CyberArk Software Ltd (NASDAQ:CYBR) clocked 21% revenue growth in second-quarter FY22 to $142.3 million, beating the consensus of $138.5 million. Non-GAAP EPS loss of $(0.27) beat the consensus loss of $(0.30).
Barclays analyst Saket Kalia reiterated an Overweight and $175 price target. CYBR beat 2Q net new ARR and raised FY22 guide, which has not been the norm this quarter in security earnings, driving the stock out-performance today, he noted.
Kalia thought the move to SaaS has helped expand the TAM, and the FY22 ARR guide still has room.
JMP analyst Trevor Walsh reiterated Market Outperform and price target of $175. He highlighted the high importance of identity solutions; increased awareness and demand for developer-centric security solutions, favoring new products recently launched by CyberArk; and a seasoned management team with deep experience in cybersecurity.
The re-rating reflected CyberArk's leading position in the PAM market, broader growth prospects as it expands its identity platform, and revenue acceleration due to the model transition to subscription.
KeyBanc analyst Eric Heath reiterated Overweight and lifted the price target from $160 to $184. He continues to view Identity as a top priority within security for 2022 and the long term, shifting to cloud and zero trust architectures.
He had an increasing conviction of CYBR's expanding TAM opportunity within PAM, ability to be competitive in secrets management, and to be a potential consolidator of Identity spending.
Mizuho analyst Gregg Moskowitz reiterated a Buy and raised the price target from $170 to $180. The results beat his expectations, most notably being the ARR.
Moskowitz continues to view CYBR as a primary beneficiary of a heightened threat landscape that has amplified the need for privileged access management. He also remained confident that CYBR's transition to a recurring revenue model will yield superior financials and visibility over time.
Citi analyst Fatim Boolani reiterated a Buy and $175 price target. The re-rating reflected recurring revenue business anchored to a comprehensive, strategic, "non-negotiable" product suite that offers attractive risk/reward as SMID cyber investors become more asset-selective.
CYBR's healthy beat/slight raise satisfies pessimistic sentiment saddled by EMEA-heavy exposure. It also uniquely contrasts the "challenged" and "uncertain" EMEA conditions peers like Rapid7, Inc (NASDAQ: RPD) and Varonis Systems, Inc (NASDAQ: VRNS) have expressed, making CYBR the cleanest and strongest SMID cyber print in 2Q.
Wells Fargo analyst Andrew Nowinski maintained an Equal-Weight and raised the price target from $125 to $145. The key takeaway was the 144% Y/Y growth in Subscription revenue, primarily driven by the accelerating growth in SaaS, he noted.
While many other vendors have also delivered strong Q2 results, most did not raise the annual outlook, and CyberArk's demand appears to be more resilient to the deteriorating macro environment, Nowinski pointed out.
Yet CyberArk's total revenue is only growing in the high teens this year and low 20s next year, making it difficult to get more positive on the stock given that it now trades well above peers, he felt.
Price Action: CYBR shares traded lower by 2.94% at $145.34 on the last check Thursday.
