CyberArk Software Ltd. Q1 FY2024 earnings call

• Celebrated 25th anniversary, pioneered privileged access management market. - Strong Q1 results with subscription ARR, total ARR, and revenue growth. - Secular tailwinds in identity security due to attacker innovation, digital transformation, etc. - Signed nearly 200 new customers in Q1, with many buying multiple solutions. - Growth in EPM (surpassed $100M ARR), Secure Cloud Access, and new products like Secure Browser. - Received FedRAMP High authorization for two SaaS solutions. - Upcoming impact event in Nashville with innovative developments.

Total revenue for the first quarter accelerated to 37% year-on-year, reaching approximately $222 million. Subscription ARR was $621 million, growing 54% year-over-year, and total ARR was $811 million, growing 34% year-over-year. Non-GAAP operating income was $33 million, a significant improvement from a loss of $12.6 million in Q1 2023. Free cash flow was $67 million for the quarter. Recurring revenue reached $205.8 million, growing 41% year-on-year and accounting for 93% of total revenue. Subscription revenue was $156.2 million, growing 69% year-on-year and representing 71% of total revenue. Maintenance and services revenue was $62.4 million. Geographically, Americas revenue was $124.5 million (27% growth YOY), EMEA revenue was $74 million (59% growth YOY), and APJ revenue was $23 million (37% growth YOY). Revenue contribution by segment: Subscription ARR at 77% of total ARR, recurring revenue at 93% of total revenue, etc.

• Q2 2024 guidance: Total revenue $215M-$221M, non-GAAP operating income $12M-$17M, non-GAAP EPS $0.34-$0.44. - Full-year 2024 guidance raised: Total revenue $928M-$938M (24% YOY), non-GAAP operating income $90.5M-$99.5M, non-GAAP EPS $1.88-$2.07, ARR $975M-$990M, free cash flow $115M-$125M. - SaaS expected to be a bigger portion of revenue mix in Q2 and beyond.

• Forward-looking statements may differ materially from actual results. - Risk factors in company's annual report on Form 20-F and press release referenced. - Risks associated with market competition and macroeconomic conditions.

Q: Joseph Gallo asks about cash flow, margin, and investments.

A: SaaS to be bigger on revenue side, catching up on hiring, anticipate hiring into second half.

Q: Hamza Fodderwala asks about confidence in raising ARR guide.

A: Confidence from demand environment, go-to-market team, and pipeline coverage.

Q: Andrew Nowinski asks about U.S. federal market.

A: FedRAMP High for EPM and identity products opens up federal market, bullish on growth in federal space.

Q: Ittai Kidron asks on bookings and EPM into EDR.

A: Bookings strength from portfolio growth, EPM is complement to EDR, focuses on identity security control side.

Q: Shrenik Kothari asks on Secure Browser and Azure marketplace.

A: Secure Browser enhances security and drives adoption, Azure marketplace is new route to market with co-sell motion.