Slides
Page 1
© 2025 CyberArk Software Ltd. All rights reserved FEBRUARY 24 BOSTON
Page 2
© 2025 CyberArk Software Ltd. All rights reserved CyberArk believes the information in this document is accurate as of its publication date. The information is provided without any express, statutory, or implied warranties and is subject to change without notice. CyberArk®, the CyberArk logo and other trade or service names appearing above are registered trademarks (or trademarks) of CyberArk Software in the U.S. and other jurisdictions. Any other trade and service names are the property of their respective owners. © Copyright 2025 CyberArk Software. All rights reserved. No portion of this publication may be reproduced in any form or by any means without the express written consent of CyberArk Software.
Page 3
© 2025 CyberArk Software Ltd. All rights reserved This presentation contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: risks related to the Company’s acquisitions of Venafi Holdings, Inc. (“Venafi”) and Zilla Security Inc. (“Zilla”), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining business; risks related to the successful integration of Venafi’s or Zilla’s operations and the ability to realize anticipated benefits of the combined operations; disruption of the current plans and operations of the Company and/or Zilla as a result of the announcement of the transaction, including risks of cyberattacks; changes to the drivers of the Company’s growth and the Company’s ability to adapt its solutions to the information security market changes and demands, including artificial intelligence (“AI”); the Company’s ability to acquire new customers and maintain and expand the Company’s revenues from existing customers; intense competition within the information security market; real or perceived security vulnerabilities, gaps, or cybersecurity breaches of the Company, or the Company’s customers’ or partners’ systems, solutions or services; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to successfully operate its business as a subscription company and fluctuation in its quarterly results of operations; the Company’s reliance on third-party cloud providers for its operations and software-as-a-service (“SaaS”) solutions; the Company’s ability to hire, train, retain and motivate qualified personnel; the Company’s ability to effectively execute its sales and marketing strategies; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; the Company’s ability to maintain successful relationships with channel partners, or if the Company’s channel partners fail to perform; risks related to sales made to government entities; prolonged economic uncertainties or downturns; the Company’s history of incurring net losses, the Company’s ability to generate sufficient revenue to achieve and sustain profitability and the Company’s ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property claims; flu ctuations in currency exchange rates; the ability of the Company’s products to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software; risks related to stock price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a “passive foreign investment company”; changes in tax laws; the Company’s expectation to not pay dividends on the Company’s ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this presentation are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward- looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. This presentation is for informational purposes only and includes CyberArk’s current view of its innovation direction. Itis not a commitment or an obligation to deliver any product or functionality. The development, release, and timing, if any, of any future innovation or product remains at our sole discretion and may be subject to applicable fees. Cautionary Language Concerning Forward-Looking Statements
Page 4
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Agenda Welcome Srinivas Anantha, VP, Investor Relations CyberArk: The Identity Security Company Matt Cohen, Chief Executive Officer Industry Trends & Market Opportunity Clarence Hinton, Chief Strategy Officer Platform Innovation Amy Blackshaw, VP, Product Marketing Kurt Sand, GM, Machine Identity Security Peretz Regev, Chief Product Officer Precision Marketing Simon Mouyal, Chief Marketing Officer Go-to-Market at Scale Eduarda Camacho, Chief Operating Officer Customer & Partner Panel Eduarda Camacho, Chief Operating Officer Durable Financial Model Erica Smith, Chief Financial Officer Executive Q&A Break
Page 5
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved CyberArk: The Identity Security Company
Page 6
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2024: An Amazing Year for CYBR Solid Value Creation $1.17B ARR* 49% 1 Sustained Rule of 40+ 46% 2 Average Annual Shareholder Return in 3 Years (3.6x S&P 500 return) Platform Innovation Differentiated Solutions Venafi Acquisition CORA AI Customer Momentum ~10K Customers ~40% Growth in $500K+ 309% Average 3 Year ROI Culture & Brand ~3.8K Employees 18 New Awards 9 New Analyst Recognitions *As of December 31, 2024 1 2024 Rule of 40 = 27% Total Revenue Growth + 22% Free Cash Flow Margin on an organic basis. 2 As of February 21, 2024. ™ INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 7
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Escalating Threat Landscape Nation State Attackers Organized Cyber Criminals AI-Enhanced Attackers IDENTITY Source: CyberArk 2024 Identity Security Threat Landscape Report
Page 8
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Market Dynamics Proliferation of Human Privileges Rise of Machines AI Everywhere Security Leaders Overwhelmed
Page 9
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved $80B This creates a tremendous opportunity for CYBR TAM
Page 10
Our Vision Every identity secured with the right level of privilege controls INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 11
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Building the industry’s most comprehensive Identity Security Platform
Page 12
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Powered by CORA AI™ CyberArk Identity Security Platform Endpoints Web Sessions SaaS Apps Infrastructure Cloud Automated Lifecycle Lifecycle Automated Policy Policy Entitlements Management Workforce IT Developers AI Workloads Devices Contextual Discovery of Risk Discover Identities & Credentials | Risk Mapping Credential Management Authentication Management Session Management Privilege Controls Governance & Compliance User Access Reviews | Provisioning | Audit Readiness | Reporting
Page 13
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved New Paradigms for Identity Security REIMAGINE Securing the Workforce MODERNIZE Securing IT Users START Securing Developers as Privileged Users SCALE Machine Identity Security Identity Security Powered by AI RESHAPE IGA for the Modern Enterprise
Page 14
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Value Drivers Workforce IT Developers AI Secured Persona Human Machines Workloads Devices Enable Business Resilience Satisfy Audit & Compliance Deliver Cyber Risk Reduction Increase Efficiency & Automation Powered by CORA AI Solutions Address the New Paradigms Secure every identity with the right level of privilege controls CyberArk Identity Security Platform To deliver measurable customer outcomes
Page 15
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Volume Variety Velocity Increased Risk & Complexity !Machine Identity Security
Page 16
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Reshaping IGA for the Modern Enterprise Legacy IGA • Built for on-premises • Manual processes • Limited integrations • Complex deployments Zilla Modern IGA • Purpose-built for the cloud • Automated processes • 1,000+ out-of-the-box integrations • Fast, easy deployments Bringing Modern IGA into Our Unified Identity Security Platform INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 17
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing Agentic AI © 2025 CyberArk Software Ltd. All rights reserved
Page 18
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Go-to-Market Excellence CARE High-Performance Marketing
Page 19
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Go-to-Market Excellence CARE High-Performance Marketing Precise Selling Engine Trusted and Committed Ecosystem Proven Path to Adoption
Page 20
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved CYBR Growth Algorithm SECURITY-FIRST DNA MASSIVE MARKET OPPORTUNITY GROUNDBREAKING PLATFORM DIFFERENTIATED SOLUTIONS GTM EXCELLENCE
Page 21
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved CYBR 2028 Positioned for Durable Growth ~$2.3B $600M in Free Cash Flow in ARR RULE OF 45 INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved “Rule of” metric is defined as revenue growth plus free cash flow margin
Page 22
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved Industry Trends & Market Opportunity
Page 23
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Escalating Threat Landscape Nation State Attackers Organized Cyber Criminals AI-Enhanced Attackers 93% of organizations suffered identity-related breaches IDENTITY Source: CyberArk 2024 Identity Security Threat Landscape Report
Page 24
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Market Dynamics Proliferation of Human Privileges Rise of Machines AI Everywhere Security Leaders Overwhelmed Consolidation of Trust
Page 25
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Proliferation of Human Identities IT Developer Workforce PRIVILEGE SaaS Apps Cloud Service Providers Artificial Intelligence ! Work from Anywhere Bring Your Own Identity
Page 26
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved AI Infrastructure AI Agents Workloads IoT / OT Rise of the Machines Source: CyberArk 2025 State of Machine Identity Security Report 45x
Page 27
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved AI Everywhere
Page 28
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Security Teams Overwhelmed AI 3,500+ Cybersecurity Vendors1 83 Average Security Solutions per Organization2 2.8M Shortfall in Cybersecurity Professionals3 Machine 1. IT Harvest Dashboard 2. Capturing the cybersecurity dividend - IBM Institute for Business Value 3. 2024 Cybersecurity Workforce Report – BCG & GCF Past Present Future Identity Risk Human
Page 29
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Identity Emerging as Most Important Pillar Network Endpoint Cloud Identity
Page 30
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Powered by CORA AI™ CyberArk Identity Security Platform Endpoints Web Sessions SaaS Apps Infrastructure Cloud Automated Lifecycle Lifecycle Automated Policy Policy Entitlements Management Workforce IT Developers AI Workloads Devices Contextual Discovery of Risk Discover Identities & Credentials | Risk Mapping Credential Management Authentication Management Session Management Privilege Controls Governance & Compliance User Access Reviews | Provisioning | Audit Readiness | Reporting
Page 31
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved TAM Overview Pre-2020 2024 Today Solidification of Identity Security Strategy Expansion into Identity Governance, Workloads & AI Tailwinds $20B Traditional CyberArk Business +$20B $80B $60B +$40B
Page 32
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved Platform Innovation
Page 33
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Market Dynamics Proliferation of Human Privileges Rise of Machines AI Everywhere Security Leaders Overwhelmed
Page 34
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Workforce IT Developers AI Secured Persona Human Machines Workloads Devices Powered by CORA AI CyberArk Identity Security Platform Value Drivers Enable Business Resilience Satisfy Audit & Compliance Deliver Cyber Risk Reduction Increase Efficiency & Automation Secure every identity with the right level of privilege controls To deliver measurable customer outcomes Secrets Management | Certificate Management & PKI a Workload Identity Management | Agentic AI Secure Workforce | Secure IT | Secure Developers Solutions Driving Customer Value Solutions
