Education
About Us
Working with TipRanks
Follow Us
CyberArk Software (CYBR)
NASDAQ:CYBR
Top Page
CyberArk Software
(NASDAQ:CYBR)
Rating:73Outperform
Price Target:
$441.00
▲(9.22%Upside)
Positive Factors
Demand and Market Position
Demand for an Identity Platform is inflecting as CyberArk signed 200 new logos in Q1, with about half landing with 2 or more solutions.
Financial Performance
CyberArk reported strong 1Q25 results, with both revenue and ARR solidly exceeding consensus.
Profitability
Operating income of $57.5MM was ~$10MM above the high end of guidance, resulting in an operating margin of 18.1%.
Negative Factors
Deal Activity
CyberArk's quarter lacked the level of 7-figure deal activity seen previously.
Growth Concerns
Management's reluctance to raise the annual outlook despite adding a contribution from Zilla is concerning as it relates to the implied organic growth.
Guidance
The FY25 guidance is more conservative than what Street expectations anticipated.
CyberArk Software (CYBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.31B
Dividend YieldN/A
Average Volume (3M)703.53K
Price to Earnings (P/E)1777.4
Beta (1Y)1.32
Revenue Growth35.12%
EPS Growth-191.84%
CountryUS
Employees3,793
SectorTechnology
Sector Strength83
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.98
Shares Outstanding50,293,728
10 Day Avg. Volume660,038
30 Day Avg. Volume703,529
Financial Highlights & Ratios
PEG Ratio-38.84
Price to Book (P/B)7.25
Price to Sales (P/S)0.00
P/FCF Ratio70.35
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit20.06
Enterprise Value/Ebitda7.07K
Forecast
1Y Price Target
$446.68Price Target Upside10.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering29
CyberArk Software Business Overview & Revenue Model
Company DescriptionCyberArk Software Ltd. is a leading cybersecurity company specializing in identity security solutions. Founded in 1999 and headquartered in Petah Tikva, Israel, the company operates globally to protect organizations from cyber threats. CyberArk focuses on securing privileged accounts, managing credentials, and ensuring compliance through its comprehensive suite of products, including Privileged Access Management (PAM), Endpoint Privilege Security, and Identity as a Service (IDaaS). These solutions are designed to help enterprises safeguard their most critical assets and data from unauthorized access.
How the Company Makes MoneyCyberArk makes money primarily through the sale of its cybersecurity software and services. The company's revenue model includes the licensing of its software solutions, which provide organizations with tools for managing and securing privileged accounts and identities. CyberArk also generates revenue from subscription services, offering cloud-based solutions that provide continuous security management and updates. Additionally, the company earns from maintenance and support services, helping customers with product implementation, training, and ongoing technical support. Key partnerships with technology providers and resellers further enhance its market reach and contribute to its earnings by expanding its customer base and offering integrated solutions.
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:May 13, 2025
(Q1-2025)
| % Change Since: 9.82%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call for CyberArk Software Ltd. portrayed a strong performance in Q1 2025 with robust demand for its identity security solutions and successful integration of acquisitions. However, caution was noted due to macroeconomic uncertainties and challenges in customer migration. The highlights significantly outweigh the lowlights, indicating a positive outlook.Q1-2025 Updates
Positive Updates
Strong Financial Performance
CyberArk exceeded all guided metrics for Q1 2025, achieving a total ARR of $1.215 billion and revenue of $318 million, with an 18% operating margin and $96 million in free cash flow.
Robust Demand and Market Positioning
Despite macroeconomic uncertainties, CyberArk reported strong demand for its identity security solutions, highlighting its critical role in cybersecurity and its strategic importance for organizations.
Venafi and Zilla Integration Success
The integration of Venafi and Zilla Security is progressing well, contributing significantly to CyberArk's performance with cross-sell synergies and strong pipeline growth.
Innovation and Product Expansion
CyberArk introduced new solutions and capabilities, including the Secure AI Agent solution and strategic partnerships, showcasing its commitment to innovation and addressing emerging security challenges.
Negative Updates
Macro Uncertainty Consideration
Despite strong Q1 results, CyberArk expressed caution in its guidance for the rest of 2025 due to macroeconomic uncertainties, reflecting potential impacts on customer spending.
