Company Performance - CyberArk's stock closed at $383.05, down 1.4% from the previous trading session, underperforming the S&P 500's loss of 0.22% [1] - Over the past month, CyberArk's shares have increased by 3.92%, outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for CyberArk is projected at $0.79, indicating a 46.30% increase compared to the same quarter last year [2] - Revenue for the upcoming quarter is estimated at $315.43 million, reflecting a 40.37% rise from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.81 per share and revenue at $1.32 billion, representing increases of 25.74% and 31.88% respectively from the prior year [3] - Recent changes in analyst estimates for CyberArk are important as they often reflect shifting business dynamics, with positive revisions indicating a favorable business outlook [3][4] Zacks Rank and Performance - The Zacks Rank system, which incorporates estimate changes, currently ranks CyberArk as 2 (Buy), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate for CyberArk has increased by 32.12% [5] Valuation Metrics - CyberArk is currently trading at a Forward P/E ratio of 102.04, which is higher than the industry average of 74.67, suggesting a premium valuation [6] - The company has a PEG ratio of 4.2, compared to the Security industry's average PEG ratio of 3.03, indicating a higher valuation relative to expected earnings growth [7] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - CyberArk (CYBR) is scaling its identity security platform, reporting Annual Recurring Revenues (ARR) of $1.215 billion and net new ARR of $46 million in Q1 FY25, with growth partly driven by the acquisition of Zilla Security [1][10] Company Performance - Zilla Security contributed approximately $5 million in ARR during the first quarter, including a significant win in the financial services sector, where a customer replaced its legacy identity governance vendor with Zilla [2][10] - Customer feedback on Zilla has been overwhelmingly positive, particularly regarding its ability to simplify access reviews and automate provisioning [2][10] Product Development - Zilla enhances CyberArk's identity security platform with AI-powered identity governance and administration (IGA) capabilities, enabling scalable automation for identity compliance and provisioning [3][4] - Zilla's offerings, including Zilla Comply and Zilla Provisioning, are becoming integral to CyberArk's platform, with expectations for more significant contributions to sales in late 2025 and into 2026 [4][10] Competitive Landscape - Competitors like Palo Alto Networks (PANW) and Zscaler (ZS) are also evolving their platforms to meet enterprise security demands, with PANW closing over 90 new platform deals and Zscaler reporting a 23% year-over-year increase in ARR to $2.9 billion [5][6][7] Valuation and Estimates - CyberArk's shares have gained 16.6% year to date, compared to the Zacks Security industry's growth of 21.3% [8] - The company trades at a forward price-to-sales ratio of 13.37, below the industry's 14.65 [12] - The Zacks Consensus Estimate for CyberArk's earnings implies a year-over-year increase of approximately 25.74% for 2025 and 25.72% for 2026, although estimates have been revised downward recently [15]

Core Thesis - CyberArk Software Ltd. (NASDAQ: CYBR) is expected to maintain a growth rate of approximately 30% in the coming years due to a large Total Addressable Market (TAM) and significant cross-sell potential [1] Investment Approach - The investment strategy focuses on identifying undervalued companies with long-term growth potential, blending value investing principles with a long-term growth focus [1] - The belief is in purchasing quality companies at a discount to their intrinsic value and holding them to allow for compounding of earnings and shareholder returns [1]

Key Takeaways CYBR gained 10.7% in one month, outperforming the security industry and peers. CyberArk's AI-powered upgrades and key acquisitions have expanded its identity security capabilities. Revenues are projected between $1.313B and $1.323B in 2025, reflecting 31.89% year-over-year growth.CyberArk Software (CYBR) shares have gained 10.7% in the past month, outperforming the Zacks Security industry and its peers, including Palo Alto Networks (PANW) , Fortinet (FTNT) and SentinelOne (S) . The Zacks Sec ...