Page 35
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Evolution of Privileges – No Longer Just IT Admins Risk of Identity and Access Compromise Due to Privileges Level of Privilege Control Needed User Expectation of Constraint IT Workforce Developer Web SaaS Applications Native Cloud Services Long Lived Systems Cloud Workloads
Page 36
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved The Challenges Securing Workforce Users • Diverse Workforce • Any Device • Proliferation of Apps • Evolving Threat Landscape Pre-authentication Post-authenticationAuthentication SIM SWAP MFA Fatigue Brute Force Credential Theft Ransomware Misconfiguration Cookie Theft Session Hijacking Privilege Escalation
Page 37
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Reimagined Workforce Access Solution SessionPasswordEndpoint Browser Access Layered Privilege Controls for Pre- and Post-Authentication Security Workforce
Page 38
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing IT & Developer Access for Modern Environments IT Developer LAYERED SECURE ACCESS • Session Protection & Monitoring • Adaptive AuthN & AuthZ Admins Cloud Ops Third Parties Data Scientists Engineers Endpoint Browser Password Access Session Long Lived Systems Cloud Workloads Cloud Services SaaS Apps
Page 39
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing IT & Developer Access for Modern Environments IT Developer ZERO STANDING PRIVILEGE ACCESS • Cloud Console/CLI access • Identity secured & monitored sessions Admins Cloud Ops Third Parties Data Scientists Engineers Endpoint Browser Password Access Session Long Lived Systems Cloud Workloads Cloud Services SaaS Apps
Page 40
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing IT & Developer Access for Modern Environments IT Developer • Vault-less access • Brokered, monitored sessions JUST IN TIME ACCESS Admins Cloud Ops Third Parties Data Scientists Engineers Long Lived Systems Cloud Workloads Cloud Services SaaS Apps Endpoint Browser Password Access Session
Page 41
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing IT & Developer Access for Modern Environments IT Developer • System and break-glass access • Credential vaulting with multi-layered controls STANDINGACCESS Admins Cloud Ops Third Parties Data Scientists Engineers Long Lived Systems Cloud Workloads Cloud Services SaaS Apps Endpoint Browser Password Access Session
Page 42
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Zilla Security: Modern IGA Drives Customer Value Quick Time-to-Value Ease-of-Use Efficiency Deployments 5 Times Faster 1,000+ Built-in Integrations and Automation Up to 80% Less Effort Modern User Access Reviews with Pre-Approvals 60% Fewer Tickets Needed AI-Generated Entitlement Recommendations Comparison data is based on feedback from Zilla customers referencing their experience deploying traditional IGA systems.
Page 43
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved AI Infrastructure AI Agents Workloads IoT / OT NEW ERA Rise of the Machines Source: CyberArk 2025 State of Machine Identity Security Report 45x
Page 44
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Volume Variety Velocity Increased Risk & Complexity ! Why now? An Inflection Point in Machine Identity Security Key drivers increase risk and complexity
Page 45
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved VOLUME Exploding Quantity of Workloads & Machines 2 Source: https://www.statista.com/statistics/1183457/iot-connected-devices-worldwide/ 1 Source: https://www.cyberark.com/resources/videos/industry-insights-best-practices-for-machine-identity-mgmt-idc-session 6.8B Enterprise Container Instances by 20281 32.1B by 2030 2 Statista Estimates 20.1B IOT Connections Growing to Monolithic Virtual Machines Cloud-Native Microservices IoT / OT AI Agents
Page 46
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved VA R I E T Y Many Diverse Environments and Machine Identities 1 Source: 2024 IDC DevSecOps Survey2 Source: CyberArk 2024 Threat Landscape Report Many Different EnvironmentsMany Different Machine Identities 1 in 3Deploy 50% or more of their applications to the cloud1 84%Organizations will use three ormore CSPs2 Authenticated and secured with certificates, secrets, SSH keys, etc.
Page 47
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved VELOCITY Faster Response Needed Source: https://thehackernews.com/2024/06/google-to-block-entrust-certificates -in.html Source: https://www.chromium.org/Home/chromium-security/root-ca-policy/moving-forward-together/ Source: https://github.com/cabforum/servercert/pull/553 Source: https://venafi.com /blog/tick-tock-goes-the-quantum-clock-nist-s-new-timeline-for-post-quantum-encryption/ Certificate Lifespans Getting Shorter Increased Recurrence of Unplanned Events Post-quantum Readiness Requires Crypto Agility From now through 2030: Teams will begin to phase out existing encryption methods and must begin evaluating and testing new, quantum-resistant encryption. 398 Days → 90 days 398 Days → 45 days Google to Block Entrust Certificates in Chrome
Page 48
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Machine Identity Security: A Business Concern Increased Risk to the Business ! Unsecured Machine Identities Reputation and Business Risk Production Outages Inefficiency
Page 49
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved The incident demonstrates how the convergence of zero-day exploits, stolen machine identities and strategic timing during the holiday season can successfully lead to federal system compromise. Consequences of Stolen Machine Identities Source: https://www.cyberark.com/resources/blog/the-us-treasury-attack-key-events-and-security-implications The US Treasury Attack A single compromised API key transformed an initial foothold into a software system into a breach of Treasury Department infrastructure.
