Thursday 07 November 2019

CyberArk Q3 soars 28% yoy

CyberArk Q3 soars 28% yoyIdentity Access Management (IAM) specialist CyberArk can seemingly do no wrong after it signed 200 new customers during its third quarter and almost doubled its GAAP net income to US$15.2m (39 cents per diluted share).

Total revenue grew 28% year on year to US$108m, with uniform expansion across both software licenses (up 25% yoy to US$58m) and maintenance and professional services (up 30% to US$50m).

The strong Q3 performance prompted CyberArk to increase its FY19 guidance for Q4 to US$125m-US$127m. If those forecasts are accurate, FY19 revenue will hit around US$430m by the end of December, at which point CyberArk will have grown its turnover sixfold since its 2014 IPO. The US$42m acquisition of DevOps start-up Conjur in 2017 and purchase of Vaultive assets last year have contributed, but the majority of the Israeli company’s growth has been organic.

IAM solutions that provide password protection across multiple repositories, both on- and off-premise (see our report Cloud Access Security Brokers: Benefits and Opportunities) remain key to helping IT departments control, monitor and audit end user access to mission critical data sets and applications from any device and embed security into the DevOps process. Certainly buyers seem undeterred by the discovery of a remote code execution flaw in CyberArk’s Enterprise Password Vault Web Access product by German pentesters RedTeam Pentesting in April 2018 which was quickly fixed with a patch.

New data protection regulation like the GDPR has helped too as organisations look to avoid expensive fines for breaches (see ICO fires data protection warning salvo and we expect to see demand for CyberArk and other IAM solutions to rise (or fall) in parallel with public and private sector cloud migration strategies for the foreseeable future.

Posted by: Martin Courtney

Tags: results   Q3   DevOps   IAM   cybersecurity  

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