Check Point Software Technologies Ltd. and Commvault Systems Inc. both recorded significant price movements in trading today following their quarterly earnings reports ending Sept. 30, but in opposite directions.

Shares of Check Point, one of the world’s largest cybersecurity companies, fell more than 13 percent. Commvault, which sells mainly data protection software, rose 24%. There is some overlap between the companies’ feature sets: They both provide tools that help customers detect malicious files.

overwhelming growth

Check Point produces software that businesses use to protect their cloud environments, on-premises servers and other assets from cyber attacks. It also provides a line of firewall devices called the Quantum series. Its products are used by more than 100,000 customers worldwide.

The company closed the third quarter, which ended on September 30, with sales of $635 million, an increase of 7% compared to the same period of the previous year. However, this was not enough to meet the consensus estimate. Analysts surveyed by Zacks expected The company will pay $635.4 million.

Check Point’s Harmony Email tool, which helps protect employee inboxes from phishing campaigns and other threats, outpaced the company as a whole with “double-digit” revenue growth over the previous year. The product’s annualized recurring revenue exceeded $100 million in the third quarter for the first time. Check Point also reported double-digit growth in its Infinity Global Services unit, which provides professional cybersecurity-related services such as breach remediation.

The company ended the quarter with net income of $274 million. This translates to adjusted earnings of $2.25 per share; This is up 9% from the same period a year ago, in line with the consensus estimate.

For the current quarter, Check Point is forecasting adjusted earnings of $2.60 to $2.70 per share and revenue of $675 to $715 million.

Quarter that met expectations

Commvault attributes its share price rise in today’s trading session to the fact that both its revenue and earnings beat expectations last quarter. It sells software that businesses use to backup and restore their files. It also provides tools for related tasks, such as checking the reliability of an organization’s data recovery procedures.

The company generated $233 million in revenue in the second quarter, an increase of 16.1% compared to last year. This amount is also 5.5% higher than $221.05 million. predicted Based on Zacks consensus estimate.

Much of Commvault’s growth has been driven by its subscription business, which includes software-as-a-service data protection tools and several other products. The business’s revenue rose 37% to $134.04 million, above the $123 million forecast by analysts. Commvault says its subscription offerings now reach 10,500 customers, up from 8,300 a year ago.

The company also gave an update on its SaaS products, which account for a large portion of its subscription revenue. Commvault says annualized recurring revenue for these products rose 64% year over year to $215 million. The SaaS segment’s net dollar retention rate, a metric that tracks how existing customers increase their spending over time, reached 127%.

Commvault’s earnings were also above analyst expectations. The company had net income of $37.6 million, equivalent to 83 cents per share on an adjusted basis. The market was expecting 75 cents per share.

The company estimates it will end the current quarter with sales of $243 million to $247 million; this represents a 13% annual increase at the midpoint. Full-year revenue is expected to range between $952 million and $957 million.

Photograph: Wikimedia