Cyber security company CyberArk Software Inc. (Nasdaq: CYBR) saw its share price boosted in trading at the end of last week after reporting strong results for the third financial quarter. Since its Nasdaq IPO in September, the company has seen its share price nearly triple from $16 per share to $44.37 per share after rising 16% on Thursday and a further 3.4% on Friday, giving a market cap of $384.16 million.
CyberArk reported a record $28 million revenue in the third quarter of 2014, up from $16.9 million in the corresponding quarter of 2013. This was 34% above the Wall Street analysts' consensus of $20.9 million revenue. CyberArk predicts fourth quarter revenue of $26-27 million, which represents 30% to 35% year-over-year growth.
Third quarter revenue included delayed sales of CyberArk's new Privileged Threat Analytics 2.0, an expert system for privileged account security intelligence. The expanded analytics includes new self-learning, behavior-based algorithms that enable customers to detect attacks faster by pinpointing malicious privileged account activity previously hidden in the sheer volume of information collected by big data analytics solutions.
CyberArk CEO Udi Mokady who founded the company 15 years ago, said that Privileged Threat Analytics is the first-ever product for early detection of cyber attacks through automatically building a behavioral profile of privileged accounts. He said, "A behavioral profile is the way an account is used, in other words works hours, frequency of entry and the like. The solution applies a threat analysis focusing on swift identification of unusual behavior of the account's user when the significance of unusual is behavior that is not typical of the regular profile of the account user."
CyberArk's GAAP net profit was $3.3 million ($0.11 per share), compared with $2.5 million ($0.09 per share) in the corresponding quarter of 2013. Non-GAAP net profit was $5.9 million ($0.20), compared with $3.3 million ($0.12 per share) in the third quarter of 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2014
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