CyberArk Software Rises on Solid Earnings and Above-Consensus Expectations By Investing.com

Shares of CyberArk Software (NASDAQ:) rose 2.7% on Wednesday after the company reported much better-than-expected earnings for its fiscal third quarter and issued optimistic guidance.

For the third quarter, the identity security company posted earnings per share (EPS) of $0.94, significantly beating analyst expectations of $0.46. Revenue of $240.1 million also exceeded the $234.1 million analysts had forecast.

“CyberArk reported strong results and outperformed expectations on all metrics. Our best-in-class execution and industry leadership in identity security are helping us deliver strong net new ARR, record revenue, and increased profitability and cash flow,” said Matt Cohen, CEO of CyberArk.

“We continue to deliver on our vision to secure every identity – human and machine – with the right level of privilege control. Demand for our solutions remains strong as customers continue to embrace our industry-leading solutions across workforce, IT, developer and machine identities.”

For the fourth quarter of 2024, CyberArk expects earnings per share between $0.65 and $0.75, above the consensus of $0.55. Fourth-quarter revenue expectations are between $297 million and $303 million, ahead of the consensus estimate of $259.1 million.

For the full year, net earnings per share are expected to be between $2.85 and $2.96, while non-GAAP free cash flow is expected to be between $203 million and $213 million. The company expects total revenue between $983 million and $989 million, which represents expected growth of 31% to 32% from 2023.

“We believe the company’s ability to manage all identity types across a variety of deployment environments, increasing number of use cases, technology innovation and high recurring revenue have strongly positioned it for sustainable growth in the future,” Truist Securities analysts said in a message. -profit note.

Additionally, BTIG analysts reiterated a buy rating on CyberArk stock, noting “a strong report during what has been a fairly weak earnings season thus far in the security software space.”

In addition to the earnings, CyberArk also announced that CFO Josh Siegel will step down from his role on January 1, 2025, as part of a planned succession. Erica Smith, currently Deputy CFO, will assume the role of CFO and join the executive team.