Fourth quarter total revenue of $36.3 million
increases 81% year-over-year
Full Year 2014 total revenue of $103.0 million
increases 56% year-over-year
CyberArk, (NASDAQ: CYBR), the company that protects
organizations from cyber attacks that have made their way inside
the network perimeter, today announced financial results for the
fourth quarter and full year ended December 31, 2014.
Udi Mokady, CyberArk CEO, said, “We are very pleased with our
strong fourth quarter and full year results. It has become
increasingly clear that privileged account security is the critical
new layer of protection for organizations. Our results this quarter
and in all of 2014 reinforce that we are seeing returns on our
investments in product development and sales and marketing and
successfully addressing the significant opportunity in front of us.
We are very well positioned in the market, and in 2015 we will
continue our focus on innovation, scale and execution to drive
growth and further extend our leadership position.”
Financial Highlights for the Fourth Quarter Ended December
31, 2014
Revenue:
- Total revenue was $36.3 million, up 81%
year-over-year compared with the fourth quarter of 2013.
- License revenue was $24.4 million, up
95% compared with the fourth quarter of 2013.
- Maintenance and Professional Services
revenue was $11.9 million, up 57% year-over-year.
Operating Income:
- GAAP operating income was $9.5 million
for the quarter, an increase compared to $2.7 million in the fourth
quarter of 2013.
- Non-GAAP operating income was $10.0
million for the quarter, an increase compared to $2.8 million in
the fourth quarter of 2013.
Net Income:
- GAAP net income was $6.7 million, an
increase compared to GAAP net income of $1.4 million in the fourth
quarter of 2013.
- GAAP net income per share was $0.19,
compared to $0.01 in the fourth quarter of 2013, based on 34.7 and
10.4 million weighted average diluted shares, respectively.
- Non-GAAP net income was $7.2 million,
an increase compared to $2.2 million in the fourth quarter of
2013.
- Non-GAAP net income per share was
$0.21, compared to $0.08 in the fourth quarter of 2013, based on
34.7 million and 27.0 million weighted average diluted shares,
respectively.
Financial Highlights for the Full Year Ended December 31,
2014
Revenue:
- Total revenue was $103.0 million, up
56% compared with 2013.
- License revenue was $61.3 million, up
58% compared with 2013.
- Maintenance and Professional Services
revenue was $41.7 million, up 53% year-over-year.
Operating Income:
- GAAP operating income was $20.5
million, an increase compared to $9.1 million in 2013.
- Non-GAAP operating income was $22.0
million, an increase compared to $9.5 million in 2013.
Net Income:
- GAAP net income was $10.0 million, an
increase compared to GAAP net income of $6.6 million 2013.
- GAAP net income per share was $0.34,
compared to $0.14 in 2013, based on 29.7 million and 10.8 million
weighted average diluted shares, respectively.
- Non-GAAP net income was $15.8 million,
an increase compared to $8.5 million in 2013.
- Non-GAAP net income per share was
$0.53, compared to $0.31 in 2013, based on 29.7 million and 27.3
million weighted average diluted shares, respectively.
The tables at the end of this press release include a
reconciliation of GAAP to non-GAAP operating income and net income
for the three and twelve months ended December 31, 2014 and 2013.
An explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow:
- As of December 31, 2014, CyberArk had
$177.2 million in cash and cash equivalents and short-term deposits
compared with $65.4 million as of December 31, 2013.
- During 2014, the Company generated
$23.8 million in cash flow from operations, an increase compared to
$20.2 million during in 2013.
Business Outlook
Based on information available as of February 12, 2015, CyberArk
is issuing guidance for the first quarter and full year 2015 as
indicated below.
First Quarter 2015:
- Total revenue is expected to be in the
range of $25.5 million to $26.5 million.
- Non-GAAP operating income is expected
to be in the range of $1.6 million to $2.5 million.
- Non-GAAP net income per share is
expected to be in the range of $0.04 to $0.06. This assumes 34.7
million weighted average diluted shares.
