How did CHKP's Q4 earnings surprise impact its annual performance?

Check Point Software Technologies (CHKP) reported a net income of $255 million for the year ending December 31, 2024, which represents a 5% growth from the previous year. This growth can be attributed to the company's strong revenue performance and operational efficiency.

1. **Revenue Growth**: CHKP's revenue increased by 7% to $635 million, which was above the midpoint of their projections. This growth in revenue contributed to the overall increase in net income.
2. **Subscription Revenue and Calculated Billings**: The company's subscription revenue grew by 12% to $277 million, and calculated billings reached $562 million, representing a 6% year-over-year growth. These metrics indicate strong customer demand and retention, which is a positive signal for future earnings.
3. **Gross Profit and Operating Income**: CHKP's gross profit increased by 5% to $563 million, with a gross margin of 89%. The non-GAAP operating income was $274 million, reflecting efficient management of operating expenses. These factors contribute to the company's profitability and impact net income positively.
4. **Cash Flow and Share Buyback**: The company reported an operating cash flow of $249 million and maintained a strong cash balance of $2.9 billion. CHKP also completed a share buyback of $325 million, which can enhance shareholder value and potentially impact earnings per share positively.

In conclusion, CHKP's Q4 earnings surprise had a positive impact on its annual performance, as evidenced by the growth in net income and various revenue and profitability metrics. The company's strong revenue growth, efficient operating management, and cash flow performance all contributed to its overall success for the year ending December 31, 2024.