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NEWSLETTER 65
February 17, 2015
THE FOCUSED STOCK TRADER
www.thefocusedstocktrader.com
Cyber-Ark Software Ltd.
02/13/2015 Closing Price: $52.52 2013 Sales (mn): $66.157 NASDAQ: CYBR 10/2/2014 Market Cap: 1.55B 2013 EPS: $0.25 Company Overview NASDAQ: CYBR 10/2/2014 Market Cap (mn): $848.65 2013 EPS: $0.25 Cyber-Ark Software Ltd is a leader and pioneer of a new layer of IT security solutions. Cyber- Arks
security solution protects organizations from cyber
attacks that are already inside the organizations IT network perimeter. Cyber-Arks software solution is focused on protecting privileged accounts. Privileged accounts act as the keys to the IT kingdom, providing complete access to, and control of, all parts of IT infrastructure, industrial control systems and critical business data. In the hands of an external attacker or malicious insider, privileged accounts allow attackers to take control of and disrupt an organizations IT and industrial control infrastructures, steal confidential information and commit financial fraud. Cyber-Arks solution proactively protects privileged accounts, monitors privileged activity and detects malicious privileged behavior providing an additional layer of protection against cyber attacks. Organizations worldwide are experiencing an unprecedented increase in the sophistication, scale and frequency of cyber attacks. The challenge presented is intensified by the growing adoption of new technologies, such as cloud computing, virtualization, software-defined networking, enterprise mobility and social networking, resulting in increasingly complex and distributed IT environments with significantly larger attack surfaces. Organizations have historically relied upon perimeter-based threat protection solutions such as network, web and endpoint security tools as the predominant defense against cyber attacks. These traditional solutions have a limited ability to stop todays advanced threats. As a result, an estimated 90% of organizations have suffered a cyber security
breach according to a 2011 survey of approximately
580 U.S. IT practitioners by the Ponemon Institute, a research center focused on privacy, data protection and information security policy. Organizations are just beginning to adapt their security strategies to address the new threat environment and are evolving their approaches based on the assumption that their network perimeter has been or will be breached. They are therefore increasingly implementing new layers of security inside the network to disrupt attacks before they result in the theft of confidential information or other serious damage. Regulators are also continuing to mandate rigorous new compliance standards and audit requirements in response to this evolving threat landscape. Implementation of a privileged account security solution is one of the most critical layers of an effective security strategy. Privileged accounts represent one of the most vulnerable aspects of an organizations IT infrastructure. Privileged accounts are used by system administrators, third party and cloud service providers, applications and business users, and they exist in nearly every connected device, server, hypervisor, operating system, database, application and industrial control system. Due to the broad access and control they provide, exploiting privileged accounts has become a critical stage of the cyber attack lifecycle. The typical cyber attack involves attackers affecting an initial breach, escalating privileges to access target systems, moving laterally through the IT infrastructure to identify valuable targets, and infiltrating, or stealing, the desired
information. According to Mandiant, credentials of
authorized users were hijacked in 100% of the breaches that Mandiant investigated, and privileged accounts were targeted whenever possible. As of June 30, 2014, Cyber-Ark had over 1,550 customers, including over 35% of the Fortune 100 and approximately 15% of the Global 2000. The companys customers include leading enterprises in a diverse set of industries, including energy and utilities, financial services, healthcare, manufacturing, retail, technology and telecommunications, as well as government agencies. Cyber-Ark has grown rapidly in recent years. During 2011, 2012 and 2013, the companys revenues were $36.4 million, $47.2 million and $66.2 million, respectively, representing year- over-year growth of 29.8% and 40.1%, in 2012 and 2013, respectively. The companys net income for 2011, 2012 and 2013 was $5.9 million, $7.9 million and $6.6 million, respectively. Market Opportunity Gartner estimates by 2020, 60% of enterprise information security budgets will be allocated to rapid detection and response approaches, up from less than 10% in 2014. Recognizing that traditional perimeter-based threat protection solutions are not sufficient to protect against todays advanced cyber threats, enterprises are investing in security solutions within the datacenter to protect the inside of their networks. According to a 2012 report by
International Data Corporation (IDC), worldwide
spending on datacenter security solutions was $10.7 billion in 2011 and should grow to $16.5 billion by 2016, representing a compound annual growth rate of 9.3%. According to the same report, worldwide spending for IT security solutions was $28.4 billion in 2011 and should grow to $40.8 billion in 2016, representing a compound annual growth rate of 7.6%. Privileged account security is a new, critical layer of security benefitting from this transition. Privileged accounts represent one of the most vulnerable aspects of an organizations IT infrastructure and exist in nearly every connected device, server, hypervisor, operating system, database, application and industrial control system throughout on-premise and cloud-based datacenters. As a result, an increasing portion of the IT security budget, and specifically datacenter security spend, will be allocated for privileged account security solutions. Conclusion Cyber-Ark is growing at a fantastic pace protecting one of the most vulnerable positions in a networks IT infrastructure. TFSTs PT is $75.00