CyberArk Software (NASDAQ:CYBR)
Historical Stock Chart
2 Years : From Dec 2017 to Dec 2019
Second quarter total revenue of $77.7 million increases 35%
year-over-year
GAAP operating income of $7.0 million and non-GAAP operating income
of $17.0 million
Cash flow from operations of $56.2 million increases 90%
year-over-year
Deferred revenue of $129.6 increases 56% year-over-year
CyberArk,
(NASDAQ: CYBR), the global leader in privileged
access security, today announced financial results for the second
quarter ended June 30, 2018.
“CyberArk had a great second quarter,” said Udi Mokady, CyberArk
Chairman and CEO. “We exceeded our guidance across all metrics. We
posted strong revenue growth, profitability and operating cash flow. Our
growth was driven by strong execution and robust demand from both new
and existing customers across all geographies. We were thrilled to sign
nearly 200 new logos in the second quarter bringing our total number of
customers to more than 4,000, which demonstrates that we are still in
the early innings of our market opportunity. In addition, the
significant value our solution provides coupled with our unwavering
commitment to customer satisfaction drove our add on business during the
quarter. Given our strong execution in the first half of the year and
our tremendous market opportunity, we are positioned well for the
remainder of 2018.”
Financial Highlights for the Second Quarter Ended June 30, 2018
Revenue:
-
Total revenue was $77.7 million, up 35% compared with the second
quarter of 2017.
-
License revenue was $41.1 million, up 36% compared with the second
quarter of 2017.
-
Maintenance and professional services revenue was $36.6 million, up
35% compared with the second quarter of 2017.
Operating Income:
-
GAAP operating income was $7.0 million, an increase from $1.0 million
in the second quarter of 2017. Non-GAAP operating income was $17.0
million, an increase from $8.8 million in the second quarter of 2017.
Net Income:
-
GAAP net income was $8.4 million, or $0.23 per diluted share, an
increase from GAAP net income of $3.2 million, or $0.09 per diluted
share, in the second quarter of 2017. Non-GAAP net income was $13.5
million, or $0.36 per diluted share, an increase from $7.7 million, or
$0.21 per diluted share, in the second quarter of 2017.
The tables at the end of this press release include a reconciliation of
GAAP to non-GAAP gross margin, operating income and net income for the
three months and six months ended June 30, 2018 and 2017. An explanation
of these measures is also included below under the heading “Non-GAAP
Financial Measures.”
Balance Sheet and Cash Flow:
-
As of June 30, 2018, CyberArk had $377.5 million in cash, cash
equivalents, marketable securities and short-term deposits. This
compares to $330.3 million as of December 31, 2017 and $283.2 million
at June 30, 2017.
-
As of June 30, 2018, total deferred revenue was $129.6 million, a 23%
increase from $105.2 million at December 31, 2017 and a 56% increase
from $82.8 million at June 30, 2017.
-
During the six months ended June 30, 2018, the Company generated $56.2
million in cash flow from operations, a 90% increase from $29.7
million in the first six months of 2017.
Business Outlook
Based on information available as of August 7, 2018, CyberArk is issuing
guidance for the third quarter and increasing its guidance for the full
year 2018 as indicated below.
Third Quarter 2018:
-
Total revenue is expected to be in the range of $77.75 million to
$79.25 million, which represents 20% to 22% year-over-year growth.
-
Non-GAAP operating income is expected to be in the range of $11.4
million to $12.6 million.
-
Non-GAAP net income per share is expected to be in the range of $0.25
to $0.28 per diluted share. This assumes 37.5 million weighted average
diluted shares.
Full Year 2018:
-
Total revenue is expected to be in the range of $320.0 million to
$324.0 million, which represents 22% to 24% year-over-year growth.
-
Non-GAAP operating income is expected to be in the range of $64.0
million to $67.0 million.
-
Non-GAAP net income per share is expected to be in the range of $1.43
to $1.50 per diluted share. This assumes 37.0 million weighted average
diluted shares.
Conference Call Information
CyberArk will host a conference call today, August 7, 2018 at 5:00 p.m.
Eastern Time (ET) to discuss the company’s second quarter financial
results and its business outlook. To access this call, dial +1
844-237-3590 (U.S.) or +1 484-747-6582 (international). The conference
ID is 2687958. Additionally, a live webcast of the conference call will
be available via 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 +1 855-859-2056 (U.S.) or +1 404-537-3406 (international). The replay
pass code is 2687958. An archived webcast of the conference call will
also be available in the “Investor Relations” section of the company’s
web site at www.cyberark.com.
