CyberArk Software Ltd. Q4 FY2024 earnings call

• 2024 was a momentous year with $1 billion ARR and revenue, operating margin at 15%, and $221 million free cash flow, returning to Rule of 40. • Acquired Venafi and Zilla; Zilla's modern IGA addresses legacy IGA challenges. • Q4 saw strong acceleration, with customers deploying the full platform. Major identity groups (workforce, IT, developers, machines) benefited from persona-based solutions. Secrets Management had best quarter ever, and Venafi showed early traction in deals like a European government agency and large bank. • 2024 closed with 3,800 employees, including ~400 from Venafi, and strong pipeline growth across regions.

In Q4 2024, total revenue was $314.4 million, including ~$47 million from Venafi. Recurring revenue reached $292.2 million, with subscription revenue at $243 million (77% of total revenue) and maintenance and professional services revenue at $66.4 million. For the full-year 2024, revenue was $1 billion, growing 33% year-over-year. ARR exceeded $1 billion, with organic ARR reaching $1.003 billion. Subscription ARR grew to $977 million, including ~$161 million from Venafi. Secrets Management was the fastest-growing solution in 2024, followed by workforce. Venafi's ARR in 2024 was ~$166 million, and its Q4 revenue contribution was ~$47 million.

• Q1 2025 total revenue expected $301 million to $307 million (37% YOY midpoint), non-GAAP operating income $42.5M to $47.5M, non-GAAP EPS $0.74 to $0.81. • Full-year 2025 total revenue expected $1.308B to $1.318B (31% YOY midpoint), full-year operating income $215M to $225M, non-GAAP EPS $3.55 to $3.70. • ARR expected $1.410B to $1.420B at Dec 31, 2025. • Adjusted free cash flow 2025 expected $300M to $310M, normalizing for ~$70M one-time tax payment.

• Actual results may differ materially from forward-looking statements. • Risk factors in company's annual report on Form 20-F and press release, including those related to integration of Venafi and Zilla, and market uncertainties.

Q: Investors think about identity as swim lanes, where do customers stand?

A: Customers look for integrated security posture; modern environments need dynamic identity management across all, and Zilla helps build leading stack.

Q: How is CyberArk positioned to secure AI agents?

A: CyberArk's platform solves core identity security, and will discuss more at Investor Day; agents act like humans/machines, and platform can secure them in dynamic environments.

Q: Growth of largest deals and broad landing?

A: Top deals in Q4 were full-scope, with customers securing workforce, machines, etc., due to criticality of identity security.

Q: Zilla's alignment with platform strategy?

A: Zilla's modern IGA addresses dynamic SaaS/cloud access entitlements, integrated into CyberArk platform for secure footprint in modern environments.

Q: Federal government spending impact?

A: CyberArk's federal business is broad-based, and offers efficient solutions saving money, with no major impact on guidance.

Q: Venafi contribution and core business growth?

A: Core business growth around 22% with Venafi, but enmeshed with Secrets Management; good framing for year's growth.