Barclays Says Strength In CyberArk's Q4 Carried Into Q1

In a report published Friday, Barclays analyst Saket Kalia commented that

's "big out-performance" fourth quarter carried into the first quarter with a 119 percent year over year growth in license revenue on an increasing mix of revenue from new customers and larger deal sizes. Cyberark reported first quarter sales of $33 million and a non-GAAP earnings per share of $0.16. This compares to Kalia's estimates of $26 million in revenue and an earnings per share of $0.04. The analyst noted that the outperformance was attributed to license and maintenance/professional services, but license in particular with the 119 percent growth. Kalia continued that the first quarter's results represented an acceleration from the prior quarter's already "big out-performance" quarter, resulting in the entire $7 million revenue upside falling to the bottom line, as operating income was $7 million ahead. Management revised its fiscal 2015 outlook and raised its sales estimates to a range of $136 million to $138 from a previous $127 million to $130 million. The company also increased its earnings per share guidance to a range of $0.40 to $0.44 from a previous $0.24 to $0.27. The upwardly revised outlook reflects the first quarter's outperformance, but the analyst noted that "it still feels like" there is further upside to revenue due to seasonal trends seen in the second half of the year. However, despite the positive quarter and outlook, Kalia noted that there is still a strong bull versus bear case. The bull case is that 40 percent revenue growth will continue beyond fiscal 2015 while the bear case (which he agrees with) is hinged on valuation with the stock trading at approximately 12x EV/S. Shares remain Equal-Weight rated with a price target increased to $65 from a previous $50.