About CyberArkCyberArk
(NASDAQ: CYBR)
is the global leader in privileged access security, a critical layer of
IT security to protect data, infrastructure and assets across the
enterprise, in the cloud and throughout the DevOps pipeline. CyberArk
delivers the industry’s most complete solution to reduce risk created by
privileged credentials and secrets. The company is trusted by the
world’s leading organizations, including more than 50 percent of the
Fortune 100, to protect against external attackers and malicious
insiders. A global company, CyberArk is headquartered in Petach Tikva,
Israel, with U.S. headquarters located in Newton, Mass. The company also
has offices throughout the Americas, EMEA, Asia Pacific and Japan. To
learn more about CyberArk, visit www.cyberark.com,
read the CyberArk
blogs or follow on Twitter via @CyberArk,
LinkedIn
or Facebook.
Copyright © 2018 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 gross profit, 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.
-
Non-GAAP gross profit is calculated as gross profit excluding
share-based compensation expense and amortization of intangible assets
related to acquisitions.
-
Non-GAAP operating income is calculated as operating income excluding
share-based compensation expense, acquisition related expenses, and
amortization of intangible assets related to acquisitions.
-
Non-GAAP net income is calculated as net income excluding share-based
compensation expense, acquisition related expenses, amortization of
intangible assets related to acquisitions and the tax effect of the
non-GAAP adjustments.
The Company believes that providing non-GAAP financial measures that
exclude share-based compensation, acquisition related expenses,
amortization of intangible assets related to acquisitions and the tax
effect of the non-GAAP adjustments 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. Share based compensation expense has 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 expenses related to its acquisitions 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
OperationsU.S. dollars in thousands (except per share
data)(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2018
2017
2018
Revenues:
License
$
30,318
$
41,121
$
63,270
$
79,615
Maintenance and professional services
27,162
36,592
53,245
69,881
Total revenues
57,480
77,713
116,515
149,496
Cost of revenues:
License
1,907
2,510
3,491
4,907
Maintenance and professional services
8,093
9,198
15,776
18,089
Total cost of revenues
10,000
11,708
19,267
22,996
Gross profit
47,480
66,005
97,248
126,500
Operating expenses:
Research and development
9,561
13,808
18,775
26,792
Sales and marketing
29,500
35,521
57,178
70,103
General and administrative
7,409
9,714
14,287
18,613
Total operating expenses
46,470
59,043
90,240
115,508
Operating income
1,010
6,962
7,008
10,992
Financial income, net
1,127
225
1,675
2,066
Income before taxes on income
2,137
7,187
8,683
13,058
Tax benefit
1,109
1,190
2,099
1,740
Net income
$
3,246
$
8,377
$
10,782
$
14,798
Basic net income per ordinary share
$
0.09
$
0.23
$
0.31
$
0.41
Diluted net income per ordinary share
$
0.09
$
0.23
$
0.30
$
0.40
Shares used in computing net income
per ordinary shares, basic
34,729,119
36,001,580
34,563,040
35,724,717
Shares used in computing net income
per ordinary shares, diluted
36,194,471
36,923,520
36,147,712
36,680,585
Share-based Compensation Expense:
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2018
2017
2018
Cost of revenues
$
504
$
758
$
957
$
1,413
Research and development
1,523
2,007
2,832
3,511
Sales and marketing
2,018
2,874
3,689
5,291
General and administrative
2,197
2,774
3,963
5,121
Total share-based compensation expense
$
6,242
$
8,413
$
11,441
$
15,336
CYBERARK SOFTWARE LTD.Consolidated Balance SheetsU.S.
