CyberArk Software Ltd. CYBR is likely to beat expectations when it reports first-quarter 2025 results on May 13, after market close.

The company forecasts first-quarter non-GAAP earnings per share in the range of 74-81 cents. The consensus mark is pegged at 79 cents per share, implying a year-over-year decline of 5.3%.

CyberArk’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 82.8%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

The cybersecurity firm projects revenues between $301 million and $307 million. The Zacks Consensus Estimate is pegged at $305.7 million, suggesting year-over-year growth of 39%.

Let’s see how things have shaped up for this announcement.

CyberArk Software Ltd. Price and EPS Surprise

CyberArk Software Ltd. price-eps-surprise | CyberArk Software Ltd. Quote

Factors Likely to Influence CYBR’s Q1 Results

CyberArk’s first-quarter performance is likely to have benefited from growing demand for privileged access security and broader cybersecurity solutions. This demand is being driven by the rise in data breaches and accelerated digital transformation initiatives. The expanding use of cloud computing and cost-efficient resource-sharing models has further underscored the need for robust security tools and policies.

As a result, organizations appear to be allocating larger portions of their IT budgets toward cybersecurity. CyberArk is taking advantage of this trend through its core strength in privileged access management solutions, which help businesses control, secure and monitor high-level account access.

The company’s ongoing shift toward a software-as-a-service and subscription-based model is expected to have supported revenue growth in the quarter. Our model estimate for Subscription revenues in the first quarter is pegged at $240.7 million, suggesting a year-over-year increase of 54.1%.

Meanwhile, Perpetual License revenues are estimated at $2.1 million, reflecting a 29.8% decline as CyberArk continues phasing out this model in favor of recurring revenues. Revenues from Maintenance and Professional Services are forecasted at $62.2 million per our model, down slightly by 0.2% year over year, likely stabilized by strong renewal rates.

Per our model estimates, annual recurring revenues are expected to hit $1.03 billion in the quarter. Of this, Subscription services are projected to contribute $847.5 million, while Maintenance and Professional Services may account for $182.7 million.

However, despite strong product demand, CyberArk is not immune to broader macroeconomic challenges. Slower IT spending, delayed contract signings and general uncertainty in the tech sector are likely to have weighed on the company’s overall revenue growth during the quarter.

Story Continues

Earnings Whispers for CYBR Stock

Our proven model predicts an earnings beat for CyberArk this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.

CYBR’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (82 cents per share) and the Zacks Consensus Estimate (79 cents per share), is +3.90%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

CyberArk’s Zacks Rank: CYBR carries a Zacks Rank #3 at present.

Other Stocks With the Favorable Combination

Per our model, Nutanix NTNX, Autodesk ADSK and Workday WDAY also have the right combination of elements to post an earnings beat in their upcoming releases.

Nutanix has an Earnings ESP of +0.44% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report third-quarter fiscal 2025 results on May 28. The Zacks Consensus Estimate for Nutanix’s third-quarter earnings is pegged at 38 cents per share and has remained unchanged over the past 60 days. The consensus mark indicates a year-over-year increase of 35.7%. Nutanix shares have gained 10.2% over the past year.

Autodesk is set to report first-quarter fiscal 2026 results on May 22. It has an Earnings ESP of +0.51% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Autodesk’s first-quarter earnings per share is pegged at $2.14 cents, remained unchanged over the past 60 days and indicates year-over-year growth of 14.4%. Shares of Autodesk have rallied 33% over the past year.

Workday is set to report first-quarter fiscal 2025 results on May 22. It has an Earnings ESP of +2.24% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Workday’s first-quarter earnings is pegged at $1.99 per share, revised a penny upward over the past 60 days, indicating an increase of 14.4% from the year-ago quarter’s reported figure. Shares of Workday have gained 4.8% over the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Autodesk, Inc. (ADSK):Free Stock Analysis Report

Workday, Inc. (WDAY):Free Stock Analysis Report

CyberArk Software Ltd. (CYBR):Free Stock Analysis Report

Nutanix (NTNX):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments