h3 CyberArk Reports Strong Q2 2024 Financial Results Raises FullYear Guidanceh3p CyberArk NASDAQCYBR
Intellectia.AI1970-01-01
CyberArk Reports Strong Q2 2024 Financial Results, Raises Full-Year Guidance
CyberArk (NASDAQ:CYBR), the identity security company, announced robust financial performance for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Wall Street Consensus | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $224.7 million | $175.8 million | +28% | $219.11 million | Beat |
| Earnings Per Share (EPS) (Non-GAAP) | $0.54 | $0.03 | +1700% | $0.40 | Beat |
| GAAP Net Loss | $(12.9) million | $(25.8) million | +50% | - | - |
| Non-GAAP Net Income | $26.1 million | $1.3 million | +1907% | - | - |
| Non-GAAP Operating Income | $23.7 million | $(5.6) million | - | - | - |
Interpretation : CyberArk posted a significant increase in total revenue and EPS, beating consensus estimates and improving year-over-year. The company also reduced its GAAP net loss considerably, indicating stronger financial health and operational effectiveness.
Revenue Performance By Segment
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Subscription Revenue | $158.4 million | $106.2 million | +49% |
| Maintenance & Professional Svcs | $62.7 million | $64.6 million | -3% |
| Perpetual License Revenue | $3.6 million | $5.1 million | -29% |
Interpretation : Subscription revenue saw impressive growth of 49%, reflecting strong adoption of CyberArk's subscription services. However, Maintenance and Professional Services and Perpetual License revenue experienced declines, likely due to the industry trend towards subscription-based models.
Key Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Total Annual Recurring Revenue (ARR) | $868 million | $653 million | +33% |
| Subscription Portion of ARR | $677 million | $451 million | +50% |
| Maintenance Portion of ARR | $191 million | $201 million | -5% |
Interpretation : CyberArk's ARR saw strong growth, driven predominantly by subscription services. The Maintenance portion of ARR shrank year-over-year, reflecting a shift towards cloud and subscription services.
Executive Commentary
Matt Cohen, Chief Executive Officer of CyberArk, stated, “We had a strong quarter, posting record revenue and increasing our profitability, resulting in CyberArk again outperforming our guidance across all metrics. With the explosion of new identities and environments, a new paradigm is needed to protect every identity with the right level of privilege controls. Customers are consolidating on our platform, driving land and expand."
Dividends and Share Repurchase Program
No dividends or share repurchase program were announced in this quarter.
Forward Guidance
CyberArk raised its guidance for the full year 2024:
Third Quarter 2024: - Total Revenue : $230.0 million to $236.0 million - Non-GAAP Net Income per Share : $0.38 to $0.49
Full Year 2024: - Total Revenue : $932.0 million to $942.0 million - Non-GAAP Net Income per Share : $2.17 to $2.36 - ARR : $985 million to $995 million - Non-GAAP Free Cash Flow : $145.0 million to $155.0 million
Stock Price Movement
Following the earnings release, CyberArk's stock price surged by approximately 7.4%.
Summary : CyberArk ended the quarter on a high note with significant revenue and EPS growth, outperforming Wall Street expectations. The company continues to see strong adoption of its identity security platform, reflected in the impressive increase in subscription ARR. With raised full-year guidance, CyberArk is positioned for robust growth in the coming quarters.
The report is well-organized and contains useful information for investors. No changes are required.
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