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CyberArk Announces Strong Second Quarter 2021 Results

August 12, 2021

Total Revenue of $117.2 Million

Subscription Bookings Mix Reaches 65%

Subscription Portion of Annual Recurring Revenue (ARR) of $109.5 Million Increased 128% Year-over-Year

ARR of $315 Million Grew 35% Year-over-Year

NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)-- CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the second quarter ended June 30, 2021.

“We are thrilled with our performance in the second quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Our momentum continued, and our underlying business growth meaningfully accelerated in the second quarter, driven by robust industry tailwinds and excellence in our execution. A combination of record bookings across all of our SaaS solutions and strong demand for our on-premises subscription offerings resulted in 128 percent growth in the Subscription portion of ARR and 35 percent growth in total ARR. With our push to execute our subscription transition, we achieved a 65 percent subscription booking mix, which was significantly higher than our guidance framework. With the increased headwind from this mix acceleration, we were still able to generate $117.2 million in total revenue, above the mid-point of our guidance, which demonstrates that our bookings in the second quarter were well ahead of our expectations. With these exceptional results in the second quarter and our continued leadership position in identity security anchored on privileged access, we are increasing the assumption for total bookings growth underlying our guidance framework for the year. As we look ahead, we are in a great position to execute our strategy and deliver long term-growth and profitability.”

Financial Summary for the Second Quarter Ended June 30, 2021

  • Subscription revenue was $27.1 million in the second quarter of 2021, an increase of 101 percent from $13.4 million in the second quarter of 2020.
  • Maintenance and professional services revenue was $62.9 million in the second quarter of 2021, an increase of 10 percent from $57.3 million in the second quarter of 2020.
  • Total revenue was $117.2 million in the second quarter of 2021, up 10 percent from $106.5 million in second quarter of 2020.
  • GAAP operating loss was $(23.4) million and non-GAAP operating income was $2.0 million in the second quarter of 2021.
  • GAAP net loss was $(22.8) million, or $(0.58) per basic and diluted share, in the second quarter of 2021. Non-GAAP net income was $0.3 million, or $0.01 per diluted share, in the second quarter of 2021.

Balance Sheet and Net Cash Provided by Operating Activities

  • As of June 30, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
  • As of June 30, 2021, total deferred revenue was $275.0 million, a 22 percent increase from $225.7 million at June 30, 2020.
  • During the six months ended June 30, 2021, the Company generated $49.5 million in net cash provided by operating activities, compared to $53.3 million in the first six months of 2020.

Key Performance Indicators

  • Annual Recurring Revenue (ARR) was $315 million, an increase of 35 percent from $234 million at June 30, 2020.
    • The subscription portion of ARR was $109.5 million, representing 35 percent of total ARR at June 30, 2021. This represents an increase of 128 percent from $48.1 million, or 21 percent of total ARR at June 30, 2020.
    • The Maintenance portion of ARR was $205.7 million at June 30, 2021, compared to $185.5 million at June 30, 2020.
  • Recurring revenue was $80.6 million, an increase of 32 percent from $60.8 million for the second quarter of 2020.
  • 65 percent of total license bookings were related to subscription bookings, compared with 39 percent in the second quarter of 2020.
  • Added more than 185 new customers during the second quarter of 2021.

Recent Developments

  • CyberArk was named a Leader in the 2021 Gartner Magic Quadrant for Privileged Access Management (1). The company was positioned both highest in ability to execute and furthest in completeness of vision for the third time in a row.

Business Outlook

Based on information available as of August 12, 2021, CyberArk is issuing guidance for the third quarter and for full year 2021 as indicated below.

Third Quarter 2021:

  • Total revenue between $116.0 million and $124.0 million.
  • Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(6.0) million to operating income of $1.0 million.
  • Non-GAAP net loss per share is expected to be in the range of a net loss of $(0.19) to $(0.02) per basic and diluted share.
    • Assumes 40.2 million weighted average basic and diluted shares.

Full Year 2021:

  • Total revenue is expected to be in the range of $484.0 million to $496.0 million.
  • Non-GAAP operating income is expected to be in the range of $7.0 million to $17.0 million.
  • Non-GAAP net income per share is expected to be in the range of $0.01 to $0.26 per diluted share.
    • Assumes 40.8 million weighted average diluted shares.

(1)

Gartner, Magic Quadrant for Privileged Access Management, Felix Gaehtgens, Abhyuday Data, Michael Kelley, Swati Rakheja, 19th July 2021.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Thursday, August 12, 2021 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s second quarter financial results and its business outlook. To access this call, dial +1 (833) 968-2251 (U.S.) or +1 (778) 560-2670 (international). The conference ID is 8583025. 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 (800) 585-8367 (U.S.) or +1 (416) 621-4642 (international). The replay pass code is 8583025. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in Identity Security. Centered on privileged access management, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud workloads and throughout the DevOps lifecycle. The world’s leading organizations trust CyberArk to help secure their most critical assets. To learn more about CyberArk, visit https://www.cyberark.com, read the CyberArk blogs or follow on Twitter via @CyberArk, LinkedIn or Facebook.

Copyright © 2021 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

Financial Presentation

Beginning in the first quarter of 2021, CyberArk revised the presentation of its lines of revenue and cost of revenue. The Company believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business. In addition, this disclosure will increase transparency into the Company’s business and shift toward recurring revenues, providing investors with more visibility into the subscription transition program. Historical information by quarter for fiscal years 2020 and 2019, which has been retroactively reclassified to reflect the new lines of revenue and cost of revenue, can be found in the PowerPoint presentation posted to CyberArk’s investor relations website. The new revenue lines consist of (a) Subscription revenue, which represents SaaS and on-premises subscription revenue including the license portion of on-premises subscription revenue and the ratable maintenance component of on-premises subscription revenue, (b) Perpetual license revenue and (c) Maintenance and professional services revenue, which represents the maintenance component related to perpetual license sales and professional services revenue.

Key Performance Indicators and Non-GAAP Financial Measures

Annual Recurring Revenue (ARR)

  • Annual Recurring Revenue (ARR) is defined as the annualized value of active SaaS, subscription or term-based license and maintenance contracts related to perpetual licenses in effect at the end of the reported period.

Subscription Portion of Annual Recurring Revenue

  • Subscription portion of ARR is defined as the annualized value of active SaaS and subscription or term-based license contracts in effect at the end of the reported period. The subscription portion of ARR excludes maintenance contracts related to perpetual licenses.

Maintenance Portion of Annual Recurring Revenue

  • Maintenance portion of ARR is defined as the annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and subscription or term-based license contracts in effect at the end of the reported period.

Recurring Revenue

  • Recurring Revenue is defined as revenue derived from SaaS and subscription or term-based license contracts, and maintenance contracts related to perpetual licenses during the reported period.

Non-GAAP Financial Measures

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income and free cash flow 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 loss, net loss or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

  • Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions and acquisition related expenses.
  • Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, facility exit costs, acquisition related expenses and amortization of intangible assets related to acquisitions.
  • Non-GAAP operating income is calculated as GAAP operating loss excluding share-based compensation expense, facility exit costs, acquisition related expenses and amortization of intangible assets related to acquisitions.
  • Non-GAAP net income is calculated as GAAP net loss excluding share-based compensation expense, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs and the tax effect of non-GAAP adjustments.
  • Free cash flow is calculated as net cash provided by operating activities less purchase of property and equipment.

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, the tax effect of the non-GAAP adjustments and purchase of property and equipment 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 facility exits, acquisitions, amortization of intangible assets related to acquisitions and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business.

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, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the non-GAAP adjustments. 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: the duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response, on global and regional economies and economic activity and the resulting impact on the demand for the Company’s solutions and on its expected revenue growth rates and costs; the Company’s ability to adjust its operations in response to impacts from the COVID-19 pandemic; difficulties predicting future financial results, including due to impacts from the COVID-19 pandemic; the Company’s plan to begin actively transitioning its business to a recurring revenue model in 2021; and the Company’s ability to complete the transition in the time frame expected; the Company’s ability to meet financial and operating targets during the transition period and after the transition is complete; changes to the drivers of the Company’s growth and our ability to adapt our solutions to IT security market demands; the Company’s ability to sell into existing and new industry verticals; the Company’s sales cycles and multiple licensing models may cause results to fluctuate; the Company’s ability to sell into existing customers; potential changes in the Company’s operating and net profit margins and the Company’s revenue growth rate; the Company’s ability to successfully find, complete, fully integrate and achieve the expected benefits of future acquisitions, including the Company’s ability to integrate and achieve the expected benefits of Idaptive; real or perceived shortcomings, defects or vulnerabilities in the Company’s solutions or internal network systems; the Company’s ability to hire, retain and motivate qualified personnel; the Company’s ability to expand its channel partnerships across existing and new geographies; the Company’s ability to further diversify its product deployments and licensing options; 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.

Gartner Disclaimers: GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner Peer Insights reviews constitute the subjective opinions of individual end users based on their own experiences, and do not represent the views of Gartner or its affiliates. The Gartner content described herein, (the "Gartner Content") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this 6-K and the opinions expressed in the Gartner Content are subject to change without notice.

CYBERARK SOFTWARE LTD.

Consolidated Statements of Operations

U.S. dollars in thousands (except per share data)

(Unaudited)

 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
Revenues:
Subscription

$

13,433

 

$

27,054

 

$

22,257

 

$

51,781

 

Perpetual license

 

35,744

 

 

27,329

 

 

79,518

 

 

54,023

 

Maintenance and professional services

 

57,320

 

 

62,851

 

 

111,548

 

 

124,192

 

 
Total revenues

 

106,497

 

 

117,234

 

 

213,323

 

 

229,996

 

 
Cost of revenues:
Subscription

 

4,617

 

 

6,047

 

 

6,557

 

 

11,257

 

Perpetual license

 

1,113

 

 

985

 

 

2,458

 

 

1,989

 

Maintenance and professional services

 

14,660

 

 

16,232

 

 

28,460

 

 

30,950

 

 
Total cost of revenues

 

20,390

 

 

23,264

 

 

37,475

 

 

44,196

 

 
Gross profit

 

86,107

 

 

93,970

 

 

175,848

 

 

185,800

 

 
Operating expenses:
Research and development

 

22,873

 

 

33,623

 

 

44,158

 

 

63,360

 

Sales and marketing

 

52,347

 

 

65,801

 

 

103,543

 

 

127,241

 

General and administrative

 

15,766

 

 

17,959

 

 

30,455

 

 

33,958

 

 
Total operating expenses

 

90,986

 

 

117,383

 

 

178,156

 

 

224,559

 

 
Operating loss

 

(4,879

)

 

(23,413

)

 

(2,308

)

 

(38,759

)

 
Financial expense, net

 

(1,473

)

 

(3,155

)

 

(2,209

)

 

(6,061

)

 
Loss before taxes on income

 

(6,352

)

 

(26,568

)

 

(4,517

)

 

(44,820

)

 
Tax benefit

 

2,036

 

 

3,810

 

 

2,587

 

 

6,867

 

 
Net loss

$

(4,316

)

$

(22,758

)

$

(1,930

)

$

(37,953

)

 
 
Basic loss per ordinary share

$

(0.11

)

$

(0.58

)

$

(0.05

)

$

(0.96

)

Diluted loss per ordinary share

$

(0.11

)

$

(0.58

)

$

(0.05

)

$

(0.96

)

 
Shares used in computing net loss per ordinary shares, basic 38,565,175 39,565,087 38,393,938 39,371,147
Shares used in computing net loss per ordinary shares, diluted 38,565,175 39,565,087 38,393,938 39,371,147

CYBERARK SOFTWARE LTD.

Consolidated Balance Sheets

U.S. dollars in thousands

(Unaudited)

 

December 31,

 

June 30,

 

2020

 

 

2021

 
 
ASSETS
 
CURRENT ASSETS:
Cash and cash equivalents

$

499,992

$

426,835

Short-term bank deposits

 

256,143

 

321,045

Marketable securities

 

196,856

 

228,234

Trade receivables

 

93,128

 

75,957

Prepaid expenses and other current assets

 

15,312

 

22,362

 
Total current assets

 

1,061,431

 

1,074,433

 
LONG-TERM ASSETS:
Marketable securities

 

202,190

 

215,623

Property and equipment, net

 

18,537

 

19,646

Intangible assets, net

 

23,676

 

20,772

Goodwill

 

123,717

 

123,717

Other long-term assets

 

99,992

 

107,547

Deferred tax asset

 

32,809

 

43,450

 
Total long-term assets

 

500,921

 

530,755

 
TOTAL ASSETS

$

1,562,352

$

1,605,188

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Trade payables

$

8,250

$

8,382

Employees and payroll accruals

 

52,169

 

51,717

Accrued expenses and other current liabilities

 

24,915

 

21,748

Deferred revenues

 

161,679

 

190,470

 
Total current liabilities

 

247,013

 

272,317

 
LONG-TERM LIABILITIES:
Convertible senior notes, net

 

502,302

 

511,121

Deferred revenues

 

80,829

 

84,550

Other long-term liabilities

 

24,920

 

22,137

 
Total long-term liabilities

 

608,051

 

617,808

 
TOTAL LIABILITIES

 

855,064

 

890,125

 
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value

 

101

 

104

Additional paid-in capital

 

481,992

 

530,065

Accumulated other comprehensive income

 

4,175

 

1,827

Retained earnings

 

221,020

 

183,067

 
Total shareholders' equity

 

707,288

 

715,063

 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,562,352

$

1,605,188

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

 

Six Months Ended

June 30,

 

2020

 

 

 

2021

 

 
Cash flows from operating activities:
Net loss

$

(1,930

)

$

(37,953

)

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization

 

6,911

 

 

6,889

 

Amortization of premium and accretion of discount on marketable securities, net

 

222

 

 

3,624

 

Share-based compensation

 

33,059

 

 

42,432

 

Deferred income taxes, net

 

(3,766

)

 

(9,177

)

Decrease in trade receivables

 

15,677

 

 

17,171

 

Amortization of debt discount and issuance costs

 

8,517

 

 

8,818

 

Increase in prepaid expenses, other current and long-term assets and others

 

(13,850

)

 

(4,346

)

Increase (decrease) in trade payables

 

477

 

 

(616

)

Increase in short-term and long-term deferred revenues

 

28,627

 

 

32,512

 

Decrease in employees and payroll accruals

 

(8,116

)

 

(1,368

)

Decrease in accrued expenses and other current and long-term liabilities

 

(12,540

)

 

(8,484

)

 
Net cash provided by operating activities

 

53,288

 

 

49,502

 

 
Cash flows from investing activities:
Investment in short and long term deposits, net

 

(108,138

)

 

(75,115

)

Investment in marketable securities

 

(223,733

)

 

(155,981

)

Proceeds from maturities of marketable securities

 

102,239

 

 

105,634

 

Purchase of property and equipment

 

(2,874

)

 

(4,325

)

Payments for business acquisitions, net of cash acquired

 

(66,964

)

 

-

 

 
Net cash used in investing activities

 

(299,470

)

 

(129,787

)

 
Cash flows from financing activities:
Proceeds from (payment of) withholding tax related to employee stock plans

 

(603

)

 

1,116

 

Proceeds from exercise of stock options

 

6,125

 

 

6,342

 

 
Net cash provided by financing activities

 

5,522

 

 

7,458

 

 
Decrease in cash, cash equivalents and restricted cash

 

(240,660

)

 

(72,827

)

 
Effect of exchange rate differences on cash, cash equivalents and restricted cash

 

-

 

 

(326

)

 
Cash, cash equivalents and restricted cash at the beginning of the period

 

792,413

 

 

500,044

 

 
Cash, cash equivalents and restricted cash at the end of the period

$

551,753

 

$

426,891

 

CYBERARK SOFTWARE LTD.

Reconciliation of GAAP Measures to Non-GAAP Measures

U.S. dollars in thousands (except per share data)

(Unaudited)

 
 
Reconciliation of Net cash provided by operating activities to Free cash flow:
 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
Net cash provided by operating activities

$

19,462

 

$

15,527

 

$

53,288

 

$

49,502

 

Less:
Purchase of property and equipment

 

(1,547

)

 

(1,660

)

 

(2,874

)

 

(4,325

)

 
Free cash flow

$

17,915

 

$

13,867

 

$

50,414

 

$

45,177

 

 
GAAP net cash used in investing activities

 

(281,941

)

 

(104,629

)

 

(299,470

)

 

(129,787

)

GAAP net cash provided by financing activities

 

1,515

 

 

1,086

 

 

5,522

 

 

7,458

 

 
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
Gross profit

$

86,107

 

$

93,970

 

$

175,848

 

$

185,800

 

Plus:
Share-based compensation (1)

 

1,949

 

 

2,612

 

 

3,752

 

 

5,007

 

Amortization of share-based compensation capitalized in software development costs (3)

 

-

 

 

60

 

 

-

 

 

107

 

Amortization of intangible assets (2)

 

2,239

 

 

1,278

 

 

3,175

 

 

2,556

 

Acquisition related expenses

 

400

 

 

-

 

 

400

 

 

-

 

 
Non-GAAP gross profit

$

90,695

 

$

97,920

 

$

183,175

 

$

193,470

 

 
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:
 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
Operating expenses

$

90,986

 

$

117,383

 

$

178,156

 

$

224,559

 

Less:
Share-based compensation (1)

 

14,802

 

 

20,523

 

 

29,307

 

 

37,425

 

Amortization of intangible assets (2)

 

160

 

 

174

 

 

273

 

 

348

 

Acquisition related expenses

 

2,246

 

 

-

 

 

3,856

 

 

-

 

Facility exit and transition costs

 

-

 

 

760

 

 

-

 

 

760

 

 
Non-GAAP operating expenses

$

73,778

 

$

95,926

 

$

144,720

 

$

186,026

 

 
Reconciliation of Operating Loss to Non-GAAP Operating Income:
 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
 
Operating loss

$

(4,879

)

$

(23,413

)

$

(2,308

)

$

(38,759

)

Plus:
Share-based compensation (1)

 

16,751

 

 

23,135

 

 

33,059

 

 

42,432

 

Amortization of share-based compensation capitalized in software development costs (3)

 

-

 

 

60

 

 

-

 

 

107

 

Amortization of intangible assets (2)

 

2,399

 

 

1,452

 

 

3,448

 

 

2,904

 

Acquisition related expenses

 

2,646

 

 

-

 

 

4,256

 

 

-

 

Facility exit and transition costs

 

-

 

 

760

 

 

-

 

 

760

 

 
Non-GAAP operating income

$

16,917

 

$

1,994

 

$

38,455

 

$

7,444

 

 
Reconciliation of Net Loss to Non-GAAP Net Income:
 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
 
Net loss

$

(4,316

)

$

(22,758

)

$

(1,930

)

$

(37,953

)

Plus:
Share-based compensation (1)

 

16,751

 

 

23,135

 

 

33,059

 

 

42,432

 

Amortization of share-based compensation capitalized in software development costs (3)

 

-

 

 

60

 

 

-

 

 

107

 

Amortization of intangible assets (2)

 

2,399

 

 

1,452

 

 

3,448

 

 

2,904

 

Acquisition related expenses

 

2,646

 

 

-

 

 

4,256

 

 

-

 

Facility exit and transition costs

 

-

 

 

760

 

 

-

 

 

760

 

Amortization of debt discount and issuance costs

 

4,277

 

 

4,428

 

 

8,517

 

 

8,818

 

Taxes on income related to non-GAAP adjustments

 

(5,066

)

 

(6,827

)

 

(11,078

)

 

(12,986

)

 
Non-GAAP net income

$

16,691

 

$

250

 

$

36,272

 

$

4,082

 

 
Non-GAAP net income per share
Basic

$

0.43

 

$

0.01

 

$

0.94

 

$

0.10

 

Diluted

$

0.42

 

$

0.01

 

$

0.92

 

$

0.10

 

 
Weighted average number of shares
Basic

 

38,565,175

 

 

39,565,087

 

 

38,393,938

 

 

39,371,147

 

Diluted

 

39,320,124

 

 

40,456,168

 

 

39,301,975

 

 

40,476,136

 

 
 
 
 
 
 
(1) Share-based Compensation :

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
 
Cost of revenues - Subscription

$

137

 

$

74

 

$

237

 

$

328

 

Cost of revenues - Perpetual license

 

36

 

 

60

 

 

72

 

 

114

 

Cost of revenues - Maintenance and Professional services

 

1,776

 

 

2,478

 

 

3,443

 

 

4,565

 

Research and development

 

3,362

 

 

4,937

 

 

6,383

 

 

9,287

 

Sales and marketing

 

6,753

 

 

9,266

 

 

13,153

 

 

16,764

 

General and administrative

 

4,687

 

 

6,320

 

 

9,771

 

 

11,374

 

 
Total share-based compensation

$

16,751

 

$

23,135

 

$

33,059

 

$

42,432

 

 
 
 
(2) Amortization of intangible assets :

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 
 
Cost of revenues - Subscription

$

1,896

 

$

1,111

 

$

2,437

 

$

2,200

 

Cost of revenues - Perpetual license

 

343

 

 

167

 

 

738

 

 

356

 

Sales and marketing

 

160

 

 

174

 

 

273

 

 

348

 

 
Total amortization of intangible assets

$

2,399

 

$

1,452

 

$

3,448

 

$

2,904

 

 
 
 
(3) Classified as Cost of revenues - Subscription.

 

Investor Contact:
Erica Smith
CyberArk
Phone: +1 617-558-2132
ir@cyberark.com

Media Contact:
Liz Campbell
CyberArk
Phone: +1-617-558-2191
press@cyberark.com

Source: CyberArk

Categories: Press Releases
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