CyberArk Announces Record Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

CyberArk (CYBR) reported strong financial results for Q4 and full year 2024, achieving several milestones. Total Annual Recurring Revenue (ARR) reached $1.169 billion, with organic ARR surpassing $1 billion. The company reported record total revenue of $1.001 billion for FY2024, representing 33% growth year-over-year.

Q4 2024 total revenue was $314.4 million, up 41% from Q4 2023. The company achieved non-GAAP operating income of $150.9 million (15% margin) for FY2024 and record free cash flow of $221 million (22% margin). The subscription portion of ARR reached $977 million, representing 84% of total ARR.

For FY2025, CyberArk projects revenue between $1.308-1.318 billion and expects ARR to reach $1.410-1.420 billion by December 31, 2025. The company also announced the acquisition of Zilla Security for $165 million plus a $10 million earn-out.

Positive

• Record total revenue of $1.001 billion in FY2024, up 33% YoY
• Total ARR reached $1.169 billion, growing 51% YoY
• Subscription revenue increased 62% YoY to $243.0 million in Q4
• Non-GAAP operating income of $150.9 million, 15% margin in FY2024
• Record free cash flow of $221 million, 22% margin in FY2024
• Strong FY2025 guidance with projected revenue growth of 31-32%

Negative

• GAAP operating loss of $72.8 million in FY2024
• GAAP net loss of $93.5 million ($2.12 per share) in FY2024
• Perpetual license revenue declined from $21.0M to $14.4M YoY

Insights

Financial Analyst

CyberArk's Q4 and FY2024 results demonstrate remarkable execution in its strategic transformation, with several breakthrough achievements that position the company for sustained growth. The company's subscription ARR of $977 million now represents 84% of total ARR, up from 75% last year, indicating successful execution of the subscription transition strategy.

The achievement of Rule of 40 (combined growth rate and profit margin exceeding 40%) a year ahead of schedule is particularly significant. With 33% revenue growth and a 22% free cash flow margin, CyberArk has demonstrated both strong growth and improving profitability - a rare combination in the current SaaS landscape.

The strategic acquisitions of Venafi and Zilla Security for $1 billion and $165 million respectively are transformative moves. Venafi's machine identity management capabilities and Zilla's AI-powered IGA solutions significantly expand CyberArk's addressable market and strengthen its competitive moat in the identity security space.

The company's financial health is robust, with $841.1 million in cash and investments post-acquisitions. The 45% growth in recurring revenue to $292.2 million in Q4 indicates strong business predictability and resilience. The FY2025 guidance projecting 31-32% revenue growth and improved profitability suggests management's confidence in maintaining momentum despite macro uncertainties.

The expected $70 million one-time tax payment related to Venafi IP transfer, while significant, is a strategic investment that should yield long-term operational benefits. The projected adjusted free cash flow of $300-310 million for FY2025 indicates strong cash generation capabilities, providing flexibility for future strategic investments and market expansion.

Total ARR Reaches $1.169 billion; Surpasses $1 billion ARR Organically

Subscription Portion of Annual Recurring Revenue (ARR) Reaches $977 million

Record Total Revenue of $1.001 billion for the Full Year 2024

Non-GAAP Operating Income of $151 million, or 15% operating margin, for the Full Year 2024

Record Free Cash Flow of $221 million, or a 22% FCF margin, for the Full Year 2024

Returns to Rule of 40 for the Full Year 2024; A Year Ahead of Target

NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)-- CyberArk (NASDAQ: CYBR), the global leader in identity security, today announced strong financial results for the fourth quarter and full year ended December 31, 2024.

“2024 was a milestone year for CyberArk. Our record performance in the fourth quarter and the year reflects the strength of demand for our identity security solutions and the consistent execution of our strategy,” said Matt Cohen, CyberArk’s Chief Executive Officer. “Total ARR reached $1.169 billion, driven by organic ARR crossing $1 billion and the outperformance from Venafi. With our strong revenue growth and free cash flow margin, we returned to Rule of 40 on a full year basis – beating our long-term guidance framework by a full year. With our leading identity security platform, innovation engine, and persona-based solutions uniquely differentiated with best-in-class security controls, we are well positioned to go after our massive market opportunity. We enter 2025 in a position of strength and we are set up to deliver durable growth.”

