CyberArk (Nasdaq: CYBR), an Israeli security company that provides identity and access management solutions, has released its third-quarter financial report, outperforming market revenue and profit expectations. As a result of the strong performance, the company also upgraded its overall forecast for 2022 results. This did not go unnoticed, and the stock price rose as high as 8% on during Friday trading.

CyberArk’s technology is largely used in the energy, financial services, retail, healthcare, and government areas in protecting sensitive information. Despite the company’s continued transition from selling software licences to selling subscriptions for cyber protection services in organisations, revenues increased by 26% in the third quarter of 2022 compared to the corresponding period in 2021, reaching $153 million. This is higher than the markets’ forecast of $151 million. Notably, quarterly recurring revenues accounted for 84% of total revenues, which rose 44% year-over-year to $129 million. When compared to the gloomy predictions of rival businesses like Fortnite, Qualys, and Rapid-7, CyberArk’s robust expansion and upgraded outlook stood out as particularly noteworthy.

According to the quarterly report, the company lost 6 cents per share, while the market expected a greater loss of 20 cents per share.

Annual Recurring Revenues grew 49% to $512 million. The maintenance component, which accounts for 41.2% of total ARR, climbed 2.4% year on year to $211 million. The subscription part, which made up 58.8% of total ARR, increased 117% year on year to $301 million. A record amount of software-as-a-service solution bookings and robust demand for on-premises subscription products drove this increase.

For the final quarter of 2022, CyberArk anticipates revenues between $169.9 million and $176.9 million

The strength of CyberArk’s balance sheet was demonstrated by $949.5 billion in liquid assets (i.e., cash, short-term deposits, and marketable securities) at the conclusion of the July-September quarter.