate the vesting of the ordinary shares subject to outstanding awards held by our directors, officers and employees in connection with the subsequent termination of some officers’ employment following a change of control event Dome9 Security Ltd. 2011 Share Option Plan and the 2016 Equity Incentive Subplan In connection with our acquisition of Dome9 Security Ltd. in October 2018, we assumed certain outstanding Dome9 share options under the Dome9 Security Ltd. 2011 Share Option Plan and the 2016 Equity Incentive Subplan, or the Dome9 Equity Plan, which were converted into options to purchase 47,816 of our ordinary shares.
The administrator also has the authority to accelerate the vesting of the ordinary shares subject to outstanding awards held by our directors, officers and employees in connection with the subsequent termination of some officers’ employment following a change of control event. 51 Dome9 Security Ltd. 2011 Share Option Plan and the 2016 Equity Incentive Subplan In connection with our acquisition of Dome9 Security Ltd. in October 2018, we assumed certain outstanding Dome9 share options under the Dome9 Security Ltd. 2011 Share Option Plan and the 2016 Equity Incentive Subplan, or the Dome9 Equity Plan, which were converted into options to purchase 47,816 of our ordinary shares.
Equity Plan provides for the following kinds of awards, which we refer to generically as awards: (i) Incentive Stock Options (ISOs), (ii) Non-statutory Stock Options (NSOs), (iii) Restricted Stock, (iv) Restricted Stock Units (RSUs), (v) Performance Shares, (vi) Performance RSUs (“PSUs”) and (vii) Deferred Stock Units. All of these awards can vest based on time or performance milestones.
Equity Plan provides for the following kinds of awards, which we refer to generically as awards: (i) Incentive Stock Options (ISOs), (ii) Non-statutory Stock Options (NSOs), (iii) Restricted Stock, (iv) Restricted Stock Units (“RSUs”), (v) Performance Shares, (vi) Performance RSUs (“PSUs”) and (vii) Deferred Stock Units. All of these awards can vest based on time or performance milestones.
Each outstanding purchase right will be exercised immediately prior to our merger or consolidation with another company. Our board of directors may amend or terminate each of the ESPPs immediately after the close of any purchase date. Disclosure of a Registrant’s Action to Recover Erroneous Awarded Compensation None. 51
Each outstanding purchase right will be exercised immediately prior to our merger or consolidation with another company. Our board of directors may amend or terminate each of the ESPPs immediately after the close of any purchase date. Disclosure of a Registrant’s Action to Recover Erroneous Awarded Compensation None.
All options granted to directors and executive officers in 2023 were granted with an exercise price equal to 100% of the closing price of the ordinary shares on the Nasdaq Global Select Market on the applicable date of grant. We recorded equity-based compensation expenses in our financial statements for the year ended December 31, 2023 for Mr. Shwed, Dr.
All options granted to directors and executive officers in 2024 were granted with an exercise price equal to 100% of the closing price of the ordinary shares on the Nasdaq Global Select Market on the applicable date of grant. We recorded equity-based compensation expenses in our financial statements for the year ended December 31, 2024, for Mr. Shwed, Dr.
As of December 31, 2023, options to purchase 226 ordinary shares were outstanding under the Dome9 Equity Plan on that date. The single outstanding grant under this plan has a term of ten years, expiring in December 2027, and an option exercise price of $12.99 per share. No further options can be granted under the Dome9 Equity Plan.
As of December 31, 2024, options to purchase 226 ordinary shares were outstanding under the Dome9 Equity Plan on that date. The single outstanding grant under this plan has a term of ten years, expiring in December 2027, and an option exercise price of $12.99 per share. No further options can be granted under the Dome9 Equity Plan.
Smith served as the President and Chief Executive Officer of Allied Minds, an IP commercialization company, from March 2017 through June 2019, and prior to that she served as Chairman, Chief Executive Officer and President of DigitalGlobe Inc., a global provider of satellite imagery products and services. Ms.
Smith previously served as the President and Chief Executive Officer of Allied Minds plc, an IP commercialization company, from March 2017 through June 2019, and prior to that she served as Chairman, Chief Executive Officer and President of DigitalGlobe Inc., a global provider of satellite imagery products and services. Ms.
Smith started her career as a consultant at Bain & Company, where she rose to become Partner. She subsequently joined Sara Lee as Vice President, and went on to serve as President and Chief Executive Officer of eDial, a VoIP collaboration company, and of SRDS, a business-to-business publishing firm.
Smith started her career as a consultant at Bain & Company, Inc., where she rose to become a Partner. She subsequently joined Sara Lee Corporation as Vice President, and went on to serve as President and Chief Executive Officer of eDial, a VoIP collaboration company, and of SRDS, a business-to-business publishing firm.
Equity Plan and the Israel Equity Plan, and, together, as the Equity Plans. 49 Number of Ordinary Shares Reserved for Future Grants under the Equity Plans Following the amendments to the Equity Plans in July 2018, commencing December 31, 2018, on 31, December of each year, the number of Reserved and Authorized Shares (as defined below) under both Equity Plans together shall be automatically reset on such date to equal 10% of the sum of (i) the number of ordinary shares issued and outstanding on such date and (ii) the number of ordinary shares reserved and authorized under the Equity Plans for outstanding awards granted under the Equity Plans as of such date (provided, however, that in no event shall the number of Reserved and Authorized Shares be less than the number of ordinary shares reserved and authorized under the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date).
Number of Ordinary Shares Reserved for Future Grants under the Equity Plans Following the amendments to the Equity Plans in July 2018, commencing December 31, 2018, on 31, December of each year, the number of Reserved and Authorized Shares (as defined below) under both Equity Plans together shall be automatically reset on such date to equal 10% of the sum of (i) the number of ordinary shares issued and outstanding on such date and (ii) the number of ordinary shares reserved and authorized under the Equity Plans for outstanding awards granted under the Equity Plans as of such date (provided, however, that in no event shall the number of Reserved and Authorized Shares be less than the number of ordinary shares reserved and authorized under the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date).
Compensation of Directors and Officers The total direct cash compensation that we accrued for our directors and executive officers as a group, including those who left the company during 2023, was approximately $3.7 million for the year ended December 31, 2023.
