Fourth quarter total revenue of $109.1 million
increases 36% year-over-year
Fourth quarter GAAP operating income of $27.5
million and non-GAAP operating income of $39.8 million
Full year total revenue of $343.2 million
increases 31% year-over-year
Full year GAAP operating income of $47.3
million and non-GAAP operating income of $90.5 million
Full year net cash provided by operating
activities of $130.1 million increases 61% year-over-year
CyberArk, (NASDAQ: CYBR), the global leader in privileged
access security, today announced record financial results for the
fourth quarter and year ended December 31, 2018.
“Our record fourth quarter results capped off a tremendous year
for CyberArk,” said Udi Mokady, CyberArk Chairman and CEO. “We
delivered record results across all operating metrics including
revenue, GAAP and Non-GAAP operating income and net income, as well
as cash flow from operations and new customer additions. We were
pleased to accelerate revenue growth across the Americas, EMEA and
APJ, which demonstrates our strong execution, commitment to
innovation, and the robust market fundamentals. As the recognized
leader in privileged access security, we enter 2019 with strong
momentum and are well positioned to deliver sustainable growth and
profitability.”
Financial Highlights for the Fourth Quarter Ended December
31, 2018
Revenue:
- Total revenue was $109.1 million, up
36% compared with the fourth quarter of 2017.
- License revenue was $66.8 million, up
38% compared with the fourth quarter of 2017.
- Maintenance and Professional Services
revenue was $42.3 million, up 33% compared with the fourth quarter
of 2017.
Operating Income:
- GAAP operating income was $27.5
million, compared to $11.6 million in the fourth quarter of 2017.
Non-GAAP operating income was $39.8 million, compared to $19.7
million in the fourth quarter of 2017.
Net Income:
- GAAP net income was $24.2 million, or
$0.64 per diluted share, compared to GAAP net income of $3.6
million, or $0.10 per diluted share, in the fourth quarter of 2017.
Non-GAAP net income was $33.4 million, or $0.89 per diluted share,
compared to $15.0 million, or $0.41 per diluted share, in the
fourth quarter of 2017.
Financial Highlights for the Full Year Ended December 31,
2018
Revenue:
- Total revenue was $343.2 million, up
31% compared with 2017.
- License revenue was $192.5 million, up
30% compared with 2017.
- Maintenance and Professional Services
revenue was $150.7 million, up 32% compared with 2017.
Operating Income:
- GAAP operating income was $47.3
million, compared to $20.3 million in 2017. Non-GAAP operating
income was $90.5 million, compared to $51.9 million in 2017.
Net Income:
- GAAP net income was $47.1 million, or
$1.27 per diluted share, compared to GAAP net income of $16.0
million, or $0.44 per diluted share, in 2017. Non-GAAP net income
was $76.5 million, or $2.06 per diluted share, compared to $41.9
million, or $1.16 per diluted share, in 2017.
The tables at the end of this press release include a
reconciliation of GAAP to non-GAAP gross profit, operating income
and net income for the three and twelve months ended December 31,
2018 and 2017. 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, 2018, CyberArk had
$451.2 million in cash, cash equivalents, marketable securities and
short-term deposits. This compares with $410.0 million in cash,
cash equivalents, marketable securities and short-term deposits as
of September 30, 2018 and $330.3 million as of December 31,
2017.
- As of December 31, 2018, total deferred
revenue was $149.5 million, a 42% increase from $105.2 million at
December 31, 2017.
- During 2018, the Company generated
$130.1 million in net cash provided by operating activities, a 61%
increase compared to $80.7 million in 2017.
Business Outlook
Based on information available as of February 14, 2019, CyberArk
is issuing guidance for the first quarter and full year 2019 as
indicated below.
First Quarter 2019:
- Total revenue is expected to be in the
range of $91.0 million to $93.0 million, which represents 27% to
30% year-over-year growth.
- Non-GAAP operating income is expected
to be in the range of $18.5 million to $20.0 million.
- Non-GAAP net income per share is
expected to be in the range of $0.39 to $0.42 per share. This
assumes 38.2 million weighted average diluted shares.
Full Year 2019:
- Total revenue is expected to be in the
range of $411.0 million to $415.0 million, which represents 20% to
21% year-over-year growth.
- Non-GAAP operating income is expected
to be in the range of $92.5 million to $95.5 million.
- Non-GAAP net income per share is
expected to be in the range of $1.94 to $2.00 per share. This
assumes 38.5 million weighted average diluted shares.
