First quarter total revenue of $46.9 million increases 43% year-over-year.
Newton, Mass. and Petach Tikvah, Israel – May 5, 2016 – 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, 2016.
“Our top and bottom line outperformance in the first quarter was driven by solid execution and strong demand for privileged account security,” said Udi Mokady, CyberArk CEO. “The breadth of customers and partners turning to CyberArk to protect privileged accounts and credentials demonstrates that every organization regardless of size or vertical needs this critical new layer of security. We believe our disciplined investments will enable us to continue to extend our leadership position, capture share in this greenfield market and deliver profitable growth.”
Financial Highlights for the First Quarter Ended March 31, 2016
Revenue:
- Total revenue was $46.9 million, up 43% compared with the first quarter of 2015.
- License revenue was $27.5 million, up 38% compared with the first quarter of 2015.
- Maintenance and Professional Services revenue was $19.4 million, up 50% compared with the first quarter of 2015.
Operating Income:
- GAAP operating income was $6.2 million, compared to $7.5 million in the first quarter of 2015. Non-GAAP operating income was $10.7 million, an increase from $9.0 million in the first quarter of 2015.
Net Income:
- GAAP net income was $4.3 million, or $0.12 per diluted share, compared to GAAP net income of $4.2 million, or $0.12 per diluted share, in the first quarter of 2015. Non-GAAP net income was $8.3 million, or $0.23 per diluted share, compared to $5.7 million, or $0.16 per diluted share, in the first quarter of 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 months ended March 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:
- As of March 31, 2016, CyberArk had $254.3 million in cash, cash equivalents, marketable securities and short-term deposits, compared to $238.3 million as of December 31, 2015.
- During the first quarter of 2016, the Company generated $16.5 million in cash flow from operations, an increase compared to $14.3 million in the first quarter of 2015.
Business Outlook
Based on information available as of May 5, 2016, CyberArk is issuing guidance for the second quarter and full year 2016 as indicated below.
Second Quarter 2016:
- Total revenue is expected to be in the range of $47.5 million to $48.5 million, which represents 31% to 33% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $8.6 million to $9.5 million.
- Non-GAAP net income per share is expected to be in the range of $0.18 to $0.20 per diluted share. This assumes 35.9 million weighted average diluted shares.
Full Year 2016:
- Total revenue is expected to be in the range of $209.0 million to $211.0 million, which represents 30% to 31% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $41.7 million to $43.3 million.
- Non-GAAP net income per share is expected to be in the range of $0.87 to $0.91 per diluted share. This assumes 36.3 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on Thursday, May 5, 2016 at 4:30 p.m. Eastern Time (ET) to discuss the company’s first quarter financial results and business outlook. To access this call, dial 844-237-3590 (domestic) or +1 484 747-6582(international). The conference ID is 85665234. Additionally, a live webcast of the conference call will be available in 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 855 859-2056 (U.S.) or +1 404 537-3406 (international). The replay pass code is 85665234. An archived webcast of this conference call will also be available in the “Investor Relations” section of the Company’s web site at www.cyberark.com.
Non-GAAP Financial Measures
CyberArk believes that the use of 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 operating income or net income or any other performance measures derived in accordance with GAAP.
- For the three months ended March 31, 2016, non-GAAP operating income is calculated as operating income excluding share-based compensation expense and amortization of intangible assets related to acquisitions. For the three months ended March 31, 2015, non-GAAP operating income is calculated as operating income excluding public offering related expenses and share-based compensation expense.
- For the three months ended March 31, 2016, non-GAAP net income is calculated as net income excluding share-based compensation expense, amortization of intangible assets related to acquisitions and the tax effects related to the non-GAAP adjustments and for the three months ended March 31, 2015, non-GAAP net income is calculated as net income excluding public offering related expenses and share-based compensation expense.
Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expense, the Company believes that providing non-GAAP financial measures that exclude share-based compensation, public offering related expenses and amortization of intangible assets related to acquisitions 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. The Company believes that expenses related to its public offerings and amortization of intangible assets related to acquisitions 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 measures to evaluate its business.