Compensation of Directors and Officers The total direct cash compensation that we accrued for our directors and executive officers as a group, including those who left the company during 2024, was approximately $3.7 million for the year ended December 31, 2024.
These amounts include $0.3 million that were set aside or accrued to provide for severance and retirement insurance policies in 2023. These amounts do not include amounts accrued for expenses related to business travel, professional and business association dues and other business expenses reimbursed to officers.
These amounts include $0.3 million that were set aside or accrued to provide for severance and retirement insurance policies in 2024. These amounts do not include amounts accrued for expenses related to business travel, professional and business association dues and other business expenses reimbursed to officers.
Other than as specified in the share ownership table under the caption “Share ownership” below, none of our directors and executive officers holds more than 1% of our outstanding shares. 45 Composition of Board of Directors Our board of directors currently consists of eight members, including three outside directors in accordance with the requirements of the Israeli Companies Law.
Other than as specified in the share ownership table under the caption “Share ownership” below, none of our directors and executive officers holds more than 1% of our outstanding shares. Board Practices Our board of directors currently consists of eight members, including three outside directors in accordance with the requirements of the Israeli Companies Law.
All of these awards can vest based on time or performance milestones. 50 Trustee .
All of these awards can vest based on time or performance milestones. Trustee .
Rothrock has also served as one of our outside directors under the Israeli Companies Law since 2000 and as a director under Roku, Inc. Mr. Rothrock is a Partner emeritus at Venrock, a venture capital firm, where he was a member since 1988 and a general partner since 1995. He retired from Venrock in 2013. Presently, Mr.
Rothrock has also served as one of our outside directors under the Israeli Companies Law since 2000. Mr. Rothrock is a Partner emeritus at Venrock, a venture capital firm, where he was a member since 1988 and a general partner since 1995. He retired from Venrock in 2013. Presently, Mr. Rothrock is the Chairman of RedSeal, Inc.
Dor, Mr. Greenberg, Mr. Schusheim and Ms. Hollenbeck of $17.9 million, $5.4 million, $1.4 million, $1.3 million and $1.7 million, respectively. Assumptions and key variables used in the calculation of such amounts are described in Note 2y to our audited consolidated financial statements included in Item 18 of this Annual Report.
Dor, Mr. Greenberg, Ms. Hollenbeck and Mr. Schusheim of $14.4 million, $3.7 million, $2.2 million, $1.5 million and $1.2 million, respectively. Assumptions and key variables used in the calculation of such amounts are described in Note 2y to our audited consolidated financial statements included in Item 18 of this Annual Report.
Ozer-Armon is a director of Strauss Group Ltd., Similarweb Ltd., and ICL Group Ltd. Ms. Ozer-Armon holds a B.A. magna cum laude in Economics and an M.B.A. degree majoring in Finance and Marketing from Tel Aviv University and she is an AMP graduate of the Harvard Business School. Ray Rothrock has served on our board of directors since 1995. Mr.
Ozer-Armon is a director of Strauss Group Ltd. and ICL Group Ltd. Ms. Ozer-Armon holds a B.A. magna cum laude in Economics and an M.B.A. degree majoring in Finance and Marketing from Tel Aviv University and she is an Advanced Management Program graduate of the Harvard Business School. Ray Rothrock has served on our board of directors since 1995. Mr.
The compensation committee has adopted a written compensation committee charter. 47 The compensation committee’s duties include recommending to the board of directors a compensation policy for executives and monitor its implementation, approve compensation terms of executive officers, directors and employees affiliated with controlling shareholders, make recommendations to the board of directors regarding the issuance of equity incentive awards under our equity incentive plans, and exempt certain compensation arrangements from the requirement to obtain shareholder approval under the Israeli Companies Law.
The compensation committee’s duties include recommending to the board of directors a compensation policy for executives and monitor its implementation, approve compensation terms of executive officers, directors and employees affiliated with controlling shareholders, make recommendations to the board of directors regarding the issuance of equity incentive awards under our equity incentive plans, and exempt certain compensation arrangements from the requirement to obtain shareholder approval under the Israeli Companies Law.
Dollars at the exchange rate as of year-end and were paid in 2024 with respect to compliance with pre-determined 2023 performance metrics. 44 We currently pay each of our non-executive directors an annual cash retainer of $40.0 thousands for the services provided to our board of directors and an annual cash retainer of $7.5 thousands for each committee membership.
Dollars at the exchange rate as of year-end and will be paid in 2025 with respect to compliance with pre-determined 2024 performance metrics. We currently pay each of our non-executive directors an annual cash retainer of $40.0 thousands for the services provided to our board of directors and an annual cash retainer of $7.5 thousands for each committee membership.
All shares shown as beneficially owned have identical rights in all respects. The shares beneficially owned by the directors include the shares owned by their family members to which such directors disclaim beneficial ownership. The share numbers and percentages listed below are based on shares outstanding as of February 29, 2024.
All shares shown as beneficially owned have identical rights in all respects. The shares beneficially owned by the directors include the shares owned by their family members to which such directors disclaim beneficial ownership. 49 The share numbers and percentages listed below are based on shares outstanding as of February 28, 2025.
Our board of directors has determined that each of Yoav Chelouche, Guy Gecht and Ray Rothrock has “financial and accounting expertise,” and each of Guy Gecht and Ray Rothrock has “professional expertise”. An outside director serves for a term of three years, which may be extended for additional three-year terms.
Our board of directors has determined that each of Yoav Chelouche, Dafna Gruber and Ray Rothrock has “financial and accounting expertise,” and each of Dafna Gruber and Ray Rothrock has “professional expertise”. 46 An outside director serves for a term of three years, which may be extended for additional three-year terms.
(3) Number of options immediately exercisable or exercisable and RSUs and PSU that vest within 60 days from February 29, 2024. (4) The share amount and holding percentage includes unexercised stock options.
(3) Number of options immediately exercisable or exercisable and RSUs and PSU that vest within 60 days from February 28, 2025. (4) The share amount and holding percentage includes unexercised stock options.
