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CyberArk Jumps 9% as Q4 Earnings & Revenues Surpass Estimates
CYBRCyberArk Software(CYBR) ZACKS·2025-02-14 18:16

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 314.4million,exceedingtheconsensusmarkby4.4314.4 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 267.1million,withastablegrossmarginof85267.1 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 243million,a62243 million, a 62% increase from the previous year [4]. - Maintenance and professional services revenues were 66.4 million, slightly up from 64.8millionyearoveryear[5].−Perpetuallicenserevenuesfellto64.8 million year over year [5]. - Perpetual license revenues fell to 5 million from 8millionintheyear−agoquarter,reflectingashifttowardsasubscription−basedmodel[6].AnnualRecurringRevenue(ARR)−AsofDecember31,2024,ARRwas8 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 977million,representing84977 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 930.3million,a37930.3 million, a 37% increase year over year [9]. Guidance for 2025 - For Q1 2025, CyberArk expects revenues between 301 million and 307million,indicatingayear−over−yeargrowthof36−39307 million, indicating a year-over-year growth of 36-39% [13]. - Full-year 2025 revenue guidance is set between 1.308 billion and 1.318billion,representingayear−over−yeargrowthof31−321.318 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,withayear−over−yearincreaseof18.23.70, 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 1.5billionduetotheVenafiacquisition[11].−Long−termdebtdecreasedto1.5 billion due to the Venafi acquisition [11]. - Long-term debt decreased to 76 million, significantly lower than 646.3millionasofSeptember30,reflectingthesettlementofseniorconvertiblenotes[12].−Operatingcashflowfor2024was646.3 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].