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. & PETACH TIKVAH, Israel--(BUSINESS WIRE)--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.
About CyberArk
CyberArk (NASDAQ: CYBR) is the only security company focused on
eliminating the most advanced cyber threats; those that use insider
privileges to attack the heart of the enterprise. Dedicated to stopping
attacks before they stop business, CyberArk proactively secures against
cyber threats before attacks can escalate and do irreparable damage. The
company is trusted by the world’s leading companies – including 40
percent of the Fortune 100 and 17 of the world’s top 20 banks – to
protect their highest value information assets, infrastructure and
applications. A global company, CyberArk is headquartered in Petach
Tikvah, Israel, with U.S. headquarters located in Newton, MA. The
company also has offices throughout EMEA and Asia-Pacific. To learn more
about CyberArk, visit www.cyberark.com.
Copyright © 2015 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 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.
Cautionary Language Concerning Forward-Looking Statements
This release may contain forward-looking statements, which express
the current beliefs and expectations of CyberArk’s management. 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 new and rapidly evolving cyber
threat landscape; failure to effectively manage growth; fluctuations in
quarterly results of operations; real or perceived shortcomings, defects
or vulnerabilities in the Company’s solution or the failure of the
solution to meet customers’ needs; the inability to acquire new
customers or sell additional products and services to existing
customers; competition from IT security vendors 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)
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
(unaudited)
|
Revenues:
|
|
|
|
|
|
License
|
|
$
|
9,120
|
|
|
|
$
|
19,978
|
|
Maintenance and professional services
|
|
|
8,275
|
|
|
|
|
12,937
|
|
|
|
|
|
|
|
Total revenues
|
|
|
17,395
|
|
|
|
|
32,915
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
License
|
|
|
628
|
|
|
|
|
550
|
|
Maintenance and professional services
|
|
|
2,425
|
|
|
|
|
3,707
|
|
|
|
|
|
|
|
Total cost of revenues
|
|
|
3,053
|
|
|
|
|
4,257
|
|
|
|
|
|
|
|
Gross profit
|
|
|
14,342
|
|
|
|
|
28,658
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
3,237
|
|
|
|
|
4,117
|
|
Sales and marketing
|
|
|
9,433
|
|
|
|
|
13,460
|
|
General and administrative
|
|
|
1,481
|
|
|
|
|
3,578
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
14,151
|
|
|
|
|
21,155
|
|
|
|
|
|
|
|
Operating income
|
|
|
191
|
|
|
|
|
7,503
|
|
|
|
|
|
|
|
Financial expenses, net
|
|
|
(1,356
|
)
|
|
|
|
(1,631
|
)
|
|
|
|
|
|
|
Income (loss) before taxes on income
|
|
|
(1,165
|
)
|
|
|
|
5,872
|
|
|
|
|
|
|
|
Taxes on income
|
|
|
(83
|
)
|
|
|
|
(1,706
|
)
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,248
|
)
|
|
|
$
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per ordinary share
|
|
$
|
(0.35
|
)
|
|
|
$
|
0.14
|
|
Diluted net income (loss) per ordinary share
|
|
$
|
(0.35
|
)
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
Shares used in computing net income (loss) per ordinary shares,
basic
|
|
|
7,073,239
|
|
|
|
|
30,563,888
|
|
Shares used in computing net income (loss) per ordinary shares,
diluted
|
|
|
7,073,239
|
|
|
|
|
34,786,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based Compensation Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
20
|
|
|
|
$
|
63
|
|
Research and development
|
|
|
30
|
|
|
|
|
82
|
|
Sales and marketing
|
|
|
42
|
|
|
|
|
139
|
|
General and administrative
|
|
|
64
|
|
|
|
|
181
|
|
|
|
|
|
|
|
Total share-based compensation expense
|
|
$
|
156
|
|
|
|
$
|
465
|
|
|
|
|
|
|
|
|
CYBERARK SOFTWARE LTD.
