CyberArk Software Ltd. (NASDAQ: CYBR) saw its stock surge 8.73% on Thursday, following the company's impressive fourth quarter 2024 performance and strategic acquisition of Zilla Security. The strong rally in CyberArk's shares reflects investor optimism about the growing demand for its identity security solutions and the company's strategic execution.

During the pre-market trading session on Thursday, CyberArk reported Q4 non-GAAP earnings per share (EPS) of $0.80, surpassing analyst estimates of $0.72. The company's revenue for the quarter reached $314.4 million, exceeding the consensus forecast of $301.3 million. This stellar performance was driven by robust demand for CyberArk's identity security solutions, which provide comprehensive protection and management for both human and machine identities in modern enterprises.

In a significant strategic move, CyberArk announced the acquisition of Zilla Security, a leading provider of modern Identity Governance and Administration (IGA) solutions. The acquisition of Zilla's innovative, AI-powered IGA capabilities will expand CyberArk's industry-leading Identity Security Platform with scalable automation that enables accelerated identity compliance and provisioning across digital environments. This acquisition further advances CyberArk's strategy to deliver the industry's most powerful, comprehensive identity security platform to secure every identity with the right level of privilege controls.

Looking ahead, CyberArk's guidance for 2025 fueled investor optimism. The company expects full-year EPS to range between $3.55 and $3.70, aligning closely with analyst expectations of $3.62. Moreover, CyberArk projects revenue of $1.31 billion to $1.32 billion for 2025, outpacing the consensus estimate of $1.3 billion. This upbeat outlook reflects CyberArk's strong market position, the growing demand for its AI-powered Identity Security Platform, and the strategic benefits from the Zilla acquisition.