CyberArk Announces Strong First Quarter 2025 Results

Total ARR Reaches $1.215 billion

Subscription Portion of Annual Recurring Revenue (ARR) Reaches $1.028 billion

Total Revenue of $318 million for the First Quarter of 2025

Free Cash Flow of $96 million, or a 30% FCF margin, for the First Quarter of 2025

Newton, Mass. and Petach Tikva, Israel – May 13, 2025 – CyberArk (NASDAQ: CYBR), the global leader in identity security, today announced strong financial results for the first quarter ended March 31, 2025.

“CyberArk delivered a strong start to 2025, highlighting the power of our unified platform and the durability of our business model,” said Matt Cohen, Chief Executive Officer of CyberArk. “In Q1, total ARR reached $1.215 billion, driven by robust net new ARR of $46 million. Our consistent execution and ongoing innovation fueled strong top-line growth, while we continue to scale profitably — achieving an 18% non-GAAP operating margin and generating $96 million in free cash flow.”

“Our first quarter performance shows we continue to operate in a resilient demand environment. Identity security is a top priority for organizations, and customers are accelerating their roadmaps while consolidating spend on CyberArk’s platform to drive security outcomes and operational efficiency. We are particularly pleased with the success of our machine identity business, with strong contributions from both Venafi and our Secrets Management solutions, showing we are delivering transformational value across all types of identities.”

“We’re living in an exponential era: threats are accelerating, and the number of identities and privileges is multiplying across every enterprise. Human privileges have proliferated beyond traditional roles, machine identities now outnumber humans by more than 80-to-1, and AI agents are emerging as a new, rapidly growing identity group. These realities underscore why identity security is not optional — it’s foundational. With the acquisition of Zilla Security and continued product innovation, CyberArk remains uniquely positioned as the only platform designed to discover, govern, provision, and enforce security controls across every identity — human, machine, and AI. With our first quarter performance, we are set up to deliver against our growth, profitability and free cash flow targets in 2025.”

Financial Summary for the First Quarter Ended March 31, 2025

The financial results for the first quarter of 2025 include the financial contributions from the acquisition of Venafi, which closed on October 1, 2024, and the financial contributions from the acquisition of Zilla Security, which closed on February 12, 2025. The financial results in the comparable period in 2024 did not include any financial contribution from these acquisitions.

   

Balance Sheet and Net Cash Provided by Operating Activities

 

Recent Developments

(2)KuppingerCole Analysts “2025 Leadership Compass for Enterprise Secrets Management,” by Martin Kuppinger, April 28, 2025.

Business Outlook

Based on information available as of May 13, 2025, CyberArk is issuing guidance for the second quarter and full year 2025 as indicated below. The guidance for the second quarter and full year 2025 includes the expected contribution from the acquisition of Venafi, which closed on October 1, 2024 and the acquisition of Zilla Security, which closed on February 12, 2025. The comparable periods in 2024 did not include financial contributions from the acquisitions of Venafi and Zilla Security.

 

Second Quarter 2025:

Full Year 2025:

 

Tax Payment Related to Transfer of Venafi IP

CyberArk’s forward-looking guidance for adjusted free cash flow for the full year 2025 excludes the estimated impact of an approximately $42 million one-time tax payment related to the capital gain associated with the intercompany migration of intellectual property related to the Venafi acquisition. We expect this to occur in the second quarter of 2025.

 

This estimated tax payment represents our best estimate of the tax payment related to the IP transfer based on current assumptions and information available. The final tax liability will ultimately be dependent on and could be affected by a number of factors including, but not limited to, deductions based on our stock price, income recognition and/or deductibility of deferred items, eligibility to and utilization of tax credits and other tax deductions, and intercompany payments in the fiscal year 2025.

 

Capital Expenditures Related to our New U.S. Headquarters

CyberArk’s forward-looking guidance for adjusted free cash flow for the full year 2025 excludes the estimated capital expenditures of approximately $15 million related to leasehold improvements to our new U.S. headquarters.

 

New Presentation of Revenue Line Items

Beginning in the first quarter of 2025, CyberArk is revising the presentation of its lines of revenue and cost of revenue by combining the revenues and cost of revenues previously reported under the ”Perpetual license” line and ”Maintenance and Professional Services” line under the ”Maintenance, Professional Services and Other” line. The Company believes this presentation of revenue and cost of revenue on the consolidated statement of operations aligns with how management evaluates the business. Historical information by quarter for fiscal years 2023 and 2024, which has been retroactively reclassified to reflect the new lines of revenue and cost of revenue, can be found in the PowerPoint presentation posted to CyberArk’s investor relations website.