Conference Call Information
In conjunction with this announcement, CyberArk will host a
conference call on Thursday, February 14, 2019 at 8:30 a.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 +1 866-393-4306 (U.S.) or +1 561-569-9206 (international). The
conference ID is 1675647. 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 +1 855-859-2056 (U.S.) or +1 404-537-3406
(international). The replay pass code is 1675647. 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.
About CyberArk
CyberArk (NASDAQ: CYBR) is the global leader in privileged
access security, a critical layer of IT security to protect data,
infrastructure and assets across the enterprise, in the cloud and
throughout the DevOps pipeline. CyberArk delivers the industry’s
most complete solution to reduce risk created by privileged
credentials and secrets. The company is trusted by the world’s
leading organizations, including more than 50 percent of the
Fortune 100, to protect against external attackers and malicious
insiders. A global company, CyberArk is headquartered in Petach
Tikva, Israel, with U.S. headquarters located in Newton, Mass. The
company also has offices throughout the Americas, EMEA, Asia
Pacific and Japan. To learn more about CyberArk, visit
www.cyberark.com, read the CyberArk blogs or follow on Twitter via
@CyberArk, LinkedIn or Facebook.
Copyright © 2019 CyberArk Software. All Rights Reserved. All
other brand names, product names, or trademarks belong to their
respective holders.
Non-GAAP Financial Measures
CyberArk believes that the use of non-GAAP gross profit,
non-GAAP operating income and non-GAAP net income is helpful to our
investors. These financial measures are not measures of the
Company’s financial performance under U.S. GAAP and should not be
considered as alternatives to gross profit, operating income or net
income or any other performance measures derived in accordance with
GAAP.
- Non-GAAP gross profit is calculated as
gross profit excluding share-based compensation expense and
amortization of intangible assets related to acquisitions.
- Non-GAAP operating income is calculated
as operating income excluding share-based compensation expense,
acquisition related expenses, facility exit and transitions costs
and amortization of intangible assets related to acquisitions.
- Non-GAAP net income is calculated as
net income excluding share-based compensation expense, acquisition
related expenses, facility exit and transitions costs, amortization
of intangible assets related to acquisitions, intra-entity
intellectual property transfer tax effects, changes in the US
federal tax rate and the tax effect of the other non-GAAP
adjustments.
The Company believes that providing non-GAAP financial measures
that exclude share-based compensation, acquisition related
expenses, amortization of intangible assets related to
acquisitions, facility exit and transitions costs, intra-entity
intellectual property transfer tax effects, changes in the US
federal tax rate and the tax effect of the non-GAAP adjustments
allows for more meaningful comparisons of its period to period
operating results. Share-based compensation expense has been and
will continue to be for the foreseeable future, a significant
recurring expense in the Company’s business and an important part
of the compensation provided to its employees. Share based
compensation expense has varying available valuation methodologies,
subjective assumptions and a variety of equity instruments that can
impact a company’s non-cash expense. The Company believes that
expenses related to its acquisitions and amortization of intangible
assets related to acquisitions, facility exit and transitions
costs, intra-entity intellectual property transfer tax effects and
changes in the US federal tax rate do not reflect the performance
of its core business and impact period-to-period comparability.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in the
Company’s industry, as other companies in the industry may
calculate non-GAAP financial results differently, particularly
related to non-recurring, unusual items. In addition, there are
limitations in using non-GAAP financial measures as they exclude
expenses that may have a material impact on the Company’s reported
financial results. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with U.S. GAAP. CyberArk urges investors to review
the reconciliation of its non-GAAP financial measures to the
comparable U.S. GAAP financial measures included below, and not to
rely on any single financial measure to evaluate its business.
Guidance for non-GAAP financial measures excludes, as
applicable, share-based compensation expense, acquisition related
expenses, facility exit and transitions costs, and amortization of
intangible assets related to acquisitions. A reconciliation of the
non-GAAP financial measures guidance to the corresponding GAAP
measures is not available on a forward-looking basis due to the
uncertainty regarding, and the potential variability and
significance of, the amounts of share-based compensation expense,
amortization of intangible assets related to acquisitions, and the
non-recurring expenses that are excluded from the guidance.
Accordingly, a reconciliation of the non-GAAP financial measures
guidance to the corresponding GAAP measures for future periods is
not available without unreasonable effort.
