Total revenue of $95.9 million increases 34%
year-over-year
License revenue of $51.3 million increases 33%
year-over-year
GAAP operating income of $13.6 million and
non-GAAP operating income of $25.5 million
Record net cash provided by operating
activities of $45.9 million increases 39% year-over-year
CyberArk, (NASDAQ: CYBR), the global leader in privileged
access security, today announced strong financial results for
the first quarter ended March 31, 2019.
“We were pleased to deliver results ahead of all guided metrics
as well as record cash flow from operations,” said Udi Mokady,
CyberArk Chairman and CEO. “Our results demonstrate that Privileged
Access Security is the foundation of comprehensive cybersecurity
programs. As the leader in the market, organizations of all sizes
and industries are turning to CyberArk as a trusted advisor to
secure digital transformation and cloud migration strategies. As we
look at the remainder of 2019 and beyond, we are committed to
delivering sustainable growth, strong profitability and continual
innovation to secure privileged access across on-premises, hybrid
and cloud environments.”
Financial Highlights for the First Quarter Ended March 31,
2019
Revenue:
- Total revenue was $95.9 million, up 34%
compared with the first quarter of 2018.
- License revenue was $51.3 million, up
33% compared with the first quarter of 2018.
- Maintenance and professional services
revenue was $44.7 million, up 34% compared with the first quarter
of 2018.
Operating Income:
- GAAP operating income was $13.6
million, compared to $4.0 million in the first quarter of 2018.
Non-GAAP operating income was $25.5 million, compared to $12.6
million in the first quarter of 2018.
Net Income:
- GAAP net income was $13.7 million, or
$0.36 per diluted share, compared to GAAP net income of $6.4
million, or $0.18 per diluted share, in the first quarter of 2018.
Non-GAAP net income was $21.5 million, or $0.56 per diluted share,
compared to $11.8 million, or $0.32 per diluted share, in the first
quarter of 2018.
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 ended March 31, 2019 and 2018.
An explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
Balance Sheet and Net Cash Provided by
Operating Activities:
- As of March 31, 2019, CyberArk had
$509.7 million in cash, cash equivalents, marketable securities and
short-term deposits. This compares with $344.2 million in cash,
cash equivalents, marketable securities and short-term deposits as
of March 31, 2018 and $451.2 million as of December 31, 2018.
- As of March 31, 2019, total deferred
revenue was $171.1 million, a 43% increase from $119.5 million at
March 31, 2018.
- During the first quarter of 2019, the
Company generated $45.9 million in net cash provided by operating
activities, a 39% increase compared to $33.1 million in the first
quarter of 2018.
Business Outlook
Based on information available as of May 14, 2019, CyberArk is
issuing guidance as indicated below:
Second Quarter 2019:
- Total revenue between $96.0 million and
$98.0 million, representing 24% to 26% year-over-year growth.
- Non-GAAP operating income between $22.0
million and $23.5 million.
- Non-GAAP net income per share between
of $0.45 and $0.48 per diluted share.
- Assumes 39.1 million weighted average
diluted shares.
Full Year 2019:
- Total revenue between $415.0 million
and $419.0 million, representing 21% to 22% year-over-year
growth.
- Non-GAAP operating income between
$100.5 million and $103.5 million.
- Non-GAAP net income per share between
$2.10 and $2.16 per diluted share.
- Assumes 38.9 million weighted average
diluted shares.
Conference Call Information
CyberArk will host a conference call today, Tuesday, May 14,
2019 at 8:30 a.m. Eastern Time (ET) to discuss the company’s first
quarter financial results and its business outlook. To access this
call, dial +1 877-823-7693 (U.S.) or +1 647-689-4543
(international). The conference ID is 5885529. Additionally, a live
webcast of the conference call will be available via the “Investor
Relations” section of the company’s website at
www.cyberark.com.
Following the conference call, a replay will be available for
one week at +1 800-585-8367 (U.S.) or +1 416-621-4642
(international). The replay pass code is 5885529. An archived
webcast of the conference call will also be available in the
“Investor Relations” section of the company’s website at
www.cyberark.com.
About CyberArk
CyberArk (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 500, 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 © 2019 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 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 gross profit, 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 a variety of equity instruments that can impact a company’s
non-cash expense. The Company believes that expenses related to its
acquisitions, amortization of intangible assets related to
acquisitions and the tax effect of the non-GAAP adjustments 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 measure to evaluate its business.
Guidance for non-GAAP financial measures excludes, as
applicable, share-based compensation expense, acquisition related
expenses, amortization of intangible assets related to acquisitions
and the tax effect of the non-GAAP adjustments. A reconciliation of
the non-GAAP financial measures guidance to the corresponding GAAP
measures is not available on a forward-looking basis due to the
uncertainty regarding, and the potential variability and
significance of, the amounts of share-based compensation expense,
amortization of intangible assets related to acquisitions, and the
non-recurring expenses that are excluded from the guidance.
Accordingly, a reconciliation of the non-GAAP financial measures
guidance to the corresponding GAAP measures for future periods is
not available without unreasonable effort.
