First quarter total revenue of $46.9 million
increases 43% 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
first quarter ended March 31, 2016.
“Our top and bottom line outperformance in the first quarter was
driven by solid execution and strong demand for privileged account
security,” said Udi Mokady, CyberArk CEO. “The breadth of customers
and partners turning to CyberArk to protect privileged accounts and
credentials demonstrates that every organization regardless of size
or vertical needs this critical new layer of security. We believe
our disciplined investments will enable us to continue to extend
our leadership position, capture share in this greenfield market
and deliver profitable growth.”
Financial Highlights for the First Quarter Ended March 31,
2016
Revenue:
- Total revenue was $46.9 million, up 43%
compared with the first quarter of 2015.
- License revenue was $27.5 million, up
38% compared with the first quarter of 2015.
- Maintenance and Professional Services
revenue was $19.4 million, up 50% compared with the first quarter
of 2015.
Operating Income:
- GAAP operating income was $6.2 million,
compared to $7.5 million in the first quarter of 2015. Non-GAAP
operating income was $10.7 million, an increase from $9.0 million
in the first quarter of 2015.
Net Income:
- GAAP net income was $4.3 million, or
$0.12 per diluted share, compared to GAAP net income of $4.2
million, or $0.12 per diluted share, in the first quarter of 2015.
Non-GAAP net income was $8.3 million, or $0.23 per diluted share,
compared to $5.7 million, or $0.16 per diluted share, in the first
quarter of 2015.
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 months ended March 31, 2016 and 2015. An explanation
of these measures is also included below under the heading
“Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow:
- As of March 31, 2016, CyberArk had
$254.3 million in cash, cash equivalents, marketable securities and
short-term deposits, compared to $238.3 million as of December 31,
2015.
- During the first quarter of 2016, the
Company generated $16.5 million in cash flow from operations, an
increase compared to $14.3 million in the first quarter of
2015.
Business Outlook
Based on information available as of May 5, 2016, CyberArk is
issuing guidance for the second quarter and full year 2016 as
indicated below.
Second Quarter 2016:
- Total revenue is expected to be in the
range of $47.5 million to $48.5 million, which represents 31% to
33% year-over-year growth.
- Non-GAAP operating income is expected
to be in the range of $8.6 million to $9.5 million.
- Non-GAAP net income per share is
expected to be in the range of $0.18 to $0.20 per diluted share.
This assumes 35.9 million weighted average diluted shares.
Full Year 2016:
- Total revenue is expected to be in the
range of $209.0 million to $211.0 million, which represents 30% to
31% year-over-year growth.
- Non-GAAP operating income is expected
to be in the range of $41.7 million to $43.3 million.
- Non-GAAP net income per share is
expected to be in the range of $0.87 to $0.91 per diluted share.
This assumes 36.3 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on Thursday, May 5, 2016 at
4:30 p.m. Eastern Time (ET) to discuss the company’s first quarter
financial results and business outlook. To access this call, dial
844-237-3590 (domestic) or +1 484-747-6582 (international). The
conference ID is 85665234. 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 855
859-2056 (U.S.) or +1 404-537-3406 (international). The replay pass
code is 85665234. 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 more than 40 percent of the Fortune 100 – 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 © 2016 CyberArk Software. All Rights Reserved. All
other brand names, product names, or trademarks belong to their
respective holders.
Non-GAAP Financial MeasuresCyberArk 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 months ended March 31,
2016, non-GAAP operating income is calculated as operating income
excluding share-based compensation expense and amortization of
intangible assets related to acquisitions. For the three months
ended March 31, 2015, non-GAAP operating income is calculated as
operating income excluding public offering related expenses and
share-based compensation expense.
- For the three months ended March 31,
2016, non-GAAP net income is calculated as net income excluding
share-based compensation expense, amortization of intangible assets
related to acquisitions and the tax effects related to the non-GAAP
adjustments and for the three months ended March 31, 2015, non-GAAP
net income is calculated as net income excluding public offering
related expenses and share-based compensation expense.
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 share-based compensation,
public offering related expenses and amortization of intangible
assets related to acquisitions allows for more meaningful
comparisons of its period to period operating results. Share-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. The Company believes that expenses
related to its public offerings and amortization of intangible
assets related to acquisitions do not reflect the performance of
its core business and impact period-to-period comparability.
