Shares of CyberArk (NASDAQ:CYBR) popped on Wednesday after the cybersecurity specialist's third-quarter sales and profits surpassed Wall Street's expectations. As of 3 p.m. EST today, the stock was up 9%.
CyberArk's license revenue climbed 25% year over year to $57.9 million, while its maintenance and professional services revenue rose 30% to $50.2 million. Together, that drove a 28% rise in total revenue, to $108.1 million. Analysts had expected revenue of only $103 million.
CyberArk's non-GAAP (adjusted) operating income surged 40% to $29.4 million. Its non-GAAP net income, meanwhile, soared 44% to $25.6 million, or $0.65 per share. That, too, was well above analysts' estimates, which had called for adjusted EPS of $0.47.
"Our results demonstrate our strong execution, leadership position in the market, and the robust demand environment for our solutions," CEO Udi Mokady said in a press release. "Organizations around the world recognize that privileged access management is critical to a successful security program and are leveraging CyberArk to secure access across on-premises, cloud, and hybrid environments."
CyberArk's fourth-quarter guidance also exceeded Wall Street's forecasts. Management is guiding for total revenue of $125 million to $127 million, signifying year-over-year growth of 15% to 16%. The company also expects to generate non-GAAP operating income of $38.5 million to $40 million and earnings per share of $0.78 to $0.82. Analysts had anticipated revenue of $124 million and adjusted EPS of $0.68.
All told, CyberArk's strong third-quarter results and guidance suggest that businesses are increasingly recognizing the need for its privileged access management solutions, which help to safeguard an organization's most sensitive information-technology assets. That bodes well for CyberArk in the quarters and years ahead.