CyberArk Software Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 13, 2025
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Operator

Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 twenty twenty five CyberArk Software Ltd. Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Operator

After the speakers' remarks, there will be a question and answer Thank you. I would now like to turn the call over to Srinivas, VP of Investor Relations. Please go ahead.

Srinivas Anantha
Srinivas Anantha
VP - Investor Relations at CyberArk Software

Thank you, operator. Good morning. Thank you for joining us today to review CyberArk's strong first quarter twenty twenty five financial results. With me on the call today are Matt Cohen, our Chief Executive Officer and Erica Smith, our Chief Financial Officer. After prepared remarks, we will open up the call to a question and answer session.

Srinivas Anantha
Srinivas Anantha
VP - Investor Relations at CyberArk Software

Before we begin, let me remind you that certain statements made on the call today may be considered forward looking statements, which reflect management's best judgment based on currently available information. I refer specifically to the discussion of our expectations and beliefs regarding our projected results of operations for the second quarter, full year 2025 and beyond. I also refer to our expectations and beliefs regarding the integration of NFI and Zillow Security into our operations. Our actual results might differ materially from those projected in these forward looking statements. I direct your attention to the risk factors contained in the company's annual report on Form 20 F filed with the U.

Srinivas Anantha
Srinivas Anantha
VP - Investor Relations at CyberArk Software

S. Securities and Exchange Commission and those referenced in today's press release that are posted to CyberArk's website. CyberArk expressly disclaims any application or undertaking to release publicly any updates or revisions to any forward looking statements made herein. Additionally, non GAAP financial measures will be discussed on this conference call. Reconciliations to the most directly comparable GAAP financial measures are also available in today's press release as well as in an updated investor presentation that outlines the financial discussion in today's call.

Srinivas Anantha
Srinivas Anantha
VP - Investor Relations at CyberArk Software

A webcast of today's call is also available on our website in the IR section. With that, I would like to turn the call over to our CEO, Matt Cohen.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thanks, Sri, and thanks, everyone, for joining the call today. We're excited to kick off 2025 with a strong first quarter that exceeded all of our guided metrics. This performance highlights not only the critical role Identity Security plays in the broader cybersecurity landscape, but also our team's unwavering focus on excellence and execution. In Q1, we achieved total ARR of $1,215,000,000 revenue of $318,000,000 an 18% operating margin and generated 96,000,000 in free cash flow, a great quarter all around. Our results continue to demonstrate that identity is the new perimeter and that demand remains robust.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

With more than 90% of organizations experiencing identity related breaches, security leaders recognize that identity security is a mission critical imperative. CyberArk is at the forefront of this imperative, offering the most comprehensive and most effective platform for securing every identity, human, machine, and now AI. Before I dive into the quarter, let's touch on the broader macro environment. As you can see from our results, demand for our solutions is increasing and we continue to deliver strong growth. Despite ongoing macro uncertainty, we have not seen any impact on our business.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Given the elevated threat landscape, cybersecurity remains a top priority for organizations. And within that, Identity Security is a nondiscretionary investment. It is a foundational to business continuity, customer trust, and regulatory compliance. Of course, we are carefully monitoring the economic situation and its potential impact. And as we have always done, if we see any negative trends, we will be disciplined in our execution and make the necessary strategic adjustments.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

We have successfully navigated similar conditions before by staying close to our customers and infusing even more rigor into our go to market execution. Importantly, we believe times like these push customers towards our platform and consolidation and specifically consolidation of trust. Our confidence in the underlying demand trends was further reinforced recently with thousands of customers in attendance at the recent Impact and RSA conferences. At these conferences, I had the opportunity to engage directly with hundreds of customers and partners in one on one meetings. The feedback was clear and consistent.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Identity security continues to be a top spending priority. Organizations are actively seeking to consolidate fragmented security tools, modernize legacy systems, address the growing challenges of machine identities, and get advice on how to integrate security from day one into their eugenic AI initiatives. The level of strategic discussions we are having with the C suite at our customers and prospects has never been more constructive and underscores the growing demand for our unified identity security solutions. I come away from these events more confident than ever in our vision and ability to win and drive long term durable growth. I wanna center our discussion today around three key pillars that anchor so many of these one on one conversations I have been having.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

First, the identity security imperative. Second, our unified platform for every identity. And third, our relentless innovation. Starting with the Identity security imperative. As I mentioned at our Impact Conference last month, we are living and operating in an exponential era, an age where the speed of change, the scale of threats, and the complexity of digital ecosystems are compounding at a pace we've never seen before.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

The threat landscape continues to intensify with state sponsored actors, cyber criminals, and emerging threats like AI driven exploits increasing in both frequency and sophistication. Identity is the connective tissue of every digital interaction across every user, system, cloud, and application, making it foundational to any modern cybersecurity strategy. With identity at the center of virtually every breach, it's crystal clear that if you don't have a strong identity security, you simply don't have security at all. We are seeing the identity security imperative proliferate across the three different identity groups that our platform is purpose built to protect, human, machine, and AI. For humans, privileges have proliferated across the entire spectrum of identities, including IT admins, cloud ops, developers, and SaaS admins.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

