CyberArk Software (CYBR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with revenue of $240.1M, up 26% year-over-year, surpassing guidance and driven by strong demand for identity security and platform consolidation.

• Closed the acquisition of Venafi on October 1, 2024, expanding machine identity management capabilities and increasing total addressable market by $10B to $60B.

• Announced CFO transition: Erica Smith to succeed Josh Siegel as CFO effective January 1, 2025, ensuring leadership continuity.

• Recognized as a leader in Gartner Magic Quadrant and KuppingerCole Leadership Compass for Privileged Access Management.

• Celebrated 10-year IPO anniversary and formed a strategic partnership with Wiz to enhance cloud security.

Financial highlights

• Q3 2024 total revenue was $240.1M, up 26% year-over-year, with subscription revenue at $175.6M (+43% YoY) and ARR at $926M (+31% YoY).

• Subscription ARR reached $735M (+46% YoY), now 79% of total ARR; recurring revenue accounted for over 90% of total revenue.

• Non-GAAP operating income was $35.4M (14.7% margin), up from $16.9M (8.8%) a year ago; non-GAAP net income was $45.1M ($0.94/diluted share).

• Free cash flow in Q3 2024 was $51.6M (21% margin), up from $13.6M (7%) in Q3 2023; nine-month free cash flow was $160.1M.

• Cash, cash equivalents, and marketable securities totaled $1.5B as of September 30, 2024.

Outlook and guidance

• Q4 2024 revenue expected at $297M–$303M (33–36% YoY growth), including $41M from Venafi; non-GAAP operating income $43.5M–$48.5M; non-GAAP EPS $0.65–$0.75.

• Full-year 2024 revenue guidance raised to $983M–$989M (31–32% YoY growth); non-GAAP operating income $135M–$140M; non-GAAP EPS $2.85–$2.96.

• Full-year ARR expected at $1.153B–$1.163B (+49–50% YoY), including $164M from Venafi.

• Free cash flow guidance increased to $203M–$213M (21% margin), including $8M from Venafi.