CyberArk Software (CYBR - Free Report) reported non-GAAP loss of 6 cents for third-quarter 2022. The figure was narrower than the Zacks Consensus Estimate of a loss of 20 cents per share. The bottom line was flat year over year.
For third-quarter 2022, the leading Identity Security solution provider reported revenues of $153 million, beating the consensus mark of $151.2 million. The top line witnessed a year-over-year improvement of 26%. Markedly, 84% of quarterly revenues were recurring in nature, which surged 44% year over year to $129 million.
Annual Recurring Revenues (“ARR”) increased 49% to $512 million. The maintenance portion, representing 41.2% of total ARR, increased 2.4% year over year to $211 million. The subscription portion, which accounted for 58.8% of the total ARR, soared 117% year over year to $301 million. This upside was primarily driven by a record number of software-as-a-service solutions bookings and strong demand for on-premises subscription offerings.
CyberArk’s subscription transition has been witnessing strong momentum, with a rapidly growing base of recurring revenues. Subscription bookings made up 87% of the license bookings in the quarter, which was higher than 72% in the year-ago quarter.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
Quarter Details
Segment-wise, Subscription revenues (49% of total revenues) were $74 million, up 110% from the year-ago quarter.
Maintenance and professional services revenues (41.8% of total revenues) remained flat at $64 million.
Perpetual license revenues (9.2% of total revenues) plunged 39.1% to $14 million at the close of this quarter.
The signing of new logos across all industries highlighted a steady increase in new businesses. The new business pipeline is encouraging.
During the third quarter, CyberArk added around 230 new customers.
Operating Details
CyberArk’s non-GAAP gross profit increased 22.9% year over year to $126 million.
Non-GAAP operating expenses escalated 27% year over year to $130 million. This was primarily due to 27.4%, 29.7% and 13.1% year-over-year increases in R&D, S&M and G&A expenses, respectively, from the year-earlier reported figures. S&M expenses comprised almost 57% of the total quarterly operating expenses.
The company’s non-GAAP operating loss was $4 million at the end of third-quarter 2022, against a non-GAAP operating income of $0.13 million a year ago.
Balance Sheet
CyberArk ended the July-September quarter with cash and cash equivalents, marketable securities and short-term deposits of $949.5 billion.
As of Sep 30, 2022, total deferred revenues were $376 million, up 34% year over year.
During the third quarter, CyberArk used operating cash flow worth $18.5 million and free cash flow worth $13.9 million. In the first nine months of 2022, the company generated $29.2 million in operating cash flow and $20.4 million in free cash flow.
Guidance
For the fourth quarter of 2022, CyberArk expects revenues between $169.9 million and $176.9 million. It projects to post non-GAAP earnings per share in the range of 7-20 cents.
Non-GAAP operating earnings are estimated between $2 million and $8 million.
For full-year 2022, CyberArk now expects revenues to be in the range of $592.5-$599.5 million compared to the prior estimate of $589-$601 million. The company now projects non-GAAP loss to be 54-39 cents per share compared with the previously estimated range of 82-57 cents per share.
Non-GAAP operating loss for full-year 2022 is estimated in the $24.5-$18.5 million band.
Zacks Rank & Other Key Picks
CyberArk currently carries a Zacks Rank #2 (Buy). Shares of CYBR have declined 25.4% in the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Okta (OKTA - Free Report) , Zscaler (ZS - Free Report) and Digi International (DGII - Free Report) . While Okta and Zscaler flaunt a Zacks Rank #1 (Strong Buy), Digi International carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Okta's third-quarter fiscal 2023 loss has been revised a penny downward to 31 cents per share over the past 60 days. For fiscal 2022, loss estimates have improved by 3 cents to 72 cents per share in the past 30 days.
OKTA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 45.5%. Shares of the company have declined 80.1% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised a penny north to 21 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by a penny to $1.18 per share in the past 30 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 58.4% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 1.2% down to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have improved 62.1% in the past year.