Core Insights - CyberArk (CYBR) is enhancing its identity security platform with AI integration, including the Secure AI Agents Solution and CORA AI, in collaboration with Accenture [1][4][10] Company Developments - The Secure AI Agent solution protects AI Agents from prompt injection, credential leakage, and permission abuse, while CORA AI acts as the intelligence engine within this solution [2] - The integration of CORA AI and Secure AI Agents allows CyberArk to secure human, AI, and machine identities, covering workforce access, IT systems, developer environments, and workload access [3][10] - CyberArk's subscription Annual Recurring Revenue (ARR) grew 65% year-over-year in Q1 2025, indicating strong demand for its cybersecurity solutions [4][10] Financial Performance - For 2025, CyberArk expects revenues between $1.313 billion and $1.323 billion, with a Zacks Consensus Estimate of $1.32 billion, reflecting a year-over-year growth of 31.89% [5] - The Zacks Consensus Estimate for CyberArk's fiscal 2025 and 2026 earnings implies year-over-year growth of 25.41% and 25.76%, respectively, with upward revisions in the past 30 days [12] Market Position - The identity security and access management market is projected to grow at a CAGR of 8.4% from 2024 to 2029, providing ample growth opportunities for CyberArk and its competitors like CrowdStrike and Okta [8] - CyberArk's shares have gained 19.8% year-to-date, slightly underperforming the Zacks Security industry's growth of 20.2% [9] Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.66X, which is lower than the industry's average of 14.54X, indicating a potentially attractive valuation [11]

Company Overview - CyberArk shares have increased by approximately 11.5% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential for understanding the key drivers behind this performance [1] Earnings Estimates - Estimates for CyberArk have remained flat over the past month, with a consensus estimate shift of 22.22% [2] VGM Scores - CyberArk has a strong Growth Score of A but a low Momentum Score of D, and a Value Score of F, resulting in an aggregate VGM Score of D [3] Outlook - CyberArk holds a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4] Industry Performance - CyberArk is part of the Zacks Security industry, where Qualys has seen a 3.2% gain over the past month [5] - Qualys reported revenues of $159.9 million for the last quarter, reflecting a year-over-year increase of 9.7% [5] - Qualys is expected to post earnings of $1.47 per share for the current quarter, indicating a 3.3% decrease from the previous year [6]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about CyberArk (CYBR) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.CyberArk currently has an average brokerag ...

Summary of CyberArk Conference Call Company Overview - **Company**: CyberArk - **Industry**: Identity Security and Cybersecurity Key Points and Arguments Corporate Strategy and Development - CyberArk's strategy focuses on expanding its identity security platform, driven by the need to address identity as a significant attack vector [5][6][7] - The company has made strategic acquisitions, including Venafi and Zillow, to enhance its capabilities in certificate lifecycle management and identity governance [5][6][9][17] - CyberArk aims to integrate these acquisitions into a broader identity security solution, leveraging existing partnerships and sales channels [9][10][54] Market Position and Competitive Landscape - CyberArk is positioned to capitalize on the growing demand for modern identity governance and administration (IGA) solutions, particularly among mid-market and large enterprises [17][18][28] - The company emphasizes a "consolidation of trust," where customers prefer fewer strategic vendors to manage their cybersecurity needs [30][31] - CyberArk differentiates itself through its privileged access management (PAM) solutions and modern controls, which are seen as essential in a competitive landscape that includes major players like Microsoft [34][35][36] Product Development and Innovation - CyberArk is developing its agentic AI strategy, focusing on securing AI agents that operate in both machine and human roles, with plans for a solution launch by year-end [25][26][27] - The company is committed to enhancing its product offerings, including zero standing privilege technology, which minimizes the attack surface by granting access only upon request [41][42][43] Growth Opportunities - There is a significant cross-sell opportunity with existing customers, as approximately 9,500 CyberArk logos do not currently utilize the Venafi solution [54] - CyberArk sees potential for new customer acquisition through its expanded product portfolio, particularly in machine identity and secrets management [54][57] Challenges and Risks - The primary concern for CyberArk is the need to stay ahead of sophisticated cyber adversaries, including nation-state attackers and organized cybercrime [51][52] - Continuous execution and development of a robust platform are critical to maintaining growth and relevance in the rapidly evolving cybersecurity landscape [53] Additional Important Content - The discussion highlighted the importance of modern applications and the need for agile solutions that can adapt to changing security requirements [15][16] - CyberArk's focus on training and enabling its sales force is crucial for effectively selling its expanded product suite [53][54] - The competitive environment for certificate lifecycle management is shifting, with traditional methods becoming less viable, creating opportunities for CyberArk's solutions [35][36][37]