Cautionary Language Concerning Forward-Looking
Statements
This release contains 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; potential 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 a wide variety of 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 March 31, 2018
2019 Revenues: License $ 38,494 $ 51,284 Maintenance
and professional services 33,289 44,651 Total
revenues 71,783 95,935 Cost of revenues: License 2,397 2,588
Maintenance and professional services 8,891 10,979
Total cost of revenues 11,288 13,567 Gross profit
60,495 82,368 Operating expenses: Research and
development 12,984 16,331 Sales and marketing 34,582 41,505 General
and administrative 8,899 10,905 Total operating
expenses 56,465 68,741 Operating income 4,030 13,627
Financial income, net 1,841 1,421
Income before taxes on income 5,871 15,048 Tax benefit
(taxes on income) 550 (1,371) Net income $
6,421 $ 13,677 Basic net income per ordinary share $
0.18 $ 0.37 Diluted net income per ordinary share $ 0.18 $ 0.36
Shares used in computing net income per ordinary shares,
basic 35,454,102 37,046,472 Shares used in computing
net income per ordinary shares, diluted 36,464,230
38,440,461
Share-based Compensation
Expense: Three Months Ended March 31,
2018 2019 Cost of revenues $ 655 $ 957
Research and development 1,504 2,307 Sales and marketing 2,417
3,685 General and administrative 2,347 3,303
Total share-based compensation expense $ 6,923 $ 10,252
CYBERARK SOFTWARE
LTD.Consolidated Balance SheetsU.S. dollars in
thousands(Unaudited)
December 31, March 31, 2018 2019
ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 260,636 $ 301,902 Short-term bank deposits 106,399
109,285 Marketable securities 59,948 55,161 Trade receivables
48,431 34,517 Prepaid expenses and other current assets
6,349 9,800 Total current assets 481,763
510,665 LONG-TERM ASSETS: Property and equipment, net
15,120 15,325 Intangible assets, net 14,732 13,144 Goodwill 82,400
82,400 Marketable securities 24,261 43,376 Other long-term assets
31,863 59,341 Deferred tax asset 23,481 24,618
Total long-term assets 191,857 238,204
TOTAL ASSETS $ 673,620 $ 748,869
LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables
$ 4,924 $ 4,893 Employees and payroll accruals 32,853 25,898
Accrued expenses and other current liabilities 13,271 17,798
Deferred revenues 92,375 104,506 Total current
liabilities 143,423 153,095 LONG-TERM
LIABILITIES: Deferred revenues 57,159 66,565 Other long-term
liabilities 6,268 27,113 Total long-term
liabilities 63,427 93,678
TOTAL
LIABILITIES 206,850 246,773 SHAREHOLDERS'
EQUITY: Ordinary shares of NIS 0.01 par value 95 96 Additional
paid-in capital 303,900 324,457 Accumulated other comprehensive
income (loss) (939) 152 Retained earnings 163,714
177,391 Total shareholders' equity 466,770
502,096
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $
673,620 $ 748,869
CYBERARK SOFTWARE
LTD.Consolidated Statements of Cash FlowsU.S. dollars
in thousands(Unaudited)
Three Months Ended March 31, 2018
2019 Cash flows from operating activities: Net
income $ 6,421 $ 13,677 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 2,194 2,778 Amortization of premium and accretion of
discount on marketable securities, net 101 (10 ) Share-based
compensation 6,923 10,252 Deferred income taxes, net (1,272 )
(1,311 ) Decrease in trade receivables 6,927 13,914 Increase in
prepaid expenses and other current and long-term assets (2,248 )
(5,347 ) Increase in trade payables 3,191 871 Increase in
short-term and long-term deferred revenues 17,760 21,537 Decrease
in employees and payroll accruals (3,003 ) (11,797 )
Increase (decrease) in accrued expenses
and other current and long-term liabilities
(3,922 ) 1,294 Net cash provided by
operating activities 33,072 45,858
Cash flows from investing activities: Proceeds from
(Investment in) short and long term deposits 9,254 (2,913 )
Investment in marketable securities (9,933 ) (35,768 ) Proceeds
from maturities of marketable securities 7,423 21,651 Purchase of
property and equipment (2,502 ) (2,297 ) Payments for business
acquisitions, net of cash acquired (18,488 ) -
Net cash used in investing activities (14,246 )
(19,327 )
Cash flows from financing activities:
Proceeds from withholding tax related to employee stock plans -
4,842 Proceeds from exercise of stock options 1,942
9,918 Net cash provided by financing
activities 1,942 14,760 Increase
in cash, cash equivalents and restricted cash 20,768 41,291
Cash, cash equivalents and restricted cash at the beginning of the
period $ 162,521 $ 261,883 Cash, cash
equivalents and restricted cash at the end of the period $ 183,289
$ 303,174
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 March 31, 2018 2019
Gross profit $ 60,495 $ 82,368 Plus: Share-based compensation -
Maintenance & professional services 655 957 Amortization of
intangible assets - License 1,230 1,444
Non-GAAP gross profit $ 62,380 $ 84,769
Reconciliation of Operating Income
to Non-GAAP Operating Income: Three Months Ended
March 31, 2018 2019 Operating
income $ 4,030 $ 13,627 Plus: Share-based compensation 6,923 10,252
Amortization of intangible assets - Cost of revenues 1,230 1,444
Amortization of intangible assets - Sales and marketing 198 144
Acquisition related expenses 268 -
Non-GAAP operating income $ 12,649 $ 25,467
Reconciliation of Net Income to Non-GAAP Net Income:
Three Months Ended March 31, 2018
2019 Net income $ 6,421 $ 13,677 Plus:
Share-based compensation 6,923 10,252 Amortization of intangible
assets - Cost of revenues 1,230 1,444 Amortization of intangible
assets - Sales and marketing 198 144 Acquisition related expenses
268 - Taxes on income related to non-GAAP adjustments (3,229
) (4,046 ) Non-GAAP net income $ 11,811 $
21,471 Non-GAAP net income per share Basic $ 0.33
$ 0.58 Diluted $ 0.32 $ 0.56
Weighted average number of shares Basic 35,454,102
37,046,472 Diluted 36,464,230
38,440,461
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190514005465/en/
Investor Contact:Erica SmithCyberArkPhone: +1
617-558-2132ir@cyberark.com
Media Contact:Liz CampbellCyberArkPhone:
+1-617-558-2191press@cyberark.com
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