For the quarter, CYBR generated EPS of $0.56, easily surpassing the $0.41 consensus, with revenue increasing by 34% yr/yr to $95.9 mln, also exceeding the $92.4 mln expectation.
Looking ahead, the company guided for Q2 EPS of $0.45-$0.48 vs. the $0.42 consensus and revenue of $96-$98 mln vs. the $95.2 mln estimate.
For FY19, it raised its outlook to EPS of $2.10-$2.16 from $1.94-$2.00 (vs. $2.00 consensus) on revenue of $415-419 mln from $411-415 mln (vs. $414.8 mln consensus).
Click here to view CYBR's earnings press release.
Generally speaking, the cyber security space has been a standout in the tech sector as companies like Palo Alto (PANW), ZScaler (ZS), and Tenable (TENB) continue to deliver solid financial results and growth. The emergence of technologies such as internet of things (IoT), artificial intelligence (AI), and biometrics are making enterprises more vulnerable to attacks, making their products more vital.
Additionally, an ever-increasing number of workers are using mobile devices in their everyday workflow, greatly expanding the number of threat points for an organization. This transformation ties in with the trend of companies migrating their workloads to the cloud, which is also causing IT teams and executives to re-think their security strategies.
CYBR is benefiting from these broader trends, but it has also carved out a niche for itself within the cyber security industry. Specifically, it focuses exclusively on protecting an enterprises' privileged accounts, which consist of users that have access to servers, routers, and databases. Naturally, a hacker could inflict much more damage by infiltrating, stealing, and/or corrupting these accounts than a typical account.
Going hand-in-hand with the trend of more employees working off-premise, the number of devices and users that are considered privileged accounts is expanding exponentially. Because of its market leadership position in privileged account security and the escalating number of threats against these accounts, CYBR has become a mission-critical software provider.
And this is evidenced in its quarterly financial results. Incredibly, since going public in the fall of 2014, CYBR has posted upside EPS and revenue results ever quarter. This streak now spans across 19 consecutive quarters.
Furthermore, its revenue growth rate has actually accelerated from the mid-teens in late 2017, into the 20% area in early 2018, and finally to the low-to-mid 30% levels we are now seeing. Typically, when a tech company goes public, it does so when its revenue growth is already on the decline. That fact that CYBR's growth is accelerating makes it unique.
Its growth has also been broad-based across geographies, which is another testament to its momentum. The Americas region experienced 41% growth, Asia Pacific and Japan jumped by 45%, and EMEA increased by 16%.
Key Takeaways: The cyber security space has been an outperformer for quite some time, and CYBR has been a standout within the field. It's not only benefiting from the same tailwinds that virtually all cyber security names are -- namely, emerging technologies, cloud migration, digitalization -- but it also has become a leader in the vital privileged account security arena.
Its consistent upside quarterly results and accelerating top-line growth make it a premier growth stock and help to justify its very rich valuation, with its forward P/E standing at 50x.