Financial Summary for the Fourth Quarter Ended December 31, 2024

The financial results for the fourth quarter of 2024 include the financial contributions from the acquisition of Venafi, which closed on October 1, 2024.

• Total revenue was $314.4 million in the fourth quarter of 2024, up 41 percent from $223.1 million in the fourth quarter of 2023.
• Subscription revenue was $243.0 million in the fourth quarter of 2024, an increase of 62 percent from $150.3 million in the fourth quarter of 2023.
• Maintenance and professional services revenue was $66.4 million in the fourth quarter of 2024, compared to $64.8 million in the fourth quarter of 2023.
• Perpetual license revenue was $5.0 million in the fourth quarter of 2024, compared to $8.0 million in the fourth quarter of 2023.
• GAAP operating loss was $(31.4) million compared to GAAP operating loss of $(4.7) million in the same period last year. Non-GAAP operating income was $58.7 million, or 19 percent margin, compared to non-GAAP operating income of $34.7 million, or 16 percent margin, in the same period last year.
• GAAP net loss was $(97.1) million, or $(2.02) per basic and diluted share, compared to GAAP net income of $8.9 million, or $0.20 per diluted share, in the same period last year. Non-GAAP net income was $40.4 million, or $0.80 per diluted share, compared to non-GAAP net income of $38.1 million, or $0.81 per diluted share, in the same period last year.

Financial Summary for the Full Year Ended December 31, 2024

The financial results for the full year 2024 include financial contribution in the fourth quarter from the acquisition of Venafi, which closed on October 1, 2024.

• Total revenue was $1.001 billion in the full year 2024, growing 33 percent year-over-year from $751.9 million in the full year 2023.
• Subscription revenue was $733.3 million in the full year 2024, an increase of 55 percent from $472.0 million in the full year 2023.
• Maintenance and professional services revenue was $253.0 million in the full year 2024, compared to $258.8 million in the full year 2023.
• Perpetual license revenue was $14.4 million in the full year 2024, compared to $21.0 million in the full year 2023.
• GAAP operating loss was $(72.8) million, and non-GAAP operating income was $150.9 million in the full year 2024, or a margin of 15 percent, compared to $33.5 million, or a margin of 4 percent, in the full year 2023.
• GAAP net loss was $(93.5) million, or $(2.12) per basic and diluted share, in the full year 2024. Non-GAAP net income was $147.5 million, or $3.03 per diluted share, in the full year 2024, compared to $52.0 million, or $1.12 per diluted share, in the full year 2023.

Balance Sheet and Net Cash Provided by Operating Activities

• As of December 31, 2024, cash, cash equivalents, short-term deposits, and marketable securities were $841.1 million. The changes in CyberArk’s cash balance reflect the approximately $1 billion in cash as part of the consideration paid for the acquisition of Venafi.
• On November 15, 2024, the Company settled $535 million of outstanding senior convertible notes with our ordinary shares, consistent with the terms of the senior convertible notes.
• During the full year 2024, the Company’s net cash provided by operating activities was $231.9 million, compared to $56.2 million in the year ended December 31, 2023.

Key Business Highlights

• Annual Recurring Revenue (ARR) was $1.169 billion, an increase of 51 percent from $774 million at December 31, 2023. On a CyberArk standalone basis, ARR grew 30 percent year-over-year.
  • The Subscription portion of ARR was $977 million, or 84 percent of total ARR at December 31, 2024. This represents an increase of 68 percent from $582 million, or 75 percent of total ARR, at December 31, 2023.
  • The Maintenance portion of ARR was $192 million at December 31, 2024, compared to $192 million at December 31, 2023.
• Recurring revenue in the fourth quarter was $292.2 million, an increase of 45 percent from $201.5 million for the fourth quarter of 2023. For the full year 2024, recurring revenue was $930.3 million, an increase of 37 percent from $679.6 million in the full year 2023.

