Check Point Software Technologies .(CHKP) - 2024 Q4 - Annual Report

Revenue Performance - Total revenues for 2024 were $2,565 million, representing a 6% increase from$ 2,415 million in 2023[260] - Security subscription revenues increased by $123 million, or 13%, from$ 981 million in 2023 to $1,104 million in 2024[261] - Software updates and maintenance revenues rose by$ 17 million, or 2%, from $936 million in 2023 to$ 953 million in 2024[261] - The Americas accounted for 42% of total revenues in 2024, while Europe, the Middle East, and Africa accounted for 47%[237] Expenses and Costs - Total cost of revenues was $319 million in 2024, up from$ 283 million in 2023[262] - Cost of security subscriptions increased to $73 million in 2024 from$ 57 million in 2023[264] - Research and development expenses were $395 million in 2024, consistent at 15% of revenues for both 2024 and 2023[266] - Selling and marketing expenses increased to$ 863 million in 2024, representing 34% of revenues, up from $747 million and 31% in 2023[269] - General and administrative expenses decreased to$ 112 million in 2024, accounting for 4% of revenues, compared to $117 million and 5% in 2023[272] - Operating margin declined to 34% in 2024 from 37% in 2023, primarily due to increased workforce-related expenses and cloud costs[273] - Amortization of technology rose to$ 25 million in 2024 compared to $14 million in 2023, attributed to acquisitions[265] Income and Profitability - Operating income for 2024 was$ 876 million, a decrease from $899 million in 2023[258] - Net income for 2024 was$ 845.7 million, slightly up from $840.3 million in 2023[258] - Net income increased by$ 6 million to $846 million in 2024, compared to$ 840 million in 2023[279] Financial Position - Net financial income rose to $96 million in 2024, up from$ 77 million in 2023, driven by higher interest rates and yields on marketable securities[275] - Total taxes on income decreased to $126 million in 2024, with an effective tax rate of 13%, down from$ 135 million and 14% in 2023[277] - Total cash and cash equivalents, short-term investments, and long-term interest-bearing investments were $2,784 million as of December 31, 2024, down from$ 2,960 million in 2023[280] - Net cash from operations was $1,052 million in 2024, an increase from$ 1,038 million in 2023, primarily due to higher deferred revenues[281] - Net cash used in financing activities was $1,060 million in 2024, attributed mainly to the repurchase of ordinary shares totaling$ 1,300 million[283] - The company believes its liquidity sources will be sufficient to meet normal operating requirements over the next 12 months[286]