CyberArk reaches record $10 billion market cap on back of identity security boom

The identity security market is booming, and CyberArk, one of the oldest Israeli cybersecurity companies, is riding the wave. The financial reports published by the company on Thursday exceeded forecasts, causing the stock to soar and taking its market cap above the $10 billion mark for the first time.

CyberArk now predicts that in 2024 it will come close to the $1 billion revenue threshold, reflecting an annual growth rate of 22%-24%, similar to its growth in 2023. The company expects revenues in 2024 to reach $920-930 million.

CyberArk Chairman Udi Mokady.

CyberArk finished the last quarter of 2023 with strong momentum, experiencing a 32% growth to register revenue of $223 million. Of these revenues, $150 million came from the sale of software subscriptions, a departure from the sale of software licenses as CyberArk used to do until about two years ago.

For comparison, in the corresponding quarter, only half of the revenue came from subscriptions compared to about 70% at the end of 2023. For the entire year, the company recorded revenue of $751.9 million, reflecting an annual growth rate of 27%.

CyberArk states that 90% of its revenues today are recurring revenues. However, the maintenance and professional services for old customers, which constitute about a third of the revenue line, continues to affect CyberArk's profitability, with its operating profit rate before accounting and non-recurring items standing at only 4%.

Together with accounting items, last year CyberArk registered a high operating loss of $116.5 million. Its GAAP net loss was $66.5 million, but its Non-GAAP net income was $520 million, or $1.12 per diluted share, above analysts' expectations. The company’s net cash provided by operating activities was $56.2 million and as of December 31, 2023, CyberArk had $1.3 billion in cash.

“2023 was a momentous year for CyberArk and with our excellence in execution, we solidified our position as the leader in identity security,” said Matt Cohen, CyberArk's Chief Executive Officer. “Throughout the year, we consistently delivered strong results, including in the fourth quarter where top line growth accelerated, operating income and cash flow increased, and we again beat expectations across all guided metrics. Record demand for our SaaS solutions drove our subscription bookings mix to 95 percent in 2023 and recurring revenue reached 90 percent of our total revenue – we are now a fully recurring revenue company.

“In today’s threat landscape, our platform and security first approach are a business imperative, resulting in customers consolidating on our identity platform. With our execution in 2023, we enter 2024 in a position of strength, poised to continue to deliver durable growth, profitability, and cash flow.”