Check Point Software Technologies Ltd. today posted better-than-expected revenue and profit numbers for its fiscal third quarter.

The company also revised its full-year earnings guidance upwards, but its revenue forecast has been trimmed on the high end. Its share price dropped 2% on the report. 

Check Point Software is a major cybersecurity provider that counts more than 100,000 organizations as customers. The company’s products are used to protect cloud environments, on-premises infrastructure and employee devices. Its product portfolio consists of cybersecurity applications, as well as physical firewalls that companies can install in their data centers and offices.

Check Point Software’s revenue ticked up 3% year-over-year, to $596 million, in the third quarter ended Sept 30. Analysts were expecting $591.86 million. The company also managed to surpass the midpoint of its own internal forecast by about $9 million.

Revenue growth in the quarter was driven mainly by increased demand for its subscription-based offerings. The revenue from this part of its product portfolio grew 15% year-over-year, to $248 million.

A sizable portion of the company’s subscription revenue comes from its Infinity offering. Introduced in 2017, Infinity enables enterprises to purchase all of Check Point Software’s core products for a single annual fee. The offering promises to reduce cybersecurity costs by 20%, as well as simplify administrators’ work in the process. 

The growth in Check Point Software’s subscription business was partly offset by lower demand for its Quantum line of physical cybersecurity devices. Demand dropped 14% year-over-year because of what the company describes as “delayed” refresh cycles. The Quantum portfolio includes more than a half dozen firewalls, along with more specialized network security devices designed for use in environments such as factories.

Like its top line, Check Point Software’s third-quarter profit topped the consensus estimate. The company’s net income grew 10% year-over-year, to $242 million, which translated into adjusted earnings per share of $2.07. Analysts expected $2.02.

“Our third-quarter performance was strong, marked by a 17 percent increase in earnings per share and a 15 percent rise in security subscriptions revenues,” said Check Point Software founder and Chief Executive Officer Gil Shwed. “We achieved total revenues near the top of our forecast range, with earnings per share hitting the peak.”

Buoyed by its strong profit, Check Point Software today boosted its full-year adjusted earnings guidance to between $7.70 and $8.30 per share. Previously, it forecast $8.20 to $8.40 per share. Check Point also narrowed its revenue projection around the midpoint of its previous range: The company is now forecasting sales of $2.38 billion to $2.43 billion versus $2.34 billion to $2.510 billion before. 

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