Breaking Down CyberArk Software Ltd. (CYBR) Financial Health: Key Insights for Investors

As an investor, are you keeping a close watch on CyberArk's financial performance? Did you know that CyberArk's total revenue reached a record of $1.001 billion for the full year 2024, marking a 33% increase year-over-year from $751.9 million in 2023? The company's Annual Recurring Revenue (ARR) hit $1.169 billion, a 51% increase from the previous year. With a strong balance sheet, including total shareholder equity of $2.4 billion and no debt, is CyberArk positioned for continued growth and profitability? Let's delve into the key financial insights that can help you make informed decisions about CyberArk.

CyberArk Software Ltd. (CYBR) Revenue Analysis

Understanding CyberArk Software Ltd.'s (CYBR) revenue streams is crucial for investors seeking to assess the company's financial health and growth potential. A detailed look into the sources, growth rates, and segment contributions provides valuable insights.

Primary Revenue Sources:

CyberArk generates revenue primarily through:

• Product Licenses: Sales of software licenses for its identity security solutions.
• Subscription and Maintenance: Recurring revenue from subscriptions and maintenance agreements.
• Professional Services: Revenue from consulting, implementation, and training services.

Year-over-Year Revenue Growth:

Analyzing the year-over-year revenue growth rate reveals the company's ability to expand its market presence and capitalize on the increasing demand for identity security solutions. While specific historical trends require up-to-date financial reports, investors should focus on:

• Consistent growth rates indicating strong market adoption.
• Fluctuations in growth rates that may signal market challenges or competitive pressures.
• Comparison of CyberArk's growth rate against industry peers to gauge relative performance.

Contribution of Business Segments:

The contribution of different business segments to CyberArk's overall revenue provides insights into the company's diversification and strategic focus. Key segments to consider include:

• License Revenue: Indicates initial customer acquisition and expansion of the customer base.
• Subscription Revenue: Reflects the stickiness of CyberArk's solutions and the recurring nature of its business model.
• Services Revenue: Highlights the company's ability to provide value-added services and support to its customers.

Significant Changes in Revenue Streams:

Investors should be aware of any significant changes in CyberArk's revenue streams, such as:

• Shift in emphasis from license to subscription-based revenue models.
• Expansion into new geographic markets or industry verticals.
• Impact of acquisitions or divestitures on revenue composition.

Here is an example of a table showcasing potential revenue streams and their contribution to the overall revenue (Note: This is an illustrative example and not based on real-time data):

Understanding these dynamics is essential for a comprehensive assessment of CyberArk's financial health and strategic direction. For more insights into CyberArk's mission and values, check out: Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

CyberArk Software Ltd. (CYBR) Profitability Metrics

Assessing CyberArk Software Ltd.'s (CYBR) financial health requires a close examination of its profitability metrics, which provide insights into the company's efficiency in generating profits from its revenue. Key indicators include gross profit, operating profit, and net profit margins. By analyzing these metrics, investors can gauge CyberArk’s ability to manage costs, optimize operations, and sustain profitability over time.

Gross Profit: This is the profit a company makes after deducting the costs associated with producing and selling its goods or services. It serves as a critical indicator of production efficiency. For CyberArk, monitoring the gross profit trend helps in understanding how effectively the company manages its cost of goods sold (COGS). For the fiscal year 2024, CyberArk's gross profit stood at $711.44 million.

Operating Profit: This metric reveals the profit a company makes from its core business operations, excluding interest and taxes. It is calculated by deducting operating expenses from gross profit, offering a clear view of operational efficiency. In 2024, CyberArk's operating profit was $123.47 million.

Net Profit Margin: Net profit margin is a crucial profitability ratio that shows the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted. A higher net profit margin indicates better profitability and efficient cost management. CyberArk's net profit margin for 2024 was 10.78%, with a net profit of $99.87 million.

Trends in Profitability Over Time: Analyzing the trends in CyberArk’s profitability metrics over several periods provides valuable insights into the company’s performance trajectory. Consistently improving margins indicate effective management strategies and growing operational efficiency, while declining margins may signal challenges in cost control or pricing pressures.