Page 50
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Workforce IT Developers AI Secured Persona Human Machines Workloads Devices Powered by CORA AI CyberArk Identity Security Platform Value Drivers Enable Business Resilience Satisfy Audit & Compliance Deliver Cyber Risk Reduction Increase Efficiency & Automation Secure every identity with the right level of privilege controls To deliver measurable customer outcomes Secrets Management | Certificate Management & PKI a Workload Identity Management | Agentic AI Secure Workforce | Secure IT | Secure Developers Solutions Driving Customer Value Solutions
Page 51
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Value Drivers Workforce IT Developers AI Secured Persona Human Machines Workloads Devices Enable Business Resilience Satisfy Audit & Compliance Deliver Cyber Risk Reduction Increase Efficiency & Automation Powered by CORA AI Solutions Address the New Paradigms Secure every identity with the right level of privilege controls CyberArk Identity Security Platform To deliver measurable customer outcomes
Page 52
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Powered by CORA AI™ CyberArk Identity Security Platform Endpoints Web Sessions SaaS Apps Infrastructure Cloud Entitlements Management Smart Provisioning Dynamic Access Rights (JIT and ZSP) Least Privilege at the Endpoint Workforce IT Developers AI Workloads Devices Contextual Discovery of Risk Discover Identities & Credentials | Risk Mapping Credential Management Vaulting &/or Management of Passwords, Certificates, Keys & Secrets Rotation Services Renewal and Issuance Services Synchronization Services Authentication Management Secure Single Sign On Credential Brokering and Session Initiation and Termination Passwordless and M2M Authentication Dynamic Workload Identity Issuance Session Management Session Isolation Session and Log Monitoring Session Recording In Session Detection and Response Privilege Controls
Page 53
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Powered by CORA AI™ CyberArk Identity Security Platform Endpoints Web Sessions SaaS Apps Infrastructure Cloud Automated Lifecycle Lifecycle Automated Policy Policy Entitlements Management Workforce IT Developers AI Workloads Devices Contextual Discovery of Risk Discover Identities & Credentials | Risk Mapping Credential Management Authentication Management Session Management Privilege Controls Governance & Compliance User Access Reviews | Provisioning | Audit Readiness | Reporting
Page 54
© 2024 CyberArk Software Ltd. All rights reserved Security-first innovation is in our DNA 2015: Detect and Prevent Kerberos Attacks 2011: Secure Cloud and Virtual Infrastructure 2003: Vault and Rotate Privileged Credentials 2009: Secure and Monitor Privileged Sessions 2012: Discover Unprotected Privileged Accounts 2013: Detect and Prevent Privileged Threats 2015: Privileged Attacks Research 2016: Secure Endpoint Credentials 2017: Secure DevOps Secrets 2017: Automate onboarding of credentials with AWS 2018: Admins and Privileged Business Users 2019: Zero Trust Remote Vendor Access SaaS Offering 2020: IDaaS platform for adaptive SSO and MFA 2022: JIT access 2023: ZSP access 2024: CORA AI & Venafi – Scale of AI and MIS 2025: Zilla Security INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 55
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved AI Identity Security Using AI to Secure Securing Against AI Threats Securing Agentic AI
Page 56
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved USING AI TO SECURE INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 57
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved SECURING AGAINST AI Dual Role of AI in Threats New Threat Techniques & Enhancing Existing Techniques INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 58
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved SECURING AGENTIC AI © 2025 CyberArk Software Ltd. All rights reserved Humans Self-Built Agents Agents-as-a-Service Agentic Frameworks/Platforms INVESTOR DAY 2025
Page 59
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved AI Agents Everywhere Microsoft’s new AI agent can control software and robots Unleashing an army of agents, ServiceNow graduates from system of engagement to system of agents IBM introduces new AI Integration Services to help enterprises build and scale AI agents How to start using AI agents to transform your business Marc Benioff says it’s ‘crazy talk’ that AI will hurt Salesforce, wants a billion AI agents in a year OpenAI rolls out its AI agent, Operator, in several countries Azure AI agent service now in public preview for developers in AI foundry SDK and portal
Page 60
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Securing AI Agents: An Identity Problem Credentials Compromise! Unbound Consumption ! Infrastructure Threats Workforce Threats AI Identity Threats Machine Identity Threats User AI Agent(s) Information Disclosure ! Prompt Injection! Session Hijacking! Cookie/Token Leak ! Excessive Permissions ! Credentials Compromise ! Data Poisoning ! Supply Chain! Embedding Weakness ! AI Agent Gone Bad! Cookie/Token Leak! Indirect Prompt Injection ! Database App
Page 61
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Powered by CORA AI™ CyberArk Identity Security Platform Endpoints Web Sessions SaaS Apps Infrastructure Cloud Automated Lifecycle Lifecycle Automated Policy Policy Entitlements Management Enforced, right sized permissions AI Contextual Discovery of Risk Discover Identities & Credentials | Risk Mapping Credential Management Manage associated keys, certificates and secrets Authentication Management Critical systems with strict access controls Session Management Monitored and protected Privilege Controls Governance & Compliance User Access Reviews | Provisioning | Audit Readiness | Reporting
Page 62
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved With CyberArk, the future of identity is secure.
