Fourth quarter total revenue of $129.7 million
increases 19% year-over-year
Fourth quarter GAAP operating income of $22.9
million and non-GAAP operating income of $42.1 million
Full year total revenue of $433.9 million
increases 26% year-over-year
Full year GAAP operating income of $62.3
million and non-GAAP operating income of $123.4 million
Full year net cash provided by operating
activities of $141.7 million
CyberArk, (NASDAQ: CYBR), the global leader in privileged access
management, today announced record financial results for the fourth
quarter and year ended December 31, 2019.
“Our record fourth quarter results capped off another great year
of strong growth driven by disciplined investments,” said Udi
Mokady, CyberArk Chairman and CEO. “We were thrilled to win a
record number of logos in the fourth quarter, signing nearly 300
new customers. Throughout 2019, organizations continued to
recognize that protecting privileged access is foundational to a
comprehensive security program and increasingly turned to CyberArk
as a trusted advisor, particularly to secure mission-critical
digital transformation and cloud migration strategies. Our clear
leadership position in the market and ongoing commitment to deliver
innovation, positions us well to deliver profitable growth in 2020
and beyond.”
Financial Highlights for the Fourth Quarter Ended December
31, 2019
Revenue:
- Total revenue was $129.7 million, up 19% compared with the
fourth quarter of 2018.
- License revenue was $76.5 million, up 15% compared with the
fourth quarter of 2018.
- Maintenance and Professional Services revenue was $53.1
million, up 26% compared with the fourth quarter of 2018.
Operating Income:
- GAAP operating income was $22.9 million, compared to $27.5
million in the fourth quarter of 2018. Non-GAAP operating income
was a record $42.1 million, compared to $39.8 million in the fourth
quarter of 2018.
Net Income:
- GAAP net income was $20.7 million, or $0.53 per diluted share,
compared to GAAP net income of $24.2 million, or $0.64 per diluted
share, in the fourth quarter of 2018. Non-GAAP net income was a
record $37.8 million, or $0.97 per diluted share, compared to $33.4
million, or $0.89 per diluted share, in the fourth quarter of
2018.
Financial Highlights for the Full Year Ended December 31,
2019
Revenue:
- Total revenue was $433.9 million, up 26% compared with
2018.
- License revenue was $237.9 million, up 24% compared with
2018.
- Maintenance and Professional Services revenue was $196.0
million, up 30% compared with 2018.
Operating Income:
- GAAP operating income was $62.3 million, compared to $47.3
million in 2018. Non-GAAP operating income was $123.4 million,
compared to $90.5 million in 2018.
Net Income:
- GAAP net income was $63.1 million, or $1.62 per diluted share,
compared to GAAP net income of $47.1 million, or $1.27 per diluted
share, in 2018. Non-GAAP net income was $107.9 million, or $2.77
per diluted share, compared to $76.5 million, or $2.06 per diluted
share, in 2018.
The tables at the end of this press release include a
reconciliation of GAAP to non-GAAP gross profit, operating income
and net income for the three months and year ended December 31,
2019 and 2018. An explanation of these measures is also included
below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow From Operations:
- As of December 31, 2019, CyberArk had $1.1 billion in cash,
cash equivalents, marketable securities and short-term deposits.
This compares to $451.2 million in cash, cash equivalents,
marketable securities and short-term deposits as of December 31,
2018.
- As of December 31, 2019, total deferred revenue was $190.4
million, a 27% increase from $149.5 million at December 31,
2018.
- During 2019, the Company generated $141.7 million in net cash
provided by operating activities compared to $130.1 million in
2018.
Business Outlook Based on information available as of
February 12, 2020, CyberArk is issuing guidance for the first
quarter and full year 2020 as indicated below.
First Quarter 2020:
- Total revenue is expected to be in the range of $106.0 million
to $110.0 million.
- Non-GAAP operating income is expected to be in the range of
$16.5 million to $19.5 million.
- Non-GAAP net income per share is expected to be in the range of
$0.35 to $0.41 per share. This assumes 39.6 million weighted
average diluted shares.
Full Year 2020:
- Total revenue is expected to be in the range of $511.0 million
to $519.0 million.
- Non-GAAP operating income is expected to be in the range of
$109.0 million to $115.0 million.
- Non-GAAP net income per share is expected to be in the range of
$2.26 to $2.38 per share. This assumes 39.8 million weighted
average diluted shares.
Conference Call Information In conjunction with this
announcement, CyberArk will host a conference call on Wednesday,
February 12, 2020 at 8:30 a.m. Eastern Time (ET) to discuss the
company’s fourth quarter and year end 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 7689662.
