U.S. Markets open in 5 hrs 48 mins

Cyber Security ETFs Pop on CyberArk Software’s Earnings Results

This article was originally published on ETFTrends.com.

Cyber security sector-related exchange traded funds broke away from the broader market malaise on Thursday, strengthening on the CyberArk Software's (CYBR) earnings and revenue beat.

On Thursday, the ETFMG Prime Cyber Security ETF (HACK) , the first exchange traded fund dedicated to the fast-growing cyber security space, increased 1.7% and the  First Trust NASDAQ CEA Cybersecurity ETF (CIBR) , which also tracks companies engaged in the cybersecurity segment of the tech and industrials sectors, gained 1.8%.

Fueling the gains in the cyber security-related ETFs, CyberArk Software announced record results for the fourth quarter and year ended December 2018. CYBR shares surged 20.8% Thursday. The company stock makes up 3.5% of CIBR's underlying portfolio and 3.9% in HACK.

“Our record fourth quarter results capped off a tremendous year for CyberArk,” Udi Mokady, CyberArk Chairman and CEO, said in a note. “We delivered record results across all operating metrics including revenue, GAAP and Non-GAAP operating income and net income, as well as cash flow from operations and new customer additions. We were pleased to accelerate revenue growth across the Americas, EMEA and APJ, which demonstrates our strong execution, commitment to innovation, and the robust market fundamentals. As the recognized leader in privileged access security, we enter 2019 with strong momentum and are well positioned to deliver sustainable growth and profitability.”

Specifically, revenue jumped 36% year-over-year in the fourth quarter to $109.1 million. The growth was supported by a 38% increase in licensing revenue and 33% growth in maintenance and professional services sales.

For the current quarter, the company projects revenue generation between $91 million and $93 million, or a 27% to 30% increase from the previous year. For the year ahead, the company anticipates revenue to rise between 20% and 21% in a range between $411 million to $415 million.

"We were pleased to accelerate revenue growth across the Americas, EMEA and APJ, which demonstrates our strong execution, commitment to innovation, and the robust market fundamentals. As the recognized leader in privileged access security, we enter 2019 with strong momentum and are well positioned to deliver sustainable growth and profitability," Mokady said, according to TheStreet.

For more information on the tech sector, visit our technology category.

POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM

READ MORE AT ETFTRENDS.COM >