CyberArk Software Ltd. CYBR shares have soared 8.5% since the company reported fourth-quarter 2024 results on Feb. 13.
Shares of CYBR have rallied 58.7% in the past year. This robust performance has significantly outperformed the broader Zacks Computer and Technology sector, the S&P 500 and the Zacks Security industry’s growth of 26.1%, 23.2% and 22.1%, respectively, reinforcing its position as a standout performer in the cybersecurity space.
Strong Q4 Results Push CYBR Stock Higher
CyberArk’s most recent rally is heavily influenced by its robust fourth-quarter 2024 results, rapid growth in annual recurring revenue (ARR) and strong guidance for 2025.
One Year Price Return Performance
Image Source: Zacks Investment Research
The company’s fourth-quarter revenues jumped 40.9% year over year to $314.38 million, surpassing the Zacks Consensus Estimate by 4.43%. CYBR’s bottom line of 80 cents per share beat the Zacks Consensus Estimate by 12.68%.
CyberArk has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 82.77%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote
A key highlight was the achievement of an ARR of $1.169 billion with more than $1 billion ARR acquired organically during the fourth quarter. The subscription ARR accounted for $977 million with massive year-over-year growth of 67.7%. This growth reflects the strong adoption of CyberArk’s identity solutions and provides stable revenue visibility moving forward.
The company initiated its full-year 2025 revenue guidance of $1.308-$1.318 billion, indicating robust 31.5% growth at the midpoint. Analysts remain optimistic about the company’s future. The Zacks Consensus Estimate for 2025 suggests growth of 31.5% and 18.2% in revenues and earnings, respectively. Moreover, CyberArk’s long-term earnings growth rate is projected at 20%, surpassing the industry average of 16.2%.
CyberArk Dominates the Identity Security Space
CyberArk is leading the identity security market with its cutting-edge products. As cyber breaches grow more sophisticated, organizations are intensifying their focus on privileged access management and Zero Trust capabilities. CYBR’s offerings, such as its Zero Standing Privilege approach, are well-aligned with these industry trends, ensuring its significance in the ever-changing threat landscape.
CYBR’s $1.54 billion acquisition of Venafi, a leader in machine identity management, and the $165 million acquisition of Zilla Security strengthens its position in the security space. This move broadens CyberArk’s capabilities in machine-to-machine security, complementing its core human identity offerings. The long-term potential to expand CyberArk’s addressable market and enhanced ARR growth make these acquisitions promising growth drivers.
CYBR is also a crucial security ally for more than 5,400 global businesses, which comprises more than 50% of the Fortune 500 and 35% of the Global 2000 companies. One of the key drivers for customer growth is CyberArk’s strategic partnerships with tech giants like Microsoft MSFT, Amazon’s AMZN Amazon Web Services (“AWS”) and Alphabet’s GOOGL Google Cloud.
By integrating its solutions with Microsoft’s Azure Active Directory, AWS’ cloud infrastructure and Alphabet’s Google Cloud, CyberArk deepened its ability to secure cloud environments, offering robust identity management solutions across various IT ecosystems. With all these enhancements in place, CyberArk provides its customers with comprehensive and integrated security solutions, making CYBR an indispensable player in today’s cybersecurity landscape.
50-Day & 200-Day Moving Averages Indicate Bullish Trend
CYBR stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend in the near term.
Image Source: Zacks Investment Research
Conclusion: Buy CyberArk Stock Now
CyberArk’s impressive rally in the past year underscores its position as a leader in the cybersecurity sector. Its focus on identity security, strategic acquisitions and growing ARR base offer strong long-term growth prospects. Moreover, its recent quarterly performance advocates its successful growth strategies.
Considering all these factors, it is prudent to buy this Zacks Rank #2 (Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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