Cyberark Software Ltd (NASDAQ:CYBR) 4Q2020 and full year 2020 financial results are finally out, revealing a surprisingly positive performance despite the challenges dynamics that occurred during the year.
Cyberark’s revenue in 4Q2020 was $144.5 million while its full year revenue was $464.4 million. Its annual recurring revenue (ARR) for the year was $274 million which was 43% higher than the $192 million AAR reported for 2019. Cyberark CEO Udi Mokady noted that the record results achieved in 4Q2020 underscore the strong demand for the company’s identity security offerings.
The CEO stated that the work-from-anywhere movement, cloud migration and digital transformation have created a higher need for integration of its solutions such as Privileged Access Management (PAM), and DevSecOps. The same solutions contributed to the company’s solid performance in 2020. Acceding to Mokady’s statements, the company’s offerings are critical in providing security and confidence in mission critical aspects of customer digital strategies.
Cyberark’s performance outlook
The company achieved record subscription bookings and SaaS figures in 4Q2020. Mokady noted that those achievements put the company on a vantage point to tap into more growth especially as it shifts its strategy towards a recurring revenue approach in Q1 2021. Cyberark’s new revenue model will target subscriptions and is a departure from the reliance on perpetual licenses.
The company hopes that this approach will deliver consistent growth in and revenue moving forward. It expects its Q1 2021 revenue to range between $106.0 million and $112.0 million. Cyberark also forecasted that its revenue for the full year 2021 will range between $484.0 million and $496.0 million. The company is optimistic about its ability to reach the targets given its performance in the previous year, and its strategy shift to focus on a subscription model.
The optimism is also based on the growing demand for digital security services which have increased significantly after the SolarWinds cyberattack. The incident raised concerns on the need for more stringent measures to prevent exposure of sensitive user data.