Chelouche is a member of the board of directors of a number of private companies. He was also a board member and until 2015 co-Chairman of IATI-Israel Advanced Technology Industries, an Israeli nonprofit organization that researches, develops and advocates policies that promote Israel’s high tech ecosystem through activities in training, tuition, business development, public relations and public policy advocacy. Mr.
He was also a board member and, until 2015, Co-Chairman of IATI-Israel Advanced Technology Industries, an Israeli nonprofit organization that researches, develops and advocates policies that promote Israel’s high tech ecosystem through activities in training, tuition, business development, public relations and public policy advocacy. Mr.
In addition, we pay the chairman of our board of directors and the lead independent director an annual cash retainer of $20.0 thousands, the chair of our audit committee an annual cash retainer of $7.5 thousands and the chair of each of our nominating, sustainability and corporate governance committee and compensation committee an annual cash retainer of $2.5 thousands.
In addition, we pay the lead independent director an annual cash retainer of $35.0 thousands, the chair of our audit committee an annual cash retainer of $7.5 thousands and the chair of each of our nominating, sustainability and corporate governance committee and compensation committee an annual cash retainer of $2.5 thousands.
We do not lease vehicles for our Covered Executives. In accordance with the company’s executive compensation policy, we also paid cash bonuses upon compliance with predetermined 2023 performance parameters set by the Compensation Committee and the Board of Directors. The 2023 cash bonus expenses for Dr. Dor, Mr. Greenberg, Mr. Schusheim and Ms.
We do not lease vehicles for our Covered Executives. In accordance with the company’s executive compensation policy, we will also pay cash bonuses following compliance with predetermined 2024 performance parameters set by the Compensation Committee and the Board of Directors. The 2024 cash bonus expenses for Dr. Dor, Mr. Greenberg, Mr. Schusheim and Ms.
Cash compensation expenses recorded in 2023 consisted of $19.4 thousands in salary expenses, and $5.8 thousands in benefit costs. Mr. Shwed requested to forego his salary and bonus for 2023, as he has done in the past. Following consideration of Mr. Shwed’s request, our compensation committee and board of directors have determined that Mr.
Cash compensation expenses recorded in 2024 consisted of $20.4 thousands in salary expenses, and $16.6 thousands in benefit costs. Mr. Shwed requested to forego his salary and bonus for 2024, as he has done in the past. Following consideration of Mr. Shwed’s request, our compensation committee and board of directors have determined that Mr.
Shai Weiss is the chairman of the nominating, sustainability and corporate governance committee. Tal Shavit Shenhav and Jill Smith serve as the other members of our nominating, sustainability and corporate governance committee. The nominating, sustainability and corporate governance committee has adopted a written nominating committee charter.
Shai Weiss is the chairman of the nominating, sustainability and corporate governance committee. Tal Shavit Shenhav and Jill Smith serve as the other members of our nominating, sustainability and corporate governance committee.
Following is a summary of the salary and benefits paid in 2023 (i) to our five most highly compensated executive officers (referred to as the “Covered Executives”) and (ii) to our non-executive directors. Cash Compensation Mr. Gil Shwed, Chief Executive Officer and Director.
Following is a summary of the salary and benefits paid in 2024 (i) to our five most highly compensated executive officers (referred to as the “Covered Executives”) and (ii) to our non-executive directors. Cash Compensation Mr. Gil Shwed, Executive Chair (served as Chief Executive Officer until December 15, 2024).
Nataly Kremer, Chief Product Officer and Head of Research and Development since March 2023, oversees all product and technology units and uses her proficiency in delivering network, security, and cloud technologies for large enterprises to meet customer needs. Ms. Kremer brings extensive R&D and leadership experience to Check Point.
Nataly Kremer, Chief Product Officer and Head of Research and Development since March 2023, oversees all product and technology units and uses her proficiency in delivering network, security, and cloud technologies for large enterprises to meet customer needs. Ms. Kremer brings extensive R&D and leadership experience to Check Point. She joined the company after 12 years with AT&T Inc.
Kremer is a board member of IBI Investment Bank and a board member of Israel Advanced Technology Industries (IATI), where she also holds the role of Head of the ITAI Diversity and Inclusion Group. Rupal Hollenbeck President at Check Point since March 2023, after serving as Chief Commercial Officer from March 2022 until March 2023. Ms.
Kremer is a board member of I.B.I Investment House ltd. and a board member of Israel Advanced Technology Industries (“IATI”), where she also holds the role of Head of the ITAI Diversity and Inclusion Group. Rupal Hollenbeck, has been President of Check Point since March 2023, after serving as Chief Commercial Officer from March 2022 until March 2023. Ms.
All equity-based compensation grants to our Covered Executives were made in accordance with the parameters of our company’s executive compensation policy and were approved by the company’s Compensation Committee and Board of Directors, and, in the case of the equity-based compensation granted to the Chief Executive Officer, also by the company’s shareholders in accordance with the Israeli Companies Law.
All equity-based compensation grants to our Covered Executives were made in accordance with the parameters of our company’s executive compensation policy and were approved by the company’s Compensation Committee and Board of Directors, and, in the case of the equity-based compensation granted to Mr.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES Directors and Senior Management Our directors and executive officers as of March 15, 2024, were as follows: Name Position Independent Director (1) Outside Director (2) Member of Audit Committee Member of Compensation Committee Member of Nominating, Sustainability and Corporate Governance Committee Gil Shwed Chief Executive Officer and Director Jerry Ungerman Chairman of the Board ✓ Dorit Dor Chief Technology Officer Nataly Kremer Chief Product Officer and Head of Research and Development Rupal Hollenbeck President Roei Golan Chief Financial Officer Guy Gecht (3) Lead Independent Director ✓ ✓ ✓ ✓ Yoav Chelouche (3) Director ✓ ✓ ✓ ✓ Tzipi Ozer-Armon Director ✓ ✓ Ray Rothrock (3) Director ✓ ✓ ✓ ✓ Tal Shavit Shenhav Director ✓ ✓ Shai Weiss Director ✓ ✓ Jill Smith Director ✓ ✓ (1) “Independent Director” under the Nasdaq Global Select Market regulations and the Israeli Companies Law (see explanation below).