Recent Developments

• CyberArk announced a New Integration with SentinelOne^®, bringing together SentinelOne’s market-leading Singularity^™ Endpoint solution and CyberArk Endpoint Privilege Manager.
• CyberArk announced a New Integration between CyberArk Privileged Access Manager (PAM) and Microsoft Defender for Identity.
• CyberArk Announced the Launch of FuzzyAI, a breakthrough open-source tool that helps organizations safeguard against AI model jailbreaks.
• CyberArk announced that CyberArk Workforce Identity Achieved FIDO2 certification from the FIDO Alliance.

Zilla Security Acquisition

In a separate announcement, CyberArk announced it has completed the acquisition of Zilla Security, a leader in modern Identity Governance and Administration (IGA), for an enterprise value of $165 million in cash and a $10 million earn-out tied to the achievement of certain milestones.

Zilla’s innovative, AI-powered IGA capabilities will expand CyberArk’s industry-leading Identity Security Platform with scalable automation that enables accelerated identity compliance and provisioning across digital environments, while maximizing security and operational efficiency. This acquisition further advances CyberArk’s strategy to deliver the industry’s most powerful, comprehensive identity security platform to secure every identity – human and machine – with the right level of privilege controls.

Business Outlook

Based on information available as of February 13, 2025, CyberArk is issuing guidance for the first quarter and full year 2025 as indicated below. Venafi contributed to CyberArk’s results in the fourth quarter of 2024 and did not contribute to the first, second and third quarter periods. The guidance for the first quarter and full year 2025 includes the expected contribution from the acquisition of Zilla Security, which closed on February 12, 2025.

First Quarter 2025:

• Total revenue is expected to be in the range of $301.0 million and $307.0 million, representing growth of 36 percent to 39 percent compared to the first quarter of 2024.
• Non-GAAP operating income is expected to be in the range of $42.5 million to $47.5 million.
• Non-GAAP net income per share is expected to be in the range of $0.74 to $0.81 per diluted share.
  • Assumes 51.3 million weighted average diluted shares.

Full Year 2025:

• Total revenue is expected to be in the range of $1.308 billion to $1.318 billion, representing growth of 31 percent to 32 percent compared to the full year 2024.
• Non-GAAP operating income is expected to be in the range of $215.0 million to $225.0 million.
• Non-GAAP net income per share is expected to be in the range of $3.55 to $3.70 per diluted share.
  • Assumes 51.5 million weighted average diluted shares.
• ARR as of December 31, 2025 is expected to be in the range of $1.410 billion to $1.420 billion, representing growth of 21 percent from December 31, 2024.
• Adjusted free cash flow is expected to be in the range of $300.0 million to $310.0 million for the full year 2025. Adjusted free cash flow guidance normalizes for a one-time payment of $70 million as discussed below.

Tax Payment Related to Transfer of Venafi IP

CyberArk's forward-looking guidance for adjusted free cash flow for the full year 2025 excludes the estimated impact of an approximately $70 million one-time tax payment related to the capital gain associated with the intercompany migration of intellectual property related to the Venafi acquisition. We expect this to occur in the first half of 2025.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Thursday, February 13, 2025 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter and full year 2024 financial results and its business outlook. To access this call, dial +1 (888) 330-2455 (U.S.) or +1 (240) 789-2717 (international). The conference ID is 6515982. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 (800) 770-2030 (U.S.) or +1 (609) 800-9909 (international). The replay pass code is 6515982. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in identity security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk’s AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere. Learn more at cyberark.com.

Copyright © 2025 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

Key Performance Indicators and Non-GAAP Financial Measures

Recurring Revenue

• Recurring Revenue is defined as revenue derived from SaaS and self-hosted subscription contracts, and maintenance contracts related to perpetual licenses during the reported period.

Annual Recurring Revenue (ARR)

• ARR is defined as the annualized value of active SaaS, self-hosted subscriptions and their associated maintenance and support services, and maintenance contracts related to the perpetual licenses in effect at the end of the reported period.

