Bubble or no bubble, this is the best stock for AI exposure: analyst
NEW YORK - CyberArk Software Ltd. reported third quarter financial results that significantly exceeded analyst expectations, with revenue jumping 43% YoY to $342.8 million, well above the consensus estimate of $328 million. The identity security provider also posted adjusted earnings per share of $1.20, surpassing analyst expectations of $0.93 and marking a 28% increase from $0.94 in the same period last year.
The company achieved record third quarter net new Annual Recurring Revenue (ARR) of $68 million, representing a 16% increase YoY. Total ARR grew 45% YoY to reach $1.341 billion, highlighting strong customer adoption of CyberArk’s identity security solutions.
"CyberArk delivered outstanding results, highlighted by record third quarter net new ARR and continued strong execution," said Matt Cohen, Chief Executive Officer of CyberArk. "We saw robust demand across our business, as customers turn to us to solve their most complex identity security challenges."
The strong performance comes as CyberArk prepares for its combination with Palo Alto Networks, which was announced earlier this year. Cohen expressed optimism about the merger, noting that "the combination of CyberArk and Palo Alto Networks will create a powerful growth engine, enabling us to reach more customers and meet the rapidly expanding market."
The company cited several growth drivers, including increasing privilege across human identities, the exponential rise of machine identities, and emerging needs around securing artificial intelligence systems, creating what Cohen described as "a tremendous opportunity" that CyberArk is "uniquely positioned to capture."
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