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CyberArk Software (CYBR)
NASDAQ:CYBR
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CyberArk Software
(NASDAQ:CYBR)
67Neutral
Positive Factors
Acquisition and Market Position
There is excitement around CYBR’s acquisition of Venafi, the leader in Machine Identity Management.
Research and Development
CYBR's headcount in research and development increased by 30.7%, showing a commitment to innovation and product development.
Revenue Growth
CYBR's revenue from the United States increased by approximately 28%, highlighting strong growth in a key market.
Negative Factors
Financial Impact
The free cash flow estimate for the second quarter of 2025 is negatively impacted, showing -$12.6 million due to the one-time tax payment.
Free Cash Flow
The free cash flow estimate for 2025 is reduced to $236.5 million, reflecting an 18.0% margin.
Tax Obligations
CyberArk expects to pay a $70 million tax obligation related to capital gains from moving Venafi’s SaaS intellectual property to its Israeli entity.
CyberArk Software (CYBR) vs. S&P 500 (SPY)
Market Cap
$15.16B
Dividend YieldN/A
Average Volume (3M)656.03K
Price to Earnings (P/E)1777.4
Beta (1Y)1.35
Revenue Growth33.10%
EPS Growth-20.31%
CountryUS
Employees3,793
SectorTechnology
Sector Strength40
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-1.97
Shares Outstanding49,458,714
10 Day Avg. Volume603,129
30 Day Avg. Volume656,026
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)17.38
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$456.43Price Target Upside49.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering32
CyberArk Software Business Overview & Revenue Model
Company DescriptionCyberArk Software Ltd. is a global leader in identity security solutions, specializing in protecting against cyber threats that target privileged accounts, credentials, and secrets across on-premises, cloud, and hybrid environments. Founded in 1999 and headquartered in Petach Tikva, Israel, the company operates in sectors including cybersecurity and information technology. CyberArk's core offerings include Privileged Access Management (PAM) solutions, identity management, endpoint security, and DevSecOps solutions, which help organizations secure their most critical assets.
How the Company Makes MoneyCyberArk Software generates revenue primarily through the sale of software licenses, maintenance and support services, and subscription-based offerings. The company's revenue model includes direct sales and a robust network of channel partners and resellers. A significant portion of its income comes from recurring subscription fees for its SaaS-based identity security solutions, which provide customers with continuous updates and support. CyberArk also capitalizes on growing cybersecurity demands by offering consulting services to help organizations implement and optimize their security frameworks. Strategic partnerships with global technology companies and constant innovation in developing new security solutions further bolster CyberArk's earnings.
CyberArk Software Financial Statement Overview
Summary
CyberArk Software demonstrates robust revenue growth and cash flow improvement, supported by a strong balance sheet with zero debt. Despite these strengths, the company faces profitability challenges, with negative net income and EBIT margins. The focus on revenue expansion and cash management provides a solid foundation for future profitability improvement.Income Statement
The company shows strong revenue growth with a 33% increase from 2023 to 2024, reflecting a positive trajectory. However, profitability metrics such as EBIT and net income margins are negative, indicating ongoing operational challenges. The gross profit margin is healthy at 78%, showing strong core operations despite bottom-line losses.65
Positive
Balance Sheet
The balance sheet is robust with zero debt and significant cash reserves, highlighting financial stability. The equity ratio is high at 71%, indicating a strong equity base relative to assets. Return on equity is negative due to net losses, which is a key area of concern.75
Positive
Cash Flow
Operating cash flow has improved significantly, leading to a positive free cash flow growth of 330%. The ratio of operating cash flow to net income is favorable, indicating good cash conversion. The ongoing improvement in cash flow metrics suggests strengthening liquidity, though historical fluctuations in free cash flow remain a potential risk.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.00B | 751.89M | 591.71M | 502.92M | 464.43M | Gross Profit |
| 792.37M | 595.76M | 465.66M | 409.61M | 381.86M | EBIT |
| -51.00M | -116.47M | -152.45M | -78.34M | 6.01M | EBITDA |
| 26.02M | -43.77M | -117.57M | -59.06M | 24.41M | Net Income Common Stockholders |
| -93.46M | -66.50M | -130.37M | -83.95M | -5.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 819.78M | 993.42M | 954.28M | 926.43M | 952.99M | Total Assets |
| 3.35B | 2.02B | 1.82B | 1.69B | 1.56B | Total Debt |
| 11.11M | 602.87M | 577.20M | 520.09M | 502.30M | Net Debt |
| -515.36M | 246.94M | 229.86M | 163.24M | 2.31M | Total Liabilities |
| 978.59M | 1.23B | 1.14B | 966.69M | 855.06M | Stockholders Equity |
| 2.37B | 792.33M | 678.14M | 726.51M | 707.29M |
| Cash Flow | Free Cash Flow | |||
| 220.83M | 51.26M | 37.19M | 65.81M | 99.59M | Operating Cash Flow |
| 231.89M | 56.20M | 49.71M | 74.74M | 106.77M | Investing Cash Flow |
| -346.26M | -85.83M | -68.39M | -228.19M | -412.39M | Financing Cash Flow |
| 288.81M | 38.08M | 12.22M | 10.95M | 13.25M |
CyberArk Software Technical Analysis
Negative
305.98
Price Trends
359.64
Negative
343.03
Negative
309.06
Negative
Market Momentum
-4.28
Negative
49.36
Neutral
43.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYBR, the sentiment is Negative. The current price of 305.98 is below the 20-day moving average (MA) of 338.81, below the 50-day MA of 359.64, and below the 200-day MA of 309.06, indicating a bearish trend. The MACD of -4.28 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYBR.