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It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
CyberArk Software (CYBR - Free Report) reported non-GAAP loss of 6 cents for third-quarter 2022. The figure was narrower than the Zacks Consensus Estimate of a loss of 20 cents per share. The bottom line was flat year over year.
For third-quarter 2022, the leading Identity Security solution provider reported revenues of $153 million, beating the consensus mark of $151.2 million. The top line witnessed a year-over-year improvement of 26%. Markedly, 84% of quarterly revenues were recurring in nature, which surged 44% year over year to $129 million.
Annual Recurring Revenues (“ARR”) increased 49% to $512 million. The maintenance portion, representing 41.2% of total ARR, increased 2.4% year over year to $211 million. The subscription portion, which accounted for 58.8% of the total ARR, soared 117% year over year to $301 million. This upside was primarily driven by a record number of software-as-a-service solutions bookings and strong demand for on-premises subscription offerings.
CyberArk’s subscription transition has been witnessing strong momentum, with a rapidly growing base of recurring revenues. Subscription bookings made up 87% of the license bookings in the quarter, which was higher than 72% in the year-ago quarter.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
Quarter Details
Segment-wise, Subscription revenues (49% of total revenues) were $74 million, up 110% from the year-ago quarter.
Maintenance and professional services revenues (41.8% of total revenues) remained flat at $64 million.
Perpetual license revenues (9.2% of total revenues) plunged 39.1% to $14 million at the close of this quarter.
The signing of new logos across all industries highlighted a steady increase in new businesses. The new business pipeline is encouraging.
During the third quarter, CyberArk added around 230 new customers.
Operating Details
CyberArk’s non-GAAP gross profit increased 22.9% year over year to $126 million.
Non-GAAP operating expenses escalated 27% year over year to $130 million. This was primarily due to 27.4%, 29.7% and 13.1% year-over-year increases in R&D, S&M and G&A expenses, respectively, from the year-earlier reported figures. S&M expenses comprised almost 57% of the total quarterly operating expenses.
The company’s non-GAAP operating loss was $4 million at the end of third-quarter 2022, against a non-GAAP operating income of $0.13 million a year ago.
Balance Sheet
CyberArk ended the July-September quarter with cash and cash equivalents, marketable securities and short-term deposits of $949.5 billion.
As of Sep 30, 2022, total deferred revenues were $376 million, up 34% year over year.
During the third quarter, CyberArk used operating cash flow worth $18.5 million and free cash flow worth $13.9 million. In the first nine months of 2022, the company generated $29.2 million in operating cash flow and $20.4 million in free cash flow.
Guidance
For the fourth quarter of 2022, CyberArk expects revenues between $169.9 million and $176.9 million. It projects to post non-GAAP earnings per share in the range of 7-20 cents.
Non-GAAP operating earnings are estimated between $2 million and $8 million.
For full-year 2022, CyberArk now expects revenues to be in the range of $592.5-$599.5 million compared to the prior estimate of $589-$601 million. The company now projects non-GAAP loss to be 54-39 cents per share compared with the previously estimated range of 82-57 cents per share.
Non-GAAP operating loss for full-year 2022 is estimated in the $24.5-$18.5 million band.
Zacks Rank & Other Key Picks
CyberArk currently carries a Zacks Rank #2 (Buy). Shares of CYBR have declined 25.4% in the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Okta (OKTA - Free Report) , Zscaler (ZS - Free Report) and Digi International (DGII - Free Report) . While Okta and Zscaler flaunt a Zacks Rank #1 (Strong Buy), Digi International carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Okta's third-quarter fiscal 2023 loss has been revised a penny downward to 31 cents per share over the past 60 days. For fiscal 2022, loss estimates have improved by 3 cents to 72 cents per share in the past 30 days.
OKTA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 45.5%. Shares of the company have declined 80.1% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised a penny north to 21 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by a penny to $1.18 per share in the past 30 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 58.4% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 90 days. For fiscal 2022, earnings estimates have moved 1.2% down to $1.61 per share in the past 60 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have improved 62.1% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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