Newton, Mass. and Petach Tikva, Israel – August 8, 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 second quarter ended June 30, 2017.

“While our results in the second quarter were primarily impacted by certain deals in EMEA that did not close by June 30, we continued to see strong demand for our solutions across on premises, cloud and hybrid environments,” said Udi Mokady, CyberArk Chairman and CEO.  “Our global leadership position in the market, strong demand for our solutions and recent organizational changes position us well to deliver long term growth and capitalize on the tremendous opportunity for privileged account security.”

Financial Highlights for the Second Quarter Ended June 30, 2017

Revenue:

• Total revenue was $57.5 million, an increase from $50.4 million compared to the second quarter of 2016.
• License revenue was $30.3 million, compared to $30.0 million in the second quarter of 2016.
• Maintenance and Professional Services revenue was $27.2 million, compared to $20.4 million in the second quarter of 2016.

Operating Income:

• GAAP operating income was $1.0 million for the quarter, compared to $8.5 million in the second quarter of 2016.
• Non-GAAP operating income was $8.8 million for the quarter, compared to $13.6 million in the second quarter of 2016.

Net Income:

• GAAP net income was $3.2 million, or $0.09 per diluted share, compared to GAAP net income of $6.4 million, or $0.18 per diluted share, in the second quarter of 2016.
• Non-GAAP net income was $7.7 million, or $0.21 per diluted share, compared to $10.5 million, or $0.29 per diluted share, in the second 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 six months ended June 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 June 30, 2017, CyberArk had $283.2 million in cash, cash equivalents, marketable securities and short-term deposits, which reflects the approximately $42 million in cash consideration for the acquisition of Conjur, Inc. in May 2017. This compares to $295.5 million as of December 31, 2016.
• During the first six months of 2017, the Company generated $29.7 million in cash flow from operations, compared to $21.4 million in the first six months of 2016.

Globalization of Sales Team

• Announced today that Ron Zoran, the Company’s Vice President of Sales, Americas, has been named Chief Revenue Officer and will be responsible for executing the company’s worldwide sales strategy across sales, sales engineering, and channels to drive revenue growth in all geographies.

Business Outlook

Based on information available as of August 8, 2017, CyberArk is issuing guidance for the third quarter and full year 2017 as indicated below.

Third Quarter 2017:

• Total revenue is expected to be in the range of $62.0 million to $63.0 million, which represents 13% to 15% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $8.2 million to $9.0 million.

• Non-GAAP net income per share is expected to be in the range of $0.17 to $0.19 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 $253.0 million to $256.0 million, which represents 17% to 18% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $46.4 million to $48.4 million.
• Non-GAAP net income per share is expected to be in the range of $1.02 to $1.06 per diluted share. This assumes 36.3 million weighted average diluted shares.

Conference Call Information

CyberArk will discuss the company’s second quarter financial results and its business outlook for the second quarter ended June 30, 2017, today, August 8, 2017 at 4:30 p.m. Eastern Time (ET).  To access this call, dial +1 844-237-3590 (U.S.) or +1 484-747-6582 (international).  The conference ID is 44458128. 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 44458128. 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.