What happened
Shares of CyberArk Software (NASDAQ: CYBR) were up 12.9% as of 2:20 p.m ET Thursday, according to data provided by S&P Global Market Intelligence, after the identity-focused cybersecurity company announced strong second-quarter 2023 results.
Quarterly revenue climbed 24% year over year to $175.8 million, translating to adjusted (non-GAAP) net income of $1.3 million, or $0.03 per share. Most analysts were looking for an adjusted net loss of $0.13 per share on slightly lower revenue of $173.5 million.
So what
CyberArk's top-line growth was driven entirely by a 61% increase in subscription revenue to $106.2 million, partially offset by a 1% decline in maintenance and professional services revenue and a 53.6% decline in perpetual license revenue, to $5.1 million. Subscription revenue now comprises 69% of CyberArk's total annual recurring revenue (ARR), which climbed 77% to $451 million exiting the quarter.
"We had a great quarter, beating our guidance across all metrics, which demonstrates the momentum in our business and the durability of demand for our identity security platform," stated CyberArk CEO Matt Cohen. "We had a strong new business quarter and existing customers expanded across our identity security platform as we continue to deliver transformational value to customers, across hybrid and cloud environments."
Now what
As such, for the full-year 2023 CyberArk now expects revenue of $726 million to $736 million, an increase of $2 million from both ends of its previous range and good for growth of 23% to 24%. CyberArk also guided for full-year 2023 adjusted net income per share of $0.44 to $0.63, up from previous guidance for a per-share range of $0.16 to $0.38.
In the end, this was a straightforward beat-and-raise performance from the budding cybersecurity stock, and shares are responding in kind.
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