In today's dynamic work environments, every employee interacts with sensitive data or critical systems. Identity security requires us to reimagine privilege as a dynamic, contextual, and tightly controlled concept delivered across the workforce without friction. We're bringing layered in-depth defense to every human identity without compromising user experience. Applying privilege controls against all identities is among the most complex cybersecurity challenge, and our deep expertise and leadership position sets us apart from the competition, which you see in our results. When it comes to machine identities, a year ago, you heard us talk about a 45 to one ratio of machine to human identities.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Today, it's over 80, and that number is still rising rapidly. These machine identities are granted access to critical infrastructure and sensitive information, yet they often operate without oversight. Without an identity first approach to securing machines, organizations leave a massive blind spot in their defenses. Identity security is the only way to bring visibility, control, and governance to this rapidly growing attack surface. With the addition of Venafi, our machine identity solutions are setting a new standard on how to address this challenge.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And turning to AI, we are seeing AI everywhere embedded in organizational workflows and opening the door to new use cases. It's challenging how privileges are assigned, creating new identities, and becoming a force multiplier for both defenders and attackers. The need to secure AI agents, both autonomous and human directed, is becoming increasingly top of mind. And as we dive deeper into the depths of agentic approaches, it's increasingly understood that securing AI agents is an identity security problem, not a data problem. The identity security imperative is clear, rise to meet the exponentially increasing threat landscape by securing every identity with the right level of privilege controls, which takes us to our second pillar, our unified identity security platform.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Our platform starts with the idea that discovery and context is critical, Understanding what identities exist across human machine and AI, their associated access rights, risk profiles, and appropriate privilege controls is foundational to any effective identity security strategy. Once discovered and onboarded, applying industry leading privilege controls is the most essential step and cornerstone of our differentiation. Privilege controls that cover credential management, authentication management, session management, and entitlements management are the secret sauce of our platform and create a deep competitive moat against all competitors. Next comes policy automation, which is also crucial. Given the scale and scope of modern identity security, it's no longer enough to merely impose policies.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

They must be automated. We offer automated enforcement of contextual security policies to eliminate manual overhead, reduce time to value, and support rapid scalability across complex environments. Along with policy automation, you need to automate life cycles, which is the ability to onboard and offboard dynamically provision entitlements and provide just in time access with the goal of streamlining security to reduce risk and ensure continuous compliance. And lastly, governance and compliance are essential for meeting the growing oversight both within organizations and increasing regulatory standards being imposed by government organizations. As we'll talk about later, with Zillow's modern IGA, we are setting out to free organizations from the long standing challenges of legacy IGA.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

These components are the building blocks and the unique differentiators of our platform. They are the blueprint for how we talk with our customers and partners. More importantly, they enable us to deliver measurable customer outcomes, reducing cyber risk, strengthening business resilience, satisfying audit and compliance, all while increasing efficiency and automation. This is why while customers may come to us hoping to solve one use case, instead, they often expand to secure additional identities across our solutions and consolidate on our platform over time. Moving on to our third pillar, which is innovation.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

At Impact, we introduced new solutions and capabilities across human, machine, and AI identities. And I wanna highlight a few of them one more time today. For securing human identities, we announced the availability of Zillow provision and compliant modules. Since we closed the acquisition, customer feedback has been overwhelmingly positive, especially around how CyberArk and Zilliqa simplify access reviews and automate provisioning across modern environments. Both customers and partners recognize the powerful combination of having modern IGA on our platform and the synergies we are confident we can realize.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

On the machine identity side, we announced our secure workload access solution, which combines modern workload identity management with CyberArk secrets management capabilities for the industry's first and most comprehensive protection for all nonhuman identities that matter, giving security teams visibility and control throughout the machine identity life cycle. I did wanna pause to quickly mention another key development in machine identity security around the lifespan of certificates. The certificate the Certification Authority Browser Forum, which sets guidelines for certificate life cycles, recently voted to significantly reduce certificate lifespans from three hundred and ninety eight days to just forty seven days. Major industry players, including Apple, Google, and Microsoft supported this change, emphasized the growing need for automated management of short lived certificates. In an increasingly complex security environment, this is top of mind for our customers.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

At the recent RSA conference, this industry change drove more traffic to our booth than any other topic. Customers are realizing that the time to get this part of the machine identity security under control is now. The final major innovation we talked about was in the field of eugenic AI. Eugenic AI sits at the intersection of human and machine identity security. AI agents are machine identities that act like or on behalf of humans proliferating at machine scale, getting access to and granting privileges over critical infrastructure.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

As a result, they will require the same security principles as human identities, and soon billions of AI agents will require robust access controls, governance, and privilege management frameworks. To address the security challenges of AI agents, we introduced our secure AI agent solution, which integrates our platform capabilities with AI specific discovery and context, privilege controls, policy automation, lifecycle management, and governance. We expect this solution to be widely available to customers later this year. Additionally, we announced the strategic partnership with Accenture, integrating our identity security platform with Accenture's AI Refinery. Together, we'll offer customers out of the box security for AI driven agents, ensuring secure adoption of emerging AI technologies at an exponential scale.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Beyond these highlighted announcements, we also launched major innovations across workforce IT developer and machine solutions that deliver incremental value in real world security controls to meet the demands of the current and future threat landscape. The product and engineering team at CyberArk continues to amaze me in their ability to lead the market. As I said, Q1 was a great way to start the year. And I did want to quickly highlight just a few deals from the quarter to illustrate how we are delivering valuable customer outcomes across our platform as well as an early Zillow deal. In a deal that showcases the power of our full platform, a leading US enterprise software company replaced a competing PAM vendor prioritizing CyberArk's ability to deliver a complete identity security platform.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