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 (the
“Company”) management. In some cases, forward-looking statements
may be identified by terminology such as “believe,” “may,”
“estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”
“expect,” “predict,” “potential” or the negative of these terms or
other similar expressions. 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 rapidly evolving cyber threat
landscape; failure to effectively manage growth; near-term declines
in our operating and net profit margins and our revenue growth
rate; real or perceived shortcomings, defects or vulnerabilities in
the Company’s solutions or internal network system, or the failure
of the Company’s customers or channel partners to correctly
implement the Company’s solutions; fluctuations in quarterly
results of operations; the inability to acquire new customers or
sell additional products and services to existing customers;
competition from IT security vendors; the Company’s ability to
successfully integrate recent and or future acquisitions; and other
factors discussed under the heading “Risk Factors” in the Company’s
most recent annual report on Form 20-F filed with the Securities
and Exchange Commission. 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) (Unaudited) Three Months
Ended March 31, 2015
2016 Revenues: License $ 19,978 $ 27,514
Maintenance and professional services 12,937 19,397
Total revenues 32,915 46,911 Cost of revenues: License 550
1,274 Maintenance and professional services 3,707 5,160
Total cost of revenues 4,257 6,434 Gross
profit 28,658 40,477 Operating expenses: Research and
development 4,117 7,933 Sales and marketing 13,460 21,663 General
and administrative 3,578 4,670 Total operating
expenses 21,155 34,266 Operating income 7,503 6,211
Financial income (expenses), net (1,631 ) 67
Income before taxes on income 5,872 6,278
Taxes on income (1,706 ) (1,954 ) Net income $
4,166 $ 4,324 Basic net income per
ordinary share $ 0.14 $ 0.13 Diluted net income per
ordinary share $ 0.12 $ 0.12 Shares used in
computing net income per ordinary shares, basic 30,563,888
33,366,332 Shares used in computing net income
per ordinary shares, diluted 34,786,581
35,707,977
Share-based
Compensation Expense: Three Months Ended March
31, 2015 2016 Cost of revenues $ 63
$ 241 Research and development 82 940 Sales and marketing 139 1,225
General and administrative 181 967
Total share-based compensation expense $ 465 $ 3,373
CYBERARK SOFTWARE
LTD. Consolidated Balance Sheets U.S. dollars in
thousands (Unaudited) December 31,
March 31, 2015 2016
ASSETS CURRENT ASSETS: Cash and cash equivalents $
234,539 $ 238,202 Short-term bank deposits 3,713 8,680 Marketable
securities - 597 Trade receivables 20,410 15,819 Prepaid expenses
and other current assets 3,293 4,770
Total current assets 261,955 268,068
LONG-TERM ASSETS: Property and equipment, net 3,584 4,023
Intangible assets, net 18,558 17,424 Goodwill 35,145 35,145
Marketable securities - 6,857 Severance pay fund 3,230 3,361
Prepaid expenses and other long-term assets 1,954 2,050 Deferred
tax asset 9,998 10,431 Total long-term
assets 72,469 79,291
TOTAL
ASSETS $ 334,424 $ 347,359
LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables
$ 2,530 $ 2,222 Employees and payroll accruals 15,860 12,350
Deferred revenues 37,104 43,746 Accrued expenses and other current
liabilities 9,366 7,888 Total current
liabilities 64,860 66,206 LONG-TERM
LIABILITIES: Deferred revenues 17,285 19,862 Other long-term
liabilities 188 236 Accrued severance pay 4,667 5,043 Deferred tax
liabilities 754 652 Total long-term
liabilities 22,894 25,793
TOTAL
LIABILITIES 87,754 91,999
SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 86 86
Additional paid-in capital 200,107 203,969 Accumulated other
comprehensive income (loss) (93 ) 411 Retained earnings
46,570 50,894 Total shareholders' equity
246,670 255,360
TOTAL LIABILITIES
AND SHAREHOLDERS’ EQUITY $ 334,424 $ 347,359
CYBERARK SOFTWARE LTD.
Consolidated Statements of Cash Flows U.S. dollars in
thousands (Unaudited) Three Months Ended
March 31, 2015 2016 Cash flows from
operating activities: Net income $ 4,166 $ 4,324 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and Amortization 222 1,518 Share-based compensation
expenses 465 3,373 Tax benefit related to share-based compensation
(529 ) (217 ) Deferred income taxes, net (245 ) (598 ) Decrease in
trade receivables 4,351 4,591 Increase in prepaid expenses and
other current and long-term assets (932 ) (1,008 ) Increase
(decrease) in trade payables 871 (200 ) Increase in short term and
long term deferred revenues 9,171 9,219 Decrease in employees and
payroll accruals (3,183 ) (3,510 ) Decrease in accrued expenses and
other current and long-term liabilities (242 ) (1,200 ) Increase in
accrued severance pay, net 225 245
Net cash provided by operating activities 14,340
16,537
Cash flows from investing
activities: Proceeds from short and long term deposits 24,279 -
Investment in short and long term deposits - (4,998 ) Investment in
marketable securities - (7,435 ) Purchase of property and equipment
(620 ) (930 ) Net cash provided by (used in)
investing activities 23,659 (13,363 )
Cash flows from financing activities: Tax benefit related to
share-based compensation 529 217 Proceeds from exercise of options
234 272 Net cash provided by
financing activities 763 489
Increase in cash and cash equivalents 38,762 3,663 Cash and
cash equivalents at the beginning of the period 124,184
234,539 Cash and cash equivalents at
the end of the period $ 162,946 $ 238,202
CYBERARK SOFTWARE LTD. Reconciliation of GAAP Measures to
Non-GAAP Measures U.S. dollars in thousands (except per
share data) (Unaudited)
Reconciliation of Operating Income to Non-GAAP Operating
Income: Three Months Ended March 31,
2015 2016 Operating income $ 7,503 $
6,211 Public offering related expenses 1,081 - Share-based
compensation 465 3,373 Amortization of intangible assets - Cost of
revenues - 355 Amortization of intangible assets - Research and
development - 478 Amortization of intangible assets - Sales and
marketing - 301 Non-GAAP operating
income $ 9,049 $ 10,718
Reconciliation of
Net Income to Non-GAAP Net Income: Three Months
Ended March 31, 2015 2016
Net income $ 4,166 $ 4,324 Public offering related expenses 1,081 -
Share-based compensation 465 3,373 Amortization of intangible
assets - Cost of revenues - 355 Amortization of intangible assets -
Research and development - 478 Amortization of intangible assets -
Sales and marketing - 301 Taxes on income related to non-GAAP
adjustments - (513 ) Non-GAAP net income $
5,712 $ 8,318 Non-GAAP net income per share Basic $
0.19 $ 0.25 Diluted $ 0.16 $ 0.23 Weighted
average number of shares Basic 30,563,888 33,366,332
Diluted 34,786,581 35,707,977
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version on businesswire.com: http://www.businesswire.com/news/home/20160505006397/en/
CyberArkInvestor Contact:Erica Smith,
617-558-2132ir@cyberark.comorMedia Contact:Christy Lynch,
617-796-3210press@cyberark.com
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