CyberArk Software Ltd. Set to Reveal Q3 Earnings: What to Expect
CyberArk Software Ltd. (CYBR) will announce its third-quarter 2024 earnings on November 13, before the market opens.
Revenue and Earnings Projections
The cybersecurity company anticipates revenue between $230 million and $236 million. The Zacks Consensus Estimate stands at $233.90 million, indicating a year-over-year growth of 22.31%.
In terms of earnings, CyberArk expects non-GAAP earnings per share to range from 38 to 49 cents. The consensus mark is at 45 cents per share, reflecting a year-over-year increase of 7.14%.
Stay informed with all quarterly releases: Check Zacks Earnings Calendar.
CyberArk’s earnings have consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 89.21%.
CyberArk Software Ltd. Price and EPS Surprise
CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote
Key Influencing Factors
The anticipated performance for the third quarter is likely driven by the growing demand for privileged access security and cybersecurity solutions. The increase in data breaches and digital transformation initiatives has amplified this need.
The surge in cloud computing and affordable resource-sharing has also heightened the necessity for effective security measures. As a result, companies are allocating more of their IT budgets to security solutions. CyberArk is rapidly expanding in this domain, offering privileged access management solutions that help customers secure and monitor privileged account access.
The company’s shift towards software-as-a-service and subscription models is expected to further contribute to revenue growth in the upcoming quarter. Our estimates suggest Subscription revenues will reach $166.2 million, marking a year-over-year increase of 35.3%. This segment’s contribution to total revenues is projected to rise to 71.2%, compared to 64.3% from the previous year.
Perpetual License revenues, however, are expected to decline, estimated at $3.7 million — an 8% drop as CyberArk transitions towards subscription-based offerings.
Maintenance and Professional Services revenues are anticipated to stabilize, with estimates at $63.4 million, suggesting a slight year-over-year decline of 1.4% due to strong renewal rates.
The demand for CyberArk’s SaaS and on-premise solutions is likely to boost Annual Recurring Revenues (ARR) this quarter. ARR is estimated at $938 million, with subscriptions contributing $745.3 million and Maintenance and Professional Services accounting for $192.5 million.
However, CyberArk, like others in the tech sector, faces challenges from budget cuts and postponed deals due to the uncertain macroeconomic landscape, which may hinder top-line growth this quarter.
Outlook for CYBR
Looking ahead, our model does not indicate a clear prediction for an earnings beat for CYBR this quarter. Having a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) usually enhances the chances of positive earnings surprises, but CYBR does not fit this profile.
Currently, CYBR has a Zacks Rank of #1 but holds an Earnings ESP of 0.00%. You can find other top stocks to consider using our Earnings ESP Filter.
Other Notable Stocks
Here are some companies that might perform well based on their strong earnings outlook:
Shopify (SHOP) has an Earnings ESP of +5.78% and holds a Zacks Rank #1. Shopify shares have increased by 2.1% year-to-date and will announce its third-quarter 2024 results on November 12.
Bilibili (BILI) sports an Earnings ESP of +10.00% and carries a Zacks Rank of 2. Its shares have surged by 90.8% this year, with earnings set to be reported on November 14.
NVIDIA (NVDA) has an Earnings ESP of +2.30% and also holds a Zacks Rank of 2. Shares have increased by 182.5% year-to-date, and it will announce its third-quarter fiscal 2025 results on November 20.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