They are boldly focused on just in time access and zero spending privilege to secure IT and developers and a complete solution for the machine identities in a multi figure 6 figure ACV deal. In another full platform deal focused solely on modern use cases, a leading US health care company wanted to secure modern cloud workloads for developers, protect their entire workforce, both the user and at the endpoint, and secure machine identities with Secrets Hub in another multi 6 figure ACV add on deal. We continue to see great momentum with Venafi and this quarter a Fortune 100 financial services company, who is a long time CyberArk customer on the human identity side, is now deploying all of our certificate life cycle management and PKI offerings in a competitive multi 6 figure ACV deal. And in a great Venafi deal that demonstrates our cross sell motion, PDS Health, a leading integrated healthcare support organization, who has been a CyberArk customer since 2019, built on that long standing relationship, expanding further on the machine identity side with our certificate manager and zero touch PKI in a 6 figure Q1 ACV deal. The excitement around Venafi deals continues to build across our go to market teams and stories like this are becoming commonplace as the business begins to scale.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Finally, in a Q1 Zillow deal, we saw early success after the acquisition closed with a financial services company who landed as a new logo with a 6 figure ACV deal, replacing a competing legacy IGA vendor. The customer highlighted that the acquisition by CyberArk gave them strong confidence in closing out this deal and starting their modern IGA journey. In summary, I wanna leave you with the following takeaways today. First, the Identity security imperative is real and accelerating. As the digital ecosystem grows more interconnected and decentralized, the threat landscape is not just expanding, it's evolving at an unprecedented pace.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Organizations must respond. Second, CyberArk is uniquely positioned with the only unified platform for securing every identity and addresses a critical pain point for overburdened CSOs by simplifying identity security. Third, our relentless innovation is strengthening our competitive moat as we solve our customers' problems of today and the future. Fourth, cybersecurity spend and certainly identity is defensible in all macro environments as organizations realize the importance of protecting their most critical assets, particularly in this escalating threat environment. And finally, we are executing with discipline and confidence.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Our go to market teams are an exceptional differentiator for us. Our continued execution and strong demand environment positions us to deliver strong growth and profitability. Now I'll turn it over to Erica to walk through our strong financials and updated guidance.

Erica Smith
Erica Smith
CFO at CyberArk Software

Thanks. Excuse me. Thanks, Matt. We're off to a strong start in 2025 with our first quarter results exceeding all of our guided metrics. We delivered solid top line growth, expanded operating profitability and generated robust free cash flow.

Erica Smith
Erica Smith
CFO at CyberArk Software

As we review our results, please note that Venafi, which closed in October 2024 and Zillow, which closed in February 2025, contributed to our Q1 results of this year, but were not part of the comparable period in 2024. Moving to our results. Annual recurring revenue reached $1,215,000,000 Net new ARR was $46,000,000 up from $37,000,000 in Q1 of last year. As a reminder, Zillow brought to CyberArk approximately $5,000,000 of ARR when we closed the acquisition. Lastly, fluctuations in the euro and pound created about a $1,000,000 headwind to ARR in the first quarter.

Erica Smith
Erica Smith
CFO at CyberArk Software

As Matt mentioned, the Venafi integration is progressing ahead of expectations. Pipeline continues to build and we are executing on the cross sell synergies. Momentum in our machine identity business overall, including secrets management, was strong in the first quarter, with Venafi and secrets included in nine of our top 10 deals. As we noted on our last earnings call, we don't plan to break out Venafi's contribution separately, given that customers are increasingly buying across our platform, and our machine identity solutions can include both Venafi and secrets management. The value proposition we outlined at the time of the Venafi acquisition is being validated by strong cross sell into existing customer base, new customers being added, and growing activation of our channel partners with several hundred certified since we closed the acquisition.

Erica Smith
Erica Smith
CFO at CyberArk Software

Subscription ARR grew to $1,028,000,000 with subscription net new ARR of $51,000,000 compared to $39,000,000 in Q1 of last year. Our maintenance ARR was $188,000,000 Like for like conversion activity remains a single digit percent of our year over year ARR growth. As you saw in the release we posted this morning, we are now reporting revenue in two lines, a subscription line, which includes SaaS and self hosted subscription and a maintenance professional services and other lines, which includes perpetual maintenance services and perpetual license revenues. Given that nearly 95% of our business is recurring revenue, and we expect our perpetual license revenue to represent about 1% of total revenue, we changed the P and L to better reflect the value we provide to our customers and to represent the way we look at our business. Total revenue significantly beat our guidance, reaching $317,600,000 in Q1.

Erica Smith
Erica Smith
CFO at CyberArk Software

For the first quarter, recurring revenue reached $298,200,000 representing 94% of total revenue. Our subscription revenue reached $250,600,000 or 79 percent of total revenue. The outperformance in Q1 was from two primary factors, the strength in our overall business compared to our guidance and a slightly higher than expected mix of self hosted subscription. Maintenance and professional services and other revenue was $67,000,000 in the quarter. The business remains geographically diverse.

Erica Smith
Erica Smith
CFO at CyberArk Software

Americas revenue was $193,500,000 EMEA revenue came in at $93,800,000 and APJ revenue was $30,400,000 We had strong organic and inorganic revenue growth across the platform in all regions. In addition, we're leveraging the strength of our sales force to drive Venafi demand and experienced healthy overall growth, particularly in EMEA. In the first quarter, we signed about 200 new logos. Consistent with prior periods, we continue to see strong momentum in multi solution adoption with approximately half of new logos purchasing two or more solutions at land. This contributed to a year over year double digit percent increase in new business deal sizes in the first quarter of twenty twenty five.

Erica Smith
Erica Smith
CFO at CyberArk Software

All P and L line items will be discussed on a non GAAP basis. Please see the full GAAP to non GAAP reconciliation in the tables of our press release. First quarter gross profit was $269,000,000 or an 85% gross margin. The expansion of our gross margin was in part due to the higher self hosted subscription revenue in the quarter, as I mentioned earlier. Our operating income was $57,500,000 or 18% operating margin, well ahead of our guidance.

Erica Smith
Erica Smith
CFO at CyberArk Software

Our operating margin expanded by three percentage points from Q1 of last year, even as we absorbed over 400 employees from Venafi and incurred approximately six weeks of expenses from the Zillow acquisition. We ended March with approximately 3,930 employees worldwide, including adding approximately 60 employees from Zillow. We had approximately fifteen ninety employees in sales and marketing at the end

Erica Smith
Erica Smith
CFO at CyberArk Software

of the quarter.

Erica Smith
Erica Smith
CFO at CyberArk Software

Net income came in at $50,300,000 or $0.98 per diluted share, also ahead of our guidance. We generated strong free cash flow of $95,500,000 or a margin of about 30% in the first quarter. This performance reflects the power of our recurring revenue model, our disciplined execution and the continued operating efficiency. We continue to maintain a strong balance sheet and ended the quarter with approximately $776,000,000 in cash, which takes into account the approximately $165,000,000 of consideration paid for the Zillow acquisition in Q1. Before moving to our guidance, I want to comment on the macroeconomic environment.

