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The cybersecurity firm projects revenues between $230 million and $236 million. The Zacks Consensus Estimate is pegged at $233.90 million, suggesting year-over-year growth of 22.31%.
The company forecasts third-quarter non-GAAP earnings per share in the range of 38-49 cents. The consensus mark is pegged at 45 cents per share, implying a robust year-over-year improvement of 7.14%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 89.21%.
Let’s see how things have shaped up for this announcement.
CyberArk’s third-quarter performance is expected to have benefited from the growing demand for privileged access security and cyber security solutions, driven by a growing number of data breaches and increasing digital transformation strategies.
The proliferation of cloud computing and cheap resource-sharing has further increased the demand for proper security policies, protocols and products. These factors are likely to have prompted companies to allot increasing portions of its IT budgets for security solutions. CyberArk is capitalizing on this opportunity and growing rapidly in this space with its privileged access management solutions. These solutions allow customers to secure, manage and monitor privileged account access and activities.
The company’s strategic mix shift toward software-as-a-service and subscription-based models is likely to have driven top-line growth in the to-be-reported quarter. Our model estimate for Subscription revenues in the third quarter is pegged at $166.2 million, suggesting a year-over-year increase of 35.3%. The segment’s contribution to the company’s total revenues is anticipated to have reached 71.2%, significantly up from the year-ago quarter’s 64.3%.
Our estimate for Perpetual License revenues is pegged at $3.7 million, indicating a year-over-year decline of 8% due to CyberArk’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
Strong renewal rates are likely to have brought some stabilization in Maintenance and Professional Services revenues. Our model estimate for Maintenance and Professional Services revenues in the third quarter is pinned at $63.4 million, suggesting a year-over-year decline of 1.4%.
Strong demand for CyberArk’s software-as-a-service solution and on-premise subscription offerings is likely to have driven the company’s Annual Recurring Revenues (ARR) in the to-be-reported quarter. Our estimate for ARR is pegged at $938 million, of which Subscription is likely to have contributed $745.3 million, while Maintenance and Professional Services are expected to have contributed $192.5 million.
However, like every other company in the technology space, CyberArk also suffers from overall softness caused by budget cuts and postponement of deals due to the uncertain macroeconomic environment. These challenges are likely to have hampered CYBR’s top-line growth in the to-be-reported quarter.
What Our Model Says About CYBR
Our proven model does not conclusively predict an earnings beat for CYBR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though CYBR currently sports a Zacks Rank #1, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
CYBR to Report Q3 Earnings: What's in the Cards for the Stock?
CyberArk Software Ltd. (CYBR - Free Report) is scheduled to report third-quarter 2024 results on Nov. 13, before market open.
The cybersecurity firm projects revenues between $230 million and $236 million. The Zacks Consensus Estimate is pegged at $233.90 million, suggesting year-over-year growth of 22.31%.
The company forecasts third-quarter non-GAAP earnings per share in the range of 38-49 cents. The consensus mark is pegged at 45 cents per share, implying a robust year-over-year improvement of 7.14%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 89.21%.
Let’s see how things have shaped up for this announcement.
CyberArk Software Ltd. Price and EPS Surprise
CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote
Factors to Consider
CyberArk’s third-quarter performance is expected to have benefited from the growing demand for privileged access security and cyber security solutions, driven by a growing number of data breaches and increasing digital transformation strategies.
The proliferation of cloud computing and cheap resource-sharing has further increased the demand for proper security policies, protocols and products. These factors are likely to have prompted companies to allot increasing portions of its IT budgets for security solutions. CyberArk is capitalizing on this opportunity and growing rapidly in this space with its privileged access management solutions. These solutions allow customers to secure, manage and monitor privileged account access and activities.
The company’s strategic mix shift toward software-as-a-service and subscription-based models is likely to have driven top-line growth in the to-be-reported quarter. Our model estimate for Subscription revenues in the third quarter is pegged at $166.2 million, suggesting a year-over-year increase of 35.3%. The segment’s contribution to the company’s total revenues is anticipated to have reached 71.2%, significantly up from the year-ago quarter’s 64.3%.
Our estimate for Perpetual License revenues is pegged at $3.7 million, indicating a year-over-year decline of 8% due to CyberArk’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
Strong renewal rates are likely to have brought some stabilization in Maintenance and Professional Services revenues. Our model estimate for Maintenance and Professional Services revenues in the third quarter is pinned at $63.4 million, suggesting a year-over-year decline of 1.4%.
Strong demand for CyberArk’s software-as-a-service solution and on-premise subscription offerings is likely to have driven the company’s Annual Recurring Revenues (ARR) in the to-be-reported quarter. Our estimate for ARR is pegged at $938 million, of which Subscription is likely to have contributed $745.3 million, while Maintenance and Professional Services are expected to have contributed $192.5 million.
However, like every other company in the technology space, CyberArk also suffers from overall softness caused by budget cuts and postponement of deals due to the uncertain macroeconomic environment. These challenges are likely to have hampered CYBR’s top-line growth in the to-be-reported quarter.
What Our Model Says About CYBR
Our proven model does not conclusively predict an earnings beat for CYBR this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though CYBR currently sports a Zacks Rank #1, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Shopify (SHOP - Free Report) has an Earnings ESP of +5.78% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 2.1% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.
Bilibili (BILI - Free Report) has an Earnings ESP of +10.00% and carries a Zacks Rank of 2 at present.
Bilibili shares have surged 90.8% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.30% and carries a Zacks Rank of 2 at present.
NVIDIA shares have gained 182.5% year to date. NVDA is set to report its third-quarter fiscal 2025 results on Nov. 20.