CyberArk Software (NASDAQ:CYBR) recently launched a new security-as-a-service offering named CyberArk Privilege Cloud.
The company’s new offering will enable its customers to mitigate privileged access risks by rapidly restricting unnecessary access from both insiders and outsiders. This solution will also help customers to securely store and rotate credentials, monitor privileged access and quickly deliver risk reduction solutions to businesses.
Notably, the current privilege access security market is primarily driven by on-premise deployments. However, with the increasing number of companies shifting to cloud-based architecture, CyberArk’s solution is expected to gain traction going ahead. This is because the solution deals with securing privileged access on the cloud without incurring additional cost of maintaining underlying infrastructure.
The anticipated acceleration in the demand for the company’s solutions will eventually drive top-line growth in the long haul. Notably, in the last reported quarter, revenues were up 22% year over year to $71.8 million. Moreover, CyberArk’s Application Identity Manager or Conjur solution contributed more than 10% to its revenues.
CyberArk Software Ltd. Revenue (TTM)
CyberArk Software Ltd. Revenue (TTM) | CyberArk Software Ltd. Quote
Expanding Portfolio Driving Growth
CyberArk has been enhancing its portfolio which is aiding growth of client base and revenues. Apart from focusing on innovation, acquisitions like Vaultive have helped the company rapidly expand its cyber security offerings, particularly for cloud-based IT administrators.
The company recently announced the availability of CyberArk Marketplace aimed at building a platform that will assist consumers to “deploy integrations with the CyberArk Privileged Account Security Solution.”
The marketplace is built on a community-based approach with CyberArk C3 Alliance partners’ contributions. The company’s C3 technology alliance program involves partnerships with the likes of Proofpoint (NASDAQ:PFPT) , Qualys QLYS and ServiceNow (NYSE:NOW) .
Notably, the company also announced an offering for its managed security service providers (MSSPs), which will enable them to add “privileged access security capabilities to their portfolios” with ease.
Increasing Cyber Security Demand Aids CyberArk
CyberArk is likely to benefit further from the rising demand for cyber security products with the market expected to reach $231.94 billion in 2022 from $137.85 billion in 2017, per a recent report by MarketsandMarkets.
The company is growing rapidly in this space on the back of its privileged access management (PAM) solutions. According to IDC market scope, “CyberArk is the PAM pure-play ‘big gorilla’ with the most revenue and largest customer base.”
Notably, CyberArk ended 2017 with a huge customer base of over 3,650, up from approximately 3,075 customers at the end of 2016.
Additionally, investments in product suite and go-to-market sales strategies are other positives for the company.
Zacks Rank & Stock to Consider
Currently, CyberArk has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader computer & technology sector is Fortinet (NASDAQ:FTNT) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Fortinet is currently pegged at 16.8%.
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