CyberArk Reports Second Quarter 2024 Financial Results

CyberArk Reports Second Quarter 2024 Financial Results

CyberArk (NASDAQ:CYBR), the identity security company, reported its financial results for the second quarter ended June 30, 2024. Below is a summary of the key financial metrics and performance highlights.

Key Financial Metrics

Interpretation: CyberArk's financial performance in Q2 2024 significantly exceeded Wall Street expectations and showed robust year-over-year growth. The company's total revenue of $224.7 million surpassed the consensus estimate of $219.11 million. The non-GAAP EPS of $0.54 also exceeded the consensus estimate of $0.40, reflecting strong profitability gains. Despite a GAAP net loss of $(0.30) per share, the reduction in loss from $(0.62) per share last year indicates a positive trend toward profitability.

Revenue Performance by Segment

Interpretation: The subscription segment showed remarkable growth, increasing by 49% year-over-year to $158.4 million. This growth underscores the strength of CyberArk's recurring revenue model. Despite a slight decline in maintenance and professional services revenue and a notable drop in perpetual license revenue, the total revenue still climbed by 28%, indicating that the subscription model is driving overall company growth.

Key Operational Data

Comments from Company Officers

Matt Cohen, CyberArk's Chief Executive Officer, highlighted the strong quarterly performance and the increased profitability. He emphasized the growing criticality of identity security and CyberArk's strategic position, citing the addition of 245 new customer logos and a net new Subscription ARR of $56 million as key indicators of the company's success and market penetration.

Forward Guidance

For Q3 2024, CyberArk anticipates: - Total revenue between $230.0 million and $236.0 million, representing a 20% to 23% year-over-year growth. - Non-GAAP operating income between $20.5 million and $25.5 million. - Non-GAAP net income per share in the range of $0.38 to $0.49.

For the full year 2024, CyberArk forecasts: - Total revenue between $932.0 million and $942.0 million, up 24% to 25% compared to 2023. - Non-GAAP operating income between $107.5 million and $116.5 million. - Non-GAAP net income per share between $2.17 and $2.36. - ARR expected to range from $985 million to $995 million, representing 27% to 29% growth year-over-year. - Non-GAAP free cash flow expected between $145.0 million and $155.0 million.

Stock Price Movement

CyberArk's stock surged by 8.23% following the earnings release, reflecting strong investor sentiment and confidence in the company's performance and forward outlook.

In summary, CyberArk demonstrated robust financial and operational results for Q2 2024, significantly exceeding expectations. The growth in subscription revenue and annual recurring revenue highlights the success of its business model. Confident about its future prospects, the company has raised its full-year guidance, indicating strong anticipated performance in upcoming quarters.