Subscription Portion of Annual Recurring Revenue

• Subscription portion of ARR is defined as the annualized value of active SaaS and self-hosted subscription contracts in effect at the end of the reported period. The subscription portion of ARR excludes maintenance contracts related to perpetual licenses.

Maintenance Portion of Annual Recurring Revenue

• Maintenance portion of ARR is defined as the annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and self-hosted subscription contracts in effect at the end of the reported period.

Net New ARR

• Net new ARR refers to the difference between ARR as of December 31, 2024 and ARR as of September 30, 2024.

Annual Recurring Revenue (ARR), Subscription portion of ARR and Maintenance portion of ARR are performance indicators that provide more visibility into the growth of our recurring business in the upcoming year. This visibility allows us to make informed decisions about our capital allocation and level of investment. Each of these measures should be viewed independently of revenues and total deferred revenue as each is an operating measure and is not intended to be combined with or to replace either of those measures. ARR, Subscription portion of ARR and Maintenance portion of ARR are not forecasts of future revenues and can be impacted by contract start and end dates and renewal rates.

Non-GAAP Financial Measures

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, free cash flow and adjusted free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net income (loss) or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

• Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions, and impairment of capitalized software development costs.
• Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, acquisition related expenses, and amortization of intangible assets related to acquisitions.
• Non-GAAP operating income is calculated as GAAP operating loss excluding share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, and impairment of capitalized software development costs.
• Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, change in fair value of derivative assets, impairment of capitalized software development costs, gain from investment in privately held companies, the tax effect of non-GAAP adjustments, the establishment of valuation allowance on deferred tax assets and the tax impact of intra-entity transactions.
• Free cash flow is calculated as net cash provided by operating activities less purchase of property and equipment and other assets.
• Adjusted free cash flow is calculated as free cash flow plus one-time tax payment on the capital gain from the intercompany migration of intellectual property (IP) related to the Venafi acquisition.

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, change in fair value of derivative assets, impairment of capitalized software development costs, gain from investment in privately held companies, the tax effect of the non-GAAP adjustments, the establishment of valuation allowance on deferred tax assets and the tax impact of intra-entity transactions, purchase of property and equipment and other assets, and one-time tax payment on the capital gain from the intercompany migration of intellectual property allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share-based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its acquisitions, amortization of intangible assets related to acquisitions, impairment of capitalized software development costs, change in fair value of derivative assets, gain from investment in privately held companies, and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow and adjusted free cash flow are liquidity measures that, after the purchase of property and equipment and other assets, and one-time tax payment on the capital gain from the intercompany migration of intellectual property provide useful information about the amount of cash generated by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs, the tax effect of the non-GAAP adjustments and other tax adjustments, the establishment of valuation allowance on deferred tax assets and the tax impact of intra-entity transactions, purchase of property and equipment and other assets, and one-time tax payment on the capital gain from the intercompany migration of intellectual property. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortization of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance, as well as changes in interest rates and foreign exchange rates, which impact other GAAP performance metrics or liquidity measures. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.

Cautionary Language Concerning Forward-Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: risks related to the Company’s acquisitions of Venafi Holdings, Inc. (“Venafi”) and Zilla Security Inc. (“Zilla”), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining business; risks related to the successful integration of Venafi’s or Zilla’s operations and the ability to realize anticipated benefits of the combined operations; disruption of the current plans and operations of the Company and/or Zilla as a result of the announcement of the transaction, including risks of cyberattacks; changes to the drivers of the Company’s growth and the Company’s ability to adapt its solutions to the information security market changes and demands, including artificial intelligence (“AI”); the Company’s ability to acquire new customers and maintain and expand the Company’s revenues from existing customers; intense competition within the information security market; real or perceived security vulnerabilities, gaps, or cybersecurity breaches of the Company, or the Company’s customers’ or partners’ systems, solutions or services; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to successfully operate its business as a subscription company and fluctuation in its quarterly results of operations; the Company’s reliance on third-party cloud providers for its operations and software-as-a-service (“SaaS”) solutions; the Company’s ability to hire, train, retain and motivate qualified personnel; the Company’s ability to effectively execute its sales and marketing strategies; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; the Company’s ability to maintain successful relationships with channel partners, or if the Company’s channel partners fail to perform; risks related to sales made to government entities; prolonged economic uncertainties or downturns; the Company’s history of incurring net losses, the Company’s ability to generate sufficient revenue to achieve and sustain profitability and the Company’s ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property claims; fluctuations in currency exchange rates; the ability of the Company’s products to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software; risks related to stock price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a “passive foreign investment company”; changes in tax laws; the Company’s expectation to not pay dividends on the Company’s ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

