Why is Checkpoint growth slower versus fast growing vendors like CrowdStrike?
🛡️ Business Models & Market Exposure
- CrowdStrike (CRWD) is a cloud-native SaaS company founded in 2011, focused on endpoint security, identity protection, cloud workload defense, threat intelligence, and AI-driven automation via its Falcon platform
- Check Point (CHKP) is a longer-established cybersecurity player offering both hardware-based network security solutions and cloud‑focused subscription services (e.g. Quantum Force, Harmony Email, Infinity)
CrowdStrike’s growth is driven by high-margin SaaS recurring revenue, while Check Point blends traditional and subscription models.
📈 Growth Metrics & Recent Performance
CrowdStrike (CRWD):
- FY2025 revenue was about $3.95 billion, up ~36% from $3.06 billion in FY2024
- Analysts forecast around 20% year‑over‑year growth in Q2 FY2026 to $1.10 billion, with ARR up 22% to $4.44 billion
- Growth is solid but impacted by a major software bug incident in July 2024, which hurt upsells and customer perception
Check Point (CHKP):
- Subscription-based revenues (e.g. security subscriptions) grew around 10% year‑on‑year in Q1 2025 (approximately $291 million)
- EPS growth for full-year 2025 is forecast around 8.2%, with share price up ~18% year-to-date
📊 Stock Return & Valuation Comparison
- Over the past year, Check Point’s stock has returned 45.6%, exceeding CrowdStrike’s 28.7% performance
- Valuation multiples differ sharply:
- CrowdStrike trades at ~20× forward sales, above the industry average (~13.5×).
- Check Point trades at ~8.7× forward sales, well below industry average
❓Why Check Point’s Growth Looks Slower
- Mature Scale & Legacy Business
Check Point is older and already very large, with slower incremental growth due to a broader existing installed base and hardware legacy offerings. - Different Revenue Mix
CrowdStrike is almost entirely SaaS (~95% subscription revenue), fueling faster top-line growth. Check Point transitions from hardware to subscription more gradually. - Incident Impact on CrowdStrike
CrowdStrike’s July 2024 global outage depressed customer upsells and churned perception, slowing growth momentum - Valuation & Expectations
CrowdStrike’s higher valuation reflects high future growth expectations, while Check Point’s cheaper valuation signals more conservative long‑term growth prospects.
✅ Summary Table
| Feature | CrowdStrike (CRWD) | Check Point (CHKP) |
|---|---|---|
| Founded | 2011 | 1993 |
| Business Model | Cloud-native SaaS | Hardware + Cloud subscription |
| FY2025 Revenue | ~$3.95 B (36% YoY growth) | Slower growth; subscription up ~10% |
| Growth Forecast | ~20%+ (Q2 FY26) | ~8% EPS growth |
| Valuation (P/S) | ~20× | ~8.7× |
| 12‑Month Stock Gain | ~28.7% | ~45.6% |
🎯 Why some say CrowdStrike’s growth is “slow”?
- Relative to its high valuation, the ~20–30% growth rate may feel disappointing compared to lower‑valued peers or startups growing faster.
- The July 2024 outage significantly affected customer trust, upsells, and profit margins in the near term.
🧠 Final Take
- CrowdStrike is a fast‑growing, high‑valuation SaaS cybersecurity firm that saw annual growth of ~36% in FY2025, though it’s facing some near-term headwinds.
- Check Point remains stable and profitable, but its larger, more mature scale and hybrid hardware‑cloud model yield slower growth (~8–10%).
- However, Check Point’s cheaper valuation and stronger recent stock returns makes it comparatively attractive to value-sensitive investors.
Let me know if you’d like deeper insight into either company’s product stack or future outlook!
Check Point does not publicly disclose its Net Dollar Retention (NDR)—also known as Net Revenue Retention (NRR). Instead, the company reports overall subscription and revenue growth metrics, but specific retention percentages (e.g. 120% NRR) are not included in its earnings releases or investor communications
🔍 What We Do Know
- In its FY2024 earnings (Q4 + full year ended Dec 31, 2024), Check Point reported strong subscription growth:
- Security subscriptions revenue rose 13% year-over-year to about $1.10 billion
- Total revenue grew ~6%, with calculated billings up 9–11%
- Analyst insight (e.g. Morningstar) notes Check Point has high customer retention but doesn’t provide a precise NDR figure
This suggests existing customers mostly stay, and upsells occur—but without hard numbers, it’s unclear whether retention is 100%, 110%, or higher.
📈 Industry Benchmarks: Why It Matters
- Generally, NDR above 100% indicates growth from existing customers; 125% or more is considered excellent, especially in enterprise SaaS .
- Companies with NDR above 120% typically command a 63% higher valuation multiple than peers with lower retention .
Without Check Point’s disclosed NDR, it’s hard to fully compare its retention-driven growth to peers.
🧮 Why NDR May Be Low or Unpublished
- Detailed NRR Disclosure Is Not Mandatory
Check Point’s financials and press releases don’t break out NDR or expansion retention rates. - Hybrid Revenue Model
The company sells both software subscriptions and hardware—so gauging retention can be trickier than with pure SaaS peers like CrowdStrike. - Mature Customer Base
As a large, long-standing enterprise security provider, upsell potential may be more limited than smaller cloud-first firms.
✅ Summary
| Metric | Check Point Status |
|---|---|
| Net Dollar / Revenue Retention (NDR/NRR) | Not publicly disclosed |
| Subscription revenue growth (FY2024) | +13% (~$1.10B) |
| Overall revenue growth (FY2024) | ~6% total revenue growth |
| Billings growth (as per RPO) | +9–11% |
📌 Final Thought
While Check Point clearly has a high retention and modest expansion profile, the absence of a published NDR number makes direct comparison to fast-growing SaaS firms difficult.