dollars in thousands(Unaudited)
December 31,
June 30,
2017
2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
161,261
$
205,193
Short-term bank deposits
107,647
100,818
Marketable securities
34,025
51,025
Trade receivables
45,315
32,959
Prepaid expenses and other current assets
7,407
10,344
Total current assets
355,655
400,339
LONG-TERM ASSETS:
Property and equipment, net
9,230
11,858
Intangible assets, net
15,664
18,017
Goodwill
69,217
83,157
Marketable securities
27,407
20,477
Severance pay fund
3,692
3,558
Other long-term assets
2,368
18,451
Deferred tax asset
19,343
21,383
Total long-term assets
146,921
176,901
TOTAL ASSETS
$
502,576
$
577,240
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables
$
1,960
$
4,359
Employees and payroll accruals
25,253
26,298
Accrued expenses and other current liabilities
10,209
6,474
Deferred revenues
66,986
81,660
Total current liabilities
104,408
118,791
LONG-TERM LIABILITIES:
Deferred revenues
38,249
47,901
Other long-term liabilities
242
1,400
Accrued severance pay
5,712
5,445
Total long-term liabilities
44,203
54,746
TOTAL LIABILITIES
148,611
173,537
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value
91
94
Additional paid-in capital
249,874
273,323
Accumulated other comprehensive income (loss)
107
(1,154
)
Retained earnings
103,893
131,440
Total shareholders' equity
353,965
403,703
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
502,576
$
577,240
CYBERARK SOFTWARE LTD.Consolidated Statements of
Cash FlowsU.S. dollars in thousands(Unaudited)
Six Months Ended
June 30,
2017
2018
Cash flows from operating activities:
Net income
$
10,782
$
14,798
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
3,509
4,676
Amortization of premium on marketable securities
190
208
Share-based compensation expenses
11,441
15,336
Deferred income taxes, net
(3,642
)
(4,710
)
Decrease in trade receivables
3,412
12,357
Increase in prepaid expenses and other current and long-term assets
(1,257
)
(6,272
)
Increase (decrease) in trade payables
(869
)
2,003
Increase in short term and long term deferred revenues
9,339
27,845
Decrease in employees and payroll accruals
(1,953
)
(5,168
)
Decrease in accrued expenses and other
current and long-term liabilities
(1,391
)
(4,716
)
Increase (decrease) in accrued severance pay, net
91
(133
)
Net cash provided by operating activities
29,652
56,224
Cash flows from investing activities:
Proceeds from short and long term deposit
-
7,775
Investment in short and long term deposits
(9,646
)
-
Investment in marketable securities
(17,760
)
(30,563
)
Proceeds from maturities of marketable securities
9,106
20,114
Purchase of property and equipment
(2,038
)
(4,098
)
Payments for business acquisitions, net of cash acquired
(41,448
)
(18,450
)
Net cash used in investing activities
(61,786
)
(25,222
)
Cash flows from financing activities:
Proceeds from withholding tax related to employee stock plans
-
5,509
Proceeds from exercise of stock options
1,926
8,090
Net cash provided by financing activities
1,926
13,599
Increase (decrease) in cash, cash equivalents and restricted cash
(30,208
)
44,601
Cash, cash equivalents and restricted cash at the beginning of the
period
174,156
162,520
Cash, cash equivalents and restricted cash at the end of the period
$
143,948
$
207,121
CYBERARK SOFTWARE LTD.Reconciliation of GAAP
Measures to Non-GAAP MeasuresU.S. dollars in
thousands (except per share data)(Unaudited)
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2018
2017
2018
Gross profit
$
47,480
$
66,005
$
97,248
$
126,500
Plus:
Share-based compensation - Maintenance & professional services
504
758
957
1,413
Amortization of intangible assets - License
992
1,444
1,835
2,674
Non-GAAP gross profit
$
48,976
$
68,207
$
100,040
$
130,587
Reconciliation of Operating Income to Non-GAAP Operating Income:
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2018
2017
2018
Operating income
$
1,010
$
6,962
$
7,008
$
10,992
Plus:
Share-based compensation
6,242
8,413
11,441
15,336
Amortization of intangible assets - Cost of revenues
992
1,444
1,835
2,674
Amortization of intangible assets - Sales and marketing
289
199
535
397
Acquisition related expenses
248
-
686
268
Non-GAAP operating income
$
8,781
$
17,018
$
21,505
$
29,667
Reconciliation of Net Income to Non-GAAP Net Income:
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2018
2017
2018
Net income
$
3,246
$
8,377
$
10,782
$
14,798
Plus:
Share-based compensation
6,242
8,413
11,441
15,336
Amortization of intangible assets - Cost of revenues
992
1,444
1,835
2,674
Amortization of intangible assets - Sales and marketing
289
199
535
397
Acquisition related expenses
248
-
686
268
Taxes on income related to non-GAAP adjustments
(3,274
)
(4,964
)
(7,289
)
(8,193
)
Non-GAAP net income
$
7,743
$
13,469
$
17,990
$
25,280
Non-GAAP net income per share
Basic
$
0.22
$
0.37
$
0.52
$
0.71
Diluted
$
0.21
$
0.36
$
0.50
$
0.69
Weighted average number of shares
Basic
34,729,119
36,001,580
34,563,040
35,724,717
Diluted
36,194,471
36,923,520
36,147,712
36,680,585
View source version on businesswire.com: https://www.businesswire.com/news/home/20180807005886/en/
CyberArkInvestor Contact:Erica Smith, +1 617-558-2132ir@cyberark.comorMedia
Contact:Liz Campbell, +1-617-558-2191press@cyberark.com
|
