CyberArk Announces Second Quarter 2020 Results

  • Total revenue of $106.5 million
  • GAAP operating loss of $(4.9) million and Non-GAAP operating income of $16.9 million
  • Deferred revenue grew 30 percent year over year

Newton, Mass. and Petach Tikva, Israel – August 4, 2020 – CyberArk, (NASDAQ: CYBR), the global leader in privileged access management, today announced financial results for the second quarter ended June 30, 2020.

“We were pleased to deliver results ahead of all guided metrics for the second quarter,” said Udi Mokady, CyberArk Chairman and CEO. “The integration of our Idaptive acquisition is progressing well and the feedback from customers and partners has been positive. Our SaaS solutions are gaining momentum resulting in record SaaS bookings in the second quarter, contributing to our strong 30 percent deferred revenue growth. While SaaS acceleration results in a short-term revenue headwind, the recurring revenue base creates significant longer-term value for both our customers and CyberArk. It was a very active quarter overall with the impact from the global pandemic confined to new business progression, which was in line with our expectations. Cybersecurity market fundamentals remain strong, identity security is at the top of customers’ priority lists, and our pipeline growth is robust. We are confident that we are positioned to accelerate growth as the overall business environment stabilizes.”

Financial Highlights for the Second Quarter Ended June 30, 2020

Revenue:

  • Total revenue was $106.5 million, compared to $100.2 million in the second quarter of 2019.
  • License revenue was $47.9 million, compared to $52.2 million in the second quarter of 2019.
  • Maintenance and professional services revenue was $58.6 million, compared to $48.0 million in the second quarter of 2019.

Operating Income (Loss):

  • GAAP operating loss was $(4.9) million, compared to operating income of $13.0 million in the second quarter of 2019. Non-GAAP operating income was $16.9 million, compared to $26.5 million in the second quarter of 2019.

Net Income (Loss):

  • GAAP net loss was $(4.3) million, or $(0.11) per basic and diluted share, compared to GAAP net income of $13.4 million, or $0.34 per diluted share, in the second quarter of 2019. Non-GAAP net income was $16.7 million, or $0.42 per diluted share, compared to $23.0 million, or $0.59 per diluted share, in the second quarter of 2019.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating income (loss) and net income (loss) for the three months and six months ended June 30, 2020 and 2019. 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, 2020, CyberArk had $1.1 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares to $537.9 million at June 30, 2019.
  • As of June 30, 2020, total deferred revenue was $225.7 million, a 30% increase from $174.2 million at June 30, 2019.
  • During the six months ended June 30, 2020, the company generated $53.3 million in net cash provided by operating activities, compared to $67.3 million in the first six months of 2019.

Business Outlook

Based on information available as of August 4, 2020, CyberArk is issuing guidance for the third quarter of 2020 as indicated below.

Third Quarter 2020:

  • Total revenue between $107.0 million and $115.0 million.
  • Non-GAAP operating income between $8.0 million and $15.0 million.
  • Non-GAAP net income per share between $0.19 and $0.33 per diluted share.
  • Assumes 39.8 million weighted average diluted shares.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Tuesday, August 4, 2020 at 8:30 a.m. Eastern Time (ET) to discuss the company’s second quarter financial results and its business outlook. To access this call, dial +1 (833) 968-2251 (U.S.) or +1 (778) 560-2670 (international). The conference ID is 3597059. 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 (416) 621-4642 (international). The replay pass code is 3597059. 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 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 © 2020 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

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