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1. Company Snapshot

1.a. Company Description

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sales software-based security solutions and services in the United States, Europe, the Middle East, Africa, and internationally.Its solutions include Privileged Access Manager that offers risk-based credential security and session management to protect against attacks involving privileged access; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide fast, easy, and secure privileged access to third-party vendors; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Cloud Entitlements Manager, a SaaS solution, which reduces risk that arises from excessive privileges by implementing least privilege across cloud environments.The company also offers robust Identity and Access Management as a Services, such as workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management to enable organizations to provide their customers with easy and secure access to websites and applications.


In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; and Secrets Manager Conjur for cloud-native applications.The company provides its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers.CyberArk Software Ltd.


was founded in 1999 and is headquartered in Petah Tikva, Israel.

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1.b. Last Insights on CYBR

CyberArk Software Ltd.'s recent performance was negatively impacted by a decline in investor sentiment, as evident from a 14.8% loss over four weeks. Despite beating earnings estimates with Q3 earnings of $1.2 per share, the company's stock faced selling pressure. Institutional investors' mixed actions, including Advyzon Investment Management's new stake and JAG Capital's exit, contributed to the stock's challenges. Additionally, several hedge funds, including World Investment Advisors and Bank Julius Baer & Co. Ltd Zurich, adjusted their positions.

1.c. Company Highlights

2. CyberArk Delivers Stellar Q1 2025 with Record ARR and Strong Margins

CyberArk Software Ltd. kicked off 2025 with a standout Q1 performance, surpassing all key financial metrics. The company reported total revenue of $317.6 million, a 32% year-over-year increase, with Annual Recurring Revenue (ARR) reaching $1.215 billion. Subscription ARR grew to $1.028 billion, accounting for 85% of total ARR, while net new ARR surged to $46 million, up from $37 million in Q1 2024. Notably, the company delivered an 18% operating margin and a robust $95.5 million in free cash flow, underscoring its operational efficiency. Earnings per share (EPS) came in at $0.98, significantly outperforming the consensus estimate of $0.79, reflecting strong profitability and execution.

Publication Date: May -13

📋 Highlights
  • Annual Recurring Revenue (ARR):: $1.215 billion, with net new ARR of $46 million, up from $37 million YoY.
  • Revenue and Profitability:: $318 million in revenue, 18% operating margin, and $96 million in free cash flow.
  • Subscription Growth:: Subscription ARR reached $1.028 billion, with $51 million in net new subscription ARR.
  • Operating and Free Cash Flow:: Gross profit of $269 million (85% margin), operating income of $57.5 million, and $95.5 million in free cash flow.
  • Guidance and Growth:: FY 2025 revenue guidance of $1.313-$1.323 billion, representing 32% YoY growth, with ARR expected to reach $1.410-$1.420 billion.

Strategic Momentum and Innovation

CyberArk’s Q1 success was fueled by its leadership in identity security, a critical priority for organizations amid rising cyber threats. CEO Matt Cohen highlighted that 90% of organizations have experienced identity-related breaches, emphasizing the urgency for comprehensive solutions. The integration of recent acquisitions, Venafi and Zilla, has been seamless, with Venafi contributing to nine of the top 10 deals in Q1. The company also launched innovative offerings, including the Secure AI Agent solution and a partnership with Accenture for AI Refinery integration, further solidifying its position as a leader in identity security.

Geographic and Customer Strength

The company’s performance was geographically diverse, with the Americas contributing $193.5 million, EMEA $93.8 million, and APJ $30.4 million. CyberArk signed 200 new logos during the quarter, with half of these customers purchasing multiple solutions, reflecting the growing demand for its unified platform. Notable customer wins included a leading U.S. enterprise software company and a Fortune 100 financial services firm, both adopting comprehensive identity security platforms.

Valuation and Growth Outlook

Trading at a P/S ratio of 17.86 and an EV/EBITDA of 605.14, CyberArk’s valuation reflects its premium positioning in a high-growth market. The company’s strong free cash flow yield of 1.24% further underscores its ability to generate cash and invest in growth initiatives. With Q2 guidance of $312-$318 million in revenue and full-year ARR expected to reach $1.410-$1.420 billion, CyberArk is well-positioned to capitalize on the accelerating demand for identity security solutions.

3. NewsRoom

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1832 Asset Management L.P. Has $151.56 Million Stock Position in CyberArk Software Ltd. $CYBR

Dec -03

Source: defenseworld.net

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CyberArk Stock Up 43% in a Year — So Why Did a Major Investor Just Exit a $42 Million Position?

