Check Point

Established in 1993, Check Point first offered firewall and VPN products. In 2009, The Israeli firm introduced its “Software Blade” architecture which allowed customers to implement tailor-made security solutions such as firewalls, virtual private networks, intrusion prevention systems, data loss prevention systems, etc., based on their specific requirements. This architecture allowed customers to easily scale and offered greater interoperability between different solutions. In 2012, the company expanded its Software Blade business, enabling enterprises to implement security into their public cloud deployments in AWS. The company’s cloud security offering now caters to public and private cloud infrastructure and protection for cloud-native applications across the development cycle. Check Point also offers solutions for endpoint protection—including endpoint detection and response (EDR) tools—security for industrial internet of things (IoT) devices, and web application protection.

The company has acquired several companies to strengthen its offerings, with the most recent being cloud security startup Odo Security for USD 30 million in September 2020. Other notable acquisitions include cloud infrastructure security provider Dome9 security for USD 175 million in 2018, cloud workload protection company Protego in 2019, IoT cybersecurity startup Cymplify for USD 5 million in 2019, web application security provider ForceNoc in 2019, and cloud email security company Avanan in 2021. Check Point acquired the cloud-native application security startup Spectral for USD 60 million in February 2022, expanding its cloud security offering—Check Point CloudGuard—with Spectral’s developer-first security platform that addresses cloud application security use cases such as infrastructure as code (IaC) scanning, hardcoded secrets detection, code-tampering prevention, source controls, continuous integration/continuous deployment (CI/CD) security, and source code leakage detection. This acquisition followed a June 2021 announcement to invest USD 100 million in its cloud security business during 2021, with plans to hire an additional 100 development staff during the same period.

For the full year FY2021, the company recorded revenue amounting to USD 2.2 billion, up 5% YoY. The annual gross profit margin for FY2021 was recorded at 88.7%, down marginally from the 89.6% recorded in 2020. Its adjusted operating income was also almost unchanged in FY2021, amounting to a little over USD 1 billion. Revenue for Q4 2021 amounted to USD 599 million, representing a YoY growth of 6%. Management’s revenue guidance for FY2022 ranges between USD 2.2 billion and USD 2.4 billion, which implies an YoY growth of between 1.5% and 9.6%.