Shares of CyberArk Software (NASDAQ: CYBR) popped 25.1% last month, according to data provided by S&P Global Market Intelligence, after the Israel-based cybersecurity company delivered strong fourth-quarter results.
CyberArk's fourth-quarter revenue surged 36% to $109 million, besting Wall Street's expectations for $95.7 million. Additionally, the company's adjusted earnings per share soared 117% to $0.89. That too was well ahead of the $0.59 analysts had forecast.
During a conference call with analysts, CEO Udi Mokady said that CyberArk is benefiting from the trend toward cloud-computing, which is boosting demand for its privileged account cybersecurity solutions.
In this new, more complex environment, privileged accounts are being created and privileged access expanded at an unprecedented rate. ... As a result, awareness and demand for privileged access security has increased across geographies, verticals, and from companies of all sizes.
In turn, Mokady said CyberArk is increasingly becoming a "critical component" of its customers' digital transformations.
CyberArk helps businesses strengthen their digital defense systems. Image source: Getty Images.
Based on this robust demand, CyberArk expects its revenue to increase by as much as 21% in 2019, to $415 million.
Moreover, Mokady sees long runways for growth still ahead. "Our results strengthen our conviction that we are in the early stages of our opportunity and that momentum in the privileged access security market is accelerating," Mokady said.
This bullish forecast has no doubt helped to propel CyberArk's stock price, which is now up 44% so far in 2019. But with the prospect of accelerating growth on the horizon, CyberArk's shares could continue to head higher in the year ahead.
More From The Motley Fool
- 10 Best Stocks to Buy Today
- 3 Stocks That Are Absurdly Cheap Right Now
- 5 Warren Buffett Principles to Remember in a Volatile Stock Market
- The $16,728 Social Security Bonus You Cannot Afford to Miss
- The Must-Read Trump Quote on Social Security
- 10 Reasons Why I'm Selling All of My Apple Stock