CyberArk buys US co Zilla Security, reports strong Q4

CyberArk offices credit: Eyal Izhar

CEO and "investor group" buying out Reshet 13

CyberArk, which will pay $165 million for the US identity governance and administration company, has surpassed Teva to become Israel's second most valuable company.

Israeli cybersecurity company CyberArk Software (Nasdaq: CYBR) has announced the acquisition of US company Zilla Security for $165 million in cash and a further $10 million in potential milestone payments. This latest acquisition follows CyberArk's completion of the $1.54 billion acquisition of machine identity management solutions company Venafi for $1.45 billion - the biggest acquisition in the company's history. At the end of 2024, CyberArk had $841 million in cash.

CyberArk focuses on identity management and security while Zilla Security specializes in identity governance and administration (IGA). CyberArk said that the acquisition, "Will expand CyberArk’s industry-leading Identity Security Platform with scalable automation that enables accelerated identity compliance and provisioning across digital environments, while maximizing security and operational efficiency." CyberArk added that, "In the wake of digital transformation, organizations require scalable solutions that can seamlessly extend across hybrid environments."

In the past IGA solutions relied on manual processes that slowed down enterprise activities, while the contemporary IGA field is built around the cloud environment, with AI-based business procedures, allowing more effective identity management. CyberArk said, "Zilla can be deployed five times faster; complete access reviews with 80% less effort; and enable faster provisioning with 60% fewer service tickets."

Strong guidance for the rest of 2025

At the same time CyberArk has published its results for the fourth quarter and full year 2024, beating the analysts' forecasts. Revenue grew 41% in the fourth quarter to $314 million, with a GAAP net loss of $97.1 millioon and a non-GAAP net profit of $40.4 million or earnings per share of $0.80. In 2024, the company's revenue was up 33% to $1.001 billion and annual recurring revenue was $1.169 billion. GAAP net loss was $93.5 million, while GAAP net profit was $148 million.

In the first quarter of 2025, CyberArk forecasts revenue of $301-307 million and non-GAAP net profit of $39.8 million or earnings per share of $0.74-0.81. For full year 2025, the company forecasts revenue growth of 31%-32% to $1.308-1.318 billion and non-GAAP net profit of $186 million or $.3.55-3.70 per share. This guidance is higher than the analysts' forecast on revenue and the similar on profit.

CyberArk is currently the second most valuable Israeli company on Wall Street after cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP). Over the past week it has leapfrogged Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA).