Newton, Mass. and Petach Tikva, Israel – August 7, 2018 – CyberArk, (NASDAQ: CYBR), the global leader in privileged access security, today announced financial results for the second quarter ended June 30, 2018.

“CyberArk had a great second quarter,” said Udi Mokady, CyberArk Chairman and CEO.  “We exceeded our guidance across all metrics.  We posted strong revenue growth, profitability and operating cash flow.  Our growth was driven by strong execution and robust demand from both new and existing customers across all geographies.  We were thrilled to sign nearly 200 new logos in the second quarter bringing our total number of customers to more than 4,000, which demonstrates that we are still in the early innings of our market opportunity.  In addition, the significant value our solution provides coupled with our unwavering commitment to customer satisfaction drove our add on business during the quarter. Given our strong execution in the first half of the year and our tremendous market opportunity, we are positioned well for the remainder of 2018.”

Financial Highlights for the Second Quarter Ended June 30, 2018

Revenue:

• Total revenue was $77.7 million, up 35% compared with the second quarter of 2017.
• License revenue was $41.1 million, up 36% compared with the second quarter of 2017.
• Maintenance and professional services revenue was $36.6 million, up 35% compared with the second quarter of 2017.

Operating Income:

• GAAP operating income was $7.0 million, an increase from $1.0 million in the second quarter of 2017. Non-GAAP operating income was $17.0 million, an increase from $8.8 million in the second quarter of 2017.

Net Income:

• GAAP net income was $8.4 million, or $0.23 per diluted share, an increase from GAAP net income of $3.2 million, or $0.09 per diluted share, in the second quarter of 2017. Non-GAAP net income was $13.5 million, or $0.36 per diluted share, an increase from $7.7 million, or $0.21 per diluted share, in the second quarter of 2017.

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 and six months ended June 30, 2018 and 2017. 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, 2018, CyberArk had $377.5 million in cash, cash equivalents, marketable securities and short-term deposits. This compares to $330.3 million as of December 31, 2017 and $283.2 million at June 30, 2017.
• As of June 30, 2018, total deferred revenue was $129.6 million, a 23% increase from $105.2 million at December 31, 2017 and a 56% increase from $82.8 million at June 30, 2017.
• During the six months ended June 30, 2018, the Company generated $56.2 million in cash flow from operations, a 90% increase from $29.7 million in the first six months of 2017.

Business Outlook

Based on information available as of August 7, 2018, CyberArk is issuing guidance for the third quarter and increasing its guidance for the full year 2018 as indicated below.

Third Quarter 2018:

• Total revenue is expected to be in the range of $77.75 million to $79.25 million, which represents 20% to 22% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $11.4 million to $12.6 million.

• Non-GAAP net income per share is expected to be in the range of $0.25 to $0.28 per diluted share.  This assumes 37.5 million weighted average diluted shares.

Full Year 2018:

• Total revenue is expected to be in the range of $320.0 million to $324.0 million, which represents 22% to 24% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $64.0 million to $67.0 million.

• Non-GAAP net income per share is expected to be in the range of $1.43 to $1.50 per diluted share.  This assumes 37.0 million weighted average diluted shares.

Conference Call Information

CyberArk will host a conference call today,  August 7, 2018 at 5:00 p.m. Eastern Time (ET) to discuss the company’s second 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 2687958. 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 2687958. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s web site at www.cyberark.com.