March 19, 2025

Breaking the $1 Billion Barrier, What’s Next for Security Leader?

CyberArk Software (NASDAQ: CYBR) just delivered a standout quarter, officially surpassing $1 billion in annual revenue for the first time in fiscal 2024. The identity security powerhouse—best known for its privileged access management solutions—is scaling at an impressive pace, fueled by surging demand, strategic acquisitions, and a seamless transition to a subscription-based model.

We take a deep dive into CyberArk’s latest earnings, its growth catalysts, competitive positioning, and what technical indicators say about its stock’s next move.

Key Points

Revenue hit $1B+, with 41% YoY growth and ARR up 51%. Profitability is improving too.
CyberArk outpaces peers (33% growth vs. Okta 15%, Palo Alto 16%, CrowdStrike 25%) and dominates identity security.
Analysts target $400+, driven by strong fundamentals.

Record-Setting Growth: Inside CyberArk’s Financials

CyberArk ended 2024 on a high note with a 41% year-over-year revenue jump in Q4, hitting $314.4 million, up from $223.1 million in the prior year.

Key growth drivers:

Subscription revenue surged 62% YoY to $243 million as more customers embraced SaaS and term-based licensing.
Recurring revenue hit 93% of total sales, up from 87% a year earlier, demonstrating the strength of its subscription-first model.
Annual Recurring Revenue (ARR) topped $1.16 billion, growing 51% YoY, or ~30% organically, excluding acquisitions.
The subscription portion of ARR soared to $977 million (84% of total ARR), reflecting the shift away from perpetual licenses.

Profitability is catching up

CyberArk is not just growing—it’s becoming more profitable.

Q3 2024: The company swung to GAAP profitability with $11.1 million in net income, compared to a loss the previous year.
Q4 2024: A GAAP operating loss of $31.4 million due to acquisition costs, but non-GAAP operating income surged to $58.7 million, a 19% margin, up from 16% in Q4 2023.
For full-year 2024, non-GAAP operating income soared to $150.9 million (15% margin)—nearly quadrupling from 2023’s $33.5 million.

CyberArk’s balance sheet remains strong, closing the year with over $840 million in cash and investments, even after making acquisitions.

What’s Fueling CyberArk’s Expansion?

CyberArk’s two-pronged growth strategy—organic expansion and targeted acquisitions—continues to pay off.

1. Organic Growth & Customer Upsells

CyberArk’s flagship privileged access management (PAM) solutions are gaining widespread adoption, fueled by the rise of zero-trust security architectures.

ARR continues to grow ~30% organically, driven by both new customer acquisitions and upsells.
79% of total ARR now comes from subscriptions (vs. 72% a year ago), reflecting higher-value, stickier contracts.

2. Acquisitions Driving Growth

CyberArk’s acquisition of Venafi (closed October 1, 2024) is a game-changer.

Venafi contributed $41 million in Q4 subscription revenue, pushing total revenue growth to 41% (versus ~20% organically).
It added $166 million to ARR, accelerating CyberArk past the $1 billion milestone.
Venafi strengthens CyberArk’s machine identity security offerings—a rapidly growing space as businesses scale cloud adoption and automation.

CyberArk’s CEO highlighted that machine identities are the “fastest growing and most complex” identity types today, and early feedback on the CyberArk-Venafi integration has been overwhelmingly positive.

How CyberArk Stacks Up Against Cybersecurity Giants

CyberArk operates in the highly competitive identity security space, where it complements more generalist cybersecurity firms.

Okta (NASDAQ: OKTA)

Revenue: $2.6 billion (2024, up 15%)
Q4 2025 growth: 13% YoY ($682M)
Market overlap: Okta manages user authentication; CyberArk secures high-privilege accounts and machine identities.

Palo Alto Networks (NASDAQ: PANW)

Revenue: $8 billion (2024, up 16%)
CyberArk’s niche: Palo Alto dominates network and cloud security, but CyberArk specializes in identity security, often complementing Palo Alto’s offerings.

CrowdStrike (NASDAQ: CRWD)

Revenue: $1.06 billion (last quarter, up 25%)
ARR: $4.24 billion (+23% YoY)
Overlap: CrowdStrike focuses on endpoint security, while CyberArk protects privileged credentials—both critical components of a zero-trust strategy.

Who’s Growing the Fastest?

Company	Annual Revenue Growth (2024)	ARR Growth
CyberArk	33%	51%
Okta	~15%	N/A
Palo Alto	~16%	N/A
CrowdStrike	25%	23%

CyberArk’s growth rate outpaces Okta and Palo Alto and keeps pace with CrowdStrike, making it one of the fastest-growing identity security players.

CyberArk’s Stock Outlook: Where’s It Headed Next?

After an explosive rally, CyberArk stock hit an all-time high of $414.31 on February 13, 2025—but has since pulled back ~25% to the low $300s.

Technical Analysis: Key Levels to Watch

Short-term support: $310–$320 (200-day moving average)
Resistance: $360–$370 (50-day moving average)
Breakout target: $400+ if buyers return

Momentum Indicators

RSI (Relative Strength Index): Neutral (~45–50), meaning the stock has reset after an overheated rally.
MACD (Moving Average Convergence Divergence): Bearish in the short term, but could signal a rebound if momentum shifts.

Short-Term View (Next Few Weeks)

Expect range-bound trading between $320–$370 as the stock digests recent gains.

Bull case: If CYBR clears $370, momentum could push it toward $400+.
Bear case: A break below $310 would suggest a deeper pullback.

Medium-Term View (3–6 Months)

CyberArk’s strong fundamentals should continue to drive its stock higher, especially if Q1 and Q2 2025 show sustained revenue and margin expansion.

Analyst price targets are mostly in the $400+ range, assuming continued execution.

Why CyberArk Is a Standout in Cybersecurity

CyberArk is thriving as businesses prioritize identity security, a mission-critical component of cybersecurity strategies. With its strong ARR growth, increasing profitability, and a dominant position in privileged access management, the company is well-positioned for further upside.

The biggest risks to watch?

Competition from cloud providers (AWS, Microsoft)
Potential budget pressures in IT spending
Profitability still lagging larger peers like Palo Alto and CrowdStrike

CyberArk is one of the fastest-growing identity security firms, and despite recent stock volatility, its long-term trajectory looks solid. Investors looking for a high-growth cybersecurity play should keep this one on their radar.