CyberArk Software Stock Gains After Q2 Report - What's Going On?

CyberArk Software Ltd  CYBR reported second-quarter FY23 revenue growth of 24% year-on-year to $175.8 million, beating the consensus of $173.4 million. Non-GAAP EPS of $0.03 beat the consensus loss of $(0.12).

Segments: Revenues from Subscriptions expanded 61% Y/Y to $106.2 million. Maintenance and professional services declined by 1.1 Y/Y to $64.6 million.

Key Performance Indicators: Annual Recurring Revenue (ARR) increased 40% Y/Y to $653 million. The subscription portion of ARR was $451 million, implying a 77% Y/Y growth. 

The Maintenance portion of ARR was $201 million signifying a 4.3% Y/Y decline. Recurring revenue grew 31% Y/Y to $157.8 million. 

CyberArk ended the quarter with $1.2 billion in cash and equivalents.

"We had a great quarter, beating our guidance across all metrics, which demonstrates the momentum in our business and the durability of demand for our identity security platform," said Matt Cohen, CyberArk's Chief Executive Officer. 

"We had a strong new business quarter, and existing customers expanded across our identity security platform as we continue to deliver transformational value to customers across hybrid and cloud environments."

Outlook: CyberArk sees Q3 revenue of $181.5 million - $186.5 million versus the consensus of $187.14 million.

It sees a non-GAAP EPS of $0.19 - $0.27 versus the consensus of $0.15.

CyberArk expects FY23 revenue of $726 million - $736 million (prior $724 million - $736 million) versus the consensus of $730.46 million. 

CyberArk raised the non-GAAP EPS outlook to $0.44 - $0.63 (prior $0.16 - $0.38) versus the consensus of $0.29.

It also raised the FY23 ARR outlook to $743 million - $753 million (prior $735 million - $745 million).

Price Action: CYBR shares traded higher by 6.71% at $153.00 in premarket on the last check Thursday.