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES Directors and Senior Management Our directors and executive officers as of March 15, 2025, were as follows: Name Position Independent Director (1) Outside Director (2) Member of Audit Committee Member of Compensation Committee Member of NSCG Committee Gil Shwed Executive Chair of the Board of Directors Nadav Zafrir Chief Executive Officer and Director Nataly Kremer Chief Product Officer and Head of Research and Development Rupal Hollenbeck President* Roei Golan Chief Financial Officer Itai Greenberg Chief Revenue Officer Yoav Chelouche (3) Lead Independent Director X X X X Dafna Gruber Director X X X X Tzipi Ozer-Armon Director X X X Ray Rothrock Director X X X X Tal Shavit Shenhav Director X X Jill Smith Director X X Jerry Ungerman Director X Shai Weiss Director X X (1) “Independent Director” under the Nasdaq Global Select Market regulations and the Israeli Companies Law (see explanation below).
As of December 31, 2023, Yoav Chelouche, Guy Gecht and Ray Rothrock are our outside directors under the Israeli Companies Law. Yoav Chelouche’s and Guy Gecht’s term of office will expire in 2024, and Ray Rothrock’s term of office will expire in 2026.
As of December 31, 2024, Yoav Chelouche, Dafna Gruber and Ray Rothrock are our outside directors under the Israeli Companies Law. Yoav Chelouche’s and Dafna Gruber’s term of office will expire in 2027, and Ray Rothrock’s term of office will expire in 2026.
Name Number of shares beneficially owned (1)(5) % of class of shares (2) Title of securities covered by the options, RSUs and PSUs Number of options, RSUs, and PSUs (3) Exercise price of options Date of expiration of options Gil Shwed 29,804,551 25.6 %(4) Ordinary shares 4,920,000 $ 114.23-$131.96 06/06/2024-08/02/2030 All directors and officers as a group (13 persons including Mr.
Name Number of shares beneficially owned (1)(5) % of class of shares (2) Title of securities covered by the options, RSUs and PSUs Number of options, RSUs, and PSUs (3) Exercise price of options Date of expiration of options Gil Shwed 28,797,225 25.8%(4) Ordinary shares 3,920,000 $114.23-$131.96 08/19/2025-08/02/2030 All directors and officers as a group (14 persons including Mr.
The option exercise prices of the outstanding options as of December 31, 2023 range between $12.99 and $136.26 per share. As of December 31, 2023, 2,767,969 RSUs and PSUs were outstanding under the Equity Plans combined. Administration Both Equity Plans are administered by our board of directors or a committee of our board.
The option exercise prices of the outstanding options as of December 31, 2024 range between $12.99 and $182.00 per share. As of December 31, 2024, 2,504,773 RSUs and PSUs were outstanding under the Equity Plans combined. 50 Administration Both Equity Plans are administered by our board of directors or a committee of our board.
Without such unexercised stock options, the 24,884,551 issued ordinary shares held by Gil Shwed represented 22.0% of the outstanding ordinary shares and voting rights as of February 29, 2024. (5) Other than Mr. Shwed, none of our executive officers and directors beneficially own more than 1% of our outstanding ordinary shares.
Without such unexercised stock options, the 24,877,225 issued ordinary shares held by Gil Shwed represented 23.1% of the outstanding ordinary shares and voting rights as of February 28, 2025. (5) Other than Mr. Shwed, none of our executive officers and directors beneficially own more than 1% of our outstanding ordinary shares.
Our board of directors has determined that each of Yoav Chelouche, Guy Gecht, Tzipi Ozer-Armon, Ray Rothrock, Tal Shavit Shenhav, Jill Smith, Jerry Ungerman, and Shai Weiss is an independent director under the applicable Nasdaq regulations and the Israeli Companies Law.
Our board of directors has determined that each of Yoav Chelouche, Dafna Gruber, Tzipi Ozer-Armon, Ray Rothrock, Tal Shavit Shenhav, Jill Smith, Jerry Ungerman, and Shai Weiss is an independent director under the applicable Nasdaq regulations and the Israeli Companies Law. Our independent directors have regularly held meetings at which only independent directors are present.
Each executive officer is elected by the board of directors and serves at the discretion of the board. All of our executive officers and directors, other than non-employee directors, devote substantially all of their working time to our business. There are no family relationships among any of our directors, officers or key employees.
All of our executive officers and directors, other than non-employee directors, devote substantially all of their working time to our business. There are no family relationships among any of our directors, officers or key employees.
Employees As of December 31, 2023, we had 6,450 employees as well as 277 subcontractors (194 subcontractors in 2022, 163 subcontractors in 2021) Over the past three years, the number of our employees by function was as follows: As of December 31, 2023 2022 2021 Function : Research, development and quality assurance 1,889 1,807 1,677 Marketing, pre sale, sales and business development 2,869 2,678 2,509 Customer support 1,027 926 905 Information systems, administration, finance and operation 665 615 551 Total 6,450 6,026 5,642 Over the past three years, the number of our employees by geographic area was as follows: As of December 31, 2023 2022 2021 Function : Israel 2,672 2,525 2,416 Americas 1,973 1,813 1,660 Rest of the World 1,805 1,688 1,566 Total 6,450 6,026 5,642 We are subject to Israeli labor laws and regulations with respect to our Israeli employees.
Over the past three years, the number of our employees and contractors by function was as follows: As of December 31, 2024 2023 2022 Function : Research, development and quality assurance 1,955 1,889 1,807 Marketing, pre-sale, sales and business development 2,923 2,869 2,678 Customer support 1,069 1,027 926 Information systems, administration, finance and operation 722 665 615 Total 6,669 6,450 6,026 Over the past three years, the number of our employees by geographic area was as follows: As of December 31, 2024 2023 2022 Function : Israel 2,874 2,672 2,525 Americas 1,980 1,973 1,813 Rest of the World 1,815 1,805 1,688 Total 6,669 6,450 6,026 We are subject to Israeli labor laws and regulations with respect to our Israeli employees.
