CyberArk Jumps 9% as Q4 Earnings & Revenues Surpass Estimates

CyberArk Software Ltd. (CYBR Quick QuoteCYBR – Free Report) shares closed 8.8% higher on Thursday after the company reported better-than-expected results for fourth-quarter 2024. The company posted fourth-quarter non-GAAP earnings of 80 cents per share, which surpassed the Zacks Consensus Estimate of 71 cents.

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However, the bottom-line figure was slightly lower than the year-ago quarter’s earnings of 81 cents per share. The year-over-year decline was mainly due to some integration costs associated with the Venafi acquisition and increased research & development investments in its machine identity solution, which more than offset the benefit of higher revenues.

CYBR’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 82.8%.

CyberArk’s fourth-quarter 2024 revenues of $314.4 million exceeded the consensus mark by 4.4%. The top line jumped 41% year over year, primarily driven by the company’s robust dominance in identity security and world-class execution levels at every step. The newly acquired Venafi business also boosted the top line by contributing $47 million to fourth-quarter total revenues.

CyberArk’s Fourth-Quarter Details

CYBR’s strong top-line performance can be attributed to the immense year-over-year rise in its Subscription and Maintenance and Professional revenues, partially offset by a decline in Perpetual Licenses.

Segment-wise, Subscription revenues (77.3% of the total revenues) were $243 million, up 62% from the year-ago quarter. Our estimate for Subscription revenues was pegged at $231.6 million.

Maintenance and professional services revenues (21.1% of the total revenues) were $66.4 million, slightly higher than the year-ago quarter’s $64.8 million. Our estimate for Maintenance and professional services revenues was pegged at $63.3 million.

Perpetual license revenues (1.26% of the total revenues) plunged to $5 million from $8 million in the year-ago quarter. The decline reflects the company’s continued efforts toward shifting the business model to subscription-based from a perpetual license. Our estimate for Perpetual license revenues was pegged at $5.3 million.

CyberArk’s non-GAAP gross profit increased 40.8% year over year to $267.1 million. Moreover, the non-GAAP gross margin remained flat on a year-over-year basis at 85%. The non-GAAP operating income increased 66.2% year over year to $58.7 million, while the operating margin expanded 310 bps to 18.7%.

CyberArk’s Key Business Metrics

As of Dec. 31, 2024, Annual Recurring Revenues (ARR) were $1.17 billion, up 51% year over year. The Subscription portion of ARR was $977 million, or 84% of total ARR, as of Dec. 31, 2024, up 68% year over year.

The Maintenance portion of ARR was $192 million as of Dec. 31, 2024, flat on a year-over-year basis. Recurring revenues in the fourth quarter were $292.2 million, up 45% from the fourth quarter of 2023. For full-year 2024, recurring revenues were $930.3 million, up 37% on a year-over-year basis.

CyberArk’s 2025 Performance in Brief

CyberArk’s 2024 revenues of $1.001 billion exceeded the Zacks Consensus Estimate of $987.47 million. The top line jumped 33% year over year.

The company reported non-GAAP earnings of $3.03 per share, which surpassed the consensus mark of $2.95. The bottom line soared 170.5% on a year-over-year basis.

CyberArk’s Balance Sheet & Cash Flow

CyberArk had cash and cash equivalents, marketable securities and short-term deposits of $841.1 million as of Dec. 30, 2024, compared with $1.5 billion as of Sept. 30, 2024. The decline in cash balance reflects consideration paid for the acquisition of Venafi.

Long-term debt was $76 million as of Dec. 31, significantly lower than $646.3 million as of Sept. 30. The decline reflects the settlement of outstanding senior convertible notes worth $535 million with the company’s ordinary shares.

During the fourth quarter, CyberArk generated operating cash flow and free cash flow of $64.7 million and $60.8 million, respectively. In 2024, it generated operating cash flow and free cash flow of $231.9 million and $220.8 million, respectively.

CyberArk Initiates Q1 & 2025 Guidance

CyberArk initiated guidance for the first quarter and full-year 2025. For the first quarter, it expects revenues to be in the band of $301-$307 million, suggesting year-over-year growth of 36-39%. The Zacks Consensus Estimate for revenues is pegged at $297.9 million, suggesting a year-over-year rise of 34.5%.

Non-GAAP operating income is expected to be in the range of $42.5-$47.5 million. Non-GAAP earnings per share are anticipated between 74 cents and 81 cents. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a year-over-year increase of 4%.

For 2025, CyberArk expects revenues in the range of $1.308-$1.318 billion, representing year-over-year growth of 31-32%. The Zacks Consensus Estimate for revenues is pegged at $1.29 billion, suggesting a year-over-year rise of 28.7%.

It expects non-GAAP operating income between $215 million and $225 million for 2025. The company estimates its non-GAAP earnings in the range of $3.55-$3.70 per share. The Zacks Consensus Estimate for earnings is pegged at $3.58 per share, indicating a year-over-year rise of 18.2%.

ARR, as of Dec. 31, 2025, is expected to be in the range of $1.41-$1.42 billion, indicating an increase of 21% year over year. The company expects adjusted free cash flow between $300 million and $310 million.

CyberArk’s Zacks Rank & Other Stocks to Consider

Currently, CyberArk carries a Zacks Rank #2 (Buy).

Atlassian (TEAM Quick QuoteTEAM – Free Report) , Planet Labs PBC (PL Quick QuotePL – Free Report) and Fortinet (FTNT Quick QuoteFTNT – Free Report) are some other stocks that investors can consider in the broader Zacks Computer and Technology sector. TEAM, PL and FTNT carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Atlassian shares have soared 45.9% in the past year. The Zacks Consensus Estimate for TEAM’s fiscal 2025 earnings is pegged at $3.45 per share, indicating a 17.8% year-over-year increase.

Planet Labs PBC shares have surged 174.7% in the past year. The Zacks Consensus Estimate for PL’s fiscal 2025 bottom line is pinned at a loss of 15 cents per share. In fiscal 2024, the company had reported a loss of 50 cents per share.

Fortinet shares have gained 55.1% in the past year. The Zacks Consensus Estimate for FTNT’s full-year 2025 earnings is pegged at $2.43 per share, suggesting a year-over-year increase of 2.5%.