Fourth quarter total revenue of $36.3 million increases 81% year-over-year. Full Year 2014 total revenue of $103.0 million increases 56% year-over-year
Newton, Mass. and Petach Tikvah, Israel – February 12, 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 fourth quarter and full year ended December 31, 2014.
Udi Mokady, CyberArk CEO, said, “We are very pleased with our strong fourth quarter and full year results. It has become increasingly clear that privileged account security is the critical new layer of protection for organizations. Our results this quarter and in all of 2014 reinforce that we are seeing returns on our investments in product development and sales and marketing and successfully addressing the significant opportunity in front of us. We are very well positioned in the market, and in 2015 we will continue our focus on innovation, scale and execution to drive growth and further extend our leadership position.”
Financial Highlights for the Fourth Quarter Ended December 31, 2014
Revenue:
- Total revenue was $36.3 million, up 81% year-over-year compared with the fourth quarter of 2013.
- License revenue was $24.4 million, up 95% compared with the fourth quarter of 2013.
- Maintenance and Professional Services revenue was $11.9 million, up 57% year-over-year.
Operating Income:
- GAAP operating income was $9.5 million for the quarter, an increase compared to $2.7 million in the fourth quarter of 2013.
- Non-GAAP operating income was $10.0 million for the quarter, an increase compared to $2.8 million in the fourth quarter of 2013.
Net Income:
- GAAP net income was $6.7 million, an increase compared to GAAP net income of $1.4 million in the fourth quarter of 2013.
- GAAP net income per share was $0.19, compared to $0.01 in the fourth quarter of 2013, based on 34.7 and 10.4 million weighted average diluted shares, respectively.
- Non-GAAP net income was $7.2 million, an increase compared to $2.2 million in the fourth quarter of 2013.
- Non-GAAP net income per share was $0.21, compared to $0.08 in the fourth quarter of 2013, based on 34.7 million and 27.0 million weighted average diluted shares, respectively.
Financial Highlights for the Full Year Ended December 31, 2014
Revenue:
- Total revenue was $103.0 million, up 56% compared with 2013.
- License revenue was $61.3 million, up 58% compared with 2013.
- Maintenance and Professional Services revenue was $41.7 million, up 53% year-over-year.
Operating Income:
- GAAP operating income was $20.5 million, an increase compared to $9.1 million in 2013.
- Non-GAAP operating income was $22.0 million, an increase compared to $9.5 million in 2013.
Net Income:
- GAAP net income was $10.0 million, an increase compared to GAAP net income of $6.6 million 2013.
- GAAP net income per share was $0.34, compared to $0.14 in 2013, based on 29.7 million and 10.8 million weighted average diluted shares, respectively.
- Non-GAAP net income was $15.8 million, an increase compared to $8.5 million in 2013.
- Non-GAAP net income per share was $0.53, compared to $0.31 in 2013, based on 29.7 million and 27.3 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 and twelve months ended December 31, 2014 and 2013. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow:
- As of December 31, 2014, CyberArk had $177.2 million in cash and cash equivalents and short-term deposits compared with $65.4 million as of December 31, 2013.
- During 2014, the Company generated $23.8 million in cash flow from operations, an increase compared to $20.2 million during in 2013.
Business Outlook
Based on information available as of February 12, 2015, CyberArk is issuing guidance for the first quarter and full year 2015 as indicated below.
First Quarter 2015:
- Total revenue is expected to be in the range of $25.5 million to $26.5 million.
- Non-GAAP operating income is expected to be in the range of $1.6 million to $2.5 million.
- Non-GAAP net income per share is expected to be in the range of $0.04 to $0.06. This assumes 34.7 million weighted average diluted shares.
Full Year 2015:
- Total revenue is expected to be in the range of $127.0 million to $130.0 million which represents 23% to 26% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $11.0 million to $12.5 million.
- Non-GAAP net income per share is expected to be in the range of $0.24 to $0.27. This assumes 35.1 million weighted average diluted shares.
Conference Call Information
CyberArk will host a conference call on Thursday, February 12, 2015 at 5:00 p.m. Eastern Time (ET) to discuss the company’s fourth quarter and full year financial results and business outlook. To access this call, dial 888-437-9445 (domestic) or 719-457-2689 (international). The conference ID is 1256897. 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 1256897. 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 and twelve months ended December 31, 2014 and 2013, non-GAAP operating income is calculated as operating income excluding stock-based compensation expense.
- For the three months ended December 31, 2014, non-GAAP net income is calculated as net income excluding stock-based compensation expense and for the three months ended December 31, 2013, 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.
- For the twelve months ended December 31, 2014 and 2013, 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 expense allows 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.