Erica Smith
Erica Smith
CFO at CyberArk Software

As you can see from our strong Q1 results, the recent macroeconomic conditions have not impacted our business. Demand remains robust across our platform and our solutions. Execution is strong, and Venafi is performing ahead of our expectations. As Matt discussed, identity security continues to be a top priority for CIOs and for CSOs, and we believe spending on security is resilient across macroeconomic environments. That said, despite the strength in our pipeline and the strategic importance of identity, we are taking the current macro economic environment into consideration in our full year 2025 outlook.

Erica Smith
Erica Smith
CFO at CyberArk Software

Now turning to our guidance. For the second quarter of twenty twenty five, we expect total revenue to be between $312,000,000 to $318,000,000 We expect non GAAP operating income to be in the range of $41,500,000 to $46,500,000 for the second quarter. That includes the seasonal increase in marketing expenses related to our Impact customer event as well as our Impact World Tour. It also reflects a full quarter of costs related to the Zillow acquisition. We expect our non GAAP EPS to be in the range of $0.74 to $0.81 per diluted share.

Erica Smith
Erica Smith
CFO at CyberArk Software

Our guidance assumes 51,500,000.0 weighted average diluted shares outstanding. It also assumes about 8,500,000 in financial income and a tax rate of 24% in the second quarter. For the full year, we are increasing our total revenue to be in the range of $1,313,000,000 to $1,323,000,000 representing 32 year over year growth at the midpoint of the range. Keep in mind, the 2025 growth rate includes a full year of Venafi contribution in 2025 compared to just one quarter in 2024. We are increasing our full year non GAAP operating income to be between $221,000,000 and $229,000,000 We expect our non GAAP EPS to be between $3.73 and $3.85 per diluted share for the full year.

Erica Smith
Erica Smith
CFO at CyberArk Software

That assumes 51,600,000.0 weighted average diluted shares and approximately $32,000,000 in financial income. We are now assuming a tax rate of 24% for the full year. We expect our annual recurring revenue to be in the range of $1,410,000,000 and $1,420,000,000 at 12/31/2025, representing about 21% year over year growth at the midpoint. Turning to cash flow. We expect adjusted free cash flow for the full year 2025 to be in the range of 300,000,000 to $310,000,000 representing an adjusted free cash flow margin of 23% at the midpoint.

Erica Smith
Erica Smith
CFO at CyberArk Software

As outlined in our press release, adjusted free cash flow excludes the estimated onetime tax payment of $42,000,000 related to the migration of Venafi's SaaS IP to our Israeli entity and about $15,000,000 of capital expenditures associated with leasehold improvements to our new U. S. Headquarters. We signed a lease for this office space in the second quarter. We expect to incur a $15,000,000 in capital expenditures, primarily in the third and fourth quarters of twenty twenty five.

Erica Smith
Erica Smith
CFO at CyberArk Software

Accordingly, we are raising our CapEx forecast to be between 2.53% of revenue. I also want to comment on taxes. The reduction in our estimated IP transfer tax payment from approximately $70,000,000 to 42,000,000 is in part due to the certain tax credits and the strong growth in our U. S. Business.

Erica Smith
Erica Smith
CFO at CyberArk Software

As a result of this growth, CyberArk is now subject to approximately 17,000,000 to $20,000,000 of U. S.-based erosion taxes under the Tax Cuts and Jobs Act, also referred to as BEAT tax. This tax expense was not anticipated in the initial February guidance, and it is in part related to the IP transfer. The BEAT tax will be an ongoing expense. As a result, we've absorbed it within our reported free cash flow guidance.

Erica Smith
Erica Smith
CFO at CyberArk Software

To sum up, we're pleased with our strong first quarter results, which underscores the continued prioritization of identity securities by enterprises around the world. As a market leader, we are well positioned to capture greater share of security spend as customers consolidate around strategic platforms. Our solutions continue to deliver significant value by addressing critical security challenges, improving resiliency, and driving operational efficiencies. With that, I will turn the call over to the operator for q and a. Operator?

Operator

Your first question comes from the line of Saket Kalia with Barclays. Your line is open.

Saket Kalia
Saket Kalia
Managing Director at Barclays Capital

Okay, great. Hey guys, thanks for taking my questions here and nice start to the year.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thanks, Akhat.

Erica Smith
Erica Smith
CFO at CyberArk Software

Thanks, Akhat.

Saket Kalia
Saket Kalia
Managing Director at Barclays Capital

Sure. Matt, maybe for you. I'd love if you could just talk a little bit about customers' willingness to buy multiple products here as you become more of an identity platform. I mean, you had some great customer examples, right, that you spoke about in prepared remarks. Erica, I think, threw out some stats in her prepared remarks as well.

Saket Kalia
Saket Kalia
Managing Director at Barclays Capital

But maybe you could just bring that home for us and maybe also touch on what are you doing to drive that multiproduct sale more.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yeah. Sure, Saket. And and listen. I I when I I I shared a little bit of some examples of of the conversations I was having at Impact and the conversations I've I had at RSA and and, frankly, the conversations I have every day here in our visit center. And and I would tell you that there's not one conversation I have, not one, that isn't multiproduct or multisolution based.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

You know, customers want to engage in a conversation that is specifically around how do they how do they tackle their entire identity security, problems or or opportunities there. It can be that they wanna talk about human and machine, and and we're talking about, you know, PAM plus machine identity and they're either in the form of secrets, identify, or both. It can be on the human spectrum. How do they actually get all of their human identities coverage from IT to developers back into the workforce? And we're talking about not only our IT solutions, but also our our endpoint solutions as well as our access solutions.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

It's it's really across the board, and it's the foundation of our entire discussion. It's our it's our entire strategy at this point. So what are we doing? We we continue to to elevate the team's ability to talk platform versus individual areas. We go in, and we talk about three year road maps, really around value, around architecture, and then ultimately, how do you build that into a plan.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Even customers that wanna get started with one solution, Erica mentioned that about 50% or so of new logos land with multiple solutions. But even the ones that don't are working with us on that road map, on that architecture about where they're going to go over time. And, ultimately, that lends itself to our confidence in what we're gonna be able to get from a lifetime value out of our customer base.

