First quarter total revenue of $32.9 million increases 89% year-over-year. First quarter license revenue of $20 million increases 119% year-over-year
Newton, Mass. and Petach Tikvah, Israel – May 7, 2015 – 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, 2015.
“CyberArk had an exceptional first quarter, exceeding our expectations across all financial metrics, and giving us the confidence to raise our full year guidance” said Udi Mokady, CyberArk CEO. “The increased demand and strong momentum that we built throughout 2014 continued into the first quarter. Privileged accounts are at the center of all serious security breaches, and companies are increasingly realizing that without CyberArk, they are very vulnerable to attacks. The investments we are making in our product suite and go-to-market are paying off, and we are well positioned to take advantage of the massive opportunity in front of us.”
Financial Highlights for the First Quarter Ended March 31, 2015
Revenue:
- Total revenue was $32.9 million, up 89% year-over-year compared with the first quarter of 2014.
- License revenue was $20.0 million, up 119% compared with the first quarter of 2014.
- Maintenance and Professional Services revenue was $12.9 million, up 56% year-over-year.
Operating Income:
- GAAP operating income was $7.5 million for the quarter, an increase compared to $0.2 million in the first quarter of 2014.
- Non-GAAP operating income was $9.0 million for the quarter, an increase compared to $0.3 million in the first quarter of 2014.
Net Income:
- GAAP net income was $4.2 million, an increase compared to GAAP net loss of ($1.2) million in the first quarter of 2014.
- GAAP net income per share was $0.12, compared to GAAP net loss per share of ($0.35) in the first quarter of 2014, based on 34.8 and 7.1 million weighted average diluted shares, respectively.
- Non-GAAP net income was $5.7 million, an increase compared to $0.3 million in the first quarter of 2014.
- Non-GAAP net income per share was $0.16, compared to Non-GAAP net loss per share of ($0.14) in the first quarter of 2014, based on 34.8 and 7.1 million weighted average diluted shares, respectively.
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, 2015 and 2014. 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, 2015, CyberArk had $191.7 million in cash and cash equivalents and short-term deposits compared with $177.2 million as of December 31, 2014.
- During the first quarter of 2015, the Company generated $14.9 million in cash flow from operations, an increase compared to $8.9 million in the first quarter of 2014.
Business Outlook
Based on information available as of May 7, 2015, CyberArk is issuing guidance for the second quarter and full year 2015 as indicated below.
Second Quarter 2015:
- Total revenue is expected to be in the range of $31.5 million to $32.5 million which represents 48% to 52% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $1.9 million to $2.8 million.
- Non-GAAP net income per share is expected to be in the range of $0.04 to $0.06. This assumes 35.0 million weighted average diluted shares.
Full Year 2015:
- Total revenue is expected to be in the range of $136.0 million to $138.0 million which represents 32% to 34% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $18.7 million to $20.4 million.
- Non-GAAP net income per share is expected to be in the range of $0.40 to $0.44. This assumes 35.3 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on Thursday, May 7, 2015 at 5:00 p.m. Eastern Time (ET) to discuss the company’s first quarter financial results and business outlook. To access this call, dial 888-466-4462 (domestic) or 719-457-2628 (international). The conference ID is 7521079. 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 877-870-5176 (U.S.) or 858-384-5517 (international). The replay pass code is 7521079. 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 (loss) or any other performance measures derived in accordance with GAAP.
- For the three months ended March 31, 2015 non-GAAP operating income is calculated as operating income excluding stock-based compensation expense and secondary offering related expenses. For the three months ended March 31, 2014, non-GAAP operating income is calculated as operating income excluding stock-based compensation expense.
- For the three months ended March 31, 2015, non-GAAP net income is calculated as net income excluding stock-based compensation expense and secondary offering related expenses and for the three months ended March 31, 2014, non-GAAP net income is calculated as net income excluding (i) stock-based compensation expense and (ii) financial expenses resulting from the revaluation of warrants to purchase preferred shares.
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 stock-based compensation and secondary offering related expenses allow for more meaningful comparisons of its period to period operating results. Stock-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. In addition, the Company believes that excluding financial expenses with respect to revaluation of warrants to purchase preferred shares allows for more meaningful comparison between its net income from period to period, especially since upon the closing of the IPO, the warrants were exercised for ordinary shares, and as a result, are no longer evaluated at each balance sheet date. Each of these financial measures is an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time.
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.