Page 63
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved Precision Marketing
Page 64
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Experience-Led Try Advocate EngageConvert Realize Value Demand-Led Inbound & Outbound Qualification Close Account-Led Engage & Close Expand Target New Category Inbound Scale Opportunity Relationship Precision Self-Serve Dopamine Value The New Journey Is Multimodal
Page 65
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Leading Brand & Thought Leadership From chaos to consolidation of trust Propensity-Built Precision From intelligence-driven to action-ready account engagement Ecosystem Force Multipliers From IT-only focus to full ecosystem activation
Page 66
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Propensity-Built Precision From intelligence-driven to action-ready account engagement Ecosystem Force Multipliers From IT-only focus to full ecosystem activation From chaos to consolidation of trust Leading Brand & Thought Leadership From chaos to consolidation of trust Leading Brand & Thought Leadership Programmatic Execution Excellence Distinctive Brand Research-Based Thought Leadership Customer Video Series Category Leadership Inbound Mastery
Page 67
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved #1 BRAND The future of security is identity. With CyberArk, the future of identity is secure.
Page 68
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 69
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 70
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 71
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Thought Leadership Podcast Series Publications Video Series
Page 72
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Propensity-Built Precision From intelligence-driven to action-ready account engagement Ecosystem Force Multipliers From IT-only focus to full ecosystem activation From chaos to consolidation of trust Leading Brand & Thought Leadership From intelligence-driven to action-ready engagement Propensity-Built Precision Programmatic Execution Excellence ABX at Scale Elevated CxO Engagement Verticalized Campaigns Account 360° Orchestration IMPACT at Scale
Page 73
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2024 IMPACT & IMPACT WORLD TOUR 20 Cities 8,242 Attendees $270M+ Pipeline 1,800+ Opps
Page 74
Denver SeattleBay Area NYC Dubai Athens Madrid Wash DC Phoenix Peru Monterrey Stockholm Prague Kuala Sacramento Copenhagen Rome London Dusseldorf Brasilia Sao Paulo Warsaw Amsterdam Singapore Jakarta Chicago Mx City Long Beach Bangkok ANZ Toronto Paris Mumbai Tokyo Hong Kong Tier 1 Tier 2 BOSTON Global IMPACT 2025 INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 75
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2024 IMPACT & IMPACT WORLD TOUR 20 Cities 8,242 Attendees $270M+ Pipeline 1,800+ Opps IMPACT World Tour Dubai
Page 76
Consistent & Relentless End-to-End GTM Execution Seller DecksCustomer Case StudiesDemo VideosCampaigns Battlecards- - - - INVESTOR DAY 2025 Campaigns & Assets © 2025 CyberArk Software Ltd. All rights reserved Secured Persona Workforce IT Developers AI Human Machines Workloads Devices Powered by CORA AI CyberArk Identity Security Platform Secrets Management | Certificate Management & PKI a Workload Identity Management | Agentic AI Secure Workforce | Secure IT | Secure DevelopersSolutions
Page 77
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Ecosystem Force Multipliers From IT-only focus to full ecosystem activation Propensity-Built Precision From intelligence-driven to action-ready account engagement From chaos to consolidation of trust Leading Brand & Thought Leadership From IT-only focus to full ecosystem activation Ecosystem Force Multipliers Programmatic Execution Excellence Self-Serve Experience Partner-Led New Business Developer Community
Page 78
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 79
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Unlocked Growth & Velocity Leads Sales Accepted 2x 2x 69% New Logo Pipeline Channel Sourced New Logo $ Closed Marketing Sourced
Page 80
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 81
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved GTM at Scale
Page 82
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved CYBR Growth Algorithm SECURITY-FIRST DNA MASSIVE MARKET OPPORTUNITY GROUNDBREAKING PLATFORM DIFFERENTIATED SOLUTIONS GTM EXCELLENCE
Page 83
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Observations from Year One as COO Toronto Chicago Columbus New York City Mexico City Washington DC San Francisco Lisbon Barcelona Paris London Amsterdam Milan Warsaw Frankfurt Madrid Prague Geneva Singapore Tel Aviv Mumbai ZurichBoston
Page 84
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Workforce IT Developers AI Secured Persona Solutions Human Machines Workloads Devices Powered by CORA AI CyberArk Identity Security Platform Value Drivers Enable Business Resilience Satisfy Audit & Compliance Deliver Cyber Risk Reduction Increase Efficiency & Automation Secrets Management | Certificate Management & PKI a Workload Identity Management | Agentic AI Secure Workforce | Secure IT | Secure Developers Solutions Driving Customer Value Secure every identity with the right level of privilege controls To deliver measurable customer outcomes
Page 85
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Best-in-Class Solutions Driving ROI Better Security Apply controls in native workflows – with or without credentials 67% reduction in credential theft* 37% reduced risk of malware spread* Compliance Satisfy core audit and cyber insurance requirements 12% increase in compliance team productivity* Lower TCO Deploy with low/no required footprint and consolidate tools 309% average three-year ROI* Native User Experience Provide native US / CLI that engineers will love 35% increase in developer productivity* *IDC Research – The Business Value of CyberArk, 2024 Analysis of real-world CyberArk customer deployments
