2024-05-02 18:47:03 ET
Summary
- CyberArk reported strong Q1 FY24 earnings with revenue growth of 37% YoY and non-GAAP operating income of $33M, exceeding estimates.
- The company is experiencing growth in Annual Recurring Revenue, as it drives customer acquisition and adoption with its solution-based GTM strategy and subscription pricing model.
- However, there are larger and more profitable competitors that can dampen CyberArk’s growth, especially as organizations consolidate their security spend across fewer cybersecurity vendors.
- I believe that the stock is overvalued at its current levels and therefore does not present an attractive entry point for a long-term investor, making it a “sell”.
Introduction & Investment Thesis
CyberArk Software Ltd. ( CYBR ) is an identity security company that has performed at par with the S&P 500 and Nasdaq 100. The company reported its Q1 FY24 earnings on May 2, where revenue grew 37% YOY and non-GAAP Operating Income turned positive to $33M, compared to a loss of $12.6M a year ago. The company expects to grow its revenue by 24% YoY to $2.18B in FY24, while further expanding on its profit margins by growing its non-GAAP operating income by 183% YoY to $95M....
Read the full article on Seeking Alpha
For further details see:
CyberArk: Stock Is Overvalued Despite Strong ARR And Margin Growth