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01/11 03:36
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal strong financial performance, with record free cash flow and significant revenue growth. The strategic acquisitions of Venafi and Zilla enhance CyberArk's offerings, while partnerships like the one with Wiz strengthen its market position. The guidance provided is optimistic, with increased free cash flow expectations and a return to the Rule of 40, indicating a balance between growth and profitability. Despite some uncertainties, particularly in federal spending, the overall sentiment is positive, suggesting a potential stock price increase of 2% to 8%.
Earnings Per Share (EPS) $0.80, up from $0.71 year-over-year.
Annual Recurring Revenue (ARR) $1.169 billion, including $166 million from Venafi, representing a significant increase from the previous year.
Total Revenue $314.4 million in Q4, growing 20% year-over-year, including $47 million from Venafi.
Recurring Revenue $292.2 million, growing 24% year-over-year, including $43 million from Venafi.
Subscription Revenue $243 million, growing 34% year-over-year, with $41 million from Venafi.
Operating Margin 15%, up from 4% year-over-year.
Free Cash Flow $221 million, representing a margin of about 22%, up from 7% in the previous year.
Total Revenue for the Year $1 billion, growing 33% year-over-year.
Organic Revenue Growth $954 million, growing 27% year-over-year.
Organic Subscription Revenue $692 million, growing 47% year-over-year.
Cash and Marketable Securities $841 million, reflecting the cash portion of the Venafi acquisition.
Zilla Acquisition Cost $165 million in cash and $10 million in earn-out.
Acquisition of Zilla Security: CyberArk announced the acquisition of Zilla Security for approximately $165 million in cash, aimed at enhancing identity governance capabilities.
Secrets Management Growth: Secrets Management was the fastest growing solution for CyberArk in Q4, indicating strong market readiness for machine identity security.
Annual Recurring Revenue (ARR): CyberArk surpassed the $1 billion ARR mark, reaching $1.169 billion, including $166 million from Venafi.
Revenue Growth: Total revenue for Q4 reached $314.4 million, exceeding guidance and reflecting a strong growth trajectory.
Operating Margin: CyberArk increased its operating margin to 15% in 2024, demonstrating improved operational efficiency.
Free Cash Flow: The company generated $221 million in free cash flow for 2024, marking a significant increase in cash generation.
Focus on Identity Security: CyberArk is positioning itself as a leader in Identity Security, addressing the growing need for comprehensive identity management solutions.
Integration of Venafi and Zilla: The integration of Venafi and Zilla is expected to enhance CyberArk's offerings and expand its total addressable market.
Forward-looking statements: The company cautions that actual results may differ materially from projected results, highlighting the inherent risks in their business activities.
Integration of Venafi and Zilla Security: The integration of these acquisitions poses risks related to operational execution and the realization of expected synergies.
Escalating threat landscape: The increasing sophistication of cyber attacks, including a recent incident involving a nation-state actor, underscores the risks associated with not having robust security controls.
Regulatory challenges: The evolving regulatory environment and changing standards for machine identities present compliance risks that could impact operations.
Economic factors: Fluctuations in currency exchange rates, particularly the euro and pound, created a $2 million headwind to total and subscription ARR.
AI-related risks: The rise of AI in both enhancing attacks and creating new identities introduces significant security challenges that need to be addressed.
Market competition: The need to consolidate security tools due to overwhelming complexity indicates competitive pressures that could affect market positioning.
Operational complexity: The integration of modern IGA solutions with existing systems may lead to operational inefficiencies and heightened security risks.
Acquisition of Zilla Security: CyberArk announced the acquisition of Zilla Security for approximately $165 million in cash, aimed at enhancing identity governance capabilities and addressing challenges faced by traditional IGA solutions.
Annual Recurring Revenue (ARR) Growth: CyberArk surpassed the $1 billion ARR mark, achieving $1.169 billion in total ARR, including $166 million from Venafi.
Free Cash Flow: CyberArk generated record free cash flow of $221 million in 2024, reflecting a 22% free cash flow margin.
Expansion of Identity Security Solutions: CyberArk is focused on innovating and investing in its Identity Security platform to meet growing market needs, particularly in response to the evolving threat landscape.
Q1 2025 Revenue Guidance: CyberArk expects total revenue for Q1 2025 to be between $301 million to $307 million, representing 37% year-over-year growth at the midpoint.
Full-Year 2025 Revenue Guidance: For the full-year 2025, CyberArk anticipates total revenue in the range of $1.308 billion to $1.318 billion, indicating 31% year-over-year growth at the midpoint.
Operating Income Guidance for 2025: CyberArk expects full-year operating income to be between $215 million to $225 million.
Adjusted Free Cash Flow Guidance for 2025: Adjusted free cash flow for 2025 is expected to be in the range of $300 million to $310 million, representing a 23% adjusted free cash flow margin at the midpoint.
Annual Recurring Revenue (ARR) Guidance for 2025: CyberArk expects ARR to be in the range of $1.410 billion to $1.420 billion by December 31, 2025, representing about 21% year-over-year growth at the midpoint.
Free Cash Flow: CyberArk generated record free cash flow of $221 million for the year 2024.
Shareholder Return Plan: CyberArk returned to being a Rule of 40 company, indicating a strong balance between growth and profitability.
Acquisition Impact: The acquisition of Zilla Security for $165 million is expected to enhance CyberArk's offerings and market position.
The earnings call reveals strong financial performance, with revenue and ARR growth exceeding expectations, and a robust free cash flow. Positive guidance and the absence of macro headwinds further reinforce optimism. The Q&A highlights increased customer engagement and multi-product adoption, suggesting sustained demand. Despite conservative guidance due to macro volatility, the overall sentiment is positive, driven by strong earnings and optimistic future outlook.
The earnings call reveals strong financial performance, with record free cash flow and ARR surpassing $1 billion. Revenue and gross profit exceeded guidance, and the company is expanding its identity security solutions. Despite a cautious guidance approach due to macroeconomic volatility, management remains optimistic about product adoption and market opportunities. The Q&A highlights positive customer engagement and no significant competitive threats. The lack of a specific shareholder return plan is a minor negative, but overall, the positive financials and strategic positioning suggest a positive stock price movement.
The earnings call summary and Q&A reveal strong financial performance, with record free cash flow and significant revenue growth. The strategic acquisitions of Venafi and Zilla enhance CyberArk's offerings, while partnerships like the one with Wiz strengthen its market position. The guidance provided is optimistic, with increased free cash flow expectations and a return to the Rule of 40, indicating a balance between growth and profitability. Despite some uncertainties, particularly in federal spending, the overall sentiment is positive, suggesting a potential stock price increase of 2% to 8%.
The earnings call shows strong financial performance with record ARR growth and high margins. Despite integration risks with Venafi, the acquisition is expected to enhance growth. Positive guidance for revenue and free cash flow, alongside strong Q&A responses, indicates optimism. However, potential customer retention risks and convertible notes settlement could moderate gains. Overall, the combination of strong growth metrics and optimistic future guidance suggests a positive stock price movement in the short term.
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