Check Point Software Technologies beat estimates with a 2% gain in second-quarter profit, boosted by double-digit growth in revenue from products and subscriptions to protect cloud and other networks from escalating cyber attacks.
The Israel-based group said it earned $1.64 per diluted share excluding one-off items in the April to June period, up from $1.61 a year earlier. Revenue grew 9% to $571 million.
It was forecast to earn $1.62 a share on revenue of $560 million, according to I/B/E/S data from Refinitiv.
“The demand for cyber has remained healthy in the last year and I hope it will stay that way,” Chief Executive Gil Shwed told reporters, adding that while the global economic slowdown had some impact, supply chain disruptions affected the company more.
“The last four quarters … we started seeing better and better results. Initially, it was in some more internal measurements and this quarter, we’re seeing it also on the top line with revenue growth.”
Over the past quarter, cyber-attacks increased by 32%, while advanced attacks, such as ransomware, grew by 59% to underscore the critical need for cyber security, Shwed said.
To that end, Check Point has moved to a consolidated prevention-first security architecture that encompasses securing corporate networks, the cloud and employees’ who work remotely. Security subscription revenue grew 14% in the quarter.
Shwed said that after making six acquisitions the last few years Check Point, with $3.7 billion in cash, was seeking more.
“It’s always challenging to find the right companies and we are in a constant look for the right targets,” he said. “I’m sure that in the mid to long range, we’ll find more opportunities.”
Check Point, whose shares are up 7% this year, said it bought back $325 million worth of shares in the quarter, as part of its share repurchase programme.