NEWTON, Mass. and PETACH TIKVAH, Israel – February 9, 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 fourth quarter and year ended December 31, 2016.

“CyberArk had an incredible 2016,” said Udi Mokady, CyberArk Chairman and CEO. “We outperformed across revenue, operating income and net income per share, demonstrating the ongoing execution of our land and expand strategy and the power of our operating model. Protecting privileged accounts, across the enterprise, on endpoints, in the cloud and in hybrid environments, is increasingly recognized as fundamental to cyber security programs. Because of our operational and financial success in 2016, we entered 2017 as an even stronger company, well positioned to continue to deliver profitable revenue growth.”

Financial Highlights for the Fourth Quarter Ended December 31, 2016

Revenue:

• Total revenue was $64.4 million, up 25% compared with the fourth quarter of 2015.
• License revenue was $40.8 million, up 23% compared with the fourth quarter of 2015.
• Maintenance and Professional Services revenue was $23.6 million, up 28% compared with the fourth quarter of 2015.

Operating Income:

• GAAP operating income was $13.2 million, compared to $10.9 million in the fourth quarter of 2015. Non-GAAP operating income was $19.4 million, compared to $15.2 million in the fourth quarter of 2015.

Net Income:

• GAAP net income was $10.2 million, or $0.28 per diluted share, compared to GAAP net income of $9.9 million, or $0.28 per diluted share, in the fourth quarter of 2015.  Non-GAAP net income was $14.7 million, or $0.41 per diluted share, compared to $13.8 million, or $0.39 per diluted share, in the fourth quarter of 2015.

Financial Highlights for the Full Year Ended December 31, 2016

Revenue:

• Total revenue was $216.6 million, up 35% compared with 2015.
• License revenue was $131.5 million, up 31% compared with 2015.
• Maintenance and Professional Services revenue was $85.1 million, up 40% compared with 2015.

Operating Income:

• GAAP operating income was $36.0 million, compared to $33.2 million in 2015. Non-GAAP operating income was $58.0 million, compared to $43.6 million in 2015.

Net Income:

• GAAP net income was $28.1 million, or $0.78 per diluted share, compared to GAAP net income of $25.8 million, or $0.73 per diluted share, in 2015. Non-GAAP net income was $45.2 million, or $1.26 per diluted share, compared to $35.3 million, or $1.00 per diluted share, in 2015.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP operating income and net income for the three and twelve months ended December 31, 2016 and 2015. An explanation of these measures is also included below under the heading “Non-GAAP Financial measures.”

Balance Sheet and Cash Flow From Operations:    

• As of December 31, 2016, CyberArk had $295.5 million in cash, cash equivalents, marketable securities and short-term deposits. This compares with $274.6 million in cash, cash equivalents, marketable securities and short-term deposits as of September 30, 2016 and $238.3 million as of December 31, 2015.
• During 2016, the Company generated $56.3 million in cash flow from operations, compared to $59.2 million during in 2015.

Business Outlook
Based on information available as of February 9, 2017, CyberArk is issuing guidance for the first quarter and full year 2017 as indicated below.

First Quarter 2017:

• Total revenue is expected to be in the range of $57.0 million to $58.0 million, which represents 22% to 24% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $9.9 million to $10.7 million.

• Non-GAAP net income per share is expected to be in the range of $0.21 to $0.23 per share. This assumes 36.2 million weighted average diluted shares. 

Full Year 2017:

• Total revenue is expected to be in the range of $267.0 million to $270.0 million which represents 23% to 25% year-over-year growth.
• Non-GAAP operating income is expected to be in the range of $56.0 million to $58.0 million.

• Non-GAAP net income per share is expected to be in the range of $1.20 to $1.24 per share. This assumes 36.4 million weighted average diluted shares.

Conference Call Information
CyberArk will host a conference call today, at 4:30 p.m. Eastern Time (ET) to discuss the company’s fourth quarter and year end 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 48627364. 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 48627364. 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.