CyberArk Announces Third Quarter 2017 Results
Third quarter total revenue of $64.8 million, 18 percent year-over-year increase
Newton, Mass. and Petach Tikva, Israel – November 2, 2017 – 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 third quarter ended September 30, 2017.
“We were pleased that CyberArk exceeded its guidance in the third quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Our results were driven by both new and add-on business. We are making early progress executing our strategy to globalize the sales organization, which we believe will position us to capitalize on the long term opportunity for Privileged Account Security.”
Financial Highlights for the Third Quarter Ended September 30, 2017
- Total revenue was $64.8 million, an increase from $55.0 million in the third quarter of 2016.
- License revenue was $35.8 million, compared to $33.3 million in the third quarter of 2016.
- Maintenance and Professional Services revenue was $29.0 million, an increase from $21.7 million in the third quarter of 2016.
- GAAP operating income was $1.7 million for the quarter, compared to $8.1 million in the third quarter of 2016.
- Non-GAAP operating income was $10.7 million for the quarter, compared to $14.3 million in the third quarter of 2016.
- GAAP net income was $1.7 million, or $0.05 per diluted share, compared to GAAP net income of $7.1 million, or $0.20 per diluted share, in the third quarter of 2016.
- Non-GAAP net income was $8.9 million, or $0.25 per diluted share, compared to $11.8 million, or $0.33 per diluted share, in the third quarter of 2016.
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 nine months ended September 30, 2017 and 2016. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow:
- As of September 30, 2017, CyberArk had $296.8 million in cash, cash equivalents, marketable securities and short-term deposits. This compares to $295.5 million as of December 31, 2016.
- During the first nine months of 2017, CyberArk generated $44.6 million in cash flow from operations, compared to $36.2 million in the first nine months of 2016.
Based on information available as of November 2, 2017, CyberArk is issuing guidance for the fourth quarter and full year 2017 as indicated below.
Fourth Quarter 2017:
- Total revenue is expected to be in the range of $75.0 million to $76.0 million which represents 17% to 18% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $16.8 million to $17.6 million.
- Non-GAAP net income per share is expected to be in the range of $0.35 to $0.36 per diluted share. This assumes 36.4 million weighted average diluted shares.
Full Year 2017:
- Total revenue is expected to be in the range of $256.3 million to $257.3 million, which represents 18% to 19% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $48.9 million to $49.7 million.
- Non-GAAP net income per share is expected to be in the range of $1.09 to $1.10 per diluted share. This assumes 36.3 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on today, Thursday, November 2, 2017 at 8:30 a.m. Eastern Time (ET) to discuss the company’s third 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 75374407. 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 75374407. 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.
CyberArk 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 50 percent of the Fortune 100 – to protect their highest value information assets, infrastructure and applications. 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 blog, or follow on Twitter via @CyberArk, LinkedIn or Facebook.
Copyright © 2017 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 operating income or net income or any other performance measures derived in accordance with GAAP.
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, acquisition related expenses, facility exit costs 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 acquisitions, facility exit costs 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,” “guide,” “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.