CyberArk Software Ltd., an Israeli company founded in 1999 and headquartered in Petah Tikva, specializes in developing, marketing, and selling sophisticated cybersecurity ...
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Operator: Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2025 CyberArk Software Ltd. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the call over to Srinivas, VP of Investor Relations. Please go ahead. Srinivas Anantha: Thank you, operator. Good morning. Thank you for joining us today to review CyberArk's strong first quarter 2025 financial results. With me on the call today are Matt Cohen, our Chief Executive Officer, and Erica Smith, our Chief Financial Officer. After prepared remarks, we will open up the call to a question-and-answer session. Before we begin, let me remind you that certain statements made on the call today may be considered forward-looking statements, which reflect management's best judgment based on currently available information. I refer specifically to the discussion of our expectations and beliefs regarding our projected results of operations for the second quarter, full year 2025 and beyond. I also refer to our expectations and beliefs regarding the integration of Venafi and Zilla Security into our operations. Our actual results might differ materially from those projected in these forward-looking statements. I direct your attention to the risk factors contained in the company's annual report on Form 20-F filed with the US Securities and Exchange Commission and those referenced in today's press release that are posted to CyberArk's website. CyberArk expressly disclaims any application or undertaking to release publicly any updates or revisions to any forward-looking statements made herein. Additionally, non-GAAP financial measures will be discussed on this conference call. Reconciliations to the most directly comparable GAAP financial measures are also available in today's press release as well as in an updated investor presentation that outlines the financial discussion in today's call. A webcast of today's call is also available on our website in the IR section. With that, I would like to turn the call over to our CEO, Matt Cohen. Matt Cohen: Thanks, Sri, and thanks everyone for joining the call today. We're excited to kick off 2025 with a strong first quarter that exceeded all of our guided metrics. This performance highlights not only the critical role identity security plays in the broader cybersecurity landscape, but also our team's unwavering focus on excellence and execution. In Q1, we achieved total ARR of $1.215 billion, revenue of $318 million, an 18% operating margin, and generated $96 million in free cash flow, a great quarter all around. Our results continue to demonstrate that identity is the new perimeter and that demand remains robust. With more than 90% of organizations experiencing identity-related breaches, security leaders …
Est. EPS $1.27 · Revenue $402.50M · 3 analysts
Est. EPS $4.99 · Revenue $1.60B · 8 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Matthew Lessner Cohen | Chief Executive Officer & Director | USD 1,338,993 | Male | 1976 | Active |
Eduarda Camacho | Chief Operating Officer | USD 1,288,834 |
| Female |
| 1973 |
| Active |
Ehud Mokady | Founder & Executive Chairman | USD 1,019,778 | Male | 1969 | Active |
Peretz Regev | Chief Product & Technology Officer | USD 779,322 | Male | 1979 | Active |
Erica E. Smith | Chief Financial Officer | USD 726,568 | Female | 1973 | Active |
Clarence Hinton | Chief Strategy Officer & Head of Corporate Development | USD 591,716 | Male | — | Active |
Donna Rahav | Chief Legal Officer | — | Female | 1979 | Active |
Vincent Goh | President of Asia Pacific & Japan | — | Male | 1972 | Active |
Kelsey Doherty Turcotte | Senior Vice President of Investor Relations | — | Female | — | Active |
Simon Mouyal | Chief Marketing Officer | — | Male | — | Active |
Ariel Pisetzky | Chief Information Officer | — | Male | — | Active |
Richard Turner | President of Sales for EMEA | — | Male | 1970 | Active |
Shahar Layani | Chief Customer Officer | — | Male | — | Active |
Est. EPS $1.49 · Revenue $446.97M · 7 analysts
Est. EPS $1.51 · Revenue $463.26M · 3 analysts
EPS $-2.93 · Revenue $1.36B
EPS $-1.00 · Revenue $342.84M
EPS $-1.81 · Revenue $328.03M
EPS $0.22 · Revenue $317.60M
EPS $-2.12 · Revenue $1.00B
EPS $0.23 · Revenue $240.10M
| $1.4B |
| +36.0% |
| +8.7% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $-146.9M | -57.2% | +66.1% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +74.3% | -6.2% | +8.7% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | -7.7% | -5.9% | +62.3% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | -10.8% | -15.6% | +68.8% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $259.3M | +17.4% | +187.5% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +19.0% | -13.7% | +164.5% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 50.9% | +4011.3% | -2.7% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.00x | +35.4% | -6.5% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $4.8B | +43.9% | +4.7% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | -2.93 vs 4.05 | -172.4% | -0.34 vs 1.12 | -130.3% |
| Revenue Surprise | $1.4B vs $1.3B | +1.6% | $372.7M vs $373.9M | -0.3% |
