
Wednesday, January 01, 2025 12:37:00 PM
CyberArk (CYBR) is the global leader in identity security. Centered on Intelligent Privilege Controls, the company offers the most comprehensive security solutions for any identity - human or machine - spanning business applications, distributed workforces, hybrid cloud environments, and the entire DevOps lifecycle. CYBR’s market cap currently stands at about $14 billion.
In 2024, shares of the cybersecurity firm have performed exceptionally well, delivering outstanding returns of 53.2%.
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Jefferies named CyberArk as its top pick for 2025. The firm has a price target of $400 on the stock. Jefferies said, “CYBR remains well-positioned to sustain momentum in 2025 given an elevated threat environment.” Growth is anticipated to be fueled by new customer acquisitions, maintenance conversions, and Venafi cross-sells, especially in the second half of 2025. The analysts forecast ARR growth in the low- to mid-20% range for the year.
On Nov. 13, CyberArk posted upbeat Q3 results and raised its full-year guidance. CYBR posted a record total revenue of $240.1 million, up 25.6% year-over-year, driven by a 43% increase in subscription revenue, beating the consensus estimate by $6.01 million. Its total ARR grew 31% year-over-year to $926 million. It’s important to note that subscription ARR is making up an increasingly larger percentage of total ARR each quarter. It rose 46% year-over-year to $735 million in Q3 and now constitutes 79% of total ARR, up from 78% last quarter. This should further bolster its top-line growth.
Meanwhile, CyberArk improved its adjusted gross margin by 210 basis points year-over-year to 80.3%, fueled by profitability in its subscription business. The company is achieving significant operating leverage as it shifts more of its revenue from one-time licensing sales to recurring subscription revenue. As a result, Non-GAAP operating income margin reached 15%, up from 9% in the same period last year. Its adjusted EPS came in at $0.94, beating expectations by $0.48.
On Oct. 1, CYBR closed the acquisition of Venafi, a machine identity security software company with approximately $150 million in recurring revenue, for $1.5 billion. This move broadens the firm’s presence in machine identity management at a time when an increasing number of enterprises are using AI models and agents to optimize operations. Management plans to focus on cross-selling the newly acquired Venafi features to its base of 8,500 existing customers.
Looking ahead, CyberArk raised its full-year guidance, expecting sales to range between $983 million and $989 million, up from the previously forecast range of $932 million to $942 million. Non-GAAP net income per share is also projected to be between $2.85 and $2.96, compared to the earlier range of $2.17 to $2.36.
According to Wall Street estimates, CyberArk’s Non-GAAP EPS is expected to skyrocket 163.31% year-over-year to $2.95 in FY24, while revenue is projected to grow 31.34% year-over-year to $987.52 million.
In terms of valuation, CyberArk’s forward price-sales ratio is 14.16x, above the sector median of 3.25x and its five-year average of 10.54x. However, I don’t believe that the stock is overvalued; instead, this premium likely reflects market confidence and the expected benefits from the Venafi acquisition.
Analysts have a consensus rating of “Strong Buy” on CyberArk stock. Among the 29 analysts covering the stock, the majority rate it as a “Strong Buy,” one as a “Moderate Buy,” and one advises holding. The average price target for CYBR stock is $352.89, indicating an upside potential of 10% from the Dec. 27 closing price.
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Recent CYBR News
- Form SCHEDULE 13G/A - Statement of Beneficial Ownership by Certain Investors: [Amend] • Edgar (US Regulatory) • 02/07/2025 12:30:02 PM
- CyberArk and SentinelOne Team Up to Enable Step Change in Endpoint and Identity Security • Business Wire • 02/04/2025 01:30:00 PM
- CyberArk Launches Essential New Companion Guide: “The Identity Security Imperative” • Business Wire • 02/03/2025 01:30:00 PM
- CyberArk Helps Modernize Identity and Access Management for Linux Machines With New Identity Bridge Capability • Business Wire • 01/30/2025 03:34:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 01/15/2025 09:15:21 PM
- CyberArk Integration with Microsoft Defender for Identity Speeds Identification and Containment of Cyber Threats • Business Wire • 01/15/2025 01:30:00 PM
- DAIKYO Secures Privileged Access and Achieves Substantial Time Savings With CyberArk • Business Wire • 01/07/2025 01:26:00 PM
- CyberArk To Announce Fourth Quarter and Year End 2024 Financial Results on February 13 • Business Wire • 01/06/2025 01:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/18/2024 09:25:26 PM
- Security Leaders Say Machine Identities – Such as Access Tokens and Service Accounts – Are Next Big Target for Cyberattack • Business Wire • 12/16/2024 02:00:00 PM
- CyberArk Unveils Breakthrough Open-Source Tool That Helps Organizations Safeguard Against AI Model Jailbreaks • Business Wire • 12/11/2024 11:00:00 AM
- New FIDO Alliance Certification Highlights CyberArk’s Commitment To Securing Customers’ Passwordless Journeys • Business Wire • 12/10/2024 01:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/09/2024 09:17:20 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/09/2024 09:05:30 PM
- Form 424B4 - Prospectus [Rule 424(b)(4)] • Edgar (US Regulatory) • 12/06/2024 09:05:30 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 12/05/2024 10:13:53 PM
- CyberArk Announces Secondary Offering of Ordinary Shares • Business Wire • 12/05/2024 09:38:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/05/2024 09:17:50 PM
- Privileged Access Management Solutions Market Skyrockets to $5.95 Billion by 2031 Dominated by Tech Giants - Broadcom Inc., CyberArk Software Ltd. and International Business Machines Corp | The Insight Partners • PR Newswire (US) • 12/03/2024 03:01:00 PM
- New Research from CyberArk Reveals Security Risks Introduced by Everyday Employee Behaviors • Business Wire • 12/03/2024 01:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/02/2024 10:07:23 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/02/2024 09:29:39 PM
- CyberArk reçoit la certification QC1 délivrée par l'agence nationale italienne de la cybersécurité • Business Wire • 11/22/2024 06:12:00 AM
- CyberArk erhält QC1-Zertifizierung von der italienischen Nationalen Agentur für Cybersicherheit • Business Wire • 11/22/2024 02:37:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 11/21/2024 09:19:31 PM
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