CyberArk Software CYBR reported third-quarter 2020 non-GAAP earnings of 31 cents per share that exceeded the Zacks Consensus Estimate by 6.9%. The bottom line, however, declined 52.3% year over year.CyberArk’s revenues fell 1.4% year over year to $106.6 million and missed the consensus mark by 5.7%. Markedly, 59% of quarterly revenues were recurring in nature, which grew 40% year over year to $63 million.Annual Recurring Revenues increased 40% year over year to $250 million.Quarter DetailsSegment-wise, License revenues (42.9% of total revenues) decreased 20.9% year over year to $45.8 million. On a combined basis, SaaS and subscription revenues increased roughly 200% year over year and accounted for 28% of total license revenues.CyberArk Software Ltd. Price, Consensus and EPS Surprise CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. QuoteMaintenance and Professional Services (57.1%) revenues increased 21% year over year to $60.8 million. Within the segment, professional services revenues came in at $9.9 million, representing 9% of total revenues.The company witnessed strong year-over-year growth in financials, healthcare, telecom, pharma and the IT services software vertical.CyberArk’s non-GAAP gross profit was $89.5 million, marking year-over-year decline of 4.8%. Moreover, gross margin contracted 300 basis points (bps) to 83.9% on unfavorable revenue mix (higher SaaS revenues) and increased cloud infrastructure cost related to SaaS business.Operating expenses increased 20.8% year over year to $94.7 million. As a percentage of revenues, operating expenses were 88.8% compared with 72.5% reported in the year-ago quarter.The company reported non-GAAP operating income of $13.1 million, down 55.4% year over year. Non-GAAP operating margin declined from 27.2% reported in the year-ago quarter to 12.3% in the reported quarter.Balance SheetAs of Sep 30, 2020, CyberArk had $1.1 billion in cash, cash equivalents, marketable securities and short-term deposits.Total deferred revenues were $227.6 million, up 28% year over year.Key DevelopmentsDuring the reported quarter, the company introduced CyberArk Cloud Entitlements Manager, an AI-powered service, to remove excessive cloud permissions.Moreover, the company’s solutions are now available on Microsoft’s MSFT cloud platform Azure. Further, CyberArk achieved AWS Digital Workplace Competency Status and AWS Outposts Ready designation.GuidanceFor the fourth quarter of 2020, CyberArk estimates revenues of $125-$135 million.Non-GAAP operating income is expected in the band of $25-$33 million. The company projects non-GAAP earnings in the 52-67 cents per share range.Zacks Rank and Key PicksCurrently, CyberArk carries a Zacks Rank #3 (Hold).A couple of better-ranked stocks in the broader technology sector are NVIDIA NVDA and Himax Technologies HIMX. Both carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Himax and NVIDIA are set to report quarterly earnings on Nov 12 and 18, respectively.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Himax Technologies, Inc. (HIMX): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research