CyberArk Earnings: The SaaS Transition Story Remains on Track

We are maintaining our $252 fair value estimate for narrow-moat CyberArk after the firm closed out its second quarter with robust financial results. While macro pressures have continued to affect sales growth across our software coverage, we expect continued strength in CyberArk's sales growth trajectory. As a reminder, CyberArk plays in a crucial identity security market that stands to become a more central part of security spending as companies continue to adopt zero-trust security frameworks. Further, with cyber insurance providers increasingly asking their clients to onboard privileged access management, or PAM, solutions in order to reduce their insurance premiums, we expect demand for CyberArk's core Privileged Access Management, or PAM, solution to remain elevated. After climbing sharply following the earnings report, we view CyberArk's shares as fairly valued.