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CyberArk Software Ltd. CYBR is likely to beat expectations when it reports first-quarter 2025 results on May 13, after market close.
The company forecasts first-quarter non-GAAP earnings per share in the range of 74-81 cents. The consensus mark is pegged at 79 cents per share, implying a year-over-year decline of 5.3%.
CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 82.8%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
The cybersecurity firm projects revenues between $301 million and $307 million. The Zacks Consensus Estimate is pegged at $305.7 million, suggesting year-over-year growth of 39%.
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 Likely to Influence CYBR’s Q1 Results
CyberArk’s first-quarter performance is likely to have benefited from growing demand for privileged access security and broader cybersecurity solutions. This demand is being driven by the rise in data breaches and accelerated digital transformation initiatives. The expanding use of cloud computing and cost-efficient resource-sharing models has further underscored the need for robust security tools and policies.
As a result, organizations appear to be allocating larger portions of their IT budgets toward cybersecurity. CyberArk is taking advantage of this trend through its core strength in privileged access management solutions, which help businesses control, secure and monitor high-level account access.
The company’s ongoing shift toward a software-as-a-service and subscription-based model is expected to have supported revenue growth in the quarter. Our model estimate for Subscription revenues in the first quarter is pegged at $240.7 million, suggesting a year-over-year increase of 54.1%.
Meanwhile, Perpetual License revenues are estimated at $2.1 million, reflecting a 29.8% decline as CyberArk continues phasing out this model in favor of recurring revenues. Revenues from Maintenance and Professional Services are forecasted at $62.2 million per our model, down slightly by 0.2% year over year, likely stabilized by strong renewal rates.
Per our model estimates, annual recurring revenues are expected to hit $1.03 billion in the quarter. Of this, Subscription services are projected to contribute $847.5 million, while Maintenance and Professional Services may account for $182.7 million.
However, despite strong product demand, CyberArk is not immune to broader macroeconomic challenges. Slower IT spending, delayed contract signings and general uncertainty in the tech sector are likely to have weighed on the company’s overall revenue growth during the quarter.