Comparison of Profitability Ratios with Industry Averages: Comparing CyberArk's profitability ratios with industry averages offers a benchmark for assessing its competitive positioning. If CyberArk's gross, operating, and net profit margins are higher than the industry averages, it suggests a stronger competitive advantage and superior operational efficiency. Conversely, lower margins may indicate areas where CyberArk needs to improve its performance.

Analysis of Operational Efficiency: Operational efficiency is critical to maintaining and improving profitability. Effective cost management and optimized resource utilization directly impact the bottom line. For instance, a decreasing operating expense ratio indicates better cost control, while an increasing gross margin suggests improved production efficiency or pricing strategies.

The table below summarizes CyberArk's profitability metrics for the fiscal year 2024:

Investors and analysts often use these figures to:

• Evaluate CyberArk's financial performance.
• Compare it against industry peers.
• Make informed investment decisions.

For further insights into CyberArk's financial health, you can explore: Breaking Down CyberArk Software Ltd. (CYBR) Financial Health: Key Insights for Investors

CyberArk Software Ltd. (CYBR) Debt vs. Equity Structure

Understanding the financial structure of CyberArk Software Ltd. (CYBR) involves analyzing its debt and equity composition, which provides insights into how the company funds its operations and growth. A balanced approach to debt and equity is crucial for maintaining financial stability and flexibility.

As of the fiscal year 2024, a detailed breakdown of CyberArk's debt levels is essential to assess its financial risk. While specific figures for 2024 are not available, we can analyze the existing data to understand the trends.

CyberArk's approach to financing its growth through debt and equity can be better understood by examining several key factors:

• Overview of Debt Levels: Examining both long-term and short-term debt provides a clear picture of CyberArk's obligations.
• Debt-to-Equity Ratio: This ratio is a critical metric for assessing the proportion of debt and equity used to finance the company's assets. A high ratio may indicate higher financial risk. For instance, CyberArk's debt to equity ratio as of December 31, 2023, was 0.5.
• Recent Financing Activities: Monitoring any recent debt issuances, credit ratings, or refinancing activities helps in understanding the company's current financial strategies.

While precise 2024 figures are not available, examining past trends and data up to 2023 can offer valuable insights.

For example, as of December 31, 2023, CyberArk reported total liabilities of $1.18 billion and total assets of $2.35 billion. Total stockholders' equity was $1.17 billion.

Here is an overview of CyberArk's assets, liabilities, and equity based on the 2023 data:

Understanding how CyberArk strategically balances debt and equity is crucial for investors. This balance impacts the company's financial health and its ability to invest in future growth initiatives.

Explore more about CyberArk Software Ltd. (CYBR) and its investors: Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who’s Buying and Why?

CyberArk Software Ltd. (CYBR) Liquidity and Solvency

Understanding CyberArk's financial health requires a close look at its liquidity and solvency, which indicate its ability to meet short-term obligations and long-term liabilities, respectively. Let's delve into key financial metrics and trends based on the latest available data.

Assessing CyberArk Software Ltd.'s Liquidity:

Liquidity ratios provide insights into CyberArk's ability to cover its short-term liabilities with its short-term assets.

• Current and Quick Ratios: These ratios measure CyberArk's ability to pay off current liabilities with current assets. While specific figures for 2024 are not available, analyzing historical trends and industry benchmarks can provide a comparative perspective. Generally, a current ratio above 1 indicates a company's ability to cover its short-term liabilities.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, indicates the operating liquidity available to CyberArk. Monitoring the trend of working capital helps in understanding whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of cash flow statements reveals how CyberArk generates and uses cash. Key areas to examine include:

• Operating Cash Flow: Indicates the cash generated from CyberArk's core business operations. A positive and growing operating cash flow is generally a healthy sign.
• Investing Cash Flow: Includes cash spent on investments, such as acquisitions or the purchase of long-term assets. These activities can provide insight into CyberArk's growth strategy.
• Financing Cash Flow: Involves cash flow related to debt, equity, and dividends. This section indicates how CyberArk is funding its operations and managing its capital structure.

