CyberArk Enjoys Strong Earnings Beat: 'Identity Security Platform Gains Momentum,' CEO Says

CyberArk Software Ltd CYBR saw third-quarter (Q3) revenue growth of 25% year-on-year to $191.2 million, beating the consensus of $184.7 million. 

The information security company posted an adjusted EPS of $0.42, which beat the consensus of $0.23.

Segments: Revenues from Subscriptions expanded 65% Y/Y to $122.9 million. Maintenance and professional services declined to $64.3 million vs. $64.6 million Y/Y.

Key Performance Indicators: Annual Recurring Revenue (ARR) increased 38% Y/Y to $705 million. The subscription portion of ARR was $504 million, implying a 68% Y/Y growth. 

The Maintenance portion of ARR was $200 million compared to $211 million Y/Y. Recurring revenue grew 36% Y/Y to $174.4 million. 

CyberArk ended the quarter with $1.2 billion in cash and equivalents.

CEO Matt Cohen said, "Our identity security platform is gaining momentum in both our customer base and with new customers who recognize the critical requirement to secure all identities, human and machine, with intelligent privileged controls."

Outlook: CyberArk expects Q4 revenue of $206.5 million - $211.5 million versus the consensus of $209.34 million.

It sees an adjusted EPS of 41 cents - 50 cents versus the consensus of 41 cents.

CyberArk expects FY23 revenue of $735.3 million - $740.3 million (prior $726 million - $736 million) versus the consensus of $731.41 million. 

CyberArk expects an adjusted EPS outlook of 72 cents to 80 cents (prior 44 cents - 63 cents) versus the consensus of 55 cents.

It also raised the FY23 ARR outlook to $758 million - $768 million (prior $743 million - $753 million).

The stock has gained 28% YTD.

Price Action: CYBR shares traded higher by 5.12% at $170.00 in premarket on the last check Thursday.