Newton, Mass. and Petach Tikva, Israel – May 11, 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 first quarter ended March 31, 2017.
“Our results demonstrate that new and existing customers around the world are embracing Privileged Account Security,” said Udi Mokady, CyberArk Chairman and CEO. “The attack surface continues to expand across on-premises, cloud, and hybrid environments as well as DevOps processes. With our comprehensive platform and commitment to innovation, we are best positioned to help organizations seamlessly protect privileged accounts and credentials across all enterprise environments. We plan to continue to make strategic investments across the business that will strengthen our position as the market leader while we also deliver strong growth and profitability.”
Financial Highlights for the First Quarter Ended March 31, 2017
- Total revenue was $59.0 million, up 26% compared with the first quarter of 2016.
- License revenue was $33.0 million, up 20% compared with the first quarter of 2016.
- Maintenance and professional services revenue was $26.0 million, up 34% compared with the first quarter of 2016.
- GAAP operating income was $6.0 million, compared to $6.2 million in the first quarter of 2016. Non-GAAP operating income was $12.7 million, compared to $10.7 million in the first quarter of 2016.
- GAAP net income was $7.5 million, or $0.21 per diluted share, an increase from GAAP net income of $4.3 million, or $0.12 per diluted share, in the first quarter of 2016. Non-GAAP net income was $10.2 million, or $0.28 per diluted share, an increase from $8.3 million, or $0.23 per diluted share, in the first quarter of 2016.
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 ended March 31, 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 March 31, 2017, CyberArk had $310.6 million in cash, cash equivalents, marketable securities and short-term deposits, compared to $295.5 million as of December 31, 2016.
- During the first quarter of 2017, the Company generated $16.0 million in cash flow from operations, compared to $16.5 million in the first quarter of 2016.
Acquisition of Conjur:
- Announced today the acquisition of Conjur, a provider of DevOps security software, extending CyberArk’s market opportunity deeper into the DevOps lifecycle to protect secrets and manage machine identities.
Based on information available as of May 11, 2017, CyberArk is issuing guidance for the second quarter and full year 2017 as indicated below. Second quarter and full year 2017 revenue guidance does not include any incremental revenue from the acquisition of Conjur. CyberArk has included in its guidance incremental cost of goods and operating expenses of approximately $1.0 million in the second quarter of 2017 and approximately $3.5 million for the full year of 2017 related to the acquisition of Conjur.
Second Quarter 2017:
- Total revenue is expected to be in the range of $61.0 million to $62.0 million, which represents 21% to 23% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $10.9 million to $11.7 million.
- Non-GAAP net income per share is expected to be in the range of $0.23 to $0.25 per diluted share. This assumes 36.3 million weighted average diluted shares.
Full Year 2017:
- Total revenue is expected to be in the range of $268.5 million to $271.5 million, which represents 24% to 25% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $55.0 million to $57.0 million.
- Non-GAAP net income per share is expected to be in the range of $1.18 to $1.22 per diluted share. This assumes 36.4 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call today, Thursday, May 11, 2017 at 4:30 p.m. Eastern Time (ET) to discuss the company’s first 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 3101633. 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 3101633. 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.