4. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Investors in Q1 2024: 63
CyberArk Software Ltd. (NASDAQ:CYBR) is another identity management platform company. The firm is facing a lot of tailwinds for its revenue growth these days. These include growing cloud adoption and migration, new SEC rules that require businesses to promptly report cybersecurity breaches and the growing need for multi factor authentication among identity management. This growth has translated well for CyberArk Software Ltd. (NASDAQ:CYBR)’s recurring revenue. During Q4 2023, it grew ARR by a strong 36% annually and kept up the trend in Q1 2024 by posting 34% growth. The latter came during the first quarter when software spending is typically slow, but CyberArk Software Ltd. (NASDAQ:CYBR) kept up the pace and brought in $811 million through ARR. CyberArk Software Ltd. (NASDAQ:CYBR) is also targeting the relatively nascent machine identity management industry which deals with businesses verifying their computer systems. It announced its decision to buy machine identity management company Venafi for a $1.5 billion price tag in May 2024, which added to CyberArk Software Ltd. (NASDAQ:CYBR)’s fresh product announcement of CORA AI – a real time, environment agnostic AI powered threat monitoring and response management system.
CyberArk Software Ltd. (NASDAQ:CYBR)s management commented on machine identity during its Q1 2024 earnings where it shared:
“The world of securing machine identities is changing rapidly. Organizations are grappling with a larger variety and an ever-growing number of machines from applications to bots to workloads to IoT devices. Each one of these machines needs to be secured and managed across the life cycle of multiple identity components from secrets to digital keys to certificates. The proliferation of AI is further accelerating the growth and complexity of machine identities. This is becoming a top security challenge.
Traditionally, managing machines often sits outside the security teams remit of control. However, this practice exponentially increases risk and is unsustainable in today’s threat landscape. Customers increasingly realize they need to scale their machine identity security programs beyond local vaults, loosely enforced policies and opensource tools. They need an enterprise-ready machine identity security approach that can scale and is tied into their human identity security program through a single platform. One great win that exhibited all I am describing was with a CyberArk customer who has been with us since 2018. We expanded our long-standing relationship with the Department for Work and Pensions in the U.K. with an expanded program while kicking off a robust secrets management program.”