Saket Kalia
Saket Kalia
Managing Director at Barclays Capital

That makes a ton of sense. Erica, maybe for my follow-up for you. Obviously, a smaller and smaller part of the business, but can we just talk a little bit about the maintenance business? How do you think about that sort of decline or shift this year? Then

Erica Smith
Erica Smith
CFO at CyberArk Software

Basham from talked about really do apply to that maintenance business as well, meaning that the customer base is now more willing to move to our SaaS and our subscription solutions. We saw a little bit of an uptick in the in the conversion activity in q one. As I mentioned in the prepared remarks, it was still a single digit percent of our overall growth, but we did see a slight uptick. I think as we progress through the year, our expectation is is that the readiness of our customer base is increasing. And we do think we'll see an increase of that maintenance ARR coming down.

Erica Smith
Erica Smith
CFO at CyberArk Software

Think about it in the tune of about $15,000,000 roughly. But I think, really, there is a tremendous opportunity for us there to continue to execute on that maintenance ARR, and the customer readiness is moving in that direction. We don't expect it to be a meaningful change in what we've seen in the past and still a single digit percent to the overall growth, but there should be an uptick as we move through the year here.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And maybe just one add for me, just, again, back because it's it's so fresh in my mind, all the customer conversations we've been having. You know, at Impact, I I got a chance to meet with with several customers who have been customers of ours for a long time, think financial institutions. And, you know, we're having conversations with them about migration and conversion. Now it takes a while to plan those things out. But the number one comment I heard coming into those conversations was, I'm excited by what you guys are talking about on stage.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

I want that platform. Help me figure out how to get there. And I think that sets the stage for the next couple of years as we think about the migration and conversion opportunity.

Saket Kalia
Saket Kalia
Managing Director at Barclays Capital

Super helpful, guys. Thank you.

Erica Smith
Erica Smith
CFO at CyberArk Software

Thanks, Saket.

Operator

Your next question comes from the line of Joe Gallo with Jefferies. Your line is open.

Joseph Gallo
Senior Vice President at Jefferies & Company Inc

Hey, everyone. Thanks for the question. Erica, I wanted to circle back to what you said regarding guidance. Have you seen macro headwinds or you're just embedding that it gets worse Can you just walk us through any changes to your process versus ninety ninety days ago?

Erica Smith
Erica Smith
CFO at CyberArk Software

We have not seen any macro headwinds. Our q one results were strong. Pipeline continues to be strong. Close rates were consistent. I think we just wanted to as we looked at the the macro volatility we were seeing in the market, we wanted to make an assumption in the guide that, took a bit more conservatism than certainly we were seeing in the trends and the data.

Erica Smith
Erica Smith
CFO at CyberArk Software

And so when you think about that guidance, if the macro holds and the trends we saw in q one persist as we move through the year, there's room for us to to move that guidance up. But given that we were in the first quarter, there were a lot of moving parts around the tariffs and around the broader macro. We thought it best to take a a more prudent approach to those very strong metrics metrics we were seeing coming out of the first quarter and apply that to the guidance, as we move forward here.

Joseph Gallo
Senior Vice President at Jefferies & Company Inc

Crystal clear. And then maybe as a follow-up, you know, how should we think about sales capacity, sales comfortability selling Venafi in this ever broadening portfolio and where your, go to market investments are going?

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yeah. I'll jump in there. I mean, we we see an uptick of of Venafi pipeline at a really strong rate. We see, you know, sales, across not just Americas where they were traditionally strong, but actually into EMEA and APJ, you know, running Venafi and kind of machine identity as a whole cross sell campaigns. We see a a real exceptional reception from the customers.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

In fact, actually, while we talk here, the European impact events are going on this week. And, I got notes this morning about, about the level of attendance in our machine identity, sessions that are going on there. So I think across the board, we we see a go to market organization that's poised to attack that opportunity. I think they're also extremely excited about the the the Zillow opportunity in the IGA space, and they continue to see momentum in just our core business around human identity security. And so across the board, it's a good time to be in go to market at CyberArk, and we feel that when we're out there in the field, meeting with the teams.

Joseph Gallo
Senior Vice President at Jefferies & Company Inc

Thanks, and nice job, guys. Thank you.

Operator

Your next question comes from the line of Brian Essex with JPMorgan. Your line is open.

Charlotte Bedick
Charlotte Bedick
Vice President - Equity Research at JPMorgan Chase

Hi, this is Charlotte Biedig on for Brian Essex. Thank you so much for taking the question and it was nice to see great results. Now that we're in still in early days of Zillow and Venafi, can you talk about if you've seen any trends of adoption across segments or even just, like, size of customers? Is there anyone that's particularly looking to adopt, those types of technologies? Thank you.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Sure. So let me start. You know, they're obviously in different, points of maturity of absorption within the company. So Venafi, we've got a couple quarters under our belts. We've been out there, training, enabling, working with our customers, working with our sales teams, working with our partners.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And and, ultimately, what we're seeing is kind of universal interest. And I mentioned that that that little story about our RSA booth around this, forty seven day mandate around certificate life cycles because it was really remarkable. It was remarkable to see customers come in and basically from all segments, big and small, and say, can you help us with this problem? And I think that's what we're seeing across the board is is a shift. I think we talked about it when we acquired Venafi that we were seeing that shift in the market with the time for a man machine identity security was now, where certificate life cycle management was becoming top of mind.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And even though it had been a long process to get here, we felt like we could we could really amplify the success Venafi was gonna be able to have in the market. Well, that that is what we're seeing across the board. We see it in our sales reception. We see it in our customer reception. And, ultimately, we see it in the pipeline build.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Zillow is earlier days. You know, Zillow, we're we're starting the conversations. But I would say there, it's been an interesting, set of, dozens and dozens, if not hundreds of conversations where customers are coming to us, and they're they're really leaning in to the thesis of the acquisition. They're saying, we've deployed a traditional I d IGA provider out there in the market. We spent a lot of money deploying that, and the time to value has taken a very long time.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Can you help us get started on managing the governance and administration of our modern environments? Because we need to move faster. We need to be more efficient, more effective. We need to have apps online in in days and weeks, not months and years. And that type of discussion is what frames our early discussions around Zillow.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And and and that ultimately gives us the optimism that as we get into the back half of this year and certainly into 2026 that Zillow can start to contribute as we get past the the sales cycles that that we need to build.

