CyberArk Software(US:CYBR) ZACKSยท2025-05-09 12:30Core Viewpoint - CyberArk Software Ltd. (CYBR) is expected to report first-quarter 2025 results that may exceed market expectations, with projected non-GAAP earnings per share between 74-81 cents, compared to a consensus estimate of 79 cents, indicating a year-over-year decline of 5.3% [1][2]. Financial Performance - CyberArk's revenue forecast for the first quarter is between $301 million and $307 million, with the Zacks Consensus Estimate at $305.7 million, suggesting a year-over-year growth of 39% [2]. - Subscription revenues are estimated at $240.7 million, reflecting a year-over-year increase of 54.1%, while Perpetual License revenues are projected at $2.1 million, showing a decline of 29.8% [5][6]. - Annual recurring revenues are expected to reach $1.03 billion, with Subscription services contributing $847.5 million and Maintenance and Professional Services accounting for $182.7 million [7]. Market Trends and Demand - The demand for privileged access security and broader cybersecurity solutions is increasing, driven by rising data breaches and accelerated digital transformation initiatives [3]. - Organizations are allocating larger portions of their IT budgets toward cybersecurity, benefiting CyberArk's core strength in privileged access management solutions [4]. Business Model Transition - CyberArk is transitioning towards a software-as-a-service and subscription-based model, which is anticipated to support revenue growth [5]. - The company is phasing out the Perpetual License model in favor of recurring revenues, which is reflected in the decline of Perpetual License revenues [6]. Economic Environment - Despite strong product demand, CyberArk faces challenges from broader macroeconomic factors, including slower IT spending and delayed contract signings, which may impact overall revenue growth [8]. Earnings Expectations - The company's Earnings ESP is +3.90%, indicating a likelihood of an earnings beat, supported by a Zacks Rank of 3 (Hold) [10].