CyberArk Announces Strong Fourth Quarter and Full Year 2022 Results

Issued by: CyberArk

9/2/2023

NEWTON, Mass. & PETACH TIKVA, Israel— CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the fourth quarter and full year ended December 31, 2022.

“Our results in the fourth quarter and full year 2022 demonstrate the durability of demand for our solutions and strong execution,” said Udi Mokady, CyberArk Chairman and CEO. “Our subscription bookings mix reached a new record of 90 percent in the fourth quarter, well above the mix assumed in our guidance framework. The higher mix drove our Annual Recurring Revenue to $570 million, an increase of 45 percent year over year and significantly above our guidance, but also negatively impacted our recognized revenue in the quarter. We also once again set a record for net new Total ARR and Subscription ARR in the fourth quarter compared to the third quarter 2022. Customers are embracing our identity security platform, the most comprehensive in the market and our solutions are being prioritized by Chief Information Security Officers. As we look ahead, we believe that our competitive position has never been stronger. With our leadership position, durable demand trends and our strong execution, we believe we are positioned to navigate the current economic uncertainty and continue to capitalize on our massive opportunity and deliver long-term profitable growth.”

Financial Summary for the Fourth Quarter Ended December 31, 2022

  • Subscription revenue was $88.5 million in the fourth quarter of 2022, an increase of 86 percent from $47.6 million in the fourth quarter of 2021.
  • Maintenance and professional services revenue was $66.1 million in the fourth quarter of 2022, compared to $65.1 million in the fourth quarter of 2021.
  • Perpetual license revenue was $14.6 million in the fourth quarter of 2022, compared to $38.7 million in the fourth quarter of 2021.
  • Total revenue was $169.2 million in the fourth quarter of 2022, up 12 percent from $151.3 million in the fourth quarter of 2021.
  • GAAP operating loss was $(30.1) million and non-GAAP operating income was $4.1 million in the fourth quarter of 2022.
  • GAAP net loss was $(22.2) million, or $(0.54) per basic and diluted share, in the fourth quarter of 2022. Non-GAAP net income was $7.2 million, or $0.16 per diluted share, in the fourth quarter of 2022.

Financial Summary for the Full Year Ended December 31, 2022

  • Subscription revenue was $280.6 million in the full year 2022, an increase of 108 percent from $134.6 million in the full year 2021.
  • Maintenance and professional services revenue was $261.1 million in the full year 2022, an increase of 3 percent from $252.6 million in the full year 2021.
  • Total revenue was $591.7 million in the full year 2022, up 18 percent from $502.9 million in the full year 2021.
  • GAAP operating loss was $(152.5) million and non-GAAP operating loss was $(22.4) million in the full year 2022.
  • GAAP net loss was $(130.4) million, or $(3.21) per basic and diluted share, in the full year 2022. Non-GAAP net loss was $(17.8) million, or $(0.44) per basic and diluted share, in the full year 2022.

Balance Sheet and Net Cash Provided by Operating Activities

  • As of December 31, 2022, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
  • During the full year 2022, the Company generated $49.7 million in net cash provided by operating activities.
  • As of December 31, 2022, total deferred revenue was $408.4 million, a 29 percent increase from $317.3 million at December 31, 2021.

Key Business Highlights

  • Annual Recurring Revenue (ARR) was $570 million, an increase of 45 percent from $393 million at December 31, 2021.
    • The Subscription portion of ARR was $364 million, or 64 percent of total ARR at December 31, 2022. This represents an increase of 99 percent from $183 million, or 46 percent of total ARR, at December 31, 2021.
    • The Maintenance portion of ARR was $206 million at December 31, 2022, compared to $210 million at December 31, 2021.
  • Recurring revenue in the fourth quarter was $142.6 million, an increase of 39 percent from $102.9 million for the fourth quarter of 2021. For the full year 2022, recurring revenue was $498.3 million, an increase of 43 percent from $348.7 million for the full year 2021.
  • Remaining Performance Obligations (RPO) of $713 million at December 31, 2022, an increase of 38 percent compared to $516 million at December 31, 2021.
  • 90 percent of total license bookings in the fourth quarter 2022 were related to subscription bookings, compared to approximately 71 percent in the fourth quarter of 2021. For the full year 2022, 88 percent of total license bookings were related to subscription bookings, compared with approximately 66 percent for the full year 2021.
  • Added a strong number of new logos in the quarter, signing more than 380 new customers during the fourth quarter of 2022.

CyberArk Announces Planned Executive Changes

CyberArk today announced that Founder, Chairman and CEO, Udi Mokady, will assume the role of Executive Chair of the Board of Directors, (Executive Chair) effective April 3, 2023. At that time, Matthew Cohen, CyberArk’s Chief Operating Officer, will be appointed Chief Executive Officer and join the Board of Directors. The details of the announcement can be accessed here.

Recent Developments

Business Outlook

Based on information available as of February 9, 2023, CyberArk is issuing guidance for the first quarter and full year 2023 as indicated below.

First Quarter 2023:

  • Total revenue is expected to be in the range of $160.0 million and $164.0 million, representing growth of 25 percent to 29 percent compared to the first quarter of 2022.
  • Non-GAAP operating loss is expected to be in the range of ($15.5) million to $(12.5) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.30) to $(0.23) per basic and diluted share.
    • Assumes 41.3 million weighted average basic and diluted shares.

Full Year 2023:

  • Total revenue is expected to be in the range of $724.0 million to $736.0 million, representing growth of 22 percent to 24 percent compared to the full year 2022.
  • Non-GAAP operating income/(loss) is expected to be in the range of $(5.0) million to $5.0 million.
  • Non-GAAP net income per share is expected to be in the range of $0.07 to $0.28 per diluted share.
    • Assumes 46.1 million weighted average diluted shares
  • ARR as of December 31, 2023 is expected to be in the range of $730 million to $740 million, representing growth of 28 percent to 30 percent from December 31, 2022.

(1) Gartner®, Magic Quadrant™ for Access Management, by Henrique Teixeira, Abhyuday Data, Michael Kelley, James Hoover, Brian Guthrie, 1 November 2022.
(2) Gartner®, Magic Quadrant™ for Privileged Access Management, by Michael Kelley, James Hoover, Felix Gaehtgens, Abhyuday Data, 19th July 2022.
(3) KuppingerCole Analysts AG, “Leadership Compass: Passwordless Authentication,” October 4, 2022 by Alejandro Leal

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Thursday, February 9, 2023 at 8:00 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter and full year financial results and its business outlook. To access this call, dial +1 (888) 330-2455 (U.S.) or +1 (240) 789-2717 (international). The conference ID is 6515982. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 (800) 770-2030 (U.S.) or +1 (647) 362-9199 (international). The replay pass code is 6515982. 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.

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