Full Year 2015:
- Total revenue is expected to be in the
range of $127.0 million to $130.0 million which represents 23% to
26% year-over-year growth.
- Non-GAAP operating income is expected
to be in the range of $11.0 million to $12.5 million.
- Non-GAAP net income per share is
expected to be in the range of $0.24 to $0.27. This assumes 35.1
million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on Thursday, February 12,
2015 at 5:00 p.m. Eastern Time (ET) to discuss the company’s fourth
quarter and full year financial results and business outlook. To
access this call, dial 888-437-9445 (domestic) or 719-457-2689
(international). The conference ID is 1256897. Additionally, a live
webcast of the conference call will be available in the “Investor
Relations” section of the Company’s web site at www.cyberark.com.
Following the conference call, a replay will be available for one
week at 877-870-5176 (U.S.) or 858-384-5517 (international). The
replay pass code is 1256897. An archived webcast of this conference
call will also be available in the “Investor Relations” section of
the Company’s web site at www.cyberark.com.
About CyberArk
CyberArk (NASDAQ: CYBR) is the only security company focused on
eliminating the most advanced cyber threats; those that use insider
privileges to attack the heart of the enterprise. Dedicated to
stopping attacks before they stop business, CyberArk proactively
secures against cyber threats before attacks can escalate and do
irreparable damage. The company is trusted by the world’s leading
companies – including 40 percent of the Fortune 100 and 17 of the
world’s top 20 banks – to protect their highest value information
assets, infrastructure and applications. A global company, CyberArk
is headquartered in Petach Tikvah, Israel, with U.S. headquarters
located in Newton, MA. The company also has offices throughout EMEA
and Asia-Pacific. To learn more about CyberArk, visit
www.cyberark.com.
Copyright © 2015 CyberArk Software. All Rights Reserved. All
other brand names, product names, or trademarks belong to their
respective holders.
Non-GAAP Financial Measures
CyberArk believes that the use of non-GAAP operating income and
non-GAAP net income is helpful to our investors. These financial
measures are not measures of the Company’s financial performance
under U.S. GAAP and should not be considered as alternatives to
operating income or net income or any other performance measures
derived in accordance with GAAP.
- For the three and twelve months ended
December 31, 2014 and 2013, non-GAAP operating income is calculated
as operating income excluding stock-based compensation
expense.
- For the three months ended December 31,
2014, non-GAAP net income is calculated as net income excluding
stock-based compensation expense and for the three months ended
December 31, 2013, non-GAAP net income is calculated as net income
excluding (i) stock-based compensation expense and (ii) financial
expenses resulting from the revaluation of warrants to purchase
preferred shares.
- For the twelve months ended December
31, 2014 and 2013, non-GAAP net income is calculated as net income
excluding (i) stock-based compensation expense and (ii) financial
expenses resulting from the revaluation of warrants to purchase
preferred shares.
Because of varying available valuation methodologies, subjective
assumptions and the variety of equity instruments that can impact a
company’s non-cash expense, the Company believes that providing
non-GAAP financial measures that exclude stock-based compensation
expense allows for more meaningful comparisons of its period to
period operating results. Stock-based compensation expense has
been, and will continue to be for the foreseeable future, a
significant recurring expense in the Company’s business and an
important part of the compensation provided to its employees. In
addition, the Company believes that excluding financial expenses
with respect to revaluation of warrants to purchase preferred
shares allows for more meaningful comparison between its net income
from period to period, especially since upon the closing of the
IPO, the warrants were exercised for ordinary shares, and as a
result, are no longer evaluated at each balance sheet date. Each of
these financial measures is an important tool for financial and
operational decision-making and for evaluating the Company’s own
operating results over different periods of time.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in the
Company’s industry, as other companies in the industry may
calculate non-GAAP financial results differently, particularly
related to non-recurring, unusual items. In addition, there are
limitations in using non-GAAP financial measures as they exclude
expenses that may have a material impact on the Company’s reported
financial results. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with U.S. GAAP. CyberArk urges investors to review
the reconciliation of its non-GAAP financial measures to the
comparable U.S. GAAP financial measures included below, and not to
rely on any single financial measures to evaluate its business.
