CyberArk Software (CYBR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with revenue, operating income, and EPS exceeding guidance, driven by strong subscription and ARR growth and robust customer demand for identity security solutions.

• Net new subscription ARR reached $56M–$57M, with total ARR growing 33% year-over-year to $868M, and 78% of ARR from subscriptions.

• Signed 245 new customers, with about half adopting two or more solutions, reflecting strong platform adoption.

• More than 90% of total revenue is recurring, highlighting a highly predictable business model.

• Raised full-year 2024 guidance across all key financial metrics, citing durable demand and strong execution.

Financial highlights

• Q2 2024 total revenue was $224.7M–$225M, up 28% year-over-year, surpassing guidance.

• Subscription revenue grew 49%–50% year-over-year to $158.4M, now representing 70% of total revenue.

• Non-GAAP operating income was $23.7M–$24M (10.6%–11% margin), up from a loss last year.

• Non-GAAP EPS was $0.54, up from $0.03 a year ago.

• Free cash flow was $41.7M–$42M in Q2, with $108M–$113M generated in the first half of 2024.

Outlook and guidance

• Q3 2024 revenue expected at $230M–$236M (20%–23% year-over-year growth).

• Full-year 2024 revenue guidance raised to $932M–$942M (24%–25% year-over-year growth).

• Full-year non-GAAP operating income guidance increased to $107.5M–$116.5M; non-GAAP EPS expected at $2.17–$2.36.

• Full-year ARR guidance at $985M–$995M, up 27%–29% year-over-year.

• Free cash flow guidance raised to $145M–$155M; guidance excludes Venafi contribution.