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CyberArk Software (NASDAQ:CYBR) the stock increased 6% on Thursday, after its fourth-quarter results beat estimates and its outlook drew positive reactions from analysts.
Wedbush Securities maintained an Outperform rating on the stock and raised its price target to $285 from $235, reflecting higher numbers looking ahead.
Analysts said CyberArk reported a robust December quarter featuring strong top-line and bottom-line results, driven by strong annual recurring revenue, or ARR, as the company continues to see demand hold up in this challenging environment, ensuring while successfully managing your subscription transition. .
CYBR provided healthy guidance for 2024 that was well above Street expectations and remains one of Wedbush’s top cyber names with its broad range of product offerings maintaining strong demand while significantly increasing profitability of its security solutions, analysts added.
Total revenue grew 32% year-over-year to $223.1 million in the fourth quarter ended December 31, 2023. Non-GAAP revenue increased 406% year-over-year to $0.81.
Subscription revenue increased 70% year-over-year to $150.3 million in the fourth quarter. Revenue from maintenance and professional services decreased 1.9% year-over-year to $64.84 million.
“Record demand for our SaaS solutions drove subscription booking mix to 95% in 2023, and recurring revenue reached 90% of our total revenue – we are now a fully recurring revenue company,” said Matt Cohen , CEO of CyberArk.
Annual recurring revenue, or ARR, increased 36% year-over-year to $774 million.
“The momentum of our business and the sales movement of our platform is demonstrated by our ARR reaching $774 million and growing 36%, as well as our Subscriptions ARR reaching $582 million, growing by 60%, with record net new subscription ARR of $78 million in the fourth quarter,” Cohen noted.
JPMorgan said earnings expectations are elevated, but the level of net new ARR for the quarter, margin expansion and fiscal 2024 ARR guidance of +26% year-over-year growth at half should reflect positively on the stock.
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Wedbush analysts said CyberArk (CYBR) delivered its FY24 ARR guidance of $968 million to $983 million (up 25% to 27% year-over-year), higher than estimate Street’s $964.4 million, which will be viewed positively by the Street. as the company continues to see the strength of its identity security solutions with 7-figure deals across many industries as its expansion and territory strategy is seeing significant momentum of upsells, cross-sells and new logos.
Meanwhile, Rosenblatt said CyberArk had good pace in the fourth quarter and that the stock deserves a premium with revenue in fiscal 2025 growing 23% versus its peer group of 19%.
For full-year 2024, the company expects total revenues to be between $920 million and $930 million versus the consensus of $915.82 million.
Projected first-quarter 2024 revenue will be between $209 million and $215 million, compared to consensus of $207.25 million.