Cautionary Language Concerning Forward-Looking
Statements
This release contains forward-looking statements, which express
the current beliefs and expectations of CyberArk’s (the “Company”)
management. In some cases, forward-looking statements may be
identified by terminology such as “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “should,” “plan,” “expect,”
“predict,” “potential” or the negative of these terms or other
similar expressions. Such statements involve a number of known and
unknown risks and uncertainties that could cause the Company’s
future results, performance or achievements to differ significantly
from the results, performance or achievements expressed or implied
by such forward-looking statements. Important factors that could
cause or contribute to such differences include risks relating to:
changes in the rapidly evolving cyber threat landscape; failure to
effectively manage growth; near-term declines in our operating and
net profit margins and our revenue growth rate; real or perceived
shortcomings, defects or vulnerabilities in the Company’s solutions
or internal network system, or the failure of the Company’s
customers or channel partners to correctly implement the Company’s
solutions; fluctuations in quarterly results of operations; the
inability to acquire new customers or sell additional products and
services to existing customers; competition from IT security
vendors; the Company’s ability to successfully integrate recent and
or future acquisitions; and other factors discussed under the
heading “Risk Factors” in the Company’s most recent annual report
on Form 20-F filed with the Securities and Exchange Commission.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
made only as of the date hereof, and the Company undertakes no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
CYBERARK SOFTWARE LTD.
Consolidated Statements of
Operations
U.S. dollars in thousands (except per
share data)(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2017
2018 2017
2018 Revenues: License
$
48,552 $ 66,769 $ 147,640 $ 192,514 Maintenance and professional
services 31,816 42,281 114,061 150,685
Total revenues 80,368 109,050 261,701 343,199 Cost of
revenues: License 2,259 3,005 7,911 10,526 Maintenance and
professional services 9,360 10,316 33,937 37,935
Total cost of revenues 11,619 13,321 41,848 48,461
Gross profit 68,749 95,729 219,853
294,738 Operating expenses: Research
and development 12,245 15,340 42,389 57,112 Sales and marketing
36,684 40,307 126,739 148,290 General and administrative 8,185
12,561 30,399 42,044 Total operating
expenses 57,114 68,208 199,527 247,446
Operating income 11,635 27,521 20,326 47,292 Financial
income, net 1,612 1,078 4,103
4,551 Income before taxes on income
13,247 28,599 24,429 51,843 Taxes on income (9,695 )
(4,419 ) (8,414 ) (4,771 ) Net income $
3,552 $ 24,180 $ 16,015 $ 47,072
Basic net income per ordinary share $ 0.10 $ 0.66
$ 0.46 $ 1.30 Diluted net income per ordinary
share $ 0.10 $ 0.64 $ 0.44 $ 1.27
Shares used in computing net income per ordinary shares,
basic 35,182,870 36,570,609
34,824,312 36,174,316 Shares used in computing
net income per ordinary shares, diluted 36,296,609
37,607,625 36,175,824 37,065,727
Share-based Compensation
Expense: Three Months Ended Twelve Months
Ended December 31, December 31,
2017 2018 2017
2018 Cost of revenues $
631 $ 980 $ 2,289 $ 3,350 Research and development 1,503 2,174
6,110 7,922 Sales and marketing 2,494 3,647 8,642 12,708 General
and administrative 1,966 3,493
8,196 11,984 Total share-based
compensation expense $ 6,594 $ 10,294 $ 25,237
$ 35,964
CYBERARK SOFTWARE
LTD.Consolidated Balance SheetsU.S. dollars in
thousands(Unaudited)
December 31, December 31, 2017
2018 ASSETS CURRENT
ASSETS: Cash and cash equivalents $ 161,261 $ 260,636 Short-term
bank deposits 107,647 106,399 Marketable securities 34,025 59,948
Trade receivables 45,315 48,431 Prepaid expenses and other current
assets 7,407 6,349 Total current assets
355,655 481,763 LONG-TERM ASSETS:
Property and equipment, net 9,230 15,120 Intangible assets, net
15,664 14,732 Goodwill 69,217 82,400 Marketable securities 27,407
24,261 Other long-term assets 6,060 31,863 Deferred tax asset
19,343 23,481 Total long-term assets
146,921 191,857
TOTAL ASSETS $
502,576 $ 673,620
LIABILITIES AND SHAREHOLDERS'
EQUITY CURRENT LIABILITIES: Trade payables $ 1,960 $
4,924 Employees and payroll accruals 25,253 32,853 Accrued expenses
and other current liabilities 10,209 13,271 Deferred revenues
66,986 92,375 Total current liabilities
