CyberArk Q3 Earnings: Subscription Growth Soars, ARR Up, New CFO Announced And More

CyberArk Software Ltd (NASDAQ: CYBR) reported fiscal third-quarter 2024 revenue growth of 26% year-on-year to $240.1 million, beating the analyst consensus estimate of $234.0 million. 

The information security company posted an adjusted EPS of $0.94, which beat the analyst consensus estimate of $0.46. The stock price gained after the print.

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Segments: Revenues from Subscriptions expanded 43% Y/Y to $175.6 million. Maintenance and professional services were $61.6 million vs. $64.3 million Y/Y.

Key Performance Indicators: Annual Recurring Revenue (ARR) increased 31% Y/Y to $926 million. The subscription portion of ARR was $735 million, implying a 46% year-over-year growth. 

The Maintenance portion of ARR was $191 million, compared to $200 million year over year. Recurring revenue grew 29% year over year to $224.2 million. 

CyberArk held $1.5 billion in cash and equivalents as of September 30, 2024.

CFO Transition: CFO Josh Siegel will step down on January 1, 2025 and transition into an advisory role after 13 years in the position, making way for Erica Smith, CyberArk's Deputy CFO.

CyberArk CEO Matt Cohen highlighted the company's strong performance, exceeding guidance across all key metrics. He credited their success to top-tier execution and leadership in identity security, driving significant growth in net new ARR, record revenue, and improved profitability.

Cohen also celebrated the recent acquisition of Venafi, finalized on October 1, as a strategic expansion of CyberArk's platform. He stated that Venafi's cloud-native solution strengthens their leadership in machine identity security, a rapidly growing and complex segment, with positive feedback from customers and partners validating the move.

Outlook: CyberArk expects a fiscal fourth-quarter revenue of $297.0 million-$303.0 million, versus the consensus of $234.04 million.

It projected an adjusted EPS of $0.65-$0.75 versus the consensus of $0.46.

CyberArk raised the fiscal 2024 revenue outlook to $983.0 million-$989.0 million (prior $932.0 million-$942.0 million) versus the consensus of $941.49 million. 

CyberArk expects an adjusted EPS outlook of $2.85-$2.96 (prior $2.17–$2.36) versus the consensus of $2.31.

ARR as of December 31, 2024, will likely be $1.153 billion—$1.163 billion (prior $985 million—$995 million), up by 49%- 50%.

Last week, Jim Cramer advised viewers on CNBC's "Mad Money Lightning Round" to buy CyberArk Software. He praised the company and said he has been a strong supporter for many years.

Cyberark Software stock surged over 39% year-to-date.

Price Action: CYBR stock is up 6.90% at $321.50 premarket at last check Wednesday.

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