Page 86
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved A GTM Machine Built to Scale CARE $80B TAM 80,000+ Potential Customers $10B Existing Customer Opportunity ~10,000 Existing Customers
Page 87
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved A GTM Machine Built to Scale CARE $80B TAM 80,000+ Potential Customers $10B Existing Customer Opportunity ~10,000 Existing Customers Precise Selling Engine Trusted and Committed Ecosystem Proven Path to Adoption
Page 88
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Precise Selling Engine & the Paths to Land 80,000+ Potential Customers Data Informed Pursuits Verticalized Plays Multi-Threaded Orchestration GTM Multipliers WORKFORCE MACHINES Identity Security IT & DEVELOPER PLATFORM 45%+ Average ARR per New Logo (2021-2024) >1,000 New Logos per year MODERN IGA
Page 89
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Landing with the Core Business Developers • Comprehensive, Modern Identity Security Solution • Meets Current and Future Identity Security Requirements • Secure Scalability and Innovation Fortune 500 Telecommunications Company Platform • Increased Identity Security • Avoid Revenue Loss and Downtime • Meets Current and Future Identity Security Requirements • Trusted Partner with Industry Credibility
Page 90
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Landing with Machines & Modern IGA European City Transportation Gov’t Agency Machines, IoT Devices • Enhanced Security and Compliance • Operational Efficiency • Cost Savings • Secure Scalability Global Fintech Market Leader Modern IGA • Enhanced Security and Compliance • Accelerated Implementation • Automation and Efficiency Gains
Page 91
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Precise Selling Engine: Paths to Grow the Install Base $10B Existing Customer Opportunity Optimized Account Coverage Solutions & Platform Plays Elevate & Engage CIO/CISO Identity Security Strategies & Roadmaps 58% ARR CAGR for Customers in this cohort 2.4x # Customers with 3+ Products MORE Identities MORE Value DEEPER Strategic Relationships (2021-2024)
Page 92
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 10x ARR GROWTH Cross-sell solutions & expand identities coverage Fortune 250 Insurance Company EPM Cross-sell PAM Cross-sell Machine, Up-sell PAM & EPM
Page 93
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Large Global Airline PAM Cross-sell Machine & EPM Move to SaaS, up-sell to EPM Expand with modern IT use case 13x ARR GROWTH Platform enabling multiple use cases and solutions
Page 94
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Large US Healthcare Company ~$600k Move to SaaS, upsell EPM PAM Cross-sell Secrets, up-sell PAM Move to SaaS, add modern IT & Secrets use cases, cross-sell EPM 6x ARR GROWTH Deeper strategic relationship guiding growth
Page 95
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved A GTM Machine Built to Scale CARE $80B TAM 80,000+ Potential Customers $10B+ Existing Customer Opportunity ~10,000 Existing Customers Precise Selling Engine Trusted and Committed Ecosystem Proven Path to Adoption
Page 96
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Trusted & Committed Partner Ecosystem V ARs & Distributors Marketplaces MSPs C3 Alliance Global SIs & Advisories 215% YoY Growth in Partner Certifications 94% Total 2024 CYBR Bookings with Partner 53% CAGR ARR from MSPs (2021-2024)
Page 97
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved A GTM Machine Built to Scale CARE $80B TAM 80,000+ Potential Customers $10B+ Existing Customer Opportunity ~10,000 Existing Customers Precise Selling Engine Trusted and Committed Ecosystem Proven Path to Adoption
Page 98
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Proven Ability to Drive Adoption CARE Expertise Innovative Digital Success Prescriptive Outcomes 309% Average Three-Year ROI *IDC Research– The Business Value of CyberArk, 2024
Page 99
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Customer & Partner Panel James Kelly Global Head of Information Technology & Platform Support Builder.ai Richard Breaux Director, Information Technology Security Quanta Services Damon McDougald Global Cyber Protection Lead Accenture MODERATOR Eduarda Camacho Chief Operating Officer CyberArk
Page 100
© 2025 CyberArk Software Ltd. All rights reserved © 2025 CyberArk Software Ltd. All rights reserved Durable Financial Model
Page 101
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Reiterating Strong Guidance 23% to 24% Based on information available as of February 24, 2025, CyberArk is reiterating guidance for the first quarter and full year 2025 as indicated above. 1 as of December 31, 2025 2 includes the estimated impact of an approximately $70 million tax payment related to the intercompany migration of intellectual property 23% to 24% FULL YEAR 2025Q1 2025 Total Revenue Growth Year-over-Year Non-GAAP Operating Income Operating Margin Non-GAAP Diluted EPS Annual Recurring Revenue (ARR)1 Growth Year-over-Year Adjusted Free Cash Flow2 Adjusted Free Cash Flow Margin Weighted Average Diluted Shares $301 to $307 M 36% to 39% $42.5 to $47 .5 M 14% to 15% $0.74 to $0.81 51.3 M $1.308 to $1.318 B 31% to 32% $215 to $225 M 16% to 17% $3.55 to $3.70 51.5 M $1.41 to $1.42 B 21% $300 to $310 M 23% to 24%
Page 102
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Our Financial Targets Hitting INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 103
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2025 Targets @ 2023 Investor Day Excellence in Execution $1.1B+ Revenue Growth ARR 25%+ Gross Margin 80%-82% Operating Margin 15%+ Free Cash Flow ~$200M $1.1B+* 25%+ 84% 15%+ $221M 2024 Actuals *As of December 31, 2024 Operating margin and free cash flow are non -GAAP measures. GAAP to non-GAAP reconciliations for historical results can be found in the appendix of this presentation.