104,408 143,423 LONG-TERM LIABILITIES:
Deferred revenues 38,249 57,159 Other long-term liabilities
5,954 6,268 Total long-term liabilities
44,203 63,427
TOTAL LIABILITIES
148,611 206,850 SHAREHOLDERS' EQUITY: Ordinary
shares of NIS 0.01 par value 91 95 Additional paid-in capital
249,874 303,900 Accumulated other comprehensive income (loss) 107
(939 ) Retained earnings 103,893 163,714
Total shareholders' equity 353,965 466,770
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $
502,576 $ 673,620
CYBERARK SOFTWARE
LTD.Consolidated Statements of Cash FlowsU.S. dollars
in thousands(Unaudited)
Twelve Months Ended December 31,
2017 2018 Cash flows
from operating activities: Net income $ 16,015 $ 47,072
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 7,856 10,078
Amortization of premium, net of accretion of discount on marketable
securities 382 293 Share-based compensation expenses 25,237 35,964
Deferred income taxes, net 5,856 (7,056 ) Increase in trade
receivables (11,631 ) (3,116 ) Increase in prepaid expenses and
other current and long-term assets (3,638 ) (11,893 ) Increase
(decrease) in trade payables (1,288 ) 1,955 Increase in short term
and long term deferred revenues 31,729 47,818 Increase in employees
and payroll accruals 6,316 6,896 Increase in accrued expenses and
other current and long-term liabilities 3,903
2,114 Net cash provided by operating activities
80,737 130,125
Cash flows
from investing activities: Proceeds (Investment) in short and
long term deposits (20,661 ) 1,600 Investment in marketable
securities (43,604 ) (61,118 ) Proceeds from maturities of
marketable securities 17,355 37,838 Purchase of property and
equipment (6,757 ) (8,613 ) Payments for business acquisitions, net
of cash acquired (41,329 ) (18,450 ) Net cash
used in investing activities (94,996 ) (48,743 )
Cash flows from financing activities: Proceeds from
exercise of stock options 2,624 17,980
Net cash provided by financing activities 2,624
17,980 Increase (decrease) in cash,
cash equivalents and restricted cash (11,635 ) 99,362 Cash,
cash equivalents and restricted cash at the beginning of the period
$ 174,156 $ 162,521 Cash, cash equivalents and
restricted cash at the end of the period $ 162,521 $ 261,883
CYBERARK SOFTWARE
LTD.Reconciliation of GAAP Measures to Non-GAAP
MeasuresU.S. dollars in thousands (except per share
data)(Unaudited)
Reconciliation of Gross Profit to Non-GAAP Gross
Profit: Three Months Ended Twelve Months
Ended December 31, December 31,
2017 2018 2017
2018 Gross profit $ 68,749 $
95,729 $ 219,853 $ 294,738 Plus: Share-based compensation -
Maintenance & professional services 631 980 2,289 3,350
Amortization of intangible assets - License 1,183
1,445 4,213 5,563
Non-GAAP gross profit $ 70,563 $ 98,154 $ 226,355
$ 303,651
Reconciliation of Operating Income to Non-GAAP Operating
Income: Three Months Ended Twelve Months
Ended December 31, December 31,
2017 2018 2017
2018 Operating income $
11,635 $ 27,521 $ 20,326 $ 47,292 Plus: Share-based compensation
6,594 10,294 25,237 35,964 Amortization of intangible assets - Cost
of revenues 1,183 1,445 4,213 5,563 Amortization of intangible
assets - Sales and marketing 262 198 1,046 793 Acquisition related
expenses - - 686 268 Facility exit and transitions costs -
327 342 580
Non-GAAP operating income $ 19,674 $ 39,785 $ 51,850
$ 90,460
Reconciliation of Net
Income to Non-GAAP Net Income: Three Months Ended
Twelve Months Ended December 31, December 31,
2017 2018
2017 2018 Net
income $ 3,552 $ 24,180 $ 16,015 $ 47,072 Plus: Share-based
compensation 6,594 10,294 25,237 35,964 Amortization of intangible
assets - Cost of revenues 1,183 1,445 4,213 5,563 Amortization of
intangible assets - Sales and marketing 262 198 1,046 793
Acquisition related expenses - - 686 268 Facility exit and
transitions costs - 327 342 580 Taxes on income related to non-GAAP
adjustments (3,180 ) (2,528 ) (12,226 ) (15,485 ) Change in the US
federal tax rate 6,582 - 6,582 - Intra-entity IP transfer tax
effect, net - (475 ) -
1,768 Non-GAAP net income $ 14,993 $ 33,441
$ 41,895 $ 76,523 Non-GAAP net income
per share Basic $ 0.43 $ 0.91 $ 1.20 $ 2.12
Diluted $ 0.41 $ 0.89 $ 1.16 $ 2.06
Weighted average number of shares Basic
35,182,870 36,570,609 34,824,312
36,174,316 Diluted 36,296,609
37,607,625 36,175,824 37,065,727
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190214005432/en/
Investor Contact:Erica
SmithCyberArk617-558-2132ir@cyberark.comMedia Contact:Liz
CampbellCyberArk617-558-2191press@cyberark.com
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