She joined the company after 12 years with AT&T, where she led its Software and Delivery organization and AT&T’s center in Israel. She holds an MBA and BSc in Computer Sciences and Management from Tel Aviv University. Ms.
(“AT&T”), where she led its Software and Delivery organization and AT&T’s center in Israel. She holds an MBA and BSc in Computer Sciences and Management from Tel Aviv University. Ms.
Shwed served as Chairman of our board of directors until September 2015. Mr. Shwed is considered the inventor of the modern firewall and authored several patents, such as the company’s Stateful Inspection technology. Mr.
Mr. Shwed served as the Chief Executive Officer from Check Point’s inception through December 2024, and Mr. Shwed previously served as Chairman of our board of directors until September 2015. Mr. Shwed is considered the inventor of the modern firewall and authored several patents, such as the company’s Stateful Inspection technology. Mr.
The audit committee’s duties include providing assistance to the board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing, financial reporting, internal control and legal compliance functions.
The audit committee has adopted a written audit committee charter as required by the Nasdaq regulations. 47 The audit committee’s duties include providing assistance to the board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing, financial reporting, internal control and legal compliance functions.
The Israeli labor laws differ materially from U.S. labor laws and, in some cases, impose material obligations on us (such as severance pay and mandatory cost of living increases).
The Israeli labor laws differ materially from U.S. labor laws and, in some cases, impose material obligations on us (such as severance pay and mandatory cost of living increases). We are also subject to the labor laws and regulations of other jurisdictions in the world where we have employees.
Jill D Smith has served on our board of directors since November 2023. Ms. Smith brings more than 25 years of international leadership experience, including 17 years as chief executive officer of private and public companies in the technology and information services markets. Most recently, Ms.
Smith brings more than 25 years of international leadership experience, including 17 years as chief executive officer of private and public companies in the technology and information services markets. Ms.
Accordingly, as of December 31, 2023, the number of Reserved and Authorized Shares under both Equity Plans together was reset to equal 12,290,744. As of December 31, 2023, options to purchase 7,233,044 ordinary shares were outstanding under the Equity Plans and the Dome9 Equity Incentive Plan combined.
Accordingly, as of December 31, 2024, the number of Reserved and Authorized Shares under both Equity Plans together was reset to equal 11,658,555. As of December 31, 2024, options to purchase 5,712,254 ordinary shares were outstanding under the Equity Plans and the Dome9 Equity Incentive Plan combined.
Employees), as the Non-US ESPP, and together with the US ESPP, as the “ESPPs”. The ESPPs permit employees to purchase ordinary shares through payroll deductions. As of February 29, 2024, 246,703 ordinary shares were available under the US ESPP and 669,590 ordinary shares were available under the Non-US ESPP.
Employees), as the Non-US ESPP, and together with the US ESPP, as the “ESPPs”. The ESPPs permit employees to purchase ordinary shares through payroll deductions. As of February 28, 2025, 162,418 ordinary shares were available under the US ESPP and 393,617 ordinary shares were available under the Non-US ESPP.
On August 3, 2023, following the approval of our Compensation Committee, Board of Directors and the company’s shareholders at the 2023 Annual General Meeting, we granted Mr.
In connection with such appointment, and following the approval of our Compensation Committee, Board of Directors and the company's shareholders at the 2024 Annual General Meeting, we granted Mr.
Hollenbeck were $322.8 thousands, $119.7 thousands, $140.4 thousands, and $467.3 thousands, respectively. As noted above, Mr. Shwed did not receive a cash bonus for 2023. For the non-U.S. executives, the cash compensation amounts paid were denominated in Israeli Shekels and converted into U.S.
Hollenbeck were $313.0 thousands, $108.9 thousands, $136.1 thousands, and $397 thousands, respectively. As noted above, Mr. Shwed did not receive a cash bonus for 2024. For the non-U.S. executives, the cash compensation amounts paid were denominated in Israeli Shekels and converted into U.S.
We refer to the plans, as amended, as the U.S.
We refer to the plans, as amended, as the U.S. Equity Plan and the Israel Equity Plan, and, together, as the Equity Plans.
During 2023, we granted our executive officers and directors options to purchase an aggregate of approximately 0.6 million shares and approximately 0.07 million RSUs and PSUs under our equity incentive plans. The exercise price of these options range between $126.16-$136.26, and their expiration dates range between December 2029 and October 2030.
During 2024, we granted our executive officers and directors options to purchase an aggregate of approximately 0.35 million shares and approximately 0.13 million RSUs and PSUs under our equity incentive plans. The exercise price of these options range between $173.21-$182.00, and their expiration dates range between October 2031 and November 2031.
Hollenbeck manages Check Point’s global commercial organization since March 2022. Ms. Hollenbeck served on our board of directors from January 2021 until March 2022. She was most recently CMO of AI hardware start-up Cerebras Systems in Silicon Valley. She also served as Senior Vice President & Chief Marketing Office at Oracle, a post which she held until January 2020.
Hollenbeck has managed Check Point’s global commercial organization since March 2022. Ms. Hollenbeck served on our board of directors from January 2021 until March 2022. She was most recently the Chief Marketing Officer of AI hardware start-up Cerebras Systems Inc. in the Silicon Valley.
Rothrock is the Chairman of RedSeal, Inc., a cybersecurity analytics company. Mr. Rothrock served as the Chief Executive Officer of RedSeal, Inc. from February 2014 until May 2020. Mr. Rothrock is a director of Nasdaq-listed Roku, Inc, and a number of private companies. Mr.
(“RedSeal”), a cyber security analytics company. Mr. Rothrock served as the Chief Executive Officer of RedSeal from February 2014 until May 2020. Mr. Rothrock is a director of Roku, Inc., a publicly-traded company on Nasdaq, Centrus Energy Corp., a publicly-traded company on the New York Stock Exchange, and a number of private companies. Mr.
Rothrock is a member of the Massachusetts Institute of Technology Corporation, and a Trustee of the University of Texas and Texas A&M Investment Management Company. Mr. Rothrock received a B.S. in Engineering from Texas A&M University, an M.S. from the Massachusetts Institute of Technology and an M.B.A. from the Harvard Business School.
