CyberArk Software has revised its forecast for the year upwards, posting surprisingly strong third-quarter results, and concurrently appointed a new finance chief. The Israel-based cybersecurity firm now expects adjusted earnings in the range of $2.85 to $2.96 per share for 2024, a significant increase from previous estimates of $2.17 to $2.36.
Revenue projections have also been heightened, with anticipated figures between $983 million and $989 million, surpassing the earlier guidance of $932 million to $942 million. As per the latest insights from Capital IQ, consensus estimates for normalized earnings per share (EPS) stand at $2.41, with expected revenue of $964 million. "Demand for our solutions remains strong," noted Chief Executive Matt Cohen in a recent statement.
"Given the tremendous market opportunity, the mission-critical nature of securing all identities, and durable demand drivers, we are confidently raising our guidance for the full year 2024 across all metrics." Following this announcement, CyberArk's shares listed in the US surged nearly 6% in premarket trading.
Adjusted EPS for the September quarter surged to $0.94, an improvement from $0.42 recorded a year prior, and exceeded analyst expectations of $0.46. Revenue saw a notable advancement of 26%, amounting to $240.1 million, which was above the analysts' estimate of $234.1 million. The subscription revenue climbed an impressive 43% to $175.6 million, though the maintenance and professional services segment faced a decline, dropping to $61.6 million from $64.3 million previously.
Perpetual license revenue also took a hit, coming in at $2.9 million, down from $4.1 million year-over-year. Annual recurring revenue surged 31% to $926 million, with the subscription component accounting for 79% of this total. "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," Cohen further commented.
Total operating expenses also expanded, rising to $204 million from $175.2 million. Looking ahead, CyberArk anticipates adjusted EPS for the ongoing quarter to fall between $0.65 and $0.75, with expected sales between $297 million and $303 million. This guidance also includes the projected impact from the recent acquisition of Venafi, a machine identity management company, completed at the beginning of last month. Additionally, CyberArk announced that Josh Siegel will resign as chief financial officer, effective January 1.
Deputy CFO Erica Smith is set to take over the role, following Siegel’s transition to an advisory position. Smith has been with the company since 2015 and was appointed deputy CFO earlier this year..