Page 104
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved We are in an elite group of software companies High Growth Rule of 40 Based on trailing twelve months ending the most recent fiscal quarter reported CyberArk data includes the contribution from the acquisition of Venafi Rule of 40 defined as year-over-year revenue growth and free cash flow margin
Page 105
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Delivering Strong Growth at Scale Total ARR, Subscription ARR, Total Revenue and Subscription Revenue includes Venafi contribution in Q4 2024 ARR and Subscription ARR amounts on this slide are as of December 31 of the respective year
Page 106
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved All Businesses Are Strong Contributors to Growth 2024 includes contribution from Venafi Subscription ARR amounts on this slide are as of December 31 of the respective year. Totals may not sum because of rounding. Subscription ARR –Workforce & Machines 2024 Subscription ARR
Page 107
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2024 Net New ARR, Net New Subscription ARR and Net New Maintenance ARR includes One Quarter (Q4 2024) Contribution from Venafi All ARR amounts on this slide are as of December 31 of the respective year. Totals may not sum because of rounding. Consistent Net New ARR Expansion
Page 108
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved We have not changed our DNA
Page 109
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Percentages on this slide denote expenses as a % of total revenue in the respective period Numbers on this slide are non-GAAP. For GAAP to non-GAAP reconciliations of historic figures, refer to the appendix of this presentation Driving Healthy Operating Leverage
Page 110
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved CYBR Growth Algorithm SECURITY-FIRST DNA MASSIVE MARKET OPPORTUNITY GROUNDBREAKING PLATFORM DIFFERENTIATED SOLUTIONS GTM EXCELLENCE
Page 111
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved >80K Global Prospects Extensive New Logo Opportunity ~10K CyberArk Customers
Page 112
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Solution selling increases land sizes INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved
Page 113
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Today $10 Billion $5 Billion @ 2023 Investor Day INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Massive Existing Customer TAM Opportunity
Page 114
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Customers are going broader across our platform INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Includes Venafi contribution in Q4 2024 Numbers on this slide are as of December 31 of the respective year
Page 115
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Driving Large Customer Cohort Growth Includes Venafi contribution in Q4 2024 Numbers on this slide are as of December 31 of the respective year
Page 116
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved ARR Growth Faster than Customer Growth Includes Venafi contribution in Q4 2024 Numbers on this slide are as of December 31 of the respective year
Page 117
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved More products drive ARR growth INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Numbers on this slide are based on average ARR per customer for the respective cohort. Data is as of December 31, 2024.
Page 118
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Solutions Provide Strong Visibility for CyberArk Numbers for 2022 and 2024 are as of December 31 of the respective year 2028 subscription ARR mix is indicative future breakdown.
Page 119
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved 2025 Guidance numbers refer to the mid-point of the guided range. ARR amounts are as of December 31 of the respective year *Reflects adjusted free cash flow numbers. Adjusted free cash flow is calculated as free cash flow plus one -time tax payment on the capital gain from the intercompany migration of intellectual property (IP) related to the Venafi acquisition. Margins on this slide reference non-GAAP margins. For GAAP to non-GAAP reconciliations of historic figures, please refer to the appendix of this presentation Long-Term Model 2023 2024 2025 Guidance 2028 Target ARR Revenue Gross Margin R&D Margin S&M Margin G&A Margin Operating Margin Free Cash Flow $0.8B $1.2B $1.4B ~$2.3B $0.8B $1.0B $1.3B $2.2B 83% 84% 80% - 82% 24% 21% 15% - 17% 46% 41% 35% - 37% 8% 8% 6% - 7% 4% 15% 17% 22% - 24% $51M $221M $305M* $600M
Page 120
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Capital Allocation Priorities Execute Disciplined Acquisition Strategy Invest in Organic Growth & Innovation Generate Healthy Free Cash Flow
Page 121
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved CYBR 2028 Positioned for Durable Growth ~$2.3B $600M in Free Cash Flow in ARR RULE OF 45 “Rule of” metric is defined as revenue growth plus free cash flow margin
Page 122
© 2025 CyberArk Software Ltd. All rights reserved FEBRUARY 24 BOSTON Thank You
Page 123
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Appendix
Page 124
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved How We Calculate ARR ARR is defined as the annualized value of active SaaS, self-hosted subscriptions and their associated maintenance & support services, and maintenance contracts related to the perpetual licenses in effect at the end of the reported period. ARR = !"# % &'( )*+,-./0 (2,34) Subscription portion of ARR is defined as the annualized value of active SaaS and self-hosted subscription contracts in effect at the end of the reported period. The subscription portion of ARR excludes maintenance contracts related to perpetual licenses.