Core Insights - CyberArk Software (CYBR) reported strong first-quarter fiscal 2025 results with Annual Recurring Revenues (ARR) of $1.22 billion, an increase from $1.17 billion in the previous quarter, and a net new ARR of $46 million driven by subscription growth and identity security platform adoption [1][10] Group 1: Financial Performance - Subscription ARR surpassed $1.03 billion, accounting for nearly 85% of total ARR, with an addition of $51 million in net new subscription ARR, indicating enhanced financial stability and predictability [2][10] - CyberArk aims for full-year fiscal 2025 ARR to reach between $1.41 billion and $1.42 billion, reflecting approximately 21% year-over-year growth, supported by a robust subscription base and new customer additions [5] Group 2: Product Development and Strategy - CyberArk is expanding into artificial intelligence (AI) with its new "Secure AI Agent" product, designed to protect both autonomous and human-controlled AI systems, addressing the growing need for security in AI tools [2][3] - The company reported that machine identity products were featured in nine of the ten largest deals in the quarter, showcasing its capability to protect non-human identities [3] Group 3: Competitive Landscape - Competitors like Zscaler and SentinelOne are also experiencing growth, with Zscaler achieving $2.9 billion in ARR (23% year-over-year growth) and SentinelOne reaching $948 million in ARR (24% year-over-year growth) [6][7] - CyberArk's shares have gained 19.5% year-to-date, compared to the Zacks Security industry's growth of 22% [8] Group 4: Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.76, which is below the industry's average of 14.77, indicating potential valuation attractiveness [12]

Core Insights - Cybersecurity companies like Zscaler, CyberArk, and Cloudflare are positioned to benefit from ongoing trends in digital security, remaining resilient against macroeconomic challenges [1][2] Group 1: Zscaler - Zscaler employs "zero trust" systems, treating all network users as potential threats and providing cloud-native services that are easier to scale and maintain [4] - The company serves over 7,500 customers globally and secures more than 500 billion transactions daily [4] - Analysts project Zscaler's revenue to grow at a compound annual rate of 21% from fiscal 2024 to fiscal 2027, with profitability expected by 2027 [5] - Zscaler plans to triple its zero trust deployments, expand its AI-powered ZDX Copilot platform, and integrate with larger cybersecurity firms [5] - The zero trust market is anticipated to grow at a compound annual rate of 16.7% from 2025 to 2032, indicating significant growth potential for Zscaler [6] Group 2: CyberArk - CyberArk is a leader in the privileged access management (PAM) market, focusing on internal threats rather than external ones [7] - The company serves over 10,000 customers across 110 countries [7] - Analysts expect CyberArk's revenue to grow at a compound annual rate of 24% from 2024 to 2027, with profitability anticipated in 2026 [8] - Growth drivers include the acquisition of Venafi, expansion of cloud-based subscriptions, and diversification into new security services [8] - The PAM market is projected to grow at a compound annual rate of 21.4% from 2024 to 2033, supporting CyberArk's high valuation of 15 times this year's sales [9] Group 3: Cloudflare - Cloudflare enhances digital media delivery and protects clients from bot-based attacks through its content delivery network (CDN) [10] - The company serves data to users in 330 metropolitan areas across over 125 countries, processing an average of 78 million HTTP requests per second [10] - Analysts forecast Cloudflare's revenue to grow at a compound annual rate of 27% from 2024 to 2027, with narrowing net losses [11] - Key growth factors include the deployment of Nvidia's GPUs, expansion of the "Workers AI" platform, and growth of its Cloudforce One security platform [11] - The global CDN market is expected to expand at a compound annual rate of 17.7% from 2024 to 2030, providing Cloudflare with opportunities for continued growth [12]