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CyberArk (CYBR) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research

CyberArk Software Ltd. CYBR is scheduled to report fourth-quarter 2018 results on Feb 14.

Notably, the company beat estimates in each of the trailing four quarters, the average positive surprise being 48.51%.

In the last reported quarter, the company came up with a positive earnings surprise of 77.78%.
   
For the fourth quarter, CyberArk expects revenues in the range of $94.75-$96.25 million, representing 18-20% year-over-year growth.  The Zacks Consensus Estimate for revenues for the fourth quarter is pegged at $85.84 million.
   
Non-GAAP operating income is predicted to be in the band of $27.3-$28.5 million.

The company projects non-GAAP earnings in the 58-60 cents range. The Zacks Consensus Estimate for revenues for the fourth quarter stands at 34 cents.

Let's see how things are shaping up for the upcoming announcement.

Factors Likely to Drive Results

CyberArk is benefiting from an increase in customer accounts, which is driving its top line. Significant number of federal deal wins in this regard is noteworthy. The improved functionality of Version 10 of the company’s core privileged access security solutions, together with the new pricing model, is resulting in new customer acquisition.

Strong consistent momentum across all geographic segments is a major positive for the company, and is expected to continue in the near term.

In October last year, the company introduced the Privileged Session Manager for Cloud, which is its first platform based on its last year’s buyout of Vaultive. This offering is expected to gain traction, given the strength in the market for privileged access security.

Moreover, the company is gaining momentum among advisory firms like Deloitte, PWC, KPMG and Accenture. Management mentions that new and add-on business impacted by advisory firms grew 20% year over year in the last reported quarter. These businesses are likely to be accretive to the top line in the fourth quarter as well.

The company’s expertise in securing multiple public clouds, which include Google Cloud Platform and AWS is a tailwind.

Apart from this, the company’s C3 technology alliance program is also influencing deals, which in turn, is boosting revenues. CyberArk has key partners in this program, including Proofpoint PFPT, Qualys QLYS and ServiceNow NOW. We believe the positive trend of this program will continue driving its top-line performance.

CyberArk currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CyberArk Software Ltd. Price and EPS Surprise

CyberArk Software Ltd. Price and EPS Surprise | CyberArk Software Ltd. Quote

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