Page 125
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved GAAP to Non-GAAP Reconciliation (In Thousands) 2021 2022 2023 2024 GAAP gross profit to Non -GAAP gross profit : Gross Profit $409,610 $465,664 $595,757 $792,365 Share-based compensation 11,158 15,060 17 ,612 21,724 Amortization of stock-based compensation capitalized in software development costs 242 346 393 328 Amortization of intangible assets 5,112 6,044 6,817 25,676 Impairment of capitalized software development costs -- -- 2,067 -- Non-GAAP gross profit $426,122 $487 ,114 $622,646 $840,093
Page 126
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved GAAP to Non-GAAP Reconciliation (In Thousands) 2021 2022 2023 2024 GAAP operating loss to Non-GAAP operating income (loss): Operating loss $(78,337) $(152,450) $(116,472) $(72,804) Share-based compensation 95,436 120,821 140,101 168,766 Amortization of stock-based compensation capitalized in software development costs 242 346 393 328 Amortization of intangible assets 5,810 6,655 7, 3 6 4 32,777 Acquisition related expenses -- 2,244 -- 21,800 Impairment of capitalized software development costs -- -- 2,067 -- Facility exit and transition costs 760 -- -- -- Non-GAAP operating income (loss) $23,911 $(22,384) $33,453 $150,867 GAAP net income (loss) to Non-GAAP net income (loss): Net income (loss) $(83,946) $(130,368) $(66,504) $(93,461) Share-based compensation 95,436 120,821 140,101 168,766 Amortization of stock-based compensation capitalized in software development costs 242 346 393 328 Amortization of intangible assets 5,810 6,655 7, 3 6 4 32,777 Acquisition related expenses -- 2,244 -- 21,800 Facility exit and transition costs 760 -- -- -- Amortization of debt discount and issuance costs 17 ,790 2,980 2,996 2,660 Change in fair value of derivative assets -- -- -- (4,618) Gain from investment in privately held companies -- (324) (2,757) -- Impairment of capitalized software development costs -- -- 2,067 -- Taxes on income related to Non-GAAP Adjustments and other tax adjustments (22,682) (20,189) (31,656) 19,297 Non-GAAP Net Income (Loss) $13,410 $(17 ,835) $52,004 $147 ,549
Page 127
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved GAAP to Non-GAAP Reconciliation (In Thousands) 2021 2022 2023 2024 GAAP research & development expenses to non-GAAP research & development expenses GAAP research & development expenses $142,121 $190,321 $211,445 $243,058 Share-based compensation (20,498) (27 ,102) (29,458) (34,953) Acquisition related expenses -- (1,207) -- -- Non-GAAP research & development expenses $121,623 $162,012 $181,987 $208,105 GAAP sales & marketing expenses to non-GAAP sales & marketing expenses GAAP sales & marketing expenses $274,401 $345,273 $405,983 $480,977 Share-based compensation (38,546) (51,099) (58,790) (67 ,924) Acquisition related expenses -- (20) -- -- Amortization of intangible assets (698) (611) (547) (7 ,101) Non-GAAP sales & marketing expenses $235,157 $293,543 $346,646 $405,952 GAAP general & administrative expenses to non-GAAP general & administrative expenses GAAP general & administrative expenses $71,425 $82,520 $94,801 $141,134 Share-based compensation (25,234) (27 ,560) (34,241) (44,165) Acquisition related expenses -- (1,017) -- (21,800) Facility exit and transition costs (760) -- -- -- Non-GAAP general & administrative expenses $45,431 $53,943 $60,560 $75,169
Page 128
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Reconciliation of GAAP Operating Cash Flow to Free Cash Flow (In Thousands) 2021 2022 2023 2024 Net cash provided by operating activities $74,740 $49,708 $56,204 $231,887 Purchase of Property and Equipment and Other Assets (8,928) (12,517) (4,948) (11,059) Free Cash Flow $65,812 $37 ,191 $51,256 $220,828
Page 129
INVESTOR DAY 2025© 2025 CyberArk Software Ltd. All rights reserved Guidance: Free Cash Flow and Adjusted Free Cash Flow ($ in millions) FY 2025 Guidance Range Low High Free cash flow $230.0 million $240.0 million Add: cash payment related to IP transfer(1) $70.0 million $70.0 million Adjusted free cash flow (non-GAAP) $300.0 million $310.0 million (1)One-time tax payment related to the capital gain associated with the intercompany migration of intellectual property related to the Venafi acquisition.