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 7689662. 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 management, a critical layer of IT
security to protect data, infrastructure and assets across cloud
and hybrid environments, 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% 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 © 2020 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, facility exit and transition costs 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,
facility exit and transition costs, amortization of intangible
assets related to acquisitions, intra-entity intellectual property
transfer tax effect, amortization of debt discount and issuance
costs and the tax effect of other non-GAAP adjustments.
The Company believes that providing non-GAAP financial measures
that exclude, as applicable, share-based compensation expense,
acquisition related expenses, amortization of intangible assets
related to acquisitions, facility exit and transition costs,
intra-entity intellectual property transfer tax effect, non-cash
interest expense related to the amortization of debt discount and
issuance costs 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 and amortization of intangible
assets related to acquisitions, facility exit and transition costs,
intra-entity intellectual property transfer tax effect and non-cash
interest expense related to the amortization of debt discount and
issuance costs 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, facility exit and transition costs, amortization of
intangible assets related to acquisitions, intra-entity
intellectual property transfer tax effect, non-cash interest
expense related to the amortization of debt discount and issuance
costs and the tax effect of the other 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; the Company’s ability to increase its
sales of software as a service (“SaaS”) solutions, while supporting
and maintaining multiple software pricing and delivery models;
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; the Company’s ability to comply with evolving laws
and regulations, including those relating to privacy and data
protection; 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 Twelve Months Ended
December 31, December 31,
2018
2019
2018
2019
Revenues: License
$
66,769
$
76,526
$
192,514
$
237,879
Maintenance and professional services
42,281
53,138
150,685
196,016
Total revenues
109,050
129,664
343,199
433,895
Cost of revenues: License
3,005
2,801
10,526
10,569
Maintenance and professional services
10,316
14,048
37,935
52,046
Total cost of revenues
13,321
16,849
48,461
62,615
Gross profit
95,729
112,815
294,738
371,280
Operating expenses: Research and
development
15,340
20,930
57,112
72,520
Sales and marketing
40,307
52,939
148,290
184,168
General and administrative
12,561
16,005
42,044
52,308
Total operating expenses
68,208
89,874
247,446
308,996
Operating income
27,521
22,941
47,292
62,284
Financial income, net
1,078
2,394
4,551
7,800
Income before taxes on income
28,599
25,335
51,843
70,084
Taxes on income
(4,419
)
(4,599
)
(4,771
)
(7,020
)
Net income
$
24,180
$
20,736
$
47,072
$
63,064
Basic net income per
ordinary share
$
0.66
$
0.55
$
1.30
$
1.68
Diluted net income per ordinary share
$
0.64
$
0.53
$
1.27
$
1.62
Shares used in computing net income
per ordinary shares, basic
36,570,609
37,957,899
36,174,316
37,586,387
Shares used in computing net income per ordinary
shares, diluted
37,607,625
39,148,849
37,065,727
38,890,108
Share-based
Compensation Expense:
Three Months Ended Twelve Months Ended
December 31, December 31,
2018
2019
2018
2019
Cost of revenues
$
980
$
1,802
$
3,350
$
5,690
Research and development
2,174
3,347
7,922
10,960
Sales and marketing
3,647
6,464
12,708
20,976
General and administrative
3,493
6,418
11,984
17,891
Total share-based compensation expense
$
10,294
$
18,031
$
35,964
$
55,517
CYBERARK SOFTWARE LTD.
Consolidated Balance
Sheets
U.S. dollars in
thousands
(Unaudited)
December 31, December 31,
2018
2019
ASSETS
CURRENT ASSETS: Cash and cash equivalents
$
260,636
$
792,363
Short-term bank deposits
106,399
140,067
Marketable securities
59,948
132,412
Trade receivables
48,431
72,953
Prepaid expenses and other current assets
6,349
8,406
Total current assets
481,763
1,146,201
LONG-TERM ASSETS: Property and
equipment, net
15,120
16,472
Intangible assets, net
14,732
9,143
Goodwill
82,400
82,400
Marketable securities
24,261
54,408
Other long-term assets
31,863
72,091
Deferred tax asset
23,481
24,451
Total long-term assets
191,857
258,965
TOTAL ASSETS
$
673,620
$
1,405,166
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables
$
4,924
$
5,675
Employees and payroll accruals
32,853
41,345
Accrued expenses and other current liabilities
13,271
27,132
Deferred revenues
92,375
118,519
Total current liabilities
143,423
192,671
LONG-TERM LIABILITIES: Deferred
revenues
57,159
71,836
Other long-term liabilities
6,268
31,408
Convertible senior notes, net
-
485,119
Total long-term liabilities
63,427
588,363
TOTAL LIABILITIES
206,850
781,034
SHAREHOLDERS' EQUITY: Ordinary
shares of NIS 0.01 par value
95
99
Additional paid-in capital
303,900
396,437
Accumulated other comprehensive income (loss)
(939
)
818
Retained earnings
163,714
226,778
Total shareholders' equity
466,770
624,132
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
673,620
$
1,405,166
CYBERARK SOFTWARE LTD.
