CyberArk Rises 8% Since Q4 Earnings Beat: How to Play the Stock

Core Insights - CyberArk Software Ltd. (CYBR) shares have increased by 8.5% following the release of its fourth-quarter 2024 results, with a remarkable 58.7% rise over the past year, outperforming the broader market and the cybersecurity sector [1][2][3] Financial Performance - In Q4 2024, CyberArk's revenues surged by 40.9% year-over-year to $314.38 million, exceeding the Zacks Consensus Estimate by 4.43% [4] - The company's earnings per share (EPS) of 80 cents surpassed the Zacks Consensus Estimate by 12.68%, marking a consistent trend of exceeding estimates over the past four quarters with an average surprise of 82.77% [4] Annual Recurring Revenue (ARR) - CyberArk achieved an ARR of $1.169 billion, with over $1 billion acquired organically in Q4, and subscription ARR reached $977 million, reflecting a significant year-over-year growth of 67.7% [5] - The company has provided a revenue guidance for full-year 2025 of $1.308-$1.318 billion, indicating a robust growth of 31.5% at the midpoint [6] Market Position and Strategy - CyberArk is a leader in the identity security market, aligning its products with the increasing demand for privileged access management and Zero Trust capabilities [8] - Recent acquisitions, including Venafi for $1.54 billion and Zilla Security for $165 million, enhance CyberArk's capabilities in machine identity management and broaden its market addressability [9] Customer Base and Partnerships - CyberArk serves over 5,400 global businesses, including more than 50% of the Fortune 500 and 35% of the Global 2000 companies, driven by strategic partnerships with major tech firms like Microsoft, Amazon, and Alphabet [10][11] Stock Performance Indicators - CYBR stock is currently trading above both the 50-day and 200-day moving averages, indicating a bullish trend in the near term [12] Conclusion - CyberArk's strong performance, focus on identity security, strategic acquisitions, and growing ARR position it as a leader in the cybersecurity sector, suggesting strong long-term growth prospects [13]