Challenges in Customer Migration
Conversations with customers indicated challenges in migrating from legacy systems to CyberArk's platform, potentially impacting the pace of adoption and expansion.
Company Guidance
During the CyberArk Software Ltd. Q1 2025 earnings call, the company reported exceeding all guided metrics, showcasing a strong start to the fiscal year. The financial highlights included achieving total annual recurring revenue (ARR) of $1.215 billion, quarterly revenue of $318 million, an operating margin of 18%, and generating $96 million in free cash flow. The company emphasized the increasing importance of identity security, noting that more than 90% of organizations are experiencing identity-related breaches. They reported robust demand for their solutions, despite ongoing macroeconomic uncertainties. CyberArk also raised its full-year guidance, projecting total revenue between $1.313 billion and $1.323 billion, with ARR expected to reach between $1.410 billion and $1.420 billion, reflecting a 32% year-over-year growth at the midpoint.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 | ||||
| 1.10B | 1.00B | 751.89M | 591.71M | 502.92M | 464.43M | Gross Profit |
| 854.56M | 792.37M | 595.76M | 465.66M | 409.61M | 381.86M | EBIT |
| -71.78M | -72.80M | -116.47M | -152.45M | -78.34M | 6.01M | EBITDA |
| 41.92M | 30.08M | -43.77M | -117.57M | -59.06M | 24.41M | Net Income Common Stockholders |
| -87.47M | -93.46M | -66.50M | -130.37M | -83.95M | -5.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 722.39M | 819.78M | 993.42M | 954.28M | 926.43M | 952.99M | Total Assets |
| 3.34B | 3.35B | 2.02B | 1.82B | 1.69B | 1.56B | Total Debt |
| 0.00 | 11.11M | 602.87M | 577.20M | 520.09M | 502.30M | Net Debt |
| -413.55M | -515.36M | 246.94M | 229.86M | 163.24M | 2.31M | Total Liabilities |
| 910.26M | 978.59M | 1.23B | 1.14B | 966.69M | 855.06M | Stockholders Equity |
| 2.43B | 2.37B | 792.33M | 678.14M | 726.51M | 707.29M |
| Cash Flow | Free Cash Flow | ||||
| 249.58M | 220.83M | 51.26M | 37.19M | 65.81M | 99.59M | Operating Cash Flow |
| 261.78M | 231.89M | 56.20M | 49.71M | 74.74M | 106.77M | Investing Cash Flow |
| -577.12M | -346.26M | -85.83M | -68.39M | -228.19M | -412.39M | Financing Cash Flow |
| 287.56M | 288.81M | 38.08M | 12.22M | 10.95M | 13.25M |
CyberArk Software Technical Analysis
Positive
403.76
Price Trends
353.79
Positive
358.52
Positive
328.66
Positive
Market Momentum
12.34
Negative
71.98
Negative
81.49
Negative
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 403.76 is above the 20-day moving average (MA) of 373.62, above the 50-day MA of 353.79, and above the 200-day MA of 328.66, indicating a bullish trend. The MACD of 12.34 indicates Negative momentum. The RSI at 71.98 is Negative, neither overbought nor oversold. The STOCH value of 81.49 is Negative, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $25.30B | 30.83 | 30.92% | ― | 6.40% | 6.49% | |
74 Outperform | $47.18B | ― | -2.68% | ― | 25.46% | 49.20% | |
73 Outperform | $20.31B | 1,777.39 | -5.36% | ― | 35.12% | -191.84% | |
66 Neutral | $4.02B | ― | -12.09% | ― | 11.79% | 35.35% | |
65 Neutral | $18.40B | 163.14 | 2.08% | ― | 13.51% | ― | |
64 Neutral | $6.10B | ― | -26.98% | ― | 32.25% | 20.56% | |
62 Neutral | $11.81B | 10.34 | -7.44% | 2.91% | 7.41% | -7.93% |
* Technology Sector Average
Performance Comparison
CYBR
CyberArk Software
403.76
151.30
59.93%
CHKP
Check Point
233.47
77.36
49.55%
OKTA
Okta
105.08
15.97
17.92%
ZS
Zscaler
303.03
119.12
64.77%
TENB
Tenable Holdings
32.87
-8.23
-20.02%
S
SentinelOne
18.36
0.67
3.79%
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.