Core Insights - CyberArk Software Ltd. (CYBR) shares have increased by 8.5% following the release of its fourth-quarter 2024 results, with a remarkable 58.7% rise over the past year, outperforming the broader market and the cybersecurity sector [1][2][3] Financial Performance - In Q4 2024, CyberArk's revenues surged by 40.9% year-over-year to $314.38 million, exceeding the Zacks Consensus Estimate by 4.43% [4] - The company's earnings per share (EPS) of 80 cents surpassed the Zacks Consensus Estimate by 12.68%, marking a consistent trend of exceeding estimates over the past four quarters with an average surprise of 82.77% [4] Annual Recurring Revenue (ARR) - CyberArk achieved an ARR of $1.169 billion, with over $1 billion acquired organically in Q4, and subscription ARR reached $977 million, reflecting a significant year-over-year growth of 67.7% [5] - The company has provided a revenue guidance for full-year 2025 of $1.308-$1.318 billion, indicating a robust growth of 31.5% at the midpoint [6] Market Position and Strategy - CyberArk is a leader in the identity security market, aligning its products with the increasing demand for privileged access management and Zero Trust capabilities [8] - Recent acquisitions, including Venafi for $1.54 billion and Zilla Security for $165 million, enhance CyberArk's capabilities in machine identity management and broaden its market addressability [9] Customer Base and Partnerships - CyberArk serves over 5,400 global businesses, including more than 50% of the Fortune 500 and 35% of the Global 2000 companies, driven by strategic partnerships with major tech firms like Microsoft, Amazon, and Alphabet [10][11] Stock Performance Indicators - CYBR stock is currently trading above both the 50-day and 200-day moving averages, indicating a bullish trend in the near term [12] Conclusion - CyberArk's strong performance, focus on identity security, strategic acquisitions, and growing ARR position it as a leader in the cybersecurity sector, suggesting strong long-term growth prospects [13]

Core Viewpoint - CyberArk Software Ltd. (CYBR) reported better-than-expected fourth-quarter 2024 results, with shares closing 8.8% higher following the announcement of non-GAAP earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 71 cents [1][3]. Financial Performance - Fourth-quarter revenues reached $314.4 million, exceeding the consensus mark by 4.4% and reflecting a 41% year-over-year increase, driven by strong identity security performance and the contribution of $47 million from the Venafi acquisition [3][4]. - Non-GAAP gross profit increased by 40.8% year over year to $267.1 million, with a stable gross margin of 85% [7]. - Non-GAAP operating income rose 66.2% year over year to $58.7 million, with an operating margin expansion of 310 basis points to 18.7% [7]. Revenue Breakdown - Subscription revenues accounted for 77.3% of total revenues, amounting to $243 million, a 62% increase from the previous year [4]. - Maintenance and professional services revenues were $66.4 million, slightly up from $64.8 million year over year [5]. - Perpetual license revenues fell to $5 million from $8 million in the year-ago quarter, reflecting a shift towards a subscription-based model [6]. Annual Recurring Revenue (ARR) - As of December 31, 2024, ARR was $1.17 billion, a 51% increase year over year, with subscription ARR at $977 million, representing 84% of total ARR and a 68% year-over-year growth [8]. - Recurring revenues for the fourth quarter were $292.2 million, up 45% from the same quarter in 2023, while full-year recurring revenues reached $930.3 million, a 37% increase year over year [9]. Guidance for 2025 - For Q1 2025, CyberArk expects revenues between $301 million and $307 million, indicating a year-over-year growth of 36-39% [13]. - Full-year 2025 revenue guidance is set between $1.308 billion and $1.318 billion, representing a year-over-year growth of 31-32% [14]. - Non-GAAP earnings per share for 2025 are anticipated to be between $3.55 and $3.70, with a year-over-year increase of 18.2% [15]. Balance Sheet and Cash Flow - As of December 30, 2024, CyberArk had cash and cash equivalents of $841.1 million, down from $1.5 billion due to the Venafi acquisition [11]. - Long-term debt decreased to $76 million, significantly lower than $646.3 million as of September 30, reflecting the settlement of senior convertible notes [12]. - Operating cash flow for 2024 was $231.9 million, with free cash flow at $220.8 million [12].

Core Insights - CyberArk Software Ltd reported fiscal fourth-quarter results that exceeded expectations, with a revenue growth of 41% year-on-year to $314.40 million, surpassing the analyst consensus estimate of $301.31 million [1] - The adjusted EPS was 80 cents, beating the analyst consensus estimate of 72 cents [1] Financial Performance - Total ARR reached $1.169 billion, driven by organic ARR crossing $1 billion and strong performance from Venafi [2] - CyberArk returned to Rule of 40 on a full-year basis, exceeding long-term guidance by a year [2] - The company expects fiscal first-quarter revenue of $301.0 million to $307.0 million, with an adjusted EPS of $0.74 to $0.81 [2] Future Projections - For fiscal 2025, CyberArk projects revenue of $1.308 billion to $1.318 billion, with an adjusted EPS outlook of $3.55 to $3.70 [3] - ARR is expected to reach $1.410 billion to $1.420 billion by December 31, 2025, representing a 21% increase [3] Market Reaction - CyberArk shares increased by 8.8% to close at $414.31 following the earnings announcement [3] - Analysts have adjusted their price targets for CyberArk, with Barclays raising it from $375 to $450, Rosenblatt from $415 to $445, and Morgan Stanley from $316 to $390 [4]

