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
NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)--
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 Sheets
U.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 Flows
U.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 Measures
U.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 Smith
CyberArk
617-558-2132
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CyberArk
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press@cyberark.com
Source: CyberArk