|
Consolidated Balance Sheets
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
(audited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
124,184
|
|
|
|
$
|
162,946
|
|
Short-term bank deposits
|
|
|
52,997
|
|
|
|
|
28,722
|
|
Trade receivables
|
|
|
19,263
|
|
|
|
|
14,912
|
|
Prepaid expenses and other current assets
|
|
|
2,078
|
|
|
|
|
2,998
|
|
Short-term deferred tax asset
|
|
|
3,788
|
|
|
|
|
3,856
|
|
|
|
|
|
|
|
Total current assets
|
|
|
202,310
|
|
|
|
|
213,434
|
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
Property and equipment, net
|
|
|
2,148
|
|
|
|
|
2,321
|
|
Severance pay fund
|
|
|
3,060
|
|
|
|
|
3,046
|
|
Prepaid expenses and other long-term assets
|
|
|
1,021
|
|
|
|
|
1,044
|
|
Long-term deferred tax asset
|
|
|
2,013
|
|
|
|
|
2,215
|
|
|
|
|
|
|
|
Total long-term assets
|
|
|
8,242
|
|
|
|
|
8,626
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
210,552
|
|
|
|
$
|
222,060
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Trade payables
|
|
$
|
1,835
|
|
|
|
$
|
2,481
|
|
Employees and payroll accruals
|
|
|
10,322
|
|
|
|
|
7,139
|
|
Deferred revenues
|
|
|
22,594
|
|
|
|
|
28,818
|
|
Accrued expenses and other current liabilities
|
|
|
6,942
|
|
|
|
|
6,140
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
41,693
|
|
|
|
|
44,578
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
Deferred revenues
|
|
|
9,566
|
|
|
|
|
12,513
|
|
Other long-term liabilities
|
|
|
184
|
|
|
|
|
217
|
|
Accrued severance pay
|
|
|
4,101
|
|
|
|
|
4,312
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
13,851
|
|
|
|
|
17,042
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
55,544
|
|
|
|
|
61,620
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
Ordinary shares of NIS 0.01 par value
|
|
|
79
|
|
|
|
|
80
|
|
Additional paid-in capital
|
|
|
134,486
|
|
|
|
|
135,713
|
|
Accumulated other comprehensive loss
|
|
|
(333
|
)
|
|
|
|
(295
|
)
|
Retained earnings
|
|
|
20,776
|
|
|
|
|
24,942
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
155,008
|
|
|
|
|
160,440
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
210,552
|
|
|
|
$
|
222,060
|
|
|
|
|
|
|
|
|
CYBERARK SOFTWARE LTD.
|
Consolidated Statements of Cash Flows
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
(unaudited)
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,248
|
)
|
|
|
$
|
4,166
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
227
|
|
|
|
|
222
|
|
Share based compensation expenses
|
|
|
156
|
|
|
|
|
465
|
|
Tax benefit related to exercise of share options
|
|
|
-
|
|
|
|
|
529
|
|
Deferred income taxes, net
|
|
|
95
|
|
|
|
|
(245
|
)
|
Decrease in trade receivables
|
|
|
4,752
|
|
|
|
|
4,351
|
|
Decrease (increase) in prepaid expenses and other current and
long-term assets
|
|
|
205
|
|
|
|
|
(932
|
)
|
Increase (decrease) in trade payables
|
|
|
(1,058
|
)
|
|
|
|
871
|
|
Changes in fair value of warrants to purchase preferred shares
|
|
|
1,396
|
|
|
|
|
-
|
|
Increase in short term and long term deferred revenues
|
|
|
7,917
|
|
|
|
|
9,171
|
|
Decrease in employees and payroll accruals
|
|
|
(2,032
|
)
|
|
|
|
(3,183
|
)
|
Decrease in accrued expenses and other current and long-term
liabilities
|
|
|
(1,523
|
)
|
|
|
|
(771
|
)
|
Increase in accrued severance pay, net
|
|
|
11
|
|
|
|
|
225
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
8,898
|
|
|
|
|
14,869
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Proceeds from short and long term deposits
|
|
|
1,290
|
|
|
|
|
24,279
|
|
Purchase of property and equipment
|
|
|
(741
|
)
|
|
|
|
(620
|
)
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
|
549
|
|
|
|
|
23,659
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payment of deferred issuance costs
|
|
|
(147
|
)
|
|
|
|
-
|
|
Proceeds from exercise of options
|
|
|
50
|
|
|
|
|
234
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(97
|
)
|
|
|
|
234
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
9,350
|
|
|
|
|
38,762
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
62,379
|
|
|
|
|
124,184
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
$
|
71,729
|
|
|
|
$
|
162,946
|
|
|
|
|
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CYBERARK SOFTWARE LTD.
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Reconciliation of GAAP Measures to Non-GAAP Measures
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U.S. dollars in thousands (except per share data)
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Reconciliation of Operating Income to Non-GAAP Operating Income:
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Three Months Ended
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March 31,
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2014
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2015
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(unaudited)
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Operating income
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$
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191
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$
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7,503
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Secondary offering related expenses
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-
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1,081
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Share-based compensation
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156
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465
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Non-GAAP operating income
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$
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347
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$
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9,049
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Reconciliation of Net Income (Loss) to Non-GAAP Net Income:
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Three Months Ended
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March 31,
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2014
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2015
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(unaudited)
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Net income (loss)
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$
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(1,248
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)
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$
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4,166
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Secondary offering related expenses
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-
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1,081
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Share-based compensation
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156
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465
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Warrant adjustment
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1,396
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-
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Non-GAAP net income
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$
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304
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$
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5,712
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Non-GAAP net income (loss) per share
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Basic
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$
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(0.14
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$
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0.19
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Diluted
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$
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(0.14
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$
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0.16
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Weighted average number of shares
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Basic
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7,073,239
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30,563,888
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Diluted
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7,073,239
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34,786,581
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Source: CyberArk
Investor Contact:
ICR
Staci Mortenson, 617-558-2132
ir@cyberark.com
or
Media
Contact:
CyberArk
Christy Lynch, 617-796-3210
press@cyberark.com