CyberArk Software's Sees Increased Deal Velocity: Analyst Highlights New Customer Wins Amid Durable Demand

Stephens analyst Brian Colley raised the price target on CyberArk Software Ltd. CYBR from $180 to $210, with an Overweight rating.

CyberArk recently reported Q2 results, where subscription revenue rose 61% to $106.2 million.

Despite continued weakness in the macro, trends remain much more resilient relative to most security peers, with accelerating net new ARR growth and new customer wins as strong GTM execution and durable demand drive increased deal velocity and an accelerating platform selling motion, notes the analyst.

CYBR characterized the macro environment as stable relative to Q1, with more deals with larger sizes, an uptick in new logos (+15% q/q), and an acceleration in its platform selling motion.

Colley notes that CYBR is expanding its channel ecosystem with increasing traction and large MSPs that delivered key wins in the quarter.

Following Q2, the analyst raised the FY2023/2024 revenue estimates from $730 million/$887 million to $731 million/$903 million, respectively.

Colley also increased FY2023/2024 non-GAAP EPS estimate from $0.27/$1.11 to $0.54/$1.31, respectively.

Colley introduced 2025 revenue and non-GAAP EPS estimates of $1.124 billion (+24.5% y/y) and $2.70.

The analyst assumes the company's sales grow at a 23% CAGR to $1.6 billion in 2027 with a 23% FCF margin. 

Bottom line, CYBR is firing on all cylinders in a weak macro with strong GTM execution, rapid innovation, and durable demand trends that illustrate increasing customer prioritization of the company's identity security platform.

Price Action: CYBR shares are trading lower by 3.44% to $156.44 on the last check Friday.