CyberArk Software Risk Analysis
CyberArk Software disclosed 41 risk factors in its most recent earnings report. CyberArk Software reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CyberArk Software Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.36B | 28.91 | 30.15% | ― | 6.22% | 6.15% | |
73 Outperform | $27.03B | ― | -1.21% | ― | 27.77% | 89.39% | |
69 Neutral | $15.96B | 1,557.00 | 0.46% | ― | 15.33% | ― | |
67 Neutral | $15.16B | 1,777.39 | -5.91% | ― | 33.10% | -20.31% | |
64 Neutral | $5.57B | ― | -17.68% | ― | 32.25% | 20.56% | |
63 Neutral | $3.85B | ― | -9.73% | ― | 12.68% | 54.80% | |
57 Neutral | $18.52B | 9.81 | -13.96% | 2.71% | 5.07% | -23.65% |
* Technology Sector Average
Performance Comparison
CYBR
CyberArk Software
305.98
45.99
17.69%
CHKP
Check Point
213.76
50.01
30.54%
OKTA
Okta
91.24
-9.99
-9.87%
ZS
Zscaler
180.06
-8.44
-4.48%
TENB
Tenable Holdings
31.88
-17.23
-35.08%
S
SentinelOne
16.90
-5.52
-24.62%
CyberArk Software Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -19.66% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
CyberArk's earnings call reflects a strong financial performance in 2024, marked by record revenue, significant margin improvements, and strategic acquisitions. The company demonstrated resilience and adaptability in addressing market demands, particularly in machine identity and modern IGA solutions. While minor challenges such as currency fluctuations and declining maintenance ARR were noted, the overall sentiment is overwhelmingly positive.Highlights
Record-Breaking Revenue and Growth
CyberArk exceeded $1 billion in ARR and $1 billion in revenue for the first time in 2024, demonstrating strong financial performance.
Significant Operating Margin Increase
Operating margin increased to 15% for the year, showcasing the inherent leverage in CyberArk's business model.
Venafi and Zilla Security Acquisitions
CyberArk acquired Venafi and Zilla Security to expand its capabilities in machine identity and modern IGA solutions, enhancing its competitive position.
Strong Free Cash Flow
CyberArk generated $221 million in free cash flow in 2024, reflecting a 22% free cash flow margin.
Return to Rule of 40
CyberArk returned to being a Rule of 40 company, a year ahead of its playbook and long-term targets.
Secrets Management Success
Secrets Management was the fastest growing solution for CyberArk in 2024, indicating strong demand for securing machine identities.
Impressive Geographic Growth
CyberArk achieved significant growth across all regions: 17% in the Americas, 26% in EMEA, and 19% in APJ.
Lowlights
Currency Fluctuations Affecting ARR
Late Q4 fluctuations in the euro and pound created a $2 million headwind to total and subscription ARR.
Maintenance ARR Decline
Maintenance ARR is expected to continue decreasing throughout 2025, with a significant drop anticipated in Q4.
Company Guidance
During the CyberArk Q4 and full-year 2024 earnings call, the company provided guidance for 2025, projecting annual recurring revenue (ARR) to reach between $1.410 billion and $1.420 billion, representing a 21% year-over-year growth at the midpoint. For the full-year 2025, they expect total revenue to be between $1.308 billion and $1.318 billion, reflecting a 31% increase from the previous year. The company also anticipates operating income to range from $215 million to $225 million and free cash flow to be between $300 million and $310 million, despite accounting for a $70 million tax payment related to a recent acquisition. These projections underscore CyberArk's confidence in continued growth, particularly after surpassing the $1 billion mark in ARR and achieving a Rule of 40 status a year ahead of schedule.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.