Rothrock is a member of the Massachusetts Institute of Technology Corporation, and a Trustee of the Aerospace Corporation. Mr. Rothrock received a B.S. in Engineering from Texas A&M University, an M.S. from the Massachusetts Institute of Technology and an M.B.A. from the Harvard Business School. Dr. Tal Shavit Shenhav has served on our board of directors since 2000. Dr.
Our board of directors has established an audit committee, a compensation committee and a nominating, sustainability and corporate governance committee. Audit Committee . Under the Israeli Companies Law, the board of directors of any public company must establish an audit committee.
Audit Committee . Under the Israeli Companies Law, the board of directors of any public company must establish an audit committee.
Equity Incentive Plans The following table summarizes our equity incentive plans, which have outstanding awards as of December 31, 2023: Plan Outstanding options, RSUs & PSUs Options outstanding exercise price Date of expiration of options Options exercisable 2005 United States Equity Incentive Plan 1,219,079 $97.61-$136.26 06/06/2024-10/31/2030 370,436 2005 Israel Equity Incentive Plan 8,781,708 $91.78-$131.96 06/06/2024-08/02/2030 5,532,046 Dome9 Equity Incentive Plan 226 $12.99 12/21/2027 226 In 2005, we adopted our 2005 United States Equity Incentive Plan and our 2005 Israel Equity Incentive Plan, which were subsequently amended in January 2014, July 2018, August 2020 and August 2023.
Equity Incentive Plans The following table summarizes our equity incentive plans, which have outstanding awards as of December 31, 2024: Plan Outstanding options, RSUs & PSUs Options outstanding exercise price Date of expiration of options Options exercisable 2005 United States Equity Incentive Plan 908,505 $97.61-$173.21 05/02/2025-10/30/2031 228,066 2005 Israel Equity Incentive Plan 7,308,296 $91.78-$182.00 08/19/2025-11/30/2031 4,358,300 Dome9 Equity Incentive Plan 226 $12.99 12/21/2027 226 In 2005, we adopted our 2005 United States Equity Incentive Plan and our 2005 Israel Equity Incentive Plan, which were subsequently amended in January 2014, July 2018, August 2020 and August 2023.
She consults with companies undergoing structural change with emphasis on organizational growth through effective mergers and acquisitions and a redefining of management roles in order to meet market changes. Shai Weiss has served on our board of directors since 2018. Mr. Weiss is the Chief Executive Officer of Virgin Atlantic, one of the most innovative airlines in the world. Mr.
She consults with companies undergoing structural change with emphasis on organizational growth through effective mergers and acquisitions and a redefining of management roles in order to meet market changes. Jill D Smith has served on our board of directors since 2023. Ms.
Shwed)(5) 30,851,436 26.2 % Ordinary shares 5,854,148 $ 91.78-$131.96 06/06/2024- 10/31/2030 (1) The number of ordinary shares shown includes shares that each shareholder has the right to acquire pursuant to stock options that are exercisable and RSUs and PSUs that vest within 60 days after February 29, 2024.
Shwed)(5) 29,178,100 26.1% Ordinary shares 4,239,396 $114.23-$136.26 08/19/2025- 10/31/2030 (1) The number of ordinary shares shown includes shares that each shareholder has the right to acquire pursuant to stock options that are exercisable and RSUs and PSUs that vest within 60 days after February 28, 2025.
Yoav Chelouche is the chairman of the audit committee. Guy Gecht, Tzipi Ozer-Armon and Ray Rothrock serve as the other members of our audit committee. The audit committee has adopted a written audit committee charter as required by the Nasdaq regulations.
Yoav Chelouche is the chairman of the audit committee. Dafna Gruber, Tzipi Ozer-Armon and Ray Rothrock serve as the other members of our audit committee.
Hollenbeck is a board member of Blackbaud Inc, a leading cloud software company powering social good, and a board member of The Asian Pacific Fund, a non-profit organization.
Hollenbeck holds a BS in Finance and International Studies from Boston College, and a Master of International Management from the Thunderbird School of Global Management in Arizona. Ms. Hollenbeck is a board member of Blackbaud, Inc., a leading cloud software company powering social good, and a board member of The Asian Pacific Fund, a non-profit organization. Ms.
We are also subject to the labor laws and regulations of other jurisdictions in the world where we have employees. 48 Share Ownership The following table shows information regarding beneficial ownership by our directors and executive officers as of February 29, 2024. Beneficial ownership is determined in accordance with rules of the Securities and Exchange Commission.
Share Ownership The following table shows information regarding beneficial ownership by our directors and executive officers as of February 28, 2025. Beneficial ownership is determined in accordance with rules of the Securities and Exchange Commission.
See “Outside and Independent Directors”. Under our articles of association, the number of directors on our board is to be no less than six and no more than twelve. Each director (other than an outside director as described below) is elected to serve until the next annual general meeting of shareholders and until his or her successor has been elected.
Each director (other than an outside director as described below) is elected to serve until the next annual general meeting of shareholders and until his or her successor has been elected. Each executive officer is elected by the board of directors and serves at the discretion of the board.
Weiss established the European office of early-stage technology venture fund JVP and was a senior associate with Morgan Stanley.
Weiss established the European office of early-stage technology venture fund JVP and was a senior associate with Morgan Stanley. He holds an M.B.A. degree from Columbia University and a BBA degree from City University of New York, Baruch College.
Gil Shwed, our Chief Executive Officer and Director, options to purchase 0.5 million ordinary shares at an exercise price equal to 100% of the closing price of the ordinary shares on the Nasdaq Global Select Market on the date of the grant, vesting gradually over a period of four years with the vesting of options to purchase 0.2 million ordinary shares (40% of the grant) also subject to long-term company performance goals.
Shwed options to purchase 170,000 ordinary shares at an exercise price equal to 100% of the closing price of the ordinary shares on the Nasdaq Global Select Market on the date of the grant, vesting gradually over a period of four years.
Prior to joining Oracle in 2018, Ms. Hollenbeck was with Intel Corporation for over 23 years, with her most recent role being Corporate Vice President and General Manager of Global Data Center Sales. Prior to that she was Vice President and General Manager of Intel China and throughout her time at Intel has worked in Arizona, California, Singapore, and Beijing.
