CyberArk Software (NASDAQ:CYBR) shares rose 2.7% Wednesday after the company reported much better-than-expected earnings for the fiscal Q3 and issued upbeat guidance.

For the third quarter, the identity security company posted earnings per share (EPS) of $0.94, significantly surpassing analyst expectations of $0.46. Revenue of $240.1 million also came ahead of the $234.1 million that analysts forecasted.

“CyberArk reported strong results and outperformed guidance across all metrics. Our best-in-class execution and industry leadership in identity security is helping us deliver strong net new ARR, record revenue and increased profitability and cash flow,” said Matt Cohen, CyberArk’s CEO.

“We continue to deliver on our vision of securing every identity – human and machine – with the right level of privilege controls. Demand for our solutions remains strong as customers continue to embrace our industry leading solutions across workforce, IT, developer and machine identities."

For Q4 2024, CyberArk projects EPS between $0.65 and $0.75, above the consensus of $0.55. Revenue guidance for Q4 is set between $297 million and $303 million, outpacing the consensus estimate of $259.1 million.

For the full year, net income per share is forecasted to be between $2.85 and $2.96, while non-GAAP free cash flow is projected to be between $203 million and $213 million. The company projects total revenue in the range of $983 million to $989 million, marking an expected growth of 31% to 32% over 2023.

"We believe the company’s ability to manage all identity types in a variety of deployment environments, increasing number of use cases, technology innovation, and high recurring revenue, have positioned it strongly for durable growth going forward," Truist Securities analysts said in a post-earnings note.

Separately, BTIG analysts reiterated a Buy rating on CyberArk shares, noting "a strong report during what has been a fairly soft earnings season so far in security software."

Alongside its earnings, CyberArk also announced that CFO Josh Siegel will be stepping down from his role on January 1, 2025, as part of a planned succession. Erica Smith, currently the Deputy CFO, will assume the CFO role and join the executive team.

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