Financial Performance - Total ARR reached $1.169 billion, with organic ARR surpassing $1 billion[1] - Subscription revenue for the full year 2024 was $733.3 million, a 55% increase from $472.0 million in 2023[7] - Total revenue for the full year 2024 was $1.001 billion, growing 33% year-over-year from $751.9 million in 2023[7] - Non-GAAP operating income for the full year 2024 was $150.9 million, representing a 15% margin compared to 4% in 2023[7] - Free cash flow for the full year 2024 was $221 million, or a 22% FCF margin[1] - Recurring revenue in Q4 2024 was $292.2 million, a 45% increase from $201.5 million in Q4 2023[7] - Total revenues for the three months ended December 31, 2023, were $223.1 million, a decrease from $314.4 million for the same period in 2024, representing a decline of approximately 29%[30] - Subscription revenues for the twelve months ended December 31, 2023, were $472.0 million, compared to $733.3 million in 2024, indicating a decrease of about 36%[30] - The net loss for the three months ended December 31, 2023, was $97.1 million, compared to a net income of $8.9 million for the same period in 2024[30] - Net loss for the twelve months ended December 31, 2023, was $66,504 thousand, compared to a loss of $93,461 thousand for the same period in 2024[34] - Free cash flow for the twelve months ended December 31, 2024, was $220,828 thousand, compared to $51,256 thousand in 2023[36] - Gross profit for the twelve months ended December 31, 2024, reached $792,365 thousand, an increase from $595,757 thousand in 2023[37] - Non-GAAP net income for the twelve months ended December 31, 2024, was $147,549 thousand, compared to $52,004 thousand in 2023[41] Cash and Assets - Cash and cash equivalents increased from $355.9 million in December 2023 to $526.5 million in December 2024, showing a growth of about 48%[32] - Total assets rose significantly from $2.0 billion in December 2023 to $3.3 billion in December 2024, an increase of approximately 65%[32] - The company reported a basic loss per ordinary share of $2.02 for the three months ended December 31, 2024, compared to a profit of $0.21 for the same period in 2023[30] - Deferred revenues increased from $409.2 million in December 2023 to $596.9 million in December 2024, representing a growth of about 46%[32] - Cash and cash equivalents at the end of the period increased to $526,467 thousand in 2024, compared to $355,933 thousand in 2023[34] - The company reported an increase in short-term and long-term deferred revenues to $150,780 thousand in 2024, up from $72,190 thousand in 2023[34] Operating Expenses and Efficiency - Operating expenses for the twelve months ended December 31, 2023, totaled $712.2 million, up from $865.2 million in 2024, reflecting a decrease of approximately 18%[30] - Operating expenses for the twelve months ended December 31, 2024, were $865,169 thousand, compared to $712,229 thousand in 2023[38] - The company experienced a significant increase in cash flows from financing activities, totaling $288,806 thousand in 2024, compared to $38,084 thousand in 2023[34] Future Guidance - Total revenue guidance for full year 2025 is expected to be between $1.308 billion and $1.318 billion, representing growth of 31% to 32% compared to 2024[13] - ARR as of December 31, 2025 is expected to be between $1.410 billion and $1.420 billion, indicating a 21% growth from December 31, 2024[13] - Adjusted free cash flow for the full year 2025 is expected to be between $300 million and $310 million, normalizing for a one-time tax payment of $70 million[13] Strategic Initiatives - CyberArk announced the acquisition of Zilla Security for an enterprise value of $165 million in cash[8] - The company is focused on integrating the operations of Venafi Holdings, Inc. and Zilla Security Inc. to realize anticipated benefits and improve operational efficiency[27] - CyberArk is adapting its solutions to meet the changing demands of the information security market, including advancements in artificial intelligence (AI)[27]