She also served as Senior Vice President & Chief Marketing Office at Oracle Corporation (“Oracle”), a post which she held until January 2020. Prior to joining Oracle in 2018, Ms. Hollenbeck was with Intel Corporation (“Intel”) for over 23 years, with her most recent role being Corporate Vice President and General Manager of Global Data Center Sales.
The term of Ray Rothrock will expire at our 2026 annual meeting of shareholders and the terms of Yoav Chelouche and Guy Gecht will expire at our 2024 annual meeting of shareholders. There are no arrangements or understandings with major shareholders, customers, suppliers or others, pursuant to which any of the directors or members of senior management are elected.
There are no arrangements or understandings with major shareholders, customers, suppliers or others, pursuant to which any of our directors or members of senior management are elected or appointed.
Golan has over 14 years of financial experience. Prior to joining Check Point in 2021, Mr. Golan worked at EY for 11 years, where he held the role of Managing Director in the Technology practice. Mr. Golan holds a B.A. in Economics and Accounting and a M.B.A in finance management. Mr. Golan is a certified public accountant. 42 Yoav Z.
Golan oversees Check Point's finance operations, including accounting, business analysis, investor relations, legal, tax and treasury. Mr. Golan has over 15 years of financial experience. Prior to joining Check Point in 2021, Mr. Golan worked at EY for 11 years, where he held the role of Managing Director in the Technology practice. Mr.
(2) “Outside Director” as required by the Israeli Companies Law (see explanation below). (3) “Financial expert” as required by the Israeli Companies Law and Nasdaq requirements with respect to membership on the audit committee (see “Item 16A – Audit Committee Financial Expert”). 41 Gil Shwed is the founder, Chief Executive Officer and Director. Mr.
(3) “Financial expert” as required by the Israeli Companies Law and Nasdaq requirements with respect to membership on the audit committee (see “Item 16A – Audit Committee Financial Expert”). * Rupal Hollenbeck will conclude her tenure as President in the first half of 2025. 41 Gil Shwed is the founder of Check Point and Executive Chair of the Board of Directors.
Guy Gecht has served on our board of directors since 2006 and as our Lead Independent Director since August 2020. Mr. Gecht has also served as one of our outside directors under the Israeli Companies Law since 2006. Mr.
Greenberg holds a B.Sc. in Information Systems from the Ben-Gurion University. Yoav Z. Chelouche has served on our board of directors since 2006 and as our Lead Independent Director since December 2024. Mr. Chelouche has also served as one of our outside directors under the Israeli Companies Law since 2006. Mr.
Chelouche served as a President and Chief Executive Officer of Scitex Corp., a world leader in digital imaging and printing systems, from December 1994 until July 2000. From August 1979 until December 1994, Mr. Chelouche held various managerial positions with Scitex, including VP Strategy and Business Development, VP Marketing and VP Finance for Europe. Mr.
From August 1979 until December 1994, Mr. Chelouche held various managerial positions with Scitex, including VP Strategy and Business Development, VP Marketing and VP Finance for Europe. Mr. Chelouche is a member of the board of directors of a number of private companies.
Jerry Ungerman serves as the chairman of the board of directors since August 2020, after serving as Vice Chairman of our board of directors from 2005 until August 2020. From 2001 to 2005, Mr. Ungerman served as our President and before that, from 1998 until 2000, he served as our Executive Vice President. Prior to joining us, Mr.
Smith currently serves as a director of MDA Space Ltd. 43 Jerry Ungerman has served on our board of directors since 2005, and served as the chairman of the board of directors from August 2020 through December 2024, after serving as Vice Chairman of our board of directors from 2005 until August 2020. From 2001 to 2005, Mr.
Our independent directors have regularly held meetings at which only independent directors are present. 46 Committees of the Board of Directors Our articles of association provide that the board of directors may delegate all of its powers to committees of the board as it deems appropriate, subject to the provisions of Israeli law.
Committees of the Board of Directors Our articles of association provide that the board of directors may delegate all of its powers to committees of the board as it deems appropriate, subject to the provisions of Israeli law. Our board of directors has established an audit committee, a compensation committee and a nominating, sustainability and corporate governance committee.
Roei Golan has been serving as Chief Financial Officer of Check Point since May 2023, as Acting Chief Financial Officer from October 2022 until May 2023, and as VP Finance from 2021 until May 2023. Mr. Golan oversees Check Point's finance operations, including accounting, business analysis, investor relations, legal, tax and treasury. Mr.
Hollenbeck will conclude her tenure as President in the first half of 2025. Roei Golan, has been serving as Chief Financial Officer of Check Point since May 2023, as Acting Chief Financial Officer from October 2022 until May 2023, and as VP Finance from 2021 until November 2022. Mr.
Yoav Chelouche and Guy Gecht serve as the other members of our compensation committee.
Yoav Chelouche, Dafna Gruber and Tzipi Ozer-Armon serve as the other members of our compensation committee. The compensation committee has adopted a written compensation committee charter.
She also served as Chief Operating Officer of Micron Electronics, and co-founded Treacy & Company, a consulting and boutique investment business. Ms. Smith currently serves as a director of Aspen Technology, Inc., R1 RCM Inc. and MDA Space. Dr. Tal Shavit Shenhav has served on our board of directors since 2000. Dr.
She also served as Chief Operating Officer of Micron Electronics, and co-founded Treacy & Company, a consulting and boutique investment business. Ms.
The board of directors has determined that there are no current conflicts of interest with respect to any of our directors. The terms of Gil Shwed, Jerry Ungerman, Dr. Tal Shavit Shenhav, Tzipi Ozer-Armon, Jill Smith and Shai Weiss will expire at our 2024 annual meeting of shareholders.
Some of our directors are board members of multiple companies, some of which may be technology companies. The board of directors has determined that there are no current conflicts of interest with respect to any of our directors. The terms of Gil Shwed, Nadav Zafrir, Tzipi Ozer-Armon, Dr.
