Shares of CyberArk Software Ltd. jumped more than 12% today after the company posted quarterly results that topped both its guidance and the consensus analyst estimate.

CyberArk makes software that helps enterprises manage employee access to their applications. Using the company’s tools, an organization can provide single sign-on and multifactor authentication features for its workers. CyberArk’s software can also be used to process login requests from other users such as a supplier’s employees. 

The software maker’s other major focus is application secrets management. In software development, secrets are sensitive pieces of data such as encryption keys that help power an application’s security features. CyberArk offers a platform that companies can use to store encryption keys and related files. 

CyberArk’s revenue increased 24% year-over-year, to $175.8 million, in the second quarter ended June 30. The consensus analyst estimate forecasted $173.44 million. CyberArk also managed to top the high end of its own guidance by about $1 million.

“We had a great quarter, beating our guidance across all metrics, which demonstrates the momentum in our business and the durability of demand for our identity security platform,” said Chief Executive Officer Matt Cohen. “We had a strong new business quarter and existing customers expanded across our identity security platform.”

The company’s sales growth was driven by its core subscription software business. Like other enterprise software makers, CyberArk has spent the past few years shifting from selling licenses to a business model that emphasizes recurring revenue. That shift is now largely complete. 

The company’s subscription revenue surged 61% year-over-year in the second quarter, to $106.2 million. Revenue from perpetual licenses, meanwhile, declined by more than 50%. License deals generated $5.1 million in revenue for CyberArk during the second quarter. 

The company’s third major revenue source is its maintenance and professional services group. The group helps customers maintain their CyberArk software deployments and also provides cybersecurity advisory services. The unit’s revenues declined slightly, to $64.6 million, in the second quarter.

Thanks to the fast growth of its core subscription business, CyberArk generated an unexpected profit. The company ended the quarter with an adjusted net income of $1.3 million. That amounts to adjusted earnings of three cents per share, well ahead of the-12 cent loss analysts had anticipated.

For the full fiscal year, it’s forecasting revenue of $726 million to $736 million. Adjusted earnings per share, in turn, are projected to range between 16 and 38 cents per share. Both forecasts are in line with analyst expectations.

CyberArk also provides an ARR, or annualized recurring revenue, projection as part of its full-year guidance. The company raised its projection by $5 million in conjunction with the release of today’s earnings report. It’s now expecting ARR of $735 million to $745 million. 

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