Charlotte Bedick
Charlotte Bedick
Vice President - Equity Research at JPMorgan Chase

Thank you so much for the color.

Operator

Your next question comes from the line of Matt Hedberg with RBC Capital Markets. Your line is open.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

Great. Thanks for taking my question guys. Matt, I had a question on pricing. In your prepared remarks, noted that the number of machines to humans has increased pretty significantly. I think you said it was 40 five:one, now it's eighty:one.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

I can imagine a similar dynamic will play out for agents as agent proliferation continues. I guess the question is, is how do you think about pricing longer term from these nonhuman identities, especially if the numbers increase? I mean do you kind of think that it has to evolve over time?

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yes, Matt. Great question. I think as we look forward, the the lens we should look through is the machine lens even when we're applying it against the the the AI agent space, which is the idea that it becomes a a a curve. Right? As you get exponential numbers, the price per agent or in the case of machines, the price per application or workload starts to come down.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And in some cases, it comes down dramatically. You know, I don't think anyone's gonna be you know, if they if they have hundreds of millions of agents running around, they're not gonna be paying us, you know, top dollar for every agent. But you're gonna start to see the deals as a deal size continue to increase. You know, already, see the average deal size on the machine side is is is often two or three x what we see if we're just going out there and selling PAM. And I expect that to be similar on the AI agent side even at the scale we're talking about.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

So I think it is a slightly different pricing model in that you're able to scale the cost effectively or efficiently as the numbers become really large. But ultimately, it's the total deal size that matters, and we're optimistic about what those, average deal size will look like as we scale that piece of the business.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

Very clear. Thanks a lot. Well done guys.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thank you, Matt.

Operator

Your next question comes from the line of Keith Weiss with Morgan Stanley. Your line is open. Mr. Keith Wise, your line is open.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

Thank you guys for taking the question and congratulations on a good quarter. Two questions, one kind of more strategic, one more tactical. On the strategic side of the equation, definitely heard and and and felt the excitement around identity and identity security at RSA. A lot of vendors are running around trying to tell their new, identity stories. Have you been seeing any change in the competitive environment?

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

I'm sure you do to some extent now that, like, Identify and Zillow are part of the equation. So perhaps you could talk to us about the evolution of your competitive environment, who you see yourselves coming up against, more so as you sell the broader, set of solutions into the customers. And then on the on the more tactical side, and this is, I think, one of the debates that's going on in our email boxes right now. You haven't spoke specifically to the contribution of ARR from Venafi or Zillow. But if we think about that that 51,000,000 in net new ARR, is that still growing on a year on year basis if we take out the incremental contributions from Venafi and Zillow?

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yes. So why don't Eric, why don't you jump in on the second one, and then I'll I'll come back around on the first.

Erica Smith
Erica Smith
CFO at CyberArk Software

Yeah. So I think the way you should really think about the the contribution and the and the growth of net new ARR, we are seeing their growth on the subscription net new ARR side. And so that would be where we would anchor. We aren't gonna break out the various component parts. I think that the reality is is that there's a lot of customers that are are buying the are beginning to buy the combined SKUs.

Erica Smith
Erica Smith
CFO at CyberArk Software

And then when you kinda think about the broad platform selling motion, you are seeing, some very strong synergies across the broader platform. But you should think of that as being a net new ARR growing, but we aren't gonna break it out in more granularity.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Net new AR, organic subscription growing. Exactly. Okay. I think on the on on the more strategic question, you know, I was at that RSA conference as well, and I I I like to do it too. I do it to myself.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

I I walk walk the booths, and I walk around the floor, and I feel out what's going on. And and at one level, you're right. It's like identity, identity, identity in every booth. And on the other side, it's it's what is the message that they're trying to tell. And I think what you what you see with those kinda upstart competitors is that they're trying to solve a a small slice of the identity security problem.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

They may be talking a big message, but when you actually pin them down and ask what's the use case, they're solving a very narrow use case. I think what differentiates us in the market and is the reason for our our strong results and and our outlook going forward is identity security can't be solved in small little increments. In fact, CSOs are overwhelmed with all the tools they already have. They don't need more tools to go do small levels of solutions. They need a tool that actually can solve human and machine.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

We are the only one in the market that's able to do that. They need one that can apply privilege controls effectively not only in a standing access motion, but also in this just in time zero standing privilege access. We're the only ones who can do that. And, ultimately, those are the conversations we're having with customers where, yeah, of course, they hear the noise, and they see some of these other providers. And then we sit down and we do these, again, value value architecture road map workshops.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And coming out of that, they see that actually their best path forward for actual coverage and ultimately consolidation is to come on to our platform. So, ultimately, the answer the short answer to to that is we don't really see a a a strong change in the competitive positioning or competitive situation. We don't see somebody growing in competitiveness at the moment. And ultimately, we find the market to be the same market that we were operating in from a competitive positioning last year and the year before.

Operator

Your next question comes from the line of John DiFucci with Guggenheim Securities. Your line is open.