Consolidated Statements of
Cash Flows
U.S. dollars in
thousands
(Unaudited)
Twelve Months Ended
December 31,
2018
2019
Cash flows from operating activities:
Net income
$
47,072
$
63,064
Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and
amortization
10,078
10,646
Amortization of premium and accretion of discount on marketable
securities, net
293
(47
)
Share-based compensation
35,964
55,517
Deferred income taxes, net
(7,056
)
(6,974
)
Increase in trade receivables
(3,116
)
(24,522
)
Amortization of debt discount and issuance costs
-
1,966
Increase in prepaid expenses and other current and long-term assets
(11,893
)
(14,321
)
Increase in trade payables
1,955
1,571
Increase in short-term and long-term deferred revenues
47,818
40,821
Increase in employees and payroll accruals
6,896
7,337
Increase in accrued expenses and other current and long-term
liabilities
2,114
6,652
Net cash provided by operating activities
130,125
141,710
Cash flows from investing activities:
Proceeds from (Investment in) short and long term
deposits
1,600
(33,961
)
Investment in marketable securities
(61,118
)
(165,714
)
Proceeds from maturities of marketable securities
37,838
63,489
Purchase of property and equipment
(8,613
)
(7,036
)
Payments for business acquisitions, net of cash acquired
(18,450
)
-
Net cash used in investing activities
(48,743
)
(143,222
)
Cash flows from financing activities:
Proceeds from withholding tax related to employee
stock plans
-
1,155
Proceeds from the issuance of convertible senior notes, net of
issuance costs
-
560,107
Purchase of capped calls
-
(53,648
)
Proceeds from exercise of stock options
17,980
24,428
Net cash provided by financing activities
17,980
532,042
Increase in cash, cash equivalents and
restricted cash
99,362
530,530
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
$
261,883
$
792,413
CYBERARK SOFTWARE LTD.
Reconciliation of GAAP Measures to Non-GAAP
Measures U.S. dollars in thousands (except per
share data) (Unaudited)
Reconciliation of Gross Profit to Non-GAAP Gross
Profit:
Three Months Ended Twelve Months Ended
December 31,
December 31,
2018
2019
2018
2019
Gross profit
$
95,729
$
112,815
$
294,738
$
371,280
Plus:
Share-based compensation -
Maintenance & professional services
980
1,802
3,350
5,690
Amortization of intangible assets - License
1,445
968
5,563
5,029
Non-GAAP gross profit
$
98,154
$
115,585
$
303,651
$
381,999
Reconciliation of Operating Income to Non-GAAP Operating
Income:
Three Months
Ended Twelve Months Ended
December 31, December 31,
2018
2019
2018
2019
Operating
income
$
27,521
$
22,941
$
47,292
$
62,284
Plus:
Share-based
compensation
10,294
18,031
35,964
55,517
Amortization of intangible assets - Cost of
revenues
1,445
968
5,563
5,029
Amortization of intangible assets - Sales and
marketing
198
144
793
576
Acquisition related expenses
-
-
268
-
Facility exit and transitions costs
327
-
580
-
Non-GAAP operating income
$
39,785
$
42,084
$
90,460
$
123,406
Reconciliation of Net Income to Non-GAAP Net
Income:
Three Months Ended Twelve Months Ended
December 31,
December 31,
2018
2019
2018
2019
Net
income
$
24,180
$
20,736
$
47,072
$
63,064
Plus:
Share-based
compensation
10,294
18,031
35,964
55,517
Amortization of intangible assets - Cost of
revenues
1,445
968
5,563
5,029
Amortization of intangible assets - Sales and
marketing
198
144
793
576
Acquisition related expenses
-
-
268
-
Facility exit and transitions costs
327
-
580
-
Amortization of debt discount and issuance costs
-
1,966
-
1,966
Taxes on income related to non-GAAP adjustments
(2,528
)
(4,014
)
(15,485
)
(18,251
)
Intra-entity IP transfer tax effect, net
(475
)
-
1,768
-
Non-GAAP net income
$
33,441
$
37,831
$
76,523
$
107,901
Non-GAAP net income per
share
Basic
$
0.91
$
1.00
$
2.12
$
2.87
Diluted
$
0.89
$
0.97
$
2.06
$
2.77
Weighted average number of
shares
Basic
36,570,609
37,957,899
36,174,316
37,586,387
Diluted
37,607,625
39,148,849
37,065,727
38,890,108
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200212005390/en/
Investor Contact: Erica Smith CyberArk 617-558-2132
ir@cyberark.com
Media Contact: Liz Campbell CyberArk 617-558-2191
press@cyberark.com
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