CyberArk Software Ltd: Market-Trouncing Tech Stock Remains Bullish
CyberArk Software Ltd Up 67% in 2019
The cybersecurity space is crowded, but one of the smaller players in this sector is also the most promising. Shares of CyberArk Software Ltd (NASDAQ:CYBR) are up by about 67% in 2019, and thanks to strong third-quarter financial results and a strong outlook, CYBR stock looks even more bullish as we head into 2020.
CyberArk provides “privileged access security,” which is a critical layer of IT security that protects every part of a company’s IT infrastructure.
The Petah Tikva, Israel-based company provides its security products to companies in several fields, including energy, financial services, healthcare, manufacturing, retail, telecommunications, and transportation. (Source: “Investor Presentation November 2019,” CyberArk Software Ltd, last accessed December 16, 2019.)
CyberArk’s 5,000+ customers include:
- More than 50% of Fortune 500 companies
- More than 30% of Global 2000 companies
- 23 of the top 25 banks
- 21 of the top 25 energy companies
- 21 of the top 25 manufacturing companies
- 20 of the top 25 insurance firms
- 20 of the top 25 telecom companies
- 18 of the top 25 pharma corporations
|
CyberArk Stock Information |
|
| Market Cap | $4.8 Billion |
| 52-Week Change | 75.5% |
| 52-Week High | $148.74 |
| 52-Week Low | $65.90 |
| Shares Outstanding | 37.9 Million |
| Float | 37.0 Million |
| 50-Day Moving Average | $115.57 |
| 200-Day Moving Average | $118.15 |
(Source: “CyberArk Software Ltd (CYBR) ,” Yahoo! Finance, last accessed December 16, 2019.)
Q3 Revenue Up 28%, Net Income Increases 87%
On November 6, CyberArk announced that revenue for its third quarter ended September 30 increased 28% year-over-year to $108.1 million. (Source: “CyberArk Announces Strong Third Quarter 2019 Results,” CyberArk Software Ltd, November 6, 2019.)
CyberArk’s third-quarter generally accepted accounting principles (GAAP) operating income grew 44% year-over-year to $12.7 million. Non-GAAP operating income was $29.4 million, a 40% increase from the same period last year.
The company reported third-quarter GAAP net income of $15.2 million ($0.39 per share), an 88% increase from the third quarter of 2018.
Non-GAAP net income advanced approximately 44% year-over-year to $25.6 million ($0.65 per share).
CyberArk ended the third quarter with $555.1 million in cash, cash equivalents, marketable securities, and short-term deposits. That’s up 35.4% from September 30, 2018.
Business Outlook
For the fourth quarter, CyberArk expects:
- Total revenue in the range of $125.0 to $127.0 million, for year-over-year growth of 15% to 16%.
- Non-GAAP operating income between $38.5 and $40.0 million.
- Non-GAAP net income per share in the range of $0.78 to $0.82.
For full-year fiscal 2019, CyberArk expects:
- Total revenue in the range of $429.2 to $431.2 million, representing year-over-year growth of 25% to 26%.
- Non-GAAP operating income in the range of $119.8 to $121.3 million.
- Non-GAAP net income per share between $2.58 and $2.61.
Analyst Take
CYBR stock continues to be an excellent cybersecurity stock with tremendous long-term growth potential. CyberArk Software Ltd has been able to achieve strong financial results, and that is expected to continue.
Some fear that the ongoing U.S.-China trade war could impede the company’s growth, but since it’s based in Israel, it shouldn’t be negatively affected. 2019 was a solid year for CyberArk stock, and 2020 looks like it will be even better.
