Why CyberArk (CYBR) Stock is a Standout After Q3 Earnings This Week

Core Viewpoint - CyberArk Software has demonstrated strong performance in the tech sector, exceeding third quarter expectations and achieving significant stock price growth [1][3]. Financial Performance - CyberArk reported record quarterly sales of $240.1 million, surpassing Zacks estimates of $233.9 million and increasing by 25% from $191.24 million year-over-year [3]. - The company's total annual recurring revenue (ARR) grew by 31% year-over-year to $926 million, marking six consecutive quarters of exceeding top line estimates with an average sales surprise of 3.84% [4]. - Adjusted earnings per share (EPS) reached a record of $0.94, a 124% increase compared to $0.42 in the same quarter last year, significantly exceeding the Zacks EPS Consensus of $0.45 by 109% [6]. - Free cash flow increased to $51.56 million from $13.62 million in Q3 2023, with cash and equivalents rising to $1.23 billion from $355.93 million at the beginning of the year [7]. Future Guidance - For Q4, CyberArk anticipates revenue between $297 million and $303 million, indicating growth of 33% to 36%. The full-year fiscal 2024 revenue is expected to rise by 31% to 32%, reaching between $983 million and $989 million [8]. - Annual EPS is projected to grow by 105% in FY24 to $2.30, up from $1.12 in 2023, with FY25 EPS expected to increase by another 45% to $3.35 per share [9]. Market Position - CyberArk holds a Zacks Rank 1 (Strong Buy) and has shown a remarkable stock price increase of nearly 40% year-to-date, reaching all-time highs of $318 per share [1][3]. - The company has consistently exceeded earnings expectations for 13 consecutive quarters, with an impressive average EPS surprise of 97.68% in the last four quarters [7]. Conclusion - CyberArk is positioned as a compelling tech stock, with expectations for continued upward momentum as earnings estimate revisions are likely to rise in the near future [11].