CyberArk Q1 Earnings and Revenues Surpass Estimates, Stock Up

Core Insights - CyberArk Software Ltd. reported first-quarter 2025 non-GAAP earnings of 98 cents per share, exceeding the Zacks Consensus Estimate by 24% and reflecting a year-over-year improvement of 30.7% [1] - The company's revenues for the first quarter reached $317.6 million, surpassing the consensus mark by 3.9% and showing a year-over-year increase of 43.4% [1][2] - CyberArk's strong performance is attributed to significant growth in Subscription revenues, which accounted for 78.9% of total revenues, amounting to $250.6 million, a 60% increase from the previous year [3] Revenue Breakdown - Maintenance, professional services, and other revenues constituted 21.1% of total revenues, totaling $67 million, slightly up from $65.3 million year-over-year [4] - The company no longer reports perpetual license revenues separately, as they are now included in the Maintenance, Professional Services, and Other category [4] Profitability Metrics - Non-GAAP gross profit increased by 44.6% year-over-year to $268.6 million, with a non-GAAP gross margin of 84.6%, up 80 basis points from the previous year [5] - Non-GAAP operating income rose 74.2% year-over-year to $57.5 million, with an operating margin expansion of 300 basis points to 18% [5] Key Business Metrics - As of March 31, 2025, Annual Recurring Revenues (ARR) reached $1.22 billion, a 49.8% increase year-over-year, with Subscription ARR at $1.03 billion, up 65% [6] - Recurring revenues for the first quarter were $298.2 million, reflecting a 44.9% increase from the same quarter in 2024 [6] Balance Sheet and Cash Flow - CyberArk's cash and cash equivalents, marketable securities, and short-term deposits totaled $776.1 million as of March 31, 2025, down from $841.1 million at the end of 2024, primarily due to the acquisition of Zilla [7] - Long-term debt increased to $171.2 million as of March 31, 2025, compared to $76 million at the end of the previous year [8] - The company generated operating cash flow of $98.5 million and free cash flow of $95.5 million during the first quarter [8] Guidance - For Q2 2025, CyberArk expects revenues between $312 million and $318 million, with a year-over-year growth of 38.4% [9] - The company revised its full-year 2025 revenue guidance to a range of $1.313 billion to $1.323 billion, up from the previous estimate [11] - Non-GAAP operating income for 2025 is now expected to be between $221 million and $229 million, with non-GAAP earnings projected between $3.73 and $3.85 per share [12]