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CyberArk Software (CYBR)
NASDAQ:CYBR
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CyberArk Software
(NASDAQ:CYBR)
Rating:70Neutral
Price Target:
$455.00
▲(1.95% Upside)
Positive Factors
Acquisition Offer
PANW announced that the company had entered into a definitive agreement to acquire CYBR for $25B in cash and stock, representing a 26% premium to CYBR's unaffected 10-day average price.
Financial Performance
CYBR posted Q2 ARR of $1,274MM, which was higher than both the internal estimate and the Street estimate.
Revenue and Earnings
Total revenue for CYBR exceeded Street estimates by 3.6%.
Negative Factors
Organic Growth
Net new ARR on an organic basis was down 5-9% year-over-year.
Stock Downgrade
The rating on CYBR stock is downgraded to Peer Perform from Outperform.
Stock Price Potential
The stock is trading below its implied transaction price, which limits the short-term upside potential for investors.
CyberArk Software (CYBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.08B
Dividend YieldN/A
Average Volume (3M)2.07M
Price to Earnings (P/E)1777.4
Beta (1Y)1.23
Revenue Growth39.45%
EPS Growth-982.51%
CountryUS
Employees3,793
SectorTechnology
Sector Strength83
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.88
Shares Outstanding50,407,204
10 Day Avg. Volume1,159,846
30 Day Avg. Volume2,071,428
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue16.73
Enterprise Value/Gross Profit21.96
Enterprise Value/Ebitda276.83
Forecast
1Y Price Target
$475.52Price Target Upside6.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering27
CyberArk Software Business Overview & Revenue Model
Company DescriptionCyberArk Software Ltd., together with its subsidiaries, develops, markets, and sales software-based security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager that offers risk-based credential security and session management to protect against attacks involving privileged access; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide fast, easy, and secure privileged access to third-party vendors; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Cloud Entitlements Manager, a SaaS solution, which reduces risk that arises from excessive privileges by implementing least privilege across cloud environments. The company also offers robust Identity and Access Management as a Services, such as workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management to enable organizations to provide their customers with easy and secure access to websites and applications. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; and Secrets Manager Conjur for cloud-native applications. The company provides its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petah Tikva, Israel.
How the Company Makes MoneyCyberArk generates revenue primarily through the sale of its software products and subscription services. The company's revenue model includes both one-time license fees for on-premises software and recurring subscription fees for its cloud-based solutions. Major revenue streams consist of sales from privileged access management solutions, which are essential for organizations to manage and secure privileged accounts effectively. Additionally, CyberArk earns revenue from maintenance and support services, as well as professional services related to implementation and consulting. The company has established significant partnerships with other technology providers and integrates its solutions with various platforms, enhancing its market reach and contributing to its earnings.
CyberArk Software Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue by Type
Highlights the steady income generated from different service types, indicating the stability and predictability of future cash flows and customer loyalty.
Highlights the steady income generated from different service types, indicating the stability and predictability of future cash flows and customer loyalty.
Data provided by:
Main Street Data
Main Street DataCyberArk Software Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
CyberArk's earnings call reflects a strong start to 2025, with significant growth in ARR, successful integration of acquisitions, and continued innovation in identity security solutions. However, cautiousness about macroeconomic conditions and some tax impacts are noted.Q1-2025 Updates
Positive Updates
Exceeding Q1 2025 Metrics
CyberArk exceeded all guided metrics for Q1 2025, achieving total ARR of $1.215 billion, revenue of $318 million, an 18% operating margin, and $96 million in free cash flow.
Strong Demand for Identity Security
There is robust demand for CyberArk's identity security solutions, which continue to be a top spending priority for organizations.
Growth in Subscription ARR
Subscription ARR grew to $1.028 billion, with net new ARR of $51 million, showing strong performance in subscription services.
Successful Integration and Performance of Acquisitions
Venafi integration is ahead of expectations, contributing significantly to the machine identity business. The Zilla acquisition also shows early success.
Innovation and New Solutions
CyberArk introduced new solutions and capabilities across human, machine, and AI identities, with strategic partnerships enhancing their offerings.
Increased Full-Year Revenue and Earnings Guidance
Full-year revenue guidance increased to $1.313 billion to $1.323 billion, and non-GAAP operating income guidance raised to $221 million to $229 million.
Negative Updates
Macro Economic Concerns
Despite strong performance, CyberArk is cautious about macroeconomic conditions and potential impacts, leading to a more conservative outlook.
