By Denny Jacob
CyberArk Software, the identity security company, has announced impressive fourth-quarter results and a promising future outlook. This news has caused the company’s stock to rise by 6.9% to $259.92, with a 74% increase over the last 12 months.
Financial Performance
In the fourth quarter ended on December 31st, CyberArk Software achieved a significant turnaround. The company reported a profit of $8.91 million, or 20 cents per share, compared to a loss of $22.2 million, or 54 cents per share, in the same period the previous year. Furthermore, their adjusted earnings of 81 cents per share surpassed analysts’ estimates of 47 cents per share. Additionally, total revenue increased by 32% to $223.1 million, exceeding the expected amount of $209.7 million according to analysts polled by FactSet.
Shift Towards Recurring Revenue
Chief Executive Matt Cohen highlighted the success of CyberArk Software’s subscription-based solutions. The company experienced record demand for their SaaS offerings, resulting in a subscription bookings mix of 95% in 2023. Moreover, recurring revenue accounted for 90% of CyberArk’s total revenue, solidifying its position as a fully recurring revenue company.
Promising Outlook
CyberArk Software has provided optimistic guidance for the first quarter of the fiscal year. They anticipate revenue in the range of $209 million to $215 million, along with adjusted earnings per share of 21 cents to 31 cents. These projections surpass the expectations of analysts polled by FactSet, who predicted revenue of $207.7 million and adjusted earnings per share of 24 cents.
Looking ahead to the full year of 2024, CyberArk projects revenue between $920 million and $930 million. They also anticipate adjusted earnings per share to fall within the range of $1.63 and $1.81. Once again, these forecasts exceed the predictions of analysts polled by FactSet, who estimated revenue of $916.8 million and adjusted earnings per share of $1.72.