Cautionary Language Concerning Forward-Looking
Statements
This release may contain forward-looking statements, which
express the current beliefs and expectations of CyberArk’s
management. Such statements involve a number of known and unknown
risks and uncertainties that could cause the Company’s future
results, performance or achievements to differ significantly from
the results, performance or achievements expressed or implied by
such forward-looking statements. Important factors that could cause
or contribute to such differences include risks relating to:
changes in the new and rapidly evolving cyber threat landscape;
failure to effectively manage growth; fluctuations in quarterly
results of operations; real or perceived shortcomings, defects or
vulnerabilities in the Company’s solution or the failure of the
solution to meet customers’ needs; the inability to acquire new
customers or sell additional products and services to existing
customers; competition from IT security vendors and other factors
discussed under the heading “Risk Factors” in the final prospectus
for the Company’s initial public offering filed with the Securities
and Exchange Commission on September 24, 2014. Forward-looking
statements in this release are made pursuant to the safe harbor
provisions contained in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are made only as of
the date hereof, and the Company undertakes no obligation to update
or revise the forward-looking statements, whether as a result of
new information, future events or otherwise.
CYBERARK
SOFTWARE LTD. Consolidated Statements of Operations
U.S. dollars in thousands (except per
share data)
Three Months Ended Year Ended Dec 31,
Dec 31, 2013 2014
2013 2014 (unaudited)
Revenues: License $ 12,518 $ 24,451 $ 38,907 $ 61,320 Maintenance
and professional services 7,534 11,854 27,250 41,679
Total revenues 20,052 36,305 66,157 102,999
Cost of revenues: License 481 831 1,216 2,654 Maintenance and
professional services 2,074 3,681 7,860 12,053
Total cost of revenues 2,555 4,512 9,076 14,707
Gross profit 17,497 31,793 57,081 88,292
Operating expenses: Research and
development 2,850 4,163 10,404 14,400 Sales and marketing 10,407
14,788 32,840 44,943 General and administrative 1,582 3,336 4,758
8,495 Total operating expenses 14,839
22,287 48,002 67,838 Operating income
2,658 9,506 9,079 20,454 Financial expenses, net (501
) (555 ) (1,124 ) (5,988 ) Income
before taxes on income 2,157 8,951 7,955 14,466 Taxes on
income (761 ) (2,291 ) (1,320 ) (4,512
) Net income $ 1,396 $ 6,660 $ 6,635 $
9,954 Basic net income per ordinary share $
0.02 $ 0.22 $ 0.25 $ 0.46 Diluted net
income per ordinary share $ 0.01 $ 0.19 $ 0.14
$ 0.34 Shares used in computing net income per
ordinary shares, basic 6,958,713 30,466,847
6,900,433 13,335,059 Shares used
in computing net income per ordinary shares, diluted
10,436,373 34,673,940 10,765,914
29,704,730
Share-based
Compensation Expense: Three Months Ended Year
Ended Dec 31, Dec 31, 2013
2014 2013
2014 (unaudited) Cost of revenues $ 14 $ 69 $
39 $ 137 Research and development 26 73 73 172 Sales and marketing
(15 ) 197 126 347 General and administrative 92
208 165 917 Total
share-based compensation expense $ 117 $ 547 $ 403
$ 1,573
CYBERARK SOFTWARE LTD.
