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CyberArk Announces Strong Third Quarter 2022 Results

November 03, 2022

Subscription Portion of Annual Recurring Revenue (ARR) of $301 million; Growth of 117%
Total ARR of $512 million; Growth Accelerating to 49%
Subscription Revenue of $74.2 million; Growth of 110%
Total Revenue of $152.7 million; Growth Accelerating to 26%
Net Cash Flow from Operating Activities of $29.2 million for Nine Months Ended September 30, 2022
Full Year ARR Guidance Range Increased to a Range of $552 million to $558 million

CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the third quarter ended September 30, 2022.

“Strong demand for our Identity Security platform centered on intelligent privilege controls continues to fuel our growth and demonstrates the durability of demand for our solutions,” said Udi Mokady, CyberArk Chairman and CEO. “Digital transformation, the adoption of Zero Trust strategies and the heightened threat landscape are pushing identity security to the top of priority lists for Chief Information Security Officers. Our execution, combined with strong secular trends, resulted in total Annual Recurring Revenue reaching $512 million with year over year growth in ARR accelerating for the third consecutive quarter to 49 percent. We also experienced the highest ever sequential increase in subscription ARR. We remain confident in our ability to deliver against our tremendous growth opportunity with strong cash flow and profitability. Given the strength of our results year to date, we are again significantly raising our full year ARR guidance to 41 percent growth at the midpoint.”

Financial Summary for the Third Quarter Ended September 30, 2022

  • Subscription revenue was $74.2 million in the third quarter of 2022, an increase of 110 percent from $35.3 million in the third quarter of 2021.
  • Maintenance and professional services revenue was $64.6 million in the third quarter of 2022, compared to $63.3 million in the third quarter of 2021.
  • Perpetual license revenue was $13.8 million in the third quarter of 2022, compared to $23.0 million in the third quarter of 2021.
  • Total revenue was $152.7 million in the third quarter of 2022, with growth accelerating to 26 percent from $121.6 million in the third quarter of 2021.
  • GAAP operating loss was $(39.3) million and non-GAAP operating loss was $(4.0) million in the third quarter of 2022.
  • GAAP net loss was $(32.7) million, or $(0.80) per basic and diluted share, in the third quarter of 2022. Non-GAAP net loss was $(2.3) million, or $(0.06) per basic and diluted share, in the third quarter of 2022.

Balance Sheet and Net Cash Provided by Operating Activities

  • As of September 30, 2022, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
  • During the first nine months of 2022, the Company generated $29.2 million in net cash provided by operating activities.
  • As of September 30, 2022, total deferred revenue was $376.1 million, a 34 percent increase from $280.9 million at September 30, 2021.

Key Business Highlights

  • Annual Recurring Revenue (ARR) was $512 million, an increase of 49 percent from $344 million at September 30, 2021.
    • The subscription portion of ARR was $301 million, or 59 percent of total ARR at September 30, 2022. This represents an increase of 117 percent from $139 million, or 40 percent of total ARR, at September 30, 2021.
    • The Maintenance portion of ARR was $211 million at September 30, 2022, compared to $206 million at September 30, 2021.
  • Recurring revenue was $128.5 million, an increase of 44 percent from $88.9 million for the third quarter of 2021.
  • Added a strong number of new logos in the quarter, signing nearly 230 new customers during the third quarter of 2022.
  • 87 percent of total license bookings were related to subscription bookings, compared to approximately 72 percent in the third quarter of 2021.

Recent Developments

Business Outlook
Based on information available as of November 3, 2022, CyberArk is issuing guidance for the fourth quarter and full year 2022 as indicated below.

Fourth Quarter 2022:

  • Total revenue is expected to be in the range of $169.9 million and $176.9 million.
  • Non-GAAP operating income is expected to be in the range of $2.0 million to $8.0 million.
  • Non-GAAP net income per share is expected to be in the range of $0.07 to $0.20 per diluted share.
    • Assumes 45.8 million weighted average diluted shares.

Full Year 2022:

  • Total revenue is expected to be in the range of $592.5 million to $599.5 million.
  • Non-GAAP operating loss is expected to be in the range of $(24.5) million to $(18.5) million.
  • Non-GAAP net loss per share is expected to be in the range of $(0.54) to $(0.39) per basic and diluted share.
    • Assumes 40.7 million weighted average basic and diluted shares.
  • ARR as of December 31, 2022 is expected to be in the range of $552 million to $558 million, representing growth of 40 percent to 42 percent from December 31, 2021.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Thursday, November 3, 2022 at 8:00 a.m. Eastern Time (ET) to discuss the Company’s third quarter financial results and its business outlook. To access this call, dial +1 (888) 330-2455 (U.S.) or +1 (240) 789-2717(international). The conference ID is 6515982. 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) 770-2030 (U.S.) or +1 (647) 362-9199 (international). The replay pass code is 6515982. 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 © 2022 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

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 (loss), non-GAAP net income (loss) 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, and amortization of intangible assets related to acquisitions.
  • 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 (loss) 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 (loss) 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, the tax effect of non-GAAP adjustments and unrealized gain from investment in private held companies.
  • 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, unrealized gain from investment in private held companies 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 exit costs, 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, 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, levels of activity, performance or achievements to differ materially from the results, levels of activity, 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 to the drivers of the Company’s growth and its ability to adapt its solutions to IT security market demands; the transition of the Company’s business to a subscription model that began in 2021; the Company’s sales cycles and multiple pricing and delivery models; unanticipated product vulnerabilities or cybersecurity breaches of the Company’s, or the Company’s customers’ or partners’ systems; an increase in competition within the Privileged Access Management and Identity Security markets; the Company’s ability to hire, train, retain and motivate qualified personnel; the Company’s ability to sell into existing and new customers and industry verticals; risks related to compliance with privacy and data protection laws and regulations; the Company’s history of incurring net losses and our ability to achieve profitability in the future; the duration and scope of the COVID-19 pandemic and its impact on global and regional economies and the resulting effect on the demand for the Company’s solutions and on its expected revenue growth rates and costs; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; reliance on third-party cloud providers for the Company’s operations and SaaS solutions; the Company’s ability to expand its sales and marketing efforts and expand its channel partnerships across existing and new geographies; risks related to sales made to government entities; regulatory and geopolitical risks associated with global sales and operations (including the current conflict between Russia and Ukraine) and changes in regulatory requirements or fluctuations in currency exchange rates; the ability of the Company’s products to help customers achieve and maintain compliance with government regulations or industry standards; risks related to intellectual property claims or the Company’s ability to protect its proprietary technology and intellectual property rights; 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 U.S. 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   Nine Months Ended  
      September 30,   September 30,  
     

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 
                     
  Revenues:                  
   Subscription   

 $

          35,290

 

 

 $

         74,249

 

 

 $

          87,071

 

 

 $

          192,198

 

 
   Perpetual license   

 

             23,041

 

 

 

            13,790

 

 

 

             77,064

 

 

 

               35,385

 

 
   Maintenance and professional services   

 

             63,270

 

 

 

            64,631

 

 

 

           187,462

 

 

 

             194,976

 

 
                     
         Total revenues   

 

           121,601

 

 

 

          152,670

 

 

 

           351,597

 

 

 

             422,559

 

 
                     
   Cost of revenues:                   
   Subscription   

 

               6,457

 

 

 

            12,214

 

 

 

             17,714

 

 

 

               32,487

 

 
   Perpetual license   

 

                  936

 

 

 

                 703

 

 

 

               2,925

 

 

 

                 1,980

 

 
   Maintenance and professional services   

 

             16,022

 

 

 

            19,548

 

 

 

             46,972

 

 

 

               56,751

 

 
                     
          Total cost of revenues   

 

             23,415

 

 

 

            32,465

 

 

 

             67,611

 

 

 

               91,218

 

 
                     
   Gross profit    

 

             98,186

 

 

 

          120,205

 

 

 

           283,986

 

 

 

             331,341

 

 
                     
   Operating expenses:                   
   Research and development   

 

             38,014

 

 

 

            48,437

 

 

 

           