John DiFucci
Senior Managing Director at Guggenheim Partners

Thank you.

John DiFucci
Senior Managing Director at Guggenheim Partners

I want to go back

John DiFucci
Senior Managing Director at Guggenheim Partners

to Joe Gallo's question, Erica. You said you're being just being more conservative with annual ARR guidance. But just trying to gauge that a little bit more. Matt talked a lot about conversations with customers for machine identity that make February feel good about the future there. I mean, even though the quarter was strong and it was and and pipeline is good, are there is it customer conversations that give you pause on that guidance, or is it just the press?

John DiFucci
Senior Managing Director at Guggenheim Partners

Because that could change day to day.

Erica Smith
Erica Smith
CFO at CyberArk Software

Yeah. No. I mean, it's a great question, John. And it really customer conversations, as Matt outlined, have been incredibly positive. And so, you know, if you think about impact, our impact event where we had very constructive conversations with the customers, not just about machine identities, but across the broader platform and our offerings, it's been very consistently positive.

Erica Smith
Erica Smith
CFO at CyberArk Software

So really when we provided the guidance, it was more around the fact that we weren't sure of what the impact would be on our customers if there were things around tariffs that had moved forward. So we wanted to be more prudent in the guidance and really take a haircut against some of the metrics that we saw in the first quarter to ensure that if something were to happen in the back half of the year, that we accounted for that in the guidance. At this point, it just didn't seem like there was much benefit to us being more aggressive on the guide despite the positive feedback we were getting from the customers. So nothing to make us pause at this point, but we thought that, it was the right approach for us to take given what the noise that we were hearing in the in the broader macro.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yeah. Maybe just because since I'm I'm in those customer conversations and I'm generally talking to c suite there and and in some cases, you know, even even higher a board or two. You know, what what is on their mind is the macros. Like, let me be clear. Like, our customers, when you meet with an auto OEM in Germany, they're they're worried about the the tariffs.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

When you meet with, you know, manufacturing organization here in The US that's planning out their strategy, they're worried about the economics and the and the tariffs. We get into a conversation about that, and I noticed the the the worry. We then get into a conversation about their cybersecurity strategy, what they have to go do, and where identity security ranks on their list. And my worry kind of moves away for for a while. But, you know, when you're having those conversations about the overall macros with customers, you have to take that into account at from where you sit, and you're watching carefully to understand if it's ever gonna come in to your space and have impact on your business.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

That's the smart thing to go do. So I think what Eric is really emphasizing is we sat down and we said, listen. Based upon that uncertainty that our customers have around the broader macros, not specific to us, you know, do we pass our beat through or not? And, you know, the the thought process was it's q '1, and, there's a lot going on. And we probably shouldn't pass our beat beat through, because that's the responsible thing to go do.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

So just taking it down to that level, there for you.

John DiFucci
Senior Managing Director at Guggenheim Partners

That that makes full sense to me, that and Erica. But I think the confusion out there with the investment community is that, not everybody's done what you've done. And but thank you for all the the the explanation. It makes total sense.

John DiFucci
Senior Managing Director at Guggenheim Partners

Great.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thank you.

Erica Smith
Erica Smith
CFO at CyberArk Software

Thank you, John.

Operator

Your next question comes from the line of Roger Boyd with UBS. Your line is open.

Roger Boyd
Roger Boyd
Executive Director at UBS Group

Great. Thanks for taking the questions and, yeah, congrats on a great quarter. Matt, I appreciate your comments on identity consolidation. I I think maybe just to play devil's advocate. When we talk to CISOs, there's generally an admission that projects around identity can be lengthy, complex, expensive, and to your point around IGA, in some cases, have significant some costs.

Roger Boyd
Roger Boyd
Executive Director at UBS Group

It it sounds like you're seeing very good momentum on that consolidation kind But as you think about kind of the next couple of quarters, what are you contemplating from a sales cycle perspective? Have you seen any sort of expansion to date? And when Erica, when you think about kind of a more conservative outlook, is that the primary way that's manifesting is your sales cycle is taking longer? Thanks.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yes. So no, I mean we haven't seen any change in sales cycles actually. Q1 was if anything a little bit of a tick up in improvement. But overall they've been pretty consistent. They've been pretty consistent over the last more than several quarters.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

So I don't think we see any changes there. In general, our sales process is to talk, as I said, about longer term road maps to design out how somebody might take advantage of the platform, but to get them started where they are. So if they're not ready to make a full platform purchase, then get started with one or two solutions. And you see that in in some of the new logos that come in. And then over time, we'll expand your footprint and we'll expand you across the whole platform.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Most cases, we have a road map, a plan for that already even if they're getting started with with less of the platform. That being said, as as Erica mentioned, if you look at our top 10 deals in the quarter in q one, you know, almost all of them, actually, nine out of the 10 were multiplatform deals. I mean, multi solution deals across the platform, and and it speaks to the ability we already have to be able to drive that conversation with our customers. So, no, I I I don't think it changes the sales cycle because our our go to market team is excellent at understanding where the customer is and to keep them moving on their on their buyer's journey, if you will. I think what you will see is, you know, as you try to bring in some of these displacement opportunities, those will take a little bit longer.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And so we're not building that into our guidance, you know, the idea that we're gonna go in and disrupt legacy IGA rather than sit alongside of it. We've built in an idea of how we sit alongside of it. We're not gonna build in disruption because that will take that will take a little bit more time to materialize. But in a lot of cases, when we're talking about our platform, you know, they don't have in place the machine side yet, and so it's a it's a pure expansion, not a replacement. When you're talking about going into the into the access or the workforce side, the EPM side, in a lot of cases, we're layering security controls on top of what they already have so they don't have to replace.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And that allows them to efficiently get onto our platform quickly even in a in a tougher macro environment.

Roger Boyd
Roger Boyd
Executive Director at UBS Group

Super clear. Thanks, Matt.