Shwed will not receive a bonus for 2023, and did not receive any cash compensation for 2023 except for an amount equal to the minimum wage required under Israeli law. Dr. Dorit Dor, Chief Technology Officer. Compensation expenses recorded in 2023 included $374.9 thousands in salary expenses and $87.4 thousands in benefit costs. Mr.
Shwed will not receive a bonus for 2024, and did not receive any cash compensation for 2024 except for an amount equal to the minimum wage required under Israeli law. Following the assumption of the Chief Executive Officer role by Mr. Zafrir on December 15, 2024, Mr. Shwed became the Executive Chair of our Board of Directors Dr.
An advocate for professional women around the world, she started several women’s initiatives while at Intel, including serving as co-chair of the Board of Intel’s Network of Executive Women in Asia. She is currently a Founding Circle Member of Neythri, a non-profit organization dedicated to enabling the professional advancement of South Asian women. Ms.
Prior to that she was Vice President and General Manager of Intel China and throughout her time at Intel has worked in Arizona, California, Singapore, and Beijing. An advocate for professional women around the world, she started several women’s initiatives while at Intel, including serving as co-chair of the board of Intel’s Network of Executive Women in Asia.
Additional details are provided in this Item 6, under the caption “Share ownership” and in “Item 7 – Major Shareholders and Related Party Transactions”. Some of our directors are board members of multiple companies, some of which may be technology companies.
Of the individuals mentioned above, only Gil Shwed owned more than one percent of our outstanding shares as of December 31, 2024. Additional details are provided in this Item 6, under the caption “Share ownership” and in “Item 7 – Major Shareholders and Related Party Transactions”.
Itai Greenberg, Chief Strategy Officer and Head of Cloud Security Business. Compensation expenses recorded in 2023 included $232.7 thousands in salary expenses and $63.3 thousands in benefit costs. Mr. Sharon Schusheim, Chief Services Officer, Compensation expenses recorded in 2023 included $265.9 thousands in salary expenses and $66.7 thousands in benefit costs. Ms. Rupal Hollenbeck, President.
Sharon Schusheim, Chief Services Officer, Compensation expenses recorded in 2024 included $264.4 thousands in salary expenses and $66.6 thousands in benefit costs. Ms. Rupal Hollenbeck, President. Compensation expenses recorded in 2024 included $736.1 thousands in salary expenses and $81.2 thousands in benefit costs.
Chelouche has served on our board of directors since 2006. Mr. Chelouche has also served as one of our outside directors under the Israeli Companies Law since 2006. Mr. Chelouche has been Managing Partner of Aviv Venture Capital since August 2000. He serves on boards of directors of certain Aviv companies. Prior to joining Aviv Venture Capital, Mr.
Chelouche has been Managing Partner of Aviv Venture Capital since August 2000. He serves on boards of directors of certain Aviv companies. Prior to joining Aviv Venture Capital, Mr. Chelouche served as a President and Chief Executive Officer of Scitex Corporation (“Scitex”), a world leader in digital imaging and printing systems, from December 1994 until July 2000.
Hollenbeck is also an Adjunct Professor at California State University East Bay, teaching a Women in Leadership course in the College of Business & Economics. Ms. Hollenbeck holds a BS in Finance and International Studies from Boston College, and a Master of International Management from the Thunderbird School of Global Management in Arizona. Ms.
She is currently a Founding Circle Member of Neythri, a non-profit organization dedicated to enabling the professional advancement of South Asian women. Ms. Hollenbeck is also an Adjunct Professor at California State University East Bay, teaching a Women in Leadership course in the College of Business & Economics. Ms.

… 32 more changes not shown on this page.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

3 edited+0 added−0 removed3 unchanged
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS The following table shows information as of December 31, 2023, 2022 and 2021, for each person who, to the best of our knowledge, beneficially owned more than 5% of our outstanding ordinary shares as December 31, 2023: Name of Five Percent Shareholders No. of shares beneficially held (1)(3) % of class of shares (2) No. of shares beneficially held (1) % of class of shares (2) No. of shares beneficially held (1) % of class of shares (2) December 31, 2023 December 31, 2022 December 31, 2021 Gil Shwed 29,744,539 25.3 %(3) 29,149,766 23.3 % 28,369,738 21.4 % (1) The amount includes ordinary shares owned by each of the individuals, directly or indirectly, and options immediately exercisable or that are exercisable within 60 days from December 31 st , of each of the years shown in this table.
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS The following table shows information as of December 31, 2024, 2023 and 2022, for each person who, to the best of our knowledge, beneficially owned more than 5% of our outstanding ordinary shares as December 31, 2024: Name of Five Percent Shareholders No. of shares beneficially held (1)(3) % of class of shares (2) No. of shares beneficially held (1) % of class of shares (2) No. of shares beneficially held (1) % of class of shares (2) December 31, 2024 December 31, 2023 December 31, 2022 Gil Shwed 28,797,215 25.6% (3) 29,744,539 25.3% 29,149,766 23.3% (1) The amount includes ordinary shares owned by each of the individuals, directly or indirectly, and options immediately exercisable or that are exercisable within 60 days from December 31 st , of each of the years shown in this table.
(3) The share amount and holding percentage includes the unexercised stock options. Without such unexercised stock options, the 24,884,539 issued ordinary shares held by Gil Shwed represented 22.0% of the outstanding ordinary shares and voting rights as of December 31, 2023. Our major shareholders do not have different voting rights from other shareholders with respect to our ordinary shares.
(3) The share amount and holding percentage includes the unexercised stock options. Without such unexercised stock options, the 24,877,215 issued ordinary shares held by Gil Shwed represented 23.0% of the outstanding ordinary shares and voting rights as of December 31, 2024. 52 Our major shareholders do not have different voting rights from other shareholders with respect to our ordinary shares.
According to our transfer agent, as of December 31, 2023, there were 106 holders of record of our ordinary shares in the United States, representing approximately 80.77% of our outstanding shares.
According to our transfer agent, as of December 31, 2024, there were 99 holders of record of our ordinary shares in the United States, representing approximately 80.99% of our outstanding shares.

Other CHKP 10-K year-over-year comparisons