CyberArk Software CYBR reported first-quarter 2021 non-GAAP earnings of 9 cents per share that exceeded the Zacks Consensus Estimate of 3 cents. The bottom line, however, tanked 82% year over year.CyberArk’s revenues grew 5.6% year over year to $112.8 million and topped the consensus mark of $109.6 million as well. Markedly, 68% of quarterly revenues were recurring in nature, which jumped 41% year over year to $76 million.Annual Recurring Revenues climbed 41% year over year to $288 million, as of Mar 31, 2021.Notably, CyberArk’s subscription transition is in force with strong momentum, with a rapidly growing base of recurring revenues.SaaS and subscription bookings created additional headwinds of about $11 million for the first quarter. However, strong demand for the company’s solutions more than offset this and drove top-line growth.CyberArk Software Ltd. Price, Consensus and EPS Surprise CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. QuoteQuarter DetailsSegment wise, Subscription revenues surged 180% to $25 million and represented 22% of the total revenues. Sales from Perpetual License (24% of total revenues) plunged 39% to $27 million mainly due to the company’s strategic move of shifting sales motion toward a recurring subscription business model. The company’s Maintenance and Professional Services (54% of total revenues) revenues increased 13% to $61 million.Solid demand across PAM including on-premise and cloud, Endpoint Privilege Manager and Application Access Manager was a major growth driver.Growth in existing customers to an all-time high was also a tailwind. Moreover, a steady increase in new business was reflected in the signing of new logos across all industries. The new business pipeline is also encouraging.CyberArk’s non-GAAP gross profit came in at $95.6 million, marking a year-over-year increase of 3.3%. Yet, gross margin contracted 200 basis points (bps) to 85% on unfavorable subscription bookings mix and increased cloud infrastructure costs related to the SaaS business.Operating expenses flared up 27% year over year to $90.1 million. This inflation resulted from the 39% year-on-year rise in R&D expenses, 20% in S&M, 37% in G&A expenses, along with $2.1 million additional expenses related to the integration of Idaptive operations.The company reported non-GAAP operating income of $5.5 million, significantly down 74.7% year over year. As a result, non-GAAP operating margin shrunk to 4.8% from the year-ago quarter’s 20.2%.Balance SheetAs of Mar 31, 2021, CyberArk had $978 million in cash, cash equivalents, marketable securities and short-term deposits compared with the $953 million reported in the previous quarter.Total deferred revenues were $176 million, up 23% year over year.GuidanceFor the second quarter of 2021, CyberArk estimates revenues of $111-$119 million.Non-GAAP operating income is predicted between a loss of $3.5 million and an income of $2.5 million. The company projects the bottom line between a non-GAAP loss of 11 cents and a non-GAAP earnings of 6 cents per share.Approximately 55% of new license bookings are expected to come from subscription, resulting in a revenue headwind of about $9 million for the second quarter.For 2021, CyberArk projects revenues between $484 million and $496 million. Revenues from SaaS and subscription are expected to constitute 57% of license bookings, leading to a revenue headwind of $45 million.The company lowered its non-GAAP earnings per share guided range to 39-64 cents from the earlier projection of 45-64 cents.Zacks Rank and Stocks to ConsiderCyberArk currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the broader technology sector include Lam Research Corporation LRCX, ASML Holding N.V. ASML and NVIDIA NVDA. While Lam Research and ASML Holding sport a Zacks Rank #1, NVIDIA carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The long-term earnings growth rate for Lam Research, ASML Holding, and NVIDIA is currently pegged at 32.8%, 29.8% and 15.1%, respectively.Zacks Top 10 Stocks for 2021In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2021 today >>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 NVIDIA Corporation (NVDA): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research