Shares in CyberArk Software Ltd. closed regular trading up more than 8% today after the information security company topped estimates in its second quarter and revised its outlook for the year ahead.

For the quarter ended June 30, CyberArk reported adjusted earnings per share of 54 cents, up from three cents per share in the same quarter of last year, on revenue of $224.7 million, up 28% year-over-year. Both were beats, as analysts were expecting more modest figures of 40 cents per share on revenue of $219.07 million.

CyberArk’s strong quarter was driven by subscription revenue, which rose 49% year-over-year, to $158.4 million. Maintenance and professional services revenue came in at $62.7 million, down from $64.6 million in the same quarter of last year and perpetual license revenue dropped to $3.6 million from $5.1 million the year prior.

The company hit annual recurring revenue of $868 million as of the end of the quarter, up 33% year-over-year, while the subscription portion of annual recurring revenue jumped 78%, to $677 million.

Business highlights in the quarter included CyberArk announcing on May 20 that it’s acquiring cybersecurity software maker Venafi Inc. from Thoma Bravo for $1.54 billion. Among the various benefits of the deal, CyberArk believes that the acquisition will add about $150 million in annual recurring revenue and open new opportunities to sell its products to Venafi’s customers.

At its annual IMPACT 24 conference in May, CyberArk also announced a number of enhancements to its Identity Security Platform. They included Identity Threat Detection and Response, a service that allows organizations to apply the right level of privilege controls to every identity while providing a consistent customer experience for CyberArk administrators and users.

“We had a strong quarter, posting record revenue and increasing our profitability, resulting in CyberArk again outperforming our guidance across all metrics,” Chief Executive Matt Cohen said in the company’s earning release. “Given the mission-critical nature of identity security and durable demand for our platform, we are confidently raising our guidance for the full year 2024.”

CyberArk’s revised guidance sees the company forecast third-quarter revenue of $230 million to $236 million and full-year revenue of $932 million to $942 million. Analysts had been expecting a full-year outlook of $936 million.

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