Q2 2024 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$243.47Last close (Aug 7, 2024)
Post-Earnings Price$257.99Open (Aug 8, 2024)
Price Change
$14.52(+5.96%)
- Strong customer growth and expansion: CyberArk added 245 new logos in Q2, with approximately half of these new customers landing with two or more solutions, demonstrating robust demand and successful solution selling even in a challenging IT spending environment.
- Identity security is a top priority: Customers are prioritizing identity security due to increasing cyber threats, regulatory pressures, and cyber insurance requirements. CyberArk is considered a top priority for CISOs and security teams, leading to strong customer urgency and consolidation of spend with the company. ,
- Solid financial performance with growing free cash flow: CyberArk reported significant free cash flow generation, with $41.7 million in Q2 and $108 million in the first half of the year. The company expects continued operating leverage and increasing cash flow margins, highlighting the strength and efficiency of its subscription model. ,
- CyberArk is not disclosing Net Retention Rate (NRR) metrics, which may indicate potential concerns about transparency.
- The company anticipates lower free cash flow margins in the second half of the year, due to the Venafi acquisition costs, potential interest rate cuts, and increased tax obligations.
- Sales cycles remain back-end loaded ("hockey stick" effect), and the company has not yet resolved this issue.