On Thursday, CyberArk Software (NASDAQ:CYBR) saw its price target increased by BTIG to $310 from the previous target of $296, while the firm maintained a Buy rating on the stock. The adjustment followed the company's release of its FQ2 2024 results, which surpassed expectations, and a positive revision of its full-year outlook.
CyberArk reported a second-quarter Annual Recurring Revenue (ARR) of $868 million, marking a 33% year-over-year increase. This figure exceeded BTIG's projection of $862.0 million and the consensus estimate of $856.5 million. Furthermore, the company's operating income and free cash flow for the quarter were significantly higher than anticipated.
In response to the strong quarterly performance, CyberArk raised its 2024 ARR forecast to a midpoint of $990 million, which is a 27.9% increase from the previous year, and higher than the earlier projection of $982.5 million. This updated guidance aligns with BTIG's optimistic scenario and surpasses the average market expectation of $984 million.
BTIG's analyst highlighted the positive investor sentiment surrounding CyberArk prior to the earnings release, noting that the company met all critical benchmarks with its latest report. The analyst also emphasized CyberArk's strong position in the identity security market, which is a key focus area for Chief Information Security Officers (CISOs).
The firm's robust product offerings, including secrets management, Endpoint Privilege Manager (EPM), Software Composition Analysis (SCA), and workforce identity solutions, are seen to contribute to its momentum. Additionally, BTIG expressed a positive outlook on CyberArk's upcoming acquisition of Venafi, as well as the potential for new products like ITDR and CoraAI to create incremental opportunities for the company.
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