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CAU302 CyberArk Defender + Sentry

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Test Number : CAU302
Test Name : CyberArk Defender + Sentry
Vendor Name : CyberArk
: 80 Dumps Questions

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CyberArk Defender Sentry book

three factors CyberArk is a much better growth stock than Palo Alto Networks | CAU302 Dumps and Real test Questions with VCE Practice Test

The surge in hacks and statistics breaches international has made the cybersecurity business a sizzling one for boom buyers. analysis enterprise Markets and Markets sees the cybersecurity market becoming from $122.5 billion in 2016 to $202.4 billion by 2021, and the Purefunds ISE Cyber safety ETF -- which owns a basket of precise cybersecurity stocks -- rallied greater than 30% during the last one year.

One frequently stated stock in that trade is Palo Alto Networks (NYSE:PANW), the next-gen firewall supplier that went public five years in the past and greater than tripled in cost. youngsters, increase buyers frequently fail to see certainly one of Palo Alto's greater compelling friends, CyberArk application (NASDAQ:CYBR), which leads the market in privileged account administration (PAM) solutions. listed here are three fundamental reasons that CyberArk is a far better increase play than Palo Alto.

A hacker types on a keyboard.

source: Getty.

1. CyberArk dominates a spot, Palo Alto would not

Cybersecurity businesses frequently combat to develop their moats huge enough to counter larger tech businesses, which bundle equivalent features into their own safety systems. This arguably makes area of interest gamers safer than agencies stuck in the crosshairs of Cisco (NASDAQ:CSCO) or Microsoft (NASDAQ:MSFT).

Palo Alto is being centered by way of both tech giants. Cisco presents a large range of subsequent-gen firewalls, which the company claims can discover threats within six hours -- versus the trade standard of 100 hours. Cisco is consistently the usage of acquisitions to beef up its cybersecurity enterprise, its fastest turning out to be unit, which generated $1.6 billion in revenues during the primary 9 months of 2017. That growth threatens Palo Alto, as a result of Cisco bundles its safety products with its market-main networking hardware.

A graphical depiction of a firewall with dozens of digital padlocks.

supply: Getty.

past this yr, Microsoft introduced that it would invest over $1 billion annually on cybersecurity R&D. Its new windows Defender ATP (advanced threat protection) device for windows 10, for instance, is powered by Microsoft's cloud-primarily based protection graph -- which gathers statistics from over one thousand million windows instruments global. As that device grows, it might in the reduction of the need for third-party options like Palo Alto's firewalls.

in the meantime, CyberArk leads the market in PAM options, which offer protection to privileged debts from inner threats like disgruntled personnel or company spies. This represents a a good deal smaller market than next-gen firewalls, but CyberArk does not face much competition during this area of interest -- which RnR Market research thinks will grow at a CAGR of very nearly 20% between 2016 and 2020. That dominance is mirrored in CyberArk's PAM partnerships with tech giants like Hewlett-Packard commercial enterprise and IBM -- which point out that it's probably smarter to work with CyberArk than compete towards it.

2. CyberArk isn't crippled with the aid of SBC prices

Palo Alto is based mostly in Silicon Valley, a job market it really is widespread for extravagant salaries and inventory bonuses. closing quarter, Palo Alto's inventory-based compensation (SBC) costs rose 7% annually to $a hundred and twenty.6 million, which gobbled up a whopping 28% of its revenue.

CyberArk is based mostly in Petah Tikva, Israel. Cybersecurity is a big growth industry in Israel, seeing that many contributors of the IDF's cybersecurity unit be part of cybersecurity corporations. but it's additionally a market which doesn't demand big inventory bonuses. it truly is why CyberArk spent simply $5.2 million, or 9% of its revenues, on SBC prices closing quarter.

3. CyberArk is ecocnomic, Palo Alto isn't

Palo Alto's liberal use of stock bonuses has saved it unprofitable on a GAAP foundation. The company emphasizes the increase of its non-GAAP gains, which exclude that big rate, but the company cannot be considered "definitely" ecocnomic. last quarter, Palo Alto's non-GAAP internet salary rose 35% annually to $57.1 million, but its GAAP net loss simplest narrowed a bit from $sixty four.1 million to $60.9 million.

meanwhile, CyberArk's more conservative use of stock bonuses permits it to submit constant profits by using each non-GAAP and GAAP measures. Its non-GAAP net salary rose 23% to $10.2 million remaining quarter, and its GAAP net revenue rose 74% to $7.5 million.

searching forward, Wall road sees Palo Alto's revenue and non-GAAP salary respectively rising 26% and 55% this yr. CyberArk's income is expected to grow 25% this year, however its non-GAAP revenue are expected to dip four% as a result of its fresh acquisition of DevOps security enterprise Conjur and higher fees related to R&D and the expansion of its sales group. on the other hand, CyberArk will likely stay profitable on a GAAP basis.

the important thing takeaways

Palo Alto is never a bad growth inventory, but if you're looking for only one high-growth cybersecurity play, CyberArk is a much better purchase. CyberArk's defensible niche, in charge use of inventory bonuses, and rock-solid profitability should make it a safer growth play than Palo Alto for the foreseeable future.


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