CyberArk Software Ltd (NASDAQ: CYBR) has delivered a strong performance in its fiscal third quarter of 2024, exceeding expectations and signaling robust growth within the cybersecurity market. The company reported a 26% year-over-year revenue increase, reaching $240.1 million, surpassing the analyst consensus estimate of $234.0 million. This impressive performance was further solidified by an adjusted earnings per share (EPS) of $0.94, which also exceeded the analyst consensus estimate of $0.46. The positive results have already been reflected in the stock price, which saw a surge in pre-market trading.
CyberArk’s success is driven by its unwavering focus on identity security, a crucial area in the evolving cybersecurity landscape. This focus is exemplified by the company’s impressive subscription revenue growth, which expanded by a remarkable 43% year-over-year to $175.6 million. The company also highlighted the significant impact of its strategic acquisition of Venafi, finalized on October 1st. Venafi’s cloud-native solution strengthens CyberArk’s position in machine identity security, a rapidly growing and complex segment. The acquisition has been met with positive feedback from both customers and partners, validating CyberArk’s strategic move.
Looking ahead, CyberArk is optimistic about its future prospects. The company has raised its revenue outlook for fiscal 2024 to $983.0 million-$989.0 million, surpassing the previous guidance of $932.0 million-$942.0 million. They also anticipate an adjusted EPS between $2.85-$2.96. This optimistic outlook is further bolstered by a projected Annual Recurring Revenue (ARR) of $1.153 billion—$1.163 billion for December 31, 2024, representing a significant increase of 49%- 50% compared to the previous guidance.
CyberArk’s strong performance has not gone unnoticed by industry experts. Last week, Jim Cramer, a well-known financial commentator, advised viewers on CNBC’s “Mad Money Lightning Round” to invest in CyberArk Software. He praised the company and highlighted his long-standing support for their work. This positive sentiment from industry leaders further strengthens the confidence in CyberArk’s future trajectory. The stock price, reflecting this optimism, has surged over 39% year-to-date.
With its impressive Q3 results, a strategic acquisition, and a positive outlook for the future, CyberArk is positioned to continue its strong growth trajectory in the evolving cybersecurity market. This is a company to watch closely as it navigates the complexities of the digital world, protecting businesses and consumers from growing security threats.
