Check Point Software Technologies Ltd. generated higher net income and revenue in the fourth quarter than analysts had  projected thanks to strong demand for its cybersecurity software.

The company reported financial results today. Israel-based Check Point is a major player in the cybersecurity market, with more than 100,000 customers, including a fifth of the Global Fortune 500. 

Check Point’s revenue grew 7% year-over-year, to $638 million, in the fourth quarter. That’s slightly higher than the $636 million the Refinitiv consensus estimate projected. It generates revenue by selling physical firewall appliances for data centers and cybersecurity software.

The company’s Security Subscription Revenues revenue segment, which covers sales of its subscription-based products, grew at a faster rate than its overall sales. The segment increased 13% year-over-year, to $213 million, in the fourth quarter. Its Infinity offering, which enables customers to purchase multiple cybersecurity products through a single subscription, achieved triple-digit growth.

Historically, companies have bought cybersecurity software from several different suppliers. Check Point’s Infinity subscription enables companies to purchase multiple cybersecurity tools from a single provider. This arrangement simplifies procurement and, according to the company, also lowers costs: The company claims Infinity can deliver a 20% reduction in security expenses. 

Infinity provides access to all four of Check Point’s core product lineups. 

The company’s Quantum product lineup includes tools for blocking malicious network traffic. Check Point also offers the CloudGuard and Harmony software suites for securing cloud environments and employee devices, respectively. A fourth product lineup, Horizon, includes tools that administrators can use to investigate breach alerts.

The increased customer demand that the company logged in the fourth quarter also benefited its earnings per share. It generated adjusted net income of  $301 million in the quarter. That translated into adjusted earnings of $2.45, more than the $2.35 per share analysts surveyed by Refinitiv had projected. 

“We delivered solid fourth-quarter and 2022 full-year financial results despite a volatile year-end macro-environment,” said founder and Chief Executive Officer Gil Shwed. “Revenue and non-GAAP earnings per share came in at the top end of our projections. We continued building the future of cyber security with the prevention-first Infinity architecture and realized triple-digit growth in Infinity revenues.”

Check Point’s strategy for continuing its revenue growth places an emphasis on product development. The company has expanded its cybersecurity portfolio several times in the past few quarters.

Last year, Check Point introduced a new firewall appliance called Quantum Lightspeed that runs on Nvidia Corp. silicon. The company claims Quantum Lightspeed is the world’s fastest firewall with the ability to scan to 3 terabits of network traffic per second.

The Horizon software suite, one of the four product lineups that underpin Check Point’s fast-growing Infinity subscription, also launched last year. The suite promises to help administrators more quickly detect complex cyberattacks. One Horizon application, Horizon Events, makes breach alerts from its other product lineups available in a centralized interface.

Check Point detailed today that it has implemented more than 40 machine learning-powered threat detection engines across its various products. According to the company, it also aggregates millions of breach indicators per day to track cyberattack patterns. 

Across its product portfolio, it expects to generate revenues of between $545 million and $585 million in the current quarter. The company is projecting adjusted earnings of $1.65 to $1.78 per share. 

Image: Check Point Software