CyberArk Software Surges on Strong Earnings Beat, Above-Consensus Guidance
Wednesday, Nov 13, 2024 7:32 am ET
3min read CyberArk Software (CYBR) shares surged on strong earnings beat, driven by robust subscription revenue growth and above-consensus guidance. The company reported a 70% year-over-year (YoY) increase in subscription revenue to $150.3 million, accounting for 67% of total revenue. This growth, coupled with a 32% increase in total revenue to $223.1 million, outperformed guidance. The company's subscription Annual Recurring Revenue (ARR) reached $582 million, growing 60% YoY, demonstrating the success of its SaaS strategy.
CyberArk's strong earnings performance was also reflected in its operating income and cash flow. Non-GAAP operating income soared to $34.7 million, up from $22.3 million in the previous quarter, a 55.6% increase. Full-year 2023 operating income was $33.5 million, a 167% improvement from 2022. Net cash provided by operating activities reached $56.2 million in 2023, up from $31.5 million in 2022, a 78.1% increase.
For the next quarter, CyberArk guided for revenue of $220-230 million and non-GAAP operating income of $30-35 million. Historically, CyberArk has consistently beaten guidance, with Q2 2023 revenue coming in at $233.1 million, 15% above the midpoint of guidance. Industry peers like Okta (OKTA) and CrowdStrike (CRWD) also tend to beat guidance, with Okta's Q1 2024 revenue $5M above the midpoint of guidance.
CyberArk's strong earnings and above-consensus guidance suggest it is well-positioned to maintain its momentum in the identity security market. The company's focus on identity security, SaaS solutions, and recurring revenue models has proven successful, with ARR reaching $774M, growing 36% YoY. However, maintaining this momentum depends on continued execution, market demand, and competitive positioning in the identity security space.
As investors evaluate the tech sector, CyberArk's strong performance serves as a reminder of the potential for growth in identity security and SaaS solutions. With a balanced approach to investing, considering multiple perspectives and factors, investors can benefit from the ongoing market growth and capitalize on opportunities in the tech sector.
CyberArk's strong earnings performance was also reflected in its operating income and cash flow. Non-GAAP operating income soared to $34.7 million, up from $22.3 million in the previous quarter, a 55.6% increase. Full-year 2023 operating income was $33.5 million, a 167% improvement from 2022. Net cash provided by operating activities reached $56.2 million in 2023, up from $31.5 million in 2022, a 78.1% increase.
For the next quarter, CyberArk guided for revenue of $220-230 million and non-GAAP operating income of $30-35 million. Historically, CyberArk has consistently beaten guidance, with Q2 2023 revenue coming in at $233.1 million, 15% above the midpoint of guidance. Industry peers like Okta (OKTA) and CrowdStrike (CRWD) also tend to beat guidance, with Okta's Q1 2024 revenue $5M above the midpoint of guidance.
CyberArk's strong earnings and above-consensus guidance suggest it is well-positioned to maintain its momentum in the identity security market. The company's focus on identity security, SaaS solutions, and recurring revenue models has proven successful, with ARR reaching $774M, growing 36% YoY. However, maintaining this momentum depends on continued execution, market demand, and competitive positioning in the identity security space.
As investors evaluate the tech sector, CyberArk's strong performance serves as a reminder of the potential for growth in identity security and SaaS solutions. With a balanced approach to investing, considering multiple perspectives and factors, investors can benefit from the ongoing market growth and capitalize on opportunities in the tech sector.
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