• Subscription ARR: $735 million, growing 46% year-over-year.

• Net New Subscription ARR: $59 million, a record outside of the seasonally strong fourth quarter.

• Total ARR: $926 million, growing 31% year-over-year.

• Total Revenue: $240.1 million, growing 26% year-over-year.

• Non-GAAP Operating Income: $35.4 million or 15% margin, up from a 9% margin in the year-ago period.

• Free Cash Flow: $51.6 million or a 21% free cash flow margin for the quarter.

• Recurring Revenue: $224.2 million, growing 29% year-on-year, accounting for 93% of total revenue.

• Subscription Revenue: $175.6 million, growing 43% year-on-year, representing 73% of total revenue.

• Net Income: $45.1 million or $0.94 per diluted share, more than doubling from the EPS of $0.42 in the year-ago period.

• Cash and Marketable Securities: Approximately $1.5 billion at the end of the third quarter.

• New Logos: Nearly 230 new logos signed in the third quarter.

• Employees: 3,300 employees worldwide, including 1,400 in sales and marketing.

• Warning! GuruFocus has detected 5 Warning Signs with CYBR.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CyberArk Software Ltd (NASDAQ:CYBR) reported strong third quarter results, outperforming guidance across all metrics.

• Subscription Annual Recurring Revenue (ARR) grew 46% year-over-year to $735 million, demonstrating strong demand for subscription-based services.

• The company achieved a record total revenue of $240.1 million, marking a 26% year-over-year increase.

• CyberArk's platform selling approach is gaining traction, with nearly 230 new logos signed in the third quarter.

• The acquisition of Venafi is expected to enhance CyberArk's machine identity security offerings and contribute to future growth.

Negative Points

• The integration of Venafi into CyberArk's operations may present challenges and uncertainties.

• Despite strong growth, the company operates in a tough macroeconomic environment, which could impact future performance.

• There is a significant sequential decrease expected in maintenance ARR in the fourth quarter due to a large cohort of customer renewals.

• Venafi's ARR growth was only around 10% prior to the acquisition, indicating potential challenges in accelerating growth.

• The transition to a subscription model continues to impact maintenance revenue, which decreased year-over-year.

Q & A Highlights

Q: Matt, can you talk about the trend of customers consolidating their identity solutions with CyberArk and how you're driving this within your sales team? A: Customers are facing an identity crisis due to the threat landscape and are looking for a trusted partner to secure all types of identities. Our conversations with CISOs and CIOs focus on providing security across the spectrum of identities, both human and machine. We use a solution selling approach to offer quick on-ramps and time to value, and a platform selling approach to future-proof customers. Customers are recognizing the need to go faster and deeper with CyberArk, driven by security-minded buyers and trust in our relationship. - Matthew Cohen, CEO