CyberArk Jumps 9% as Q4 Earnings & Revenues Surpass Estimates

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].