Single-Digit Conversion Activity
Conversion activity from maintenance ARR to subscription solutions remains a single-digit percentage of year-over-year ARR growth.
BEAT Tax Impact
CyberArk is subject to approximately $17 million to $20 million of US-based BEAT taxes, which were not anticipated in the initial guidance.
Company Guidance
During the Q1 2025 earnings call, CyberArk Software Ltd. provided several key metrics in their guidance. They reported a total annual recurring revenue (ARR) of $1.215 billion, with net new ARR of $46 million, and subscription ARR growing to $1.028 billion. The total revenue for the quarter was $318 million, and the company achieved an 18% operating margin, generating $96 million in free cash flow. For Q2 2025, CyberArk expects revenue to be between $312 million and $318 million, with non-GAAP operating income ranging from $41.5 million to $46.5 million. The full-year 2025 revenue is projected to be between $1.313 billion and $1.323 billion, representing a 32% year-over-year growth at the midpoint. Additionally, the company anticipates adjusted free cash flow for 2025 to be between $300 million and $310 million, reflecting a 23% margin. These results and projections underscore CyberArk's strong performance and growth trajectory in the cybersecurity space, especially in identity security.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 1.00B | 751.89M | 591.71M | 502.92M | 464.43M |
| Gross Profit | 914.27M | 792.37M | 595.76M | 465.66M | 409.61M | 381.86M |
| EBITDA | 72.52M | 28.68M | -43.77M | -117.57M | -59.06M | 32.27M |
| Net Income | -165.37M | -93.46M | -66.50M | -130.37M | -83.95M | -5.76M |
Balance Sheet | ||||||
| Total Assets | 4.53B | 3.35B | 2.02B | 1.82B | 1.69B | 1.56B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 819.78M | 993.42M | 954.28M | 926.43M | 952.99M |
| Total Debt | 1.22B | 29.32M | 602.87M | 577.20M | 527.07M | 525.53M |
| Total Liabilities | 2.21B | 978.59M | 1.23B | 1.14B | 966.69M | 855.06M |
| Stockholders Equity | 2.32B | 2.37B | 792.33M | 678.14M | 726.51M | 707.29M |
Cash Flow | ||||||
| Free Cash Flow | 207.49M | 220.83M | 51.26M | 37.19M | 65.81M | 99.59M |
| Operating Cash Flow | 222.17M | 231.89M | 56.20M | 49.71M | 74.74M | 106.77M |
| Investing Cash Flow | -1.40B | -346.26M | -85.83M | -68.39M | -228.19M | -412.39M |
| Financing Cash Flow | 1.42B | 288.81M | 38.08M | 12.22M | 10.95M | 13.25M |
CyberArk Software Technical Analysis
Positive
446.28
Price Trends
403.45
Positive
381.83
Positive
362.32
Positive
Market Momentum
12.00
Negative
65.98
Neutral
77.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYBR, the sentiment is Positive. The current price of 446.28 is above the 20-day moving average (MA) of 421.38, above the 50-day MA of 403.45, and above the 200-day MA of 362.32, indicating a bullish trend. The MACD of 12.00 indicates Negative momentum. The RSI at 65.98 is Neutral, neither overbought nor oversold. The STOCH value of 77.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $20.33B | 24.45 | 30.30% | ― | 6.27% | 7.14% | |
72 Outperform | $41.68B | ― | -2.68% | ― | 25.46% | 49.20% | |
71 Outperform | $16.03B | 142.15 | 2.61% | ― | 12.68% | ― | |
70 Neutral | $22.08B | 1,777.39 | -10.35% | ― | 39.45% | -982.51% | |
64 Neutral | $5.46B | ― | -26.98% | ― | 28.19% | -31.34% | |
63 Neutral | $3.58B | ― | -12.60% | ― | 11.41% | 33.76% | |
61 Neutral | $35.62B | 7.50 | -10.94% | 1.87% | 8.86% | -10.27% |
* Technology Sector Average
Performance Comparison
CYBR
CyberArk Software
446.28
159.77
55.76%
CHKP
Check Point
190.67
-0.94
-0.49%
OKTA
Okta
93.03
13.52
17.00%
ZS
Zscaler
273.07
75.82
38.44%
TENB
Tenable Holdings
30.58
-10.95
-26.37%
S
SentinelOne
17.15
-7.11
-29.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.