To The Moon

$CyberArk(CYBR)$

CyberArk Software (NASDAQ: CYBR), a leader in identity security and privileged access management (PAM), continues to demonstrate robust growth in an increasingly threat-prone digital landscape. With enterprises prioritizing zero-trust frameworks and compliance mandates, CyberArk’s solutions are in high demand. The company’s shift to a subscription-based model has fueled recurring revenue, while its expanding product suite positions it for long-term dominance. But with shares trading at a premium, is now the right time to invest? We analyze CyberArk’s financials, valuation, and future prospects to determine whether investors should buy, hold, or sell in July 2025.

Accelerating Growth and Profitability

CyberArk has transitioned successfully from perpetual licenses to a subscription-based model, driving consistent revenue growth. In its latest earnings report, the company reported a 30%+ year-over-year increase in annual recurring revenue (ARR), reflecting strong customer adoption. Gross margins remain healthy at over 80%, underscoring the scalability of its software solutions.

Operating leverage is improving as the company scales, with non-GAAP profitability now firmly in place. CyberArk’s focus on upselling its Identity Security Platform, which integrates secrets management, endpoint privilege security, and cloud entitlements, has expanded its total addressable market (TAM).

Guidance: Sustained Momentum Ahead

Management’s forward guidance suggests confidence in continued growth, with 2025 revenue expected to grow 22-25% YoY. The company is also projecting improved free cash flow margins as it benefits from higher-margin subscription revenue.

Key catalysts include:

• Increased adoption of Cloud Security Posture Management (CSPM) and DevOps security solutions.

• Expansion into mid-market enterprises, a segment previously underserved by legacy PAM vendors.

• Strategic partnerships with major cloud providers (AWS, Azure, GCP) to embed CyberArk’s security controls.

Financial Highlights and Valuation

CyberArk’s latest quarterly results showcased:

• Revenue: $230M (+26% YoY)

• ARR: $790M (+34% YoY)

• Non-GAAP EPS: $0.45 (up from $0.28 YoY)

However, the stock trades at a premium valuation (~12x forward sales), reflecting high growth expectations. While this may deter value investors, CyberArk’s best-in-class margins and market position justify the multiple compared to peers like Palo Alto Networks and CrowdStrike.

Current Price vs. Intrinsic Value

Based on a discounted cash flow (DCF) analysis, CyberArk’s intrinsic value sits between $250-$280 per share, suggesting the stock is fairly valued at current levels (~$240 as of July 2025). However, given its growth trajectory, any pullback could present an attractive entry point.

Verdict (July 2025): Buy, Sell, or Hold?

Buy on Weakness: While CyberArk is not cheap, its leadership in identity security and accelerating profitability make it a compelling long-term holding. Investors with a 12-24 month horizon may consider accumulating shares on dips below $220.

Hold if Already Invested: Existing shareholders should maintain positions, as the company’s growth narrative remains intact.

Sell Only if Growth Slows: Unless ARR growth decelerates or competition intensifies significantly, there’s little reason to exit this high-quality name.

Conclusion and Key Takeaways

• CyberArk is a leader in identity security, benefiting from secular tailwinds in zero-trust adoption.

• Subscription transition boosts recurring revenue and margins, improving cash flow visibility.

• Valuation is rich but justified given growth prospects; wait for a better entry point if possible.

• Long-term investors should consider CyberArk a core holding in a cybersecurity portfolio.

In a world where cyber threats only escalate, CyberArk’s best-in-class solutions make it a strong buy for growth-oriented investors.