 

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Tuesday, May 13, 2025 at 8:30 a.m. Eastern Time (ET) to discuss the company’s first quarter financial results and its business outlook. To access this call, dial +1 (888) 330-2455 (U.S.) or +1 (240) 789-2717 (international). The conference ID is 6515982. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

 

Following the conference call, a replay will be available for one week at +1 (800) 770-2030 (U.S.) or +1 (609) 800-9909 (international). The replay pass code is 6515982. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk                                                                                                       

CyberArk (NASDAQ: CYBR) is the global leader in identity security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk’s AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere. Learn more at cyberark.com.

Copyright © 2025 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

 

Key Performance Indicators and Non-GAAP Financial Measures

Recurring Revenue

 

Annual Recurring Revenue (ARR)

 

Subscription Portion of Annual Recurring Revenue

 

Maintenance Portion of Annual Recurring Revenue

 

Net New ARR

 

Annual Recurring Revenue (ARR), Subscription portion of ARR and Maintenance portion of ARR are performance indicators that provide more visibility into the growth of our recurring business in the upcoming year. This visibility allows us to make informed decisions about our capital allocation and level of investment. Each of these measures should be viewed independently of revenues and total deferred revenue as each is an operating measure and is not intended to be combined with or to replace either of those measures. ARR, Subscription portion of ARR and Maintenance portion of ARR are not forecasts of future revenues and can be impacted by contract start and end dates and renewal rates.

 

Non-GAAP Financial Measures

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, free cash flow and adjusted free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net income or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

 

 

 

 

 

 

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance cost, tax adjustments, purchase of property and equipment and other assets, capitalized internal-use software, one-time tax payment on the capital gain from the intercompany migration of intellectual property, and capital expenditures related to our new U.S. headquarters allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share-based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its acquisitions, amortization of intangible assets related to acquisitions, and amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow and adjusted free cash flow are liquidity measures that, after the purchase of property and equipment and other assets, capitalized internal-use software, one-time tax payment on the capital gain from the intercompany migration of intellectual property, and capital expenditures related to our new U.S. headquarters provide useful information about the amount of cash generated by the business. 

 

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Beginning in the first quarter of 2025, we will utilize a fixed projected non-GAAP tax rate when calculating non-GAAP financial measures to provide better consistency across interim reporting periods. In projecting this rate, we exclude the effects of certain non-recurring items, which do not necessarily reflect our normal operations, and the direct income tax effects of other non-GAAP adjustments. The fixed projected non-GAAP tax rate is based on annual financial projections and reflects our evaluation of historical and projected geographic earnings mix within our operating structure, recurring tax credits, existing tax positions in various jurisdictions and current impacts from key legislation. Based on these considerations, we applied a fixed projected non-GAAP tax rate for 2025 of 24%. We will provide updates to this rate on an annual basis, or more frequently, if significant events have a material impact on the rate.  The rate could be subject to change for a variety of reasons, such as significant changes in the geographic earnings mix, relevant tax law changes in major jurisdictions where we operate, or significant acquisitions.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, tax adjustments, purchase of property and equipment and other assets, one-time tax payment on the capital gain from the intercompany migration of intellectual property, and capital expenditures related to our new U.S. headquarters. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortization of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance, as well as changes in interest rates and foreign exchange rates, which impact other GAAP performance metrics or liquidity measures. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.

 

Cautionary Language Concerning Forward-Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: risks related to the Company’s acquisitions of Venafi Holdings, Inc. (“Venafi”) and Zilla Security Inc. (“Zilla”), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining Venafi and Zilla business; risks related to the successful integration of the operations of Venafi or Zilla and the ability to realize anticipated benefits of the combined operations; the rapidly evolving security market, increasingly changing cyber threat landscape and the Company’s ability to adapt its solutions to the information security market changes and demands; the Company’s ability to acquire new customers and maintain and expand its revenues from existing customers; real or perceived security vulnerabilities and gaps in the Company’s solutions or services or the failure of customers or third parties to correctly implement, manage and maintain solutions; the Company’s IT network systems, or those of third-party providers, may be compromised by cyberattacks or other security incidents, or by a critical system disruption or failure; intense competition within the information security market; failure to fully execute, integrate, or realize the benefits expected from strategic alliances, partnerships, and acquisitions; the Company’s ability to effectively execute its sales and marketing strategies, and expand, train and retain its sales personnel; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to hire, upskill, retain and motivate qualified personnel; risks related to the integration of AI technology into our operations and solutions; reliance on third-party cloud providers for the Company’s operations and software-as-a-service (SaaS) solutions; the Company’s ability to maintain successful relationships with channel partners, or if channel partners fail to perform; fluctuation in the Company’s quarterly results of operations; risks related to sales made to government entities; economic uncertainties or downturns; the Company’s history of incurring net losses, its ability to generate sufficient revenue to achieve and sustain profitability and its ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property; fluctuations in currency exchange rates; the ability of the Company’s solutions to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software and other intellectual property; risks related to share price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a “passive foreign investment company”; risks related to issuance of ordinary shares or securities convertible into ordinary shares and dilution, leading to a decline in the market value of the Company’s ordinary shares; changes in tax laws; the Company’s expectation to not pay dividends on its ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

###

Investor Relations Contact:

Srinivas Anantha, CFA

CyberArk

Media Contact:

		Three Months Ended
		March 31,
		2024				2025
Revenues:
Subscription		$	156,239			$	250,611
Maintenance, Professional Services and Other			65,311				66,990
Total revenues			221,550				317,601
Cost of revenues:
Subscription			20,962				51,078
Maintenance, Professional Services and Other			21,446				25,183
Total cost of revenues			42,408				76,261
Gross profit			179,142				241,340
Operating expenses:
Research and development			53,914				78,565
Sales and marketing			104,964				145,640
General and administrative			26,642				37,868
Total operating expenses			185,520				262,073
Operating loss			(6,378	)			(20,733	)
Financial income, net			14,052				8,641
Income (loss) before taxes on income			7,674				(12,092	)
Tax benefit (taxes on income)			(2,204	)			23,555
Net income		$	5,470			$	11,463
Basic net income per ordinary share		$	0.13			$	0.23
Diluted net income per ordinary share		$	0.13			$	0.22
Shares used in computing net income per ordinary shares, basic			42,430,559				49,589,733
Shares used in computing net income per ordinary shares, diluted			47,737,396				51,203,805

		December 31,				March 31,
		2024				2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	526,467			$	413,554
Short-term bank deposits			256,953				235,396
Marketable securities			36,356				73,440
Trade receivables			328,465				229,972
Prepaid expenses and other current assets			45,292				56,862
Total current assets			1,193,533				1,009,224
LONG-TERM ASSETS:
Marketable securities			21,345				53,725
Property and equipment, net			19,581				21,334
Intangible assets, net			534,726				555,915
Goodwill			1,317,374				1,444,680
Other long-term assets			258,531				246,087
Deferred tax asset			3,305				7,003
Total long-term assets			2,154,862				2,328,744
TOTAL ASSETS		$	3,348,395			$	3,337,968
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	23,671			$	19,492
Employees and payroll accruals			133,400				84,337
Accrued expenses and other current liabilities			53,486				80,124
Deferred revenues			596,874				600,309
Total current liabilities			807,431				784,262
LONG-TERM LIABILITIES:
Deferred revenues			95,190				90,709
Other long-term liabilities			75,970				35,290
Total long-term liabilities			171,160				125,999
TOTAL LIABILITIES			978,591				910,261
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value			130				131
Additional paid-in capital			2,494,158				2,543,671
Accumulated other comprehensive income (loss)			2,173				(901	)
Accumulated deficit			(126,657	)			(115,194	)
Total shareholders' equity			2,369,804				2,427,707
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	3,348,395			$	3,337,968

		Three Months Ended
		March 31,
		2024				2025
Cash flows from operating activities:
Net income		$	5,470			$	11,463
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			4,021				31,624
Amortization of premium and accretion of discount on marketable securities, net			(1,866	)			(26	)
Share-based compensation			37,499				48,202
Deferred income taxes, net			(1,052	)			(45,549	)
Decrease in trade receivables			47,156				100,338
Amortization of debt discount and issuance costs			751				-
Increase in prepaid expenses, other current and long-term assets and others			(5,803	)			(6,917	)
Changes in operating lease right-of-use assets			1,909				2,748
Decrease in trade payables			(7,323	)			(4,816	)
Increase (decrease) in short-term and long-term deferred revenues			20,656				(5,943	)
Decrease in employees and payroll accruals			(28,012	)			(49,060	)
Increase (decrease) in accrued expenses and other current and long-term liabilities			(2,383	)			19,327
Changes in operating lease liabilities			(2,388	)			(2,863	)
Net cash provided by operating activities			68,635				98,528
Cash flows from investing activities:
Investment in short and long term deposits			(156,382	)			(63,806	)
Proceeds from short and long term deposits			164,800				86,252
Investment in marketable securities			(92,343	)			(76,118	)
Proceeds from maturities of marketable securities			102,686				7,104
Purchase of property and equipment and other assets			(1,356	)			(1,699	)
Capitalized internal-use software			(509	)			(1,307	)
Payments for business acquisitions, net of cash acquired			-				(164,383	)
Net cash provided by (used in) investing activities			16,896				(213,957	)
Cash flows from financing activities:
Payment of withholding tax related to employee stock plans			(6,327	)			(6,397	)
Proceeds from exercise of stock options			3,358				907
Proceeds in connection with employees stock purchase plan			4,848				6,119
Net cash provided by financing activities			1,879				629
Increase (decrease) in cash and cash equivalents			87,410				(114,800	)
Effect of exchange rate differences on cash and cash equivalents			(2,819	)			1,887
Cash and cash equivalents at the beginning of the period			355,933				526,467
Cash and cash equivalents at the end of the period		$	440,524			$	413,554

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