Potential Liquidity Concerns or Strengths:

Investors should monitor CyberArk's liquidity position for any potential concerns, such as a declining current ratio or negative operating cash flow. Conversely, a strong liquidity position, characterized by a high current ratio and positive operating cash flow, can be a sign of financial strength.

While precise 2024 figures are not accessible, examining recent financial reports and comparing them to industry averages can offer valuable insights into CyberArk's liquidity and solvency. Furthermore, keeping an eye on trends in working capital and cash flow can help investors assess the company's financial stability and growth potential.

Explore more about CyberArk Software Ltd. (CYBR) Investor Profile here: Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who’s Buying and Why?

CyberArk Software Ltd. (CYBR) Valuation Analysis

Assessing whether CyberArk Software Ltd. (CYBR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. These elements, when combined, provide a comprehensive view of the company's valuation.

Key valuation ratios offer a snapshot of how the market prices CyberArk Software Ltd. (CYBR) relative to its financial performance:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of CyberArk Software Ltd. (CYBR) earnings. Due to the company's current negative earnings, the P/E ratio is not meaningful.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of January 31, 2025, CyberArk Software Ltd. (CYBR)'s P/B ratio stands at 7.7x, which is above the industry median of 3.2x.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. As of December 31, 2024, CyberArk Software Ltd. (CYBR)'s EV/EBITDA ratio is 69.8x, significantly higher than the industry median of 14.7x.

Analyzing stock price trends provides context on market sentiment and investor confidence:

• Over the past year, CyberArk Software Ltd. (CYBR) has shown significant stock price appreciation. As of April 18, 2025, the stock closed at $265.83, marking a 65.25% increase over the past 52 weeks.

Dividends are not applicable as CyberArk Software Ltd. (CYBR) does not currently offer a dividend yield or payout ratio.

Analyst consensus offers insights into how the broader financial community views the stock:

• The consensus rating on CyberArk Software Ltd. (CYBR) is a 'Moderate Buy.' Among 24 analysts, 9 rate it as a 'Strong Buy,' 6 as a 'Buy,' 9 as a 'Hold,' and none recommend selling.
• The median price target is $270.00, suggesting a potential upside from the current price. Price targets range from a high of $300.00 to a low of $225.00.

Here’s a summary of key valuation metrics:

Considering these factors, CyberArk Software Ltd. (CYBR) appears to be trading at a premium compared to its industry peers based on P/B and EV/EBITDA ratios. However, strong stock performance and positive analyst sentiment suggest continued market confidence. Investors should weigh these factors carefully, considering both the company's growth prospects and current valuation metrics.

More insights about CyberArk Software Ltd. (CYBR): Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

CyberArk Software Ltd. (CYBR) Risk Factors

Several internal and external factors can significantly impact CyberArk Software Ltd.'s financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The cybersecurity market is intensely competitive. CyberArk faces competition from established cybersecurity vendors, emerging startups, and larger technology companies that offer identity security solutions as part of broader portfolios. Increased competition could lead to pricing pressure, reduced market share, and decreased profitability.

Regulatory Changes: Data privacy and security regulations are constantly evolving. Compliance with regulations such as GDPR, CCPA, and other global data protection laws requires ongoing investment in compliance programs and can impact CyberArk's product development and sales strategies. Failure to comply with these regulations could result in significant fines and reputational damage.

Market Conditions: Economic downturns or shifts in IT spending can affect CyberArk's sales and revenue growth. Macroeconomic factors can influence the demand for cybersecurity solutions, and budget constraints may cause customers to delay or reduce their investments in security products.

Operational Risks: As a software company, CyberArk is susceptible to risks associated with software development, product quality, and cybersecurity threats. Product defects, security vulnerabilities, or disruptions to cloud-based services could harm the company's reputation and financial results.

Financial and Strategic Risks: CyberArk's growth strategy relies on continued innovation, successful product development, and effective sales and marketing execution. Acquisitions and integrations also pose risks, as integrating acquired companies and technologies can be complex and may not always yield the expected benefits. Additionally, the company's reliance on channel partners for distribution introduces risks related to partner performance and relationships.

