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CyberArk initiates secondary share offering by Thoma Bravo

Published 12/05/2024, 04:45 PM
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NEWTON, Mass. & PETACH TIKVA, Israel - CyberArk (NASDAQ:CYBR), a company specializing in identity security, has announced the launch of a secondary public offering of its ordinary shares. The offering consists of 1,142,538 ordinary shares held by Triton Seller, LP, an affiliate of Thoma Bravo, L.P. funds. The transaction will not yield any proceeds for CyberArk itself, with all proceeds going to the selling shareholder.

The shares are being marketed by BofA Securities, Inc., acting as the sole book-running manager and underwriter. The shares will be sold on the Nasdaq and possibly through other venues at market prices or negotiated prices. The offering is based on an effective shelf registration statement filed on October 22, 2024.

CyberArk's last reported ordinary share price was $327.57 on December 5, 2024, trading near its 52-week high of $332.05 and showing impressive year-to-date returns of over 50%. According to InvestingPro analysis, the stock appears overvalued at current levels. The company has emphasized that the offering will be made only by means of official prospectus materials, which potential investors can obtain from BofA Securities or by visiting the SEC's EDGAR online database.

This press release is based on a press release statement and contains forward-looking statements regarding the expected sale of ordinary shares by the selling shareholder. These statements are subject to various risks and uncertainties that could affect CyberArk's future results and performance. The company has clarified that the forward-looking statements are based on current beliefs and expectations and are subject to change. CyberArk has also outlined several risk factors in its most recent annual report, which could impact the company's performance and the success of the offering.

CyberArk is recognized as a leader in identity security, providing solutions for human and machine identities across different environments, including cloud and DevOps. The company demonstrates strong financial fundamentals with impressive gross profit margins of 81% and robust revenue growth of 30% over the last twelve months. InvestingPro data reveals 17 additional key insights about CyberArk's performance and potential, available in the comprehensive Pro Research Report. The company's solutions are trusted by many leading organizations to protect critical assets. However, the company does not intend to pay dividends on its ordinary shares for the foreseeable future and has highlighted various risks associated with its global operations and the competitive landscape of the information security market.

In other recent news, CyberArk Software (NASDAQ:CYBR) has been making waves with its strong financial performance and strategic moves. The company's Q3 results showed a record total revenue of $240.1 million, a 26% increase year-over-year, and an Annual Recurring Revenue (ARR) of $926 million, marking 31.3% growth from the previous year. Notably, CyberArk's acquisition of Venafi, a machine identity security company, is expected to significantly enhance the firm's product offerings and contribute to its ARR.

Analyst firms have responded positively to these developments. Citi, KeyBanc Capital Markets, TD Cowen, Truist Securities, and Rosenblatt Securities have all adjusted their price targets for CyberArk, reflecting their confidence in the company's strong performance and future prospects. Citi maintained its Buy rating and increased the price target to $355, while TD Cowen raised its target to a new high of $400. Additionally, Truist Securities and Rosenblatt Securities increased their price targets to $350 and $345 respectively, both maintaining Buy ratings.

CyberArk's management anticipates Q4 revenue to range between $297 million and $303 million, surpassing the consensus estimate of $259.7 million. Non-GAAP operating income is also expected to be in the range of $43.5 million to $48.5 million. Another significant development is the change in financial leadership, with CFO Josh Siegel stepping down after a 13-year tenure, to be succeeded by Erica Smith. These are the recent developments in CyberArk's operations, underlining the positive momentum of its business.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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