16 Best Mid Cap Growth Stocks To Buy Now

2. Cyberark Software Ltd. (NASDAQ:CYBR)

Market Capitalization as of September 13: $11.72 billion

Number of Hedge Fund Holders: 55

Cyberark Software Ltd. (NASDAQ:CYBR) is an information security company offering identity management. Its technology is utilized primarily in the financial services, energy, retail, healthcare, and government markets, to help organizations protect their most sensitive assets by managing and controlling access to privileged accounts.

The company remains resilient, benefiting from the rapid growth in machine identities. In Q2 2024, the revenue was $224.71 million, up 27.79% from the same quarter in the prior year, driven by its expanding cloud business and the increasing importance of Privileged Access Management (PAM). It also signed 245 new logos, and approximately half of these new logos landed with 2+ solutions.

Net new subscription ARR was $56 million. Subscription ARR of $677 million grew 50% year-over-year, while the total ARR of $868 million grew 33% year-over-year.

The recent proposed acquisition of Venafi is seen as a strategic move that strengthens its position in machine identity management. Venafi’s machine identity management solutions are complementary to Cyberark Software Ltd. (NASDAQ:CYBR) with no technology overlap.

It launched CORA AI and ITDR, enhancing its identity security platform with AI-driven threat detection and response capabilities. These innovations aim to streamline user interactions and improve security.

It reflects strong financial performance and a robust free cash flow margin. It is well-positioned for continued growth and success in the identity security market.

Next Century Growth Small Cap Strategy stated the following regarding CyberArk Software Ltd. (NASDAQ:CYBR) in its first quarter 2024 investor letter:

“CyberArk Software Ltd. (NASDAQ:CYBR) is a leading identity security platform which helps companies protect against cybersecurity attacks. CYBR specializes in privileged access management (PAM) and has a full suite of products for identity security. As cyber attack sophistication increases, companies of all sizes need to upgrade from legacy solutions such as SSO (single sign on) and MFA (multi-factor authentication), which is leading to a strong demand environment for CYBR’s solutions. Given this end market backdrop, the company is growing revenue >20% and is delivering solid margin expansion.”