According to CyberArk's 2024 Annual Report on Form 20-F, the following key risks could affect their business, financial condition, and results of operations:

• The market for their solutions is new and rapidly evolving.
• Their quarterly results may fluctuate significantly, which could adversely affect the value of investments in their ordinary shares.
• They may be unable to sustain their revenue growth rate in the future.
• If their solutions have defects or errors, experience performance problems, or fail to meet applicable specifications, their business and operating results could be harmed.
• Broader adoption of cloud computing may reduce demand for their on-premise offerings.
• The integration of solutions they acquire could disrupt their business and strain their resources.
• The COVID-19 pandemic and the global economic downturn have adversely affected, and may continue to adversely affect, their business, financial condition, and results of operations.
• Cybersecurity risks and cyber incidents, including those caused by intentional malicious actors, as well as unintentional events, could result in misuse, unauthorized access to, disclosure, corruption, or loss of information and disruptions to their, or their customers’, business operations.

CyberArk's mitigation strategies typically involve:

• Continuous monitoring and updating of security protocols.
• Investing in research and development to stay ahead of emerging threats.
• Diversifying their product offerings and customer base.
• Maintaining strong relationships with channel partners.
• Implementing robust compliance programs to adhere to regulatory requirements.

For more insights into CyberArk's vision and values, visit: Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

CyberArk Software Ltd. (CYBR) Growth Opportunities

CyberArk Software Ltd. (CYBR) demonstrates robust growth potential through strategic market positioning and innovative technological developments. The company is a global leader in identity security, offering a comprehensive platform that addresses various enterprise-level challenges.

Key growth drivers for CyberArk include:

• Cloud-based identity security solutions: The increasing adoption of cloud services drives the demand for robust identity security solutions.
• Artificial intelligence (AI) integration: Integrating AI into cybersecurity offerings enhances threat detection and response capabilities.
• Expanding enterprise cybersecurity market: The growing awareness of cyber threats and the increasing need for security solutions boost market expansion.

CyberArk's strategic initiatives and partnerships further contribute to its growth prospects. These include:

• Strategic cloud partnerships: Collaborations with major cloud providers like Microsoft, Amazon, and Alphabet enhance CyberArk's market reach and solution integration.
• Acquisition of Venafi: This acquisition expands CyberArk's capabilities in machine-to-machine security, complementing its human identity offerings. The integration of Venafi will open access to a $10 billion machine identity security market.

CyberArk's competitive advantages position the company for sustained growth:

• Market leadership: Recognized as a leader in the privileged access management (PAM) space. As of 2023, CyberArk held a 48.7% market share in the Privileged Access Management segment.
• Comprehensive product portfolio: Offers a suite of PAM solutions catering to various industries and organizational needs.
• Strong customer base: Serves over 9,500 global customers, including a significant percentage of Fortune 500 companies. CyberArk's enterprise security solutions protect 65% of Fortune 500 companies.

Future revenue growth projections and earnings estimates indicate a positive outlook for CyberArk. For the full year 2025, CyberArk projects revenues between $1.308 billion and $1.318 billion, representing a growth of 31% to 32% compared to 2024. Non-GAAP net income per share is expected to be in the range of $3.55 to $3.70.

The financial forecasts indicate potential revenue growth of 18% per annum on average during the next 3 years. The consensus sales estimate is $305.53 million for the current quarter, pointing to a year-over-year change of +37.9%. The estimates of $1.32 billion and $1.57 billion for the current and next fiscal years indicate changes of +31.4% and +19.3%, respectively.

CyberArk's total revenue for 2024 was $1.00 billion, with a 33.10% growth. The company's subscription revenue was $733.3 million in 2024, an increase of 55% from $472.0 million in 2023.

The company's annual recurring revenue (ARR) is also expected to increase. ARR as of December 31, 2025, is expected to be in the range of $1.410 billion to $1.420 billion, representing growth of 21% from December 31, 2024.

Here is a summary of CyberArk's financial performance and projections:

Overall, CyberArk's focus on innovation, strategic acquisitions, and strong market position indicate a promising future for investors.

Read more about CyberArk Software Ltd. (CYBR): Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who’s Buying and Why?