Why CyberArk Software Is a Speculative Investment

CyberArk (NASDAQ: CYBR) posted better-than-expected third-quarter earnings last week. With its privileged access management (PAM) portfolio, the company delivered a rare result among its fast-growing cybersecurity peers: It generated growing profits under generally accepted accounting principles (GAAP). Yet despite its outstanding performance, the company remains a speculative investment.

CyberArk's privileged identity management market is poised to grow annually by 32% over the next several years, according to a study. With this tailwind, the company's revenue reached $108.1 million, up 28% year over year and above the top end of management's guidance range of $102 million to $104 million. 

This strong performance in both of CyberArk's segments (licensing, and maintenance and professional services) was a result of the strong demand for its core privileged-access security product. In addition, the company's new solutions such as its endpoint privilege manager (which deals with privileged access on workstations) and application access manager (which handles non-human access) were early successes. 

Continue reading

Source Fool.com