Operator

Your next question comes from the line of Greg Muscovitz with Mizuho. Your line is open.

Gregg Moskowitz
Gregg Moskowitz
Managing Director, Enterprise software at Mizuho Financial Group, Inc.

All right. Thank you very much for taking the question. In your recent identity survey, we found it interesting that 42% of machine identities have access to sensitive data, which is a little higher than it is for human users, and yet only 12%, I think, consider machine identities to be privileged users. Matt, you mentioned that Venafi is performing ahead of expectations so far, but the data here also shows that there's clearly still an awareness gap. So how do you go about closing this?

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yeah. Listen. I think that's the that's the moment of now. Right? And and I think we've been talking about it when we acquired Venafi.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

By the way, we're talking about it beforehand with our secrets business and kind of the takeoff we've seen in the secrets business. The moment is now that security is getting involved into discussion. I think we've talked about that before, right, which is a lot of these machine identity security decisions were left to the DevOps teams, to the local developers to choose on their own, which which left no visibility to central security on what was actually happening. That's the fact that comes out in that data. So what happens now is the CSO and the security team is saying, no way.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

No way are you making those decisions without us. No way are you having localized vault sprawl throughout your organization. No way are you doing certificates on spreadsheets anymore, and they're coming with a central authority. When the CISO gets the right to have central authority, CyberArk wins. And that's what we're seeing today in the market.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And so it's really a a matter of helping the CSO get control rather than it is us educating the market on something.

Gregg Moskowitz
Gregg Moskowitz
Managing Director, Enterprise software at Mizuho Financial Group, Inc.

Very helpful. Thank you.

Operator

Your next question comes from the line of Shaul Liao with TD Common. Your line is open.

Shaul Eyal
Managing Director - Equity Research at TD Cowen

Thank you. Hi. Good morning. Congrats on a great quarter all around. I wanted to go back to Matt Hedberg's question on machine identity and pricing.

Shaul Eyal
Managing Director - Equity Research at TD Cowen

I understand the ratio of eighty:one. Specifically on pricing, SailPoint, for example, they indicate that pricing of their machine identity is going to come at about one third of human identity. And I understand you guys are different companies yet operating in the same broader arena. What's the thinking along these lines? And maybe just as a follow-up, I've been getting some e mails, some questions about the commentary about the certificate life cycle change.

Shaul Eyal
Managing Director - Equity Research at TD Cowen

Is that a recommendation? Or is that a decision being supported by some industry regulations? Thank you guys.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Yes, sure. So to your pricing discussion and again specifically around what we see, I think it's and I bring it back. I know it's the same answer I gave Matt, but I bring it back to the idea of it's the deal size that matters, not the individual cost per per identity. I think you should expect to see a fully deployed customer on the machine side to basically one and a half to two x on the on the secret side and one and a half to two x on the certificate side to what we are able to do on the human side. Ultimately, when you're fully deployed on the machine side, we're talking about somewhere between, you know, three to five x the the the the size of the the base that we can go sell to.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And and it's a big deal. It's a it's an enterprise sale. And, ultimately, over time, it will continue to grow. I think that's what we see. Listen.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

I I don't think SailPoint is really in the machine space, so I'm I'm not sure, where their pricing is coming from, but it's it's not really covering the type of machine identity that we're talking about. The second part of your question around, certificate authority, it is a mandate. So it's it's a actual it's called the the the CA browser forum. It is a a kind of governing body, and it's mandated that it go down to forty seven days. That mandate is for 2028 or 2029.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

But, basically, it indicates that the the Google ninety day mandate, which was a kind of a Google specific thing, didn't go far enough. They want to go even farther and they want to push the envelope there. It basically wakes people up to the idea that certificates are a thing that's going to change. Their world of certificates and long lived certificates are not gonna exist for long. And I think, you know, enterprise companies are are are coming in and saying, what can I do about it?

Matt Cohen
Matt Cohen
CEO at CyberArk Software

And we've got the we've got the perfect solution to to solve that problem for them.

Shaul Eyal
Managing Director - Equity Research at TD Cowen

Thank you so much. Super helpful. Great color.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thank you.

Operator

I will now turn the call back to Matt Collins, CEO, for closing remarks.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

So thanks, everybody, for questions today and the dialogue. It was fun and appreciated. I wanna conclude by by thanking our customers and our partners for their support and trust. And and most importantly, our employees here at CyberArk who wake up every day and and make sure we can deliver strong quarters like we did today. You know, when we think about a world where identity security is an imperative, we feel ready to respond, continue to grow, and drive durable growth for the future.

Matt Cohen
Matt Cohen
CEO at CyberArk Software

Thanks, everybody.

Operator

Ladies and gentlemen, that concludes today's call. You can now disconnect. Thank you, and have a great day.

Executives
    • Srinivas Anantha
      Srinivas Anantha
      VP - Investor Relations
    • Matt Cohen
      Matt Cohen
      CEO
    • Erica Smith
      Erica Smith
      CFO
Analysts
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Key Takeaways

  • CyberArk reported a strong Q1 2025, with $1.215 billion ARR, $318 million in revenue, an 18% operating margin, and $96 million in free cash flow, all above guidance.
  • The company underscores the identity security imperative, citing over 90% of organizations facing identity-related breaches and a surge in machine identities (now over 80:1 vs. human identities).
  • Its unified identity security platform combines discovery, privilege controls, policy automation, lifecycle management, and governance to protect human, machine, and AI identities.
  • Integration of Venafi (machine-identity) and Zillow (modern IGA) is ahead of plan, driving cross-sell momentum—nine of the top ten Q1 deals included these solutions.
  • CyberArk continues to innovate with new AI-agent security, short-lived certificate automation, modern IGA modules, a secure workload access solution, and a strategic partnership with Accenture.
A.I. generated. May contain errors.
Earnings Conference Call
CyberArk Software Q1 2025
00:00 / 00:00

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