CyberArk (CYBR) to Report Q2 Earnings: What's in the Offing?

Core Viewpoint - CyberArk Software Ltd. is expected to report strong second-quarter 2024 results, with projected revenues indicating significant year-over-year growth driven by increased demand for cybersecurity solutions [1][2]. Group 1: Financial Projections - CyberArk projects revenues between $215 million and $221 million, with a Zacks Consensus Estimate of $219.3 million, reflecting a year-over-year growth of 24.7% [1]. - The company forecasts non-GAAP earnings per share in the range of 34-44 cents, with the consensus at 41 cents, a substantial increase from the previous year's EPS of 3 cents [1]. - The average earnings surprise over the last four quarters has been 112%, indicating a strong track record of exceeding expectations [1]. Group 2: Market Demand and Strategic Shifts - The anticipated performance is attributed to the growing demand for privileged access security and cybersecurity solutions, driven by an increase in data breaches and digital transformation initiatives [2]. - The shift towards software-as-a-service and subscription-based models is expected to enhance top-line growth, with subscription revenues estimated at $151.5 million, a year-over-year increase of 42.7% [3]. - The contribution of subscription revenues to total revenues is projected to rise to 69.1%, up from 60.4% in the previous year [3]. Group 3: Annual Recurring Revenue (ARR) and Challenges - CyberArk's ARR is estimated at $906.5 million, with subscription contributing $710.7 million and maintenance and professional services contributing $195.9 million [4]. - Despite strong demand, the company faces challenges from budget cuts and deal postponements due to an uncertain macroeconomic environment, which may impact top-line growth [4]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for CyberArk, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5].