Financial Data and Key Metrics Changes - CyberArk achieved over $1 billion in Annual Recurring Revenue (ARR) for the first time, reaching $1.169 billion, including approximately $166 million from Venafi [46][47] - Total revenue for Q4 reached $314.4 million, significantly exceeding guidance, with a contribution of approximately $47 million from Venafi [49] - The company reported a free cash flow of $221 million for the year, representing a margin of about 22% [61][62] Business Line Data and Key Metrics Changes - Subscription ARR grew to $977 million, representing 84% of total ARR, with organic subscription ARR reaching $816 million [47][59] - Recurring revenue for Q4 was $292.2 million, growing 24% year-over-year, while subscription revenue reached $243 million, growing 34% year-over-year [50][52] - Secrets Management was the fastest-growing solution for the full year, with significant growth in average deal sizes compared to the previous year [35][36] Market Data and Key Metrics Changes - The Americas revenue reached $189.5 million, EMEA revenue was about $94.5 million, and APJ revenue was $30.4 million, with growth across all regions [53][54] - Organic growth rates were 17% in the Americas, 26% in EMEA, and 19% in APJ year-over-year [54] Company Strategy and Development Direction - CyberArk is focused on expanding its leadership in Identity Security through acquisitions like Venafi and Zilla Security, enhancing its platform capabilities [19][64] - The company aims to address the evolving needs of identity security in a dynamic environment, emphasizing the integration of various identity management solutions [80][100] - The acquisition of Zilla Security is expected to enhance CyberArk's identity governance capabilities, addressing modern challenges in identity management [19][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position amidst a challenging threat landscape, highlighting the importance of comprehensive identity security solutions [12][42] - The company anticipates continued growth in ARR and revenue, projecting total revenue for 2025 to be between $1.308 billion and $1.318 billion, representing 31% year-over-year growth at the midpoint [68][70] - Management noted that the integration of Venafi is already accretive to operating and cash flow margins, reinforcing the strategic value of the acquisition [73] Other Important Information - CyberArk ended the year with approximately 3,800 employees, including about 400 from Venafi, and maintained a strong balance sheet with approximately $841 million in cash and marketable securities [60][62] - The company expects adjusted free cash flow for 2025 to be in the range of $300 million to $310 million, representing a 23% adjusted free cash flow margin at the midpoint [71] Q&A Session Summary Question: Thoughts on identity as a platform versus a series of swim lanes - Management indicated that customers are increasingly seeking integrated security solutions that cover multiple identity management areas rather than isolated tools [80][82] Question: Positioning for securing AI agents - Management highlighted CyberArk's long-standing expertise in managing dynamic access and privilege controls, positioning the company well to secure AI agents [88][90] Question: Broader product landing with new logos - Management noted that the top three deals in Q4 were full-scope, integrating multiple solutions across the platform, reflecting a trend towards comprehensive identity security [95][96] Question: Differentiation of Zilla's solution - Management explained that Zilla's modern IGA capabilities address the dynamic nature of identity management in today's SaaS and cloud environments, enhancing CyberArk's platform [100][105] Question: Impact of federal government spending uncertainty - Management acknowledged some uncertainty but emphasized a broad base of support within federal agencies, mitigating risks associated with changes in government spending [110][112] Question: Maintenance ARR and conversion opportunities - Management expressed optimism about the conversion opportunities within maintenance ARR, indicating a healthy pace of conversion activity expected to pick up in 2025 [123] Question: Governance layer for machine identities - Management confirmed the complexity of machine identity management and the role of Zilla in enhancing governance capabilities within CyberArk's broader identity security strategy [128][132] Question: Channel strategy and MSSP opportunities - Management emphasized the importance of channel partnerships, particularly with Managed Security Service Providers (MSSPs), in driving new business and expanding market reach [138]

Core Insights - CyberArk reported revenue of $314.38 million for the quarter ended December 2024, reflecting a year-over-year increase of 40.9% and surpassing the Zacks Consensus Estimate by 4.43% [1] - The company's EPS for the quarter was $0.80, slightly down from $0.81 in the same quarter last year, but exceeded the consensus estimate of $0.71 by 12.68% [1] Financial Performance Metrics - Total Annual Recurring Revenue (ARR) reached $1.17 billion, slightly above the average estimate of $1.16 billion from eight analysts [4] - Maintenance ARR was reported at $192 million, exceeding the average estimate of $182.59 million from five analysts [4] - Subscription ARR was $977 million, marginally below the average estimate of $978.51 million from five analysts [4] - Revenues from maintenance and professional services amounted to $66.37 million, surpassing the average estimate of $63.43 million from eleven analysts, representing a year-over-year increase of 2.4% [4] - Perpetual license revenues were $4.97 million, above the average estimate of $4.70 million from eleven analysts, but showed a significant year-over-year decline of 38% [4] - Subscription revenues reached $243.05 million, exceeding the average estimate of $232.74 million from eleven analysts, with a year-over-year growth of 61.8% [4] Stock Performance - CyberArk's shares have returned +9.6% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Investor Relations Presentation February 2025 © 2025 CyberArk Software Ltd. All rights reserved. Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements, which express the current beliefs and expectations of CyberArk's (the "Company") management. In some cases, forward-looking statements may be identified by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential" or the ne ...

Identity security company CyberArk has acquired identity governance and administration (IGA) platform Zilla Security in a deal worth up to $175 million. Founded in 1999, Boston-based CyberArk specializes in access management, including privileged access security which helps organizations protect sensitive data and critical infrastructure from external (and internal) threats. Zilla, for its part, is another Boston-based security company operating in the identity and access management realm. Founded in 2019 ...

CyberArk (CYBR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual invest ...

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. CyberArk (CYBR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.CyberArk is one of 608 companies in the Computer ...