Consolidated Balance Sheets
U.S. dollars in thousands
Dec 31, Dec 31, 2013 2014
ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 62,379 $ 124,184 Short-term bank deposits 2,989
52,997 Trade receivables 12,728 19,263 Prepaid expenses and other
current assets 2,083 2,078 Short-term deferred tax asset
2,647 3,788 Total current assets 82,826
202,310 LONG-TERM ASSETS: Property and
equipment, net 1,272 2,148 Severance pay fund 3,071 3,060 Prepaid
expenses and other long-term assets 1,012 1,021 Long-term deferred
tax asset 1,451 2,013 Total long-term
assets 6,806 8,242
TOTAL ASSETS
$ 89,632 $ 210,552
LIABILITIES AND SHAREHOLDERS'
EQUITY CURRENT LIABILITIES: Trade payables $ 1,766 $
1,835 Employees and payroll accruals 6,821 10,322 Deferred revenues
18,175 22,594 Accrued expenses and other current liabilities
4,517 6,942 Total current liabilities
31,279 41,693 LONG-TERM LIABILITIES: Deferred
revenues 6,303 9,566 Other long-term liabilities - 184 Accrued
severance pay 4,070 4,101 Warrants to purchase preferred shares
2,134 - Total long-term liabilities
12,507 13,851 SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value 17 79 Preferred shares of NIS
0.01 par value 41 - Additional paid-in capital 34,811 134,486
Accumulated other comprehensive income (Loss) 155 (333 ) Retained
earnings 10,822 20,776 Total
shareholders' equity 45,846 155,008
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 89,632 $
210,552
CYBERARK SOFTWARE LTD.
Consolidated Statements of Cash
Flows
U.S. dollars in thousands
Year Ended Dec 31, 2013
2014 Cash flows from operating
activities: Net income $ 6,635 $ 9,954 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
475 746 Share based compensation expenses 403 1,573 Tax benefit
related to exercise of share options - 645 Deferred income taxes,
net (769 ) 45 Increase in trade receivables (3,257 ) (6,535 )
Increase in prepaid expenses and other current and long-term assets
(920 ) (159 ) Increase (decrease) in trade payables 651 (145 )
Changes in fair value of warrants to purchase preferred shares
1,446 4,309 Increase in short term and long term deferred revenues
9,410 7,682 Increase in employees and payroll accruals 2,651 3,501
Increase in accrued expenses and other current and long-term
liabilities 3,191 2,182 Increase in accrued severance pay, net
243 42 Net cash provided by
operating activities 20,159 23,840
Cash flows from investing activities: Proceeds from short
and long term deposits 8,735 2,533 Investment in short and long
term deposits (8,809 ) (52,570 ) Purchase of property and equipment
(752 ) (1,408 ) Net cash used in investing
activities (826 ) (51,445 ) Cash flows from
financing activities: Issuance of shares, net - 88,468 Proceeds
from exercise of options and warrants 159 942
Net cash provided by financing activities 159
89,410 Increase in cash and cash
equivalents 19,492 61,805 Cash and cash equivalents at the
beginning of the period 42,887 62,379
Cash and cash equivalents at the end of the period $ 62,379
$ 124,184
CYBERARK SOFTWARE LTD.
Reconciliation of GAAP Measures to Non-GAAP Measures
U.S. dollars in thousands (except per
share data)
Reconciliation of Operating Income to Non-GAAP Operating
Income: Three Months Ended Year Ended
Dec 31, Dec 31, 2013 2014 2013
2014 (unaudited) Operating income $ 2,658 $ 9,506 $
9,079 $ 20,454 Share-based compensation 117 547
403 1,573 Non-GAAP operating income $ 2,775 $
10,053 $ 9,482 $ 22,027
Reconciliation of Net
Income to Non-GAAP Net Income: Three Months Ended
Year Ended Dec 31, Dec 31, 2013
2014 2013 2014 (unaudited) Net income $
1,396 $ 6,660 $ 6,635 $ 9,954 Share-based compensation 117 547 403
1,573 Warrant adjustment 647 - 1,446
4,309 Non-GAAP net income $ 2,160 $ 7,207 $ 8,484 $ 15,836
Non-GAAP net income per share Basic $ 0.13 $ 0.24 $ 0.52 $
0.90 Diluted $ 0.08 $ 0.21 $ 0.31 $ 0.53 Weighted average
number of shares Basic 6,958,713 30,466,847
6,900,433 13,335,059 Diluted 27,005,453
34,673,940 27,334,994 29,704,730
Investor Contact:ICRStaci Mortenson,
617-558-2132ir@cyberark.comorMedia Contact:CyberArkChristy
Lynch, 617-796-3210press@cyberark.com
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