Dec -03

Source: fool.com

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Why One Firm Exited $11 Million CyberArk Stake as Stock Rallied 44% Over the Past Year

Nov -28

Source: fool.com

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Buy 3 Cybersecurity Stocks Ahead of Cyber Monday for Long-Term Gains

Nov -27

Source: zacks.com

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Atika Capital Management LLC Reduces Position in CyberArk Software Ltd. $CYBR

Nov -27

Source: defenseworld.net

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Here's Why CyberArk (CYBR) is Poised for a Turnaround After Losing 14.8% in 4 Weeks

Nov -25

Source: zacks.com

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Bank Julius Baer & Co. Ltd Zurich Has $5.21 Million Holdings in CyberArk Software Ltd. $CYBR

Nov -22

Source: defenseworld.net

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Maven Securities Dives Into Cybersecurity With 15,000 CyberArk Software Shares. Was It an Arbitrage Play?

Nov -21

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.69%)

6. Segments

Software as a Service

Expected Growth: 15%

CyberArk's 15% growth in Software as a Service (SaaS) is driven by increasing demand for privileged access management, cloud adoption, and digital transformation. The company's leadership in identity security, expansion into new markets, and strategic partnerships also contribute to its growth. Additionally, the rise of remote work and need for secure access to sensitive data fuels the demand for CyberArk's SaaS offerings.

Maintenance and Support

Expected Growth: 11%

CyberArk's Maintenance and Support growth is driven by increasing adoption of privileged access management solutions, rising demand for cybersecurity measures, and expanding customer base in industries such as finance, healthcare, and government. Additionally, the company's strong customer retention rate and cross-selling opportunities contribute to the 11% growth.

Self-hosted Subscription

Expected Growth: 12%

CyberArk's self-hosted subscription growth is driven by increasing demand for privileged access management solutions, expansion into new markets, and strategic partnerships. The 12% growth rate is also attributed to the company's focus on innovation, customer satisfaction, and competitive pricing strategy, resulting in high retention rates and upselling opportunities.

Professional Services

Expected Growth: 10%

CyberArk's Professional Services segment growth is driven by increasing demand for privileged access management solutions, expansion into new markets, and strategic partnerships. The 10% growth rate is also attributed to the company's investments in sales and marketing, as well as its ability to upsell and cross-sell services to existing customers.

Perpetual License

Expected Growth: 9%

CyberArk's Perpetual License growth is driven by increasing demand for privileged access management solutions, fueled by rising cyber threats and compliance requirements. Strong sales execution, expanding partner ecosystem, and growing adoption in cloud and DevOps environments also contribute to the 9% growth.

7. Detailed Products

Privileged Access Security

CyberArk's Privileged Access Security solution provides secure access, management, and monitoring of privileged accounts and credentials across the enterprise.

Conjur

Conjur is a secrets management solution that securely stores, manages, and rotates sensitive credentials and secrets across the enterprise.

Endpoint Privilege Manager

Endpoint Privilege Manager provides least privilege access and application control for Windows and Linux endpoints, reducing the attack surface and preventing lateral movement.

Cloud Entitlements Manager

Cloud Entitlements Manager provides visibility, control, and remediation of excessive cloud permissions, reducing the risk of cloud-based attacks.

Application Access Manager

Application Access Manager provides secure, just-in-time access to sensitive applications and resources, reducing the risk of unauthorized access.

Session Manager

Session Manager provides secure, monitored, and recorded access to sensitive systems and resources, reducing the risk of insider threats.

8. CyberArk Software Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CyberArk's privileged access management solutions are highly specialized and there are limited substitutes available in the market, reducing the threat of substitutes.

Bargaining Power Of Customers

CyberArk's customers are primarily large enterprises and governments, which have some bargaining power due to their size and purchasing power, but CyberArk's solutions are critical to their security infrastructure, limiting their bargaining power.

Bargaining Power Of Suppliers

CyberArk's suppliers are primarily technology and service providers, and the company has a diversified supply chain, reducing the bargaining power of suppliers.

Threat Of New Entrants

The cybersecurity market is highly competitive, and new entrants can easily enter the market with innovative solutions, posing a high threat to CyberArk's market share.

Intensity Of Rivalry

The cybersecurity market is highly competitive, with many established players, and CyberArk faces intense rivalry from companies like BeyondTrust, Centrify, and others, which can impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.21%
Debt Cost 3.95%
Equity Weight 56.79%
Equity Cost 9.26%
WACC 6.97%
Leverage 76.09%

11. Quality Control: CyberArk Software Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexi

A-Score: 5.2/10

Value: 7.2

Growth: 7.9

Quality: 5.2

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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IONOS

A-Score: 4.9/10

Value: 3.5

Growth: 7.8

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Wix

A-Score: 4.0/10

Value: 3.6

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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CyberArk

A-Score: 4.0/10

Value: 2.0

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Cellebrite DI

A-Score: 3.5/10

Value: 2.2

Growth: 5.2

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Darktrace

A-Score: 2.7/10

Value: 0.0

Growth: 3.8

Quality: 7.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

478.7$

Current Price

478.7$

Potential

-0.00%

Expected Cash-Flows