Image: BigstockIT security solutions provider CyberArk Software (CYBR – Free Report) has become a notable standout in the tech sector after exceeding third quarter expectations on Wednesday.Hitting all-time highs of $318 a share this week, CyberArk’s stock has now rallied nearly +40% year-to-date. It currently boasts a Zacks Rank #1 (Strong Buy) rating.Image Source: Zacks Investment Research

CyberArk’s Strong Q3 Results
Following the strong Q3 results, CyberArk CEO Matt Cohen stated the company’s industry leadership in identity security helped deliver strong net new annual recurring revenue (ARR), record revenue, increased profitability, and cash flow.

Record Revenue
CyberArk posted record quarterly sales of $240.1 million, topping Zacks estimates of $233.9 million and soaring 25% from $191.24 million a year ago.Optimistically, Total ARR spiked 31% year-over-year to $926 million. CyberArk has surpassed top line estimates for six consecutive quarters, posting an average sales surprise of 3.84% in its last four quarterly reports.Image Source: Zacks Investment Research

Increased Profitability
The most compelling factor is that CyberArk also achieved a quarterly record for adjusted earnings per share, with Q4 EPS soaring 124% to $0.94 compared to $0.42 a share in the comparative quarter. Even better, this crushed the Zacks EPS Consensus of $0.45 by 109%.CyberArk has reached or exceeded earnings expectations for 13 consecutive quarters, posting a very impressive average EPS surprise of 97.68% in the last four quarters.Image Source: Zacks Investment Research

Cash Flow
Free cash flow stretched to $51.56 million from $13.62 million in Q3 2023. Appearing able to strengthen its balance sheet, CyberArk’s cash & equivalents have ballooned to $1.23 billion, with the company coming into the year with $355.93 million.

CyberArk’s Revenue Guidance
For Q4, CyberArk expects revenue in the range of $297 million to $303 million, representing growth of 33%-36%. CyberArk expects full-year fiscal 2024 revenue to increase by 31%-32% to $983 million-$989 million.

EPS Growth & Revisions
Based on Zacks estimates, CyberArk’s annual EPS is now expected to expand 105% in FY24 to $2.30 versus $1.12 in 2023. Plus, FY25 EPS is projected to increase another 45% to $3.35 per share. Leading to CyberArk’s Strong Buy rating and its brilliant price performance this year has been a compelling trend of earnings estimate revisions for FY24, as shown below.Image Source: Zacks Investment Research

Bottom Line
CyberArk is one of the most intriguing tech stocks to watch at the moment. It would be no surprise to see CyberArk’s stock drift higher, as earnings estimate revisions are likely to rise in the coming weeks.More By This Author:5 Defensive Stocks To Counter Volatility As Post-Election Rally HaltsTime To Buy Home Depot Or Disney Stock After Beating Earnings Expectations? 2 Highly Ranked Stocks To Buy After Earnings: AROC, MNDY