Shares in cybersecurity firms Fortinet Inc. and Check Point Software Technologies Ltd. rose after the companies reported better-than-expected quarterly results.

For the quarter ended Dec. 31, Fortinet reported a profit before costs such as stock compensation of $205.8 million, or $1.23 per share, up from $1.06 per share a year ago. Revenue in the quarter rose 29%, to $963.6 million. Analysts had expected earnings of $1.05 per share on revenue of $960.5 million.

Product revenue in the quarter rose 31%, to $378.8 million, and service revenue rose 27%, to $584.7 million. Billings jumped 36%, to $1.31 billion.

For the full year 2021, Fortinet reported an adjusted profit of $606.8 million, or $3.63 per share, up from $448.5 million, or $2.91 per share, in 2020.

“Our 2021 performance was driven by increased demand for our cybersecurity solutions and exceptional execution from our global operations and sales teams and excellent support from our channel partners and distributors,” Ken Xie, founder, chairman and chief executive officer of Fortinet, said in a statement. “Fortinet’s integrated and single-platform approach to security is resonating with customers that want to effectively protect their corporate networks from a wide range of attack vectors.”

Looking forward, Fortinet is predicting adjusted earnings of 75 cents to 80 cents per share in the first quarter on revenue of $865 million to $895 million. For the full year, the company is estimating adjusted earnings of $4.85 to $5 per share on revenue of $4.275 billion to $4.325 billion. Analysts had projected full-year earnings of $4.62 per share on revenue of $3.965 billion.

Check Point issued similarly strong results. Adjusted earnings increased 4% year-over-year, to $2.25 per share, on revenue of $599 million, up 6%. Analysts had been expecting $2.14 per share on revenue of $585.9 million. For the full year, Check Point reported earnings per share of $7.02 on revenue of $2.167 billion.

“This was the sixth consecutive quarter with an accelerated billings reaching 14% growth for the quarter,” Gil Shwed, founder and CEO of Check Point, said in a statement. “Our success continues to be driven by our Infinity platform’s capabilities and the unique strengths of our key pillars: Check Point Quantum network security solutions, Check Point Harmony and Check Point CloudGuard.”

For the first quarter, Check Point predicted earnings per share of $1.48 to $1.58 on revenue of $517 million to $547 million.

The results from both companies were well-received by investors. Check Point released its earnings at the opening of trading and saw its stock rise 2.4% on the day, to $126.68. Shares of Fortinet, which released its earnings after the bell, rose more than 3% in extended trading.

Image: Space Coast Daily