Newton, Mass. and Petach Tikva, Israel – August 10, 2022–  CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the second quarter ended June 30, 2022.

“We had an outstanding second quarter with momentum continuing to build for our Identity Security platform,” said Udi Mokady, CyberArk Chairman and CEO. “Robust demand, great execution and strong industry tailwinds drove the strength in our bookings. This resulted in 48 percent year-over-year growth in total ARR and in a 133 percent year-over-year growth in Subscription ARR, led by strong demand for our SaaS solutions. Our Identity Security platform centered on intelligent privilege controls is resonating with customers, who are turning to CyberArk as a trusted partner to secure all identities from workforce to privileged users to machines. The power of our land and expand strategy was demonstrated by another strong new business quarter, with nearly 250 new logos, as well as increased velocity of add on and cross sell activity in our customer base. Our Identity Security platform and subscription business model are unlocking transformational value for our customers and for CyberArk. Based on our performance in the first half of 2022, we are raising our full year guidance for total revenue and ARR and have increased confidence that we can deliver against the multi-year durable growth opportunity with strong cash flow and profitability.”

Financial Summary for the Second Quarter Ended June 30, 2022

• Subscription revenue was $66.0 million in the second quarter of 2022, an increase of 144 percent from $27.1 million in the second quarter of 2021.
• Maintenance and professional services revenue was $65.3 million in the second quarter of 2022, compared to $62.9 million in the second quarter of 2021.
• Perpetual license revenue was $11.0 million in the second quarter of 2022, compared to $27.3 million in the second quarter of 2021.
• Total revenue was $142.3 million in the second quarter of 2022, up 21 percent from $117.2 million in the second quarter of 2021.
• GAAP operating loss was $(42.0) million and non-GAAP operating loss was $(10.7) million in the second quarter of 2022.
• GAAP net loss was $(37.6) million, or $(0.93) per basic and diluted share, in the second quarter of 2022. Non-GAAP net loss was $(10.7) million, or $(0.27) per basic and diluted share, in the second quarter of 2022.

Balance Sheet and Net Cash Provided by Operating Activities

• As of June 30, 2022, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
• During the first six months of 2022, the Company generated $10.7 million in net cash provided by operating activities.
• As of June 30, 2022, total deferred revenue was $352.1 million, a 28 percent increase from $275.0 million at June 30, 2021.

Key Business Highlights

• Annual Recurring Revenue (ARR) was $465 million, an increase of 48 percent from $315 million at June 30, 2021.
  • The subscription portion of ARR was $255 million, or 55 percent of total ARR at June 30, 2022. This represents an increase of 133 percent from $109 million, or 35 percent of total ARR, at June 30, 2021.
  • The Maintenance portion of ARR was $210 million at June 30, 2022, compared to $206 million at June 30, 2021.
• Recurring revenue was $120.4 million, an increase of 49 percent from $80.6 million for the second quarter of 2021.
• Added a strong number of new logos in the quarter, signing nearly 250 customers during the second quarter of 2022.
• 88 percent of total license bookings were related to subscription bookings, compared with approximately 65 percent in the second quarter of 2021.

Recent Developments

• CyberArk was named a Leader in the 2022 Gartner® Magic Quadrant™ for Privileged Access Management⁽¹⁾. The company was positioned both highest in ability to execute and furthest in completeness of vision for the fourth time in a row.
• CyberArk launched Secrets Hub for AWS Secrets Manager, a SaaS solution that allows customers to centrally manage and rotate secrets used by developers in a cloud-native experience without any changes to their workflow.
• CyberArk advanced the Identity Security market with solutions centered on intelligent privilege controls, seamlessly securing access for all identities, and flexibly automating the identity lifecycle, with continuous threat detection and protection with a unified approach

 Business Outlook

Based on information available as of August 10, 2022, CyberArk is issuing guidance for the third quarter and full year 2022 as indicated below.

Third Quarter 2022:

• Total revenue is expected to be in the range of $147.0 million and $153.0 million.
• Non-GAAP operating loss is expected to be in the range of $(11.0) million to $(6.0) million.
• Non-GAAP net loss per share is expected to be in the range of $(0.27) to $(0.14) per basic and diluted share.
  • Assumes 41.4 million weighted average basic and diluted shares.

Full Year 2022:

• Total revenue is expected to be in the range of $589.0 million to $601.0 million.
• Non-GAAP operating loss is expected to be in the range of $(30.5) million to $(20.5) million.
• Non-GAAP net loss per share is expected to be in the range of $(0.82) to $(0.57) per basic and diluted share.
  • Assumes 40.7 million weighted average basic and diluted shares.
• ARR as of December 31, 2022 is expected to be in the range of $543.0 million to $549.0 million, representing growth of 38 percent to 40 percent from December 31, 2021.
• Gartner® Magic Quadrant™ for Privileged Access Management, by Michael Kelley, James Hoover, Felix Gaehtgens, Abhyuday Data, 19^thJuly 2022.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Wednesday, August 10, 2022 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s second quarter 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.