Check Point Software Technologies Ltd. today posted second quarter revenue and adjusted earnings that reached the high end of its guidance.
Check Point Software is one of the top providers of cybersecurity software for the enterprise. The company sells products that help organizations secure their cloud environments, protect employee devices and scan network traffic for malicious requests.
Check Point Software’s revenues reached $571 million in the second quarter after growing 9% year-over-year. Compared with the second quarter of fiscal 2021, the company has more than doubled its growth rate. Deferred revenues, a measure of future sales, increased at an even faster rate of 14% to reach $1.66 billion.
Check Point Software pointed to strong demand for its Harmony suite of cybersecurity products as one factor behind its accelerated quarterly growth.
Companies use Harmony to help employees securely log into work applications. Additionally, the product suite includes tools that block phishing campaigns and protect employee devices from malware. Check Point Software detailed today that the Harmony suite experienced more than 50% growth in the second quarter.
CloudGuard and Quantum, Check Point Software’s two other flagship product suites, both experienced double-digit growth as well during the three months ended June 30. CloudGuard is a suite of tools designed to help companies secure their public cloud environments. Quantum, in turn, is Check Point Software’s lineup of on-premise firewall appliances and related software products.
Harmony, CloudGuard and parts of the Quantum product portfolio together form Check Point Software’s security subscriptions revenue segment. The segment grew 14% year-over-year in the second quarter, to $210 million.
Check Point Software’s product and license revenues segment, which includes offerings such as its Quantum firewalls, experienced 12% growth. It accounted for $133 million of the company’s total revenue during the three months ended June 30.
The $571 million in total revenue that Check Point Software generated puts the company $11 million above the midpoint of its guidance for the second quarter. Furthermore, the company reached the high end of its adjusted earnings forecast. Check Point Software closed the second quarter with adjusted earnings of $1.64 per share, 4 cents above the midpoint of its forecast and 2% more than a year ago.
“Over the past quarter, cyber-attacks have increased by 32 percent while advanced attacks like ransomware have grown by 59 percent, underscoring why cyber-security is so critical to keep our world going,” said Check Point Software founder and Chief Executive Officer Gil Shwed. “Our strategic vision of a consolidated prevention-first security architecture is more relevant than ever to combat today’s cyber challenges.”
For the third quarter, Check Point Software is projecting revenues of $555 million to $585 million. The company expects its adjusted earnings to range between $1.6 and $1.72 per share.
Image: Check Point Software
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