CYBERARK SOFTWARE LTD.
Consolidated Statements of Operations
U.S. dollars in thousands (except per share data)
(Unaudited)
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2023				2024				2023				2024
Revenues:
Subscription		$	150,257			$	243,045			$	472,023			$	733,275
Perpetual license			8,009				4,965				21,037				14,449
Maintenance and professional services			64,838				66,374				258,828				253,018
Total revenues			223,104				314,384				751,888				1,000,742
Cost of revenues:
Subscription			19,764				47,720				74,623				115,852
Perpetual license			700				346				1,873				1,594
Maintenance and professional services			19,189				25,700				79,635				90,931
Total cost of revenues			39,653				73,766				156,131				208,377
Gross profit			183,451				240,618				595,757				792,365
Operating expenses:
Research and development			53,792				73,282				211,445				243,058
Sales and marketing			106,607				146,984				405,983				480,977
General and administrative			27,763				51,712				94,801				141,134
Total operating expenses			188,162				271,978				712,229				865,169
Operating loss			(4,711	)			(31,360	)			(116,472	)			(72,804	)
Financial income, net			19,302				5,997				53,214				56,838
Income (loss) before taxes on income			14,591				(25,363	)			(63,258	)			(15,966	)
Taxes on income			(5,680	)			(71,755	)			(3,246	)			(77,495	)
Net income (loss)		$	8,911			$	(97,118	)		$	(66,504	)		$	(93,461	)
Basic income (loss) per ordinary share		$	0.21			$	(2.02	)		$	(1.60	)		$	(2.12	)
Diluted income (loss) per ordinary share		$	0.20			$	(2.02	)		$	(1.60	)		$	(2.12	)
Shares used in computing net income (loss)
per ordinary shares, basic			42,069,678				48,116,242				41,658,424				44,182,071
Shares used in computing net income (loss)
per ordinary shares, diluted			47,107,294				48,116,242				41,658,424				44,182,071

CYBERARK SOFTWARE LTD.
Consolidated Balance Sheets
U.S. dollars in thousands
(Unaudited)
		December 31,				December 31,
		2023				2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	355,933			$	526,467
Short-term bank deposits			354,472				256,953
Marketable securities			283,016				36,356
Trade receivables			186,472				328,465
Prepaid expenses and other current assets			31,550				45,292
Total current assets			1,211,443				1,193,533
LONG-TERM ASSETS:
Marketable securities			324,548				21,345
Property and equipment, net			16,494				19,581
Intangible assets, net			20,202				534,726
Goodwill			153,241				1,317,374
Other long-term assets			214,816				258,531
Deferred tax asset			81,464				3,305
Total long-term assets			810,765				2,154,862
TOTAL ASSETS		$	2,022,208			$	3,348,395
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	10,971			$	23,671
Employees and payroll accruals			95,538				133,400
Accrued expenses and other current liabilities			36,562				53,486
Convertible senior notes, net			572,340				-
Deferred revenues			409,219				596,874
Total current liabilities			1,124,630				807,431
LONG-TERM LIABILITIES:
Deferred revenues			71,413				95,190
Other long-term liabilities			33,839				75,970
Total long-term liabilities			105,252				171,160
TOTAL LIABILITIES			1,229,882				978,591
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value			111				130
Additional paid-in capital			827,260				2,494,158
Accumulated other comprehensive income (loss)			(1,849	)			2,173
Accumulated deficit			(33,196	)			(126,657	)
Total shareholders' equity			792,326				2,369,804
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,022,208			$	3,348,395

