We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CyberArk (CYBR) to Report Q2 Earnings: What's in the Offing?
Read MoreHide Full Article
CyberArk Software Ltd. (CYBR - Free Report) is scheduled to report second-quarter 2024 results on Aug 8, before market open.
The cybersecurity firm projects revenues between $215 million and $221 million. The Zacks Consensus Estimate is pegged at $219.3 million, suggesting year-over-year growth of 24.7%.
The company forecasts second-quarter non-GAAP earnings per share in the range of 34-44 cents. The consensus mark is pegged at 41 cents per share, implying a robust improvement from the year-ago quarter’s EPS of 3 cents.
CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 112%.
Let’s see how things have shaped up for this announcement.
CyberArk’s second-quarter performance is expected to have benefited from the growing demand for privileged access security and cyber security solutions, driven by a growing number of data breaches and increasing digital transformation strategies.
The proliferation of cloud computing and cheap resource-sharing has further increased the demand for proper security policies, protocols and products. These factors are likely to have prompted companies to allot increasing portions of their IT budgets for security solutions. CyberArk is capitalizing on this opportunity and growing rapidly in this space with its privileged access management solutions. These solutions allow customers to secure, manage and monitor privileged account access and activities.
The company’s strategic mix shift toward software-as-a-service and subscription-based models is likely to have driven top-line growth in the to-be-reported quarter. Our model estimate for Subscription revenues in the second quarter is pegged at $151.5 million, suggesting a year-over-year increase of 42.7%. The segment’s contribution to the company’s total revenues is anticipated to have reached 69.1%, significantly up from the year-ago quarter’s 60.4%.
Our estimate for Perpetual License revenues is pegged at $4.4 million, indicating a year-over-year decline of 13.4% due to CyberArk’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
Strong renewal rates are likely to have brought some stabilization in Maintenance and Professional Services revenues. Our model estimate for Maintenance and Professional Services revenues in the second quarter is pinned at $63.3 million, suggesting a year-over-year decline of 2%.
Strong demand for CyberArk’s software-as-a-service solution and on-premise subscription offerings is likely to have driven the company’s Annual Recurring Revenues (ARR) in the to-be-reported quarter. Our estimate for ARR is pegged at $906.5 million, of which Subscription is likely to have contributed $710.7 million, while Maintenance and Professional Services are expected to have contributed $195.9 million.
However, like every other company in the technology space, CyberArk also suffers from overall softness caused by budget cuts and postponement of deals due to the uncertain macroeconomic environment. These challenges are likely to have hampered CYBR’s top-line growth in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CyberArk this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
CyberArk has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Brinker International is set to report fourth-quarter fiscal 2024 results on Aug 14. The Zacks Consensus Estimate for EAT’s earnings is pegged at $1.65 per share, indicating growth of 18.7% from the year-ago quarter’s reported figure. Shares of EAT have returned 37.4% in the year-to-date period.
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #1 at present.
Shopify is scheduled to release second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 20 cents per share, suggesting a jump of 42.9% from the prior-year quarter. Shares of SHOP have plunged 30.2% in the year-to-date period.
Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +9.38% and a Zacks Rank #3 at present.
Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share. Shares of ASPN have climbed 19.6% in the year-to-date period.
Image: Bigstock
CyberArk (CYBR) to Report Q2 Earnings: What's in the Offing?
CyberArk Software Ltd. (CYBR - Free Report) is scheduled to report second-quarter 2024 results on Aug 8, before market open.
The cybersecurity firm projects revenues between $215 million and $221 million. The Zacks Consensus Estimate is pegged at $219.3 million, suggesting year-over-year growth of 24.7%.
The company forecasts second-quarter non-GAAP earnings per share in the range of 34-44 cents. The consensus mark is pegged at 41 cents per share, implying a robust improvement from the year-ago quarter’s EPS of 3 cents.
CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 112%.
Let’s see how things have shaped up for this announcement.
CyberArk Software Ltd. Price and EPS Surprise
CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote
Factors to Consider
CyberArk’s second-quarter performance is expected to have benefited from the growing demand for privileged access security and cyber security solutions, driven by a growing number of data breaches and increasing digital transformation strategies.
The proliferation of cloud computing and cheap resource-sharing has further increased the demand for proper security policies, protocols and products. These factors are likely to have prompted companies to allot increasing portions of their IT budgets for security solutions. CyberArk is capitalizing on this opportunity and growing rapidly in this space with its privileged access management solutions. These solutions allow customers to secure, manage and monitor privileged account access and activities.
The company’s strategic mix shift toward software-as-a-service and subscription-based models is likely to have driven top-line growth in the to-be-reported quarter. Our model estimate for Subscription revenues in the second quarter is pegged at $151.5 million, suggesting a year-over-year increase of 42.7%. The segment’s contribution to the company’s total revenues is anticipated to have reached 69.1%, significantly up from the year-ago quarter’s 60.4%.
Our estimate for Perpetual License revenues is pegged at $4.4 million, indicating a year-over-year decline of 13.4% due to CyberArk’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
Strong renewal rates are likely to have brought some stabilization in Maintenance and Professional Services revenues. Our model estimate for Maintenance and Professional Services revenues in the second quarter is pinned at $63.3 million, suggesting a year-over-year decline of 2%.
Strong demand for CyberArk’s software-as-a-service solution and on-premise subscription offerings is likely to have driven the company’s Annual Recurring Revenues (ARR) in the to-be-reported quarter. Our estimate for ARR is pegged at $906.5 million, of which Subscription is likely to have contributed $710.7 million, while Maintenance and Professional Services are expected to have contributed $195.9 million.
However, like every other company in the technology space, CyberArk also suffers from overall softness caused by budget cuts and postponement of deals due to the uncertain macroeconomic environment. These challenges are likely to have hampered CYBR’s top-line growth in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CyberArk this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
CyberArk has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Brinker International (EAT - Free Report) has an Earnings ESP of +8.02% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Brinker International is set to report fourth-quarter fiscal 2024 results on Aug 14. The Zacks Consensus Estimate for EAT’s earnings is pegged at $1.65 per share, indicating growth of 18.7% from the year-ago quarter’s reported figure. Shares of EAT have returned 37.4% in the year-to-date period.
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #1 at present.
Shopify is scheduled to release second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 20 cents per share, suggesting a jump of 42.9% from the prior-year quarter. Shares of SHOP have plunged 30.2% in the year-to-date period.
Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +9.38% and a Zacks Rank #3 at present.
Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share. Shares of ASPN have climbed 19.6% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar