Israeli cybersecurity company CyberArk Software continues to gain. At the end of 2023, the share price surpassed the $200 mark for the first time, and 10 months later, it crossed the $300 mark. Last week, less than four months later, it broke through the $400 threshold and, with it, another symbolic milestone: a market cap of more than $20 billion.
This currently places CyberArk as the second most valuable Israeli company on Wall Street, after Check Point (which is also a cybersecurity company) and ahead of Teva. The company's share price has almost tripled in value in the past three years.
CyberArk, led by CEO Matt Cohen and executive chairman Udi Mokady, is a cybersecurity company that specializes in enterprise identity management. Founded in 1999 and first listed on the Nasdaq in 2014, the company previously focused on privileged accounts in enterprises — for example, accounts for IT professionals, which include extensive privileges.
In recent years, CyberArk has entered the field of enterprise identity management, which includes not only privileged accounts but all accounts. Last year, the company made a major acquisition by paying $1.54 billion for US-based Venafi, expanding its activities to include machine identities in the enterprise — for example, code, applications, and IoT, which also need to be secured.
The acquisition was completed four months ago, and last week, CyberArk announced the acquisition of US company Zilla Security for $165 million. CyberArk said the acquisition will expand its identity security platform. Prior to the acquisition of Zilla after the acquisition of Venfai, CyberArk had $841 million in cash.
Last week, CyberArk also published its results for the fourth quarter and full year 2024, beating the analysts' forecasts. Revenue grew 41% in the fourth quarter to $314 million, with a GAAP net loss of $97.1 million and a non-GAAP net profit of $40.4 million or earnings per share of $0.80. In 2024, the company's revenue was up 33% to $1.001 billion, and annual recurring revenue was $1.169 billion. GAAP net loss was $93.5 million, while GAAP net profit was $148 million.
In the first quarter of 2025, CyberArk forecasts revenue of $301-307 million and non-GAAP net profit of $39.8 million or earnings per share of $0.74-0.81. For the full year 2025, the company forecasts revenue growth of 31%-32% to $1.308-1.318 billion and non-GAAP net profit of $186 million or $.3.55-3.70 per share. This guidance is higher than the analysts' forecast on revenue and is similar to profit.
"Opportunities after the acquisition"
According to The Wall Street Journal, over 30 firms cover CyberArk's stock, with the vast majority of analysts positive, three neutral, and none recommending sell. The average price target given for the stock is $448, which represents an 8.4% premium on the current share price.
Some analysts raised their price targets after last week's reports. Ittai Kidron of Oppenheimer, who raised his price target from $420 to $450 and maintains an "outperform" recommendation, citing, among other things, the outperformance of Venafi, which contributed to CyberArk's profits in the first quarter after the acquisition was completed. "We remain positive thanks to strong performance in CyberArk's core business and see additional opportunities in the combination of Venafi," Kidron wrote.
Cantor Fitzgerald also raised its price target per share from $415 to $445, and analyst Jonathan Ruykhaver noted CyberArk's strong performance and improved product offering, as well as the increase in annual recurring revenue (ARR).
Who benefits from the increase in the share? Investment giant BlackRock held shares with a current value of about $1.36 billion at the end of 2024 after becoming a party-at-interest in CyberArk during the year. Thoma Bravo also became a party-at-interest in 2024 as part of the Venafy deal and recently sold CyberArk shares for about $370 million. According to a report in 2024, the company's senior executives and directors, including Cohen and Mokady, collectively held shares that are currently worth about $172 million.