CYBERARK SOFTWARE LTD.
Consolidated Statements of Cash Flows
U.S. dollars in thousands
(Unaudited)
		Twelve Months Ended
		December 31,
		2023				2024
Cash flows from operating activities:
Net loss		$	(66,504	)		$	(93,461	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			19,250				41,983
Amortization of premium and accretion of discount on marketable securities, net and other			(4,570	)			(3,537	)
Share-based compensation			140,101				168,766
Deferred income taxes, net			(7,879	)			66,293
Increase in trade receivables			(65,655	)			(93,303	)
Amortization of debt discount and issuance costs			2,996				2,660
Change in fair value of derivative assets			-				(4,618	)
Increase in prepaid expenses, other current and long-term assets and others			(45,016	)			(47,456	)
Changes in operating lease right-of-use assets			6,566				8,544
Increase (decrease) in trade payables			(2,669	)			11,000
Increase in short-term and long-term deferred revenues			72,190				150,780
Increase in employees and payroll accruals			6,981				22,001
Increase in accrued expenses and other current and long-term liabilities			7,507				10,965
Changes in operating lease liabilities			(7,094	)			(8,730	)
Net cash provided by operating activities			56,204				231,887
Cash flows from investing activities:
Investment in short and long term deposits			(337,835	)			(368,577	)
Proceeds from short and long term deposits			319,542				460,077
Investment in marketable securities and other			(406,633	)			(143,391	)
Proceeds from maturities of marketable securities			340,657				218,061
Proceeds from sales of marketable securities and other			3,389				483,296
Purchase of property and equipment and other assets			(4,948	)			(11,059	)
Payments for business acquisitions, net of cash acquired			-				(984,669	)
Net cash used in investing activities			(85,828	)			(346,262	)
Cash flows from financing activities:
Payment of equity issuance costs			-				(190	)
Proceeds from withholding tax related to employee stock plans			11,188				273
Proceeds from exercise of stock options			11,065				8,309
Proceeds in connection with employees stock purchase plan			15,831				19,598
Payment of convertible notes			-				(542	)
Proceeds from settlement of capped call transactions			-				261,358
Net cash provided by financing activities			38,084				288,806
Increase in cash and cash equivalents			8,460				174,431
Effect of exchange rate differences on cash and cash equivalents			135				(3,897	)
Cash and cash equivalents at the beginning of the period			347,338				355,933
Cash and cash equivalents at the end of the period		$	355,933			$	526,467

CYBERARK SOFTWARE LTD.
Reconciliation of GAAP Measures to Non-GAAP Measures
U.S. dollars in thousands (except per share data)
(Unaudited)
Reconciliation of Net cash provided by operating activities to Free cash flow:
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Net cash provided by operating activities	$	46,898			$	64,736			$	56,204			$	231,887
Less:
Purchase of property and equipment and other assets		(695	)			(3,969	)			(4,948	)			(11,059	)
Free cash flow	$	46,203			$	60,767			$	51,256			$	220,828
GAAP net cash used in investing activities		(84,140	)			(1,050,560	)			(85,828	)			(346,262	)
GAAP net cash provided by financing activities		18,889				276,355				38,084				288,806
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Gross profit	$	183,451			$	240,618			$	595,757			$	792,365
Plus:
Share-based compensation (1)		4,500				5,867				17,612				21,724
Amortization of share-based compensation capitalized in software development costs (3)		84				94				393				328
Amortization of intangible assets (2)		1,704				20,563				6,817				25,676
Impairment of capitalized software development costs		-				-				2,067				-
Non-GAAP gross profit	$	189,739			$	267,142			$	622,646			$	840,093
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Operating expenses	$	188,162			$	271,978			$	712,229			$	865,169
Less:
Share-based compensation (1)		33,035				41,478				122,489				147,042
Amortization of intangible assets (2)		137				6,725				547				7,101
Acquisition related expenses		-				15,375				-				21,800
Non-GAAP operating expenses	$	154,990			$	208,400			$	589,193			$	689,226
Reconciliation of Operating Loss to Non-GAAP Operating Income:
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Operating loss	$	(4,711	)		$	(31,360	)		$	(116,472	)		$	(72,804	)
Plus:
Share-based compensation (1)		37,535				47,345				140,101				168,766
Amortization of share-based compensation capitalized in software development costs (3)		84				94				393				328
Amortization of intangible assets (2)		1,841				27,288				7,364				32,777
Acquisition related expenses		-				15,375				-				21,800
Impairment of capitalized software development costs		-				-				2,067				-
Non-GAAP operating income	$	34,749			$	58,742			$	33,453			$	150,867
Reconciliation of Net Income (Loss) to Non-GAAP Net Income:
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Net income (loss)	$	8,911			$	(97,118	)		$	(66,504	)		$	(93,461	)
Plus:
Share-based compensation (1)		37,535				47,345				140,101				168,766
Amortization of share-based compensation capitalized in software development costs (3)		84				94				393				328
Amortization of intangible assets (2)		1,841				27,288				7,364				32,777
Acquisition related expenses		-				15,375				-				21,800
Amortization of debt discount and issuance costs		752				403				2,996				2,660
Change in fair value of derivative assets		-				(2,027	)			-				(4,618	)
Gain from investment in privately held companies		(2,213	)			-				(2,757	)			-
Impairment of capitalized software development costs		-				-				2,067				-
Taxes on income related to non-GAAP adjustments and other tax adjustments (4)		(8,848	)			49,084				(31,656	)			19,297
Non-GAAP net income	$	38,062			$	40,444			$	52,004			$	147,549
Non-GAAP net income per share
Basic	$	0.90			$	0.84			$	1.25			$	3.34
Diluted	$	0.81			$	0.80			$	1.12			$	3.03
Weighted average number of shares
Basic		42,069,678				48,116,242				41,658,424				44,182,071
Diluted		47,107,294				50,853,179				46,375,198				48,641,292
(1) Share-based Compensation :
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Cost of revenues - Subscription	$	1,219			$	1,794			$	4,178			$	6,525
Cost of revenues - Perpetual license		15				5				45				22
Cost of revenues - Maintenance and Professional services		3,266				4,068				13,389				15,177
Research and development		7,661				10,695				29,458				34,953
Sales and marketing		14,800				18,647				58,790				67,924
General and administrative		10,574				12,136				34,241				44,165
Total share-based compensation	$	37,535			$	47,345			$	140,101			$	168,766
(2) Amortization of intangible assets :
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2023				2024				2023				2024
Cost of revenues - Subscription	$	1,704			$	20,563			$	6,817			$	25,676
Sales and marketing		137				6,725				547				7,101
Total amortization of intangible assets	$	1,841			$	27,288			$	7,364			$	32,777
(3) Classified as Cost of revenues - Subscription.
(4) Includes income tax adjustments related to non-GAAP items. For the three and twelve months ended December 31, 2024, includes the establishment of a valuation allowance on deferred tax assets, primarily for CyberArk Software Ltd., and the tax impact of intra-entity transactions related to the Venafi acquisition.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213398855/en/

Investor Relations:

Srinivas Anantha, CFA

CyberArk

617-558-2132

ir@cyberark.com

Media:

Rachel Gardner

CyberArk

603-531-7229

press@cyberark.com

Source: CyberArk

FAQ

What was CyberArk's (CYBR) total revenue for Q4 2024?

CyberArk's total revenue for Q4 2024 was $314.4 million, representing a 41% increase from $223.1 million in Q4 2023.

How much did CYBR's subscription revenue grow in Q4 2024?

CYBR's subscription revenue grew 62% to $243.0 million in Q4 2024, compared to $150.3 million in Q4 2023.

What is CyberArk's ARR guidance for the end of 2025?

CyberArk expects ARR to be between $1.410 billion and $1.420 billion by December 31, 2025, representing 21% growth.

How much did CyberArk pay for the Zilla Security acquisition?

CyberArk acquired Zilla Security for $165 million in cash, plus a $10 million earn-out tied to achieving certain milestones.

What percentage of CyberArk's total ARR comes from subscriptions?

As of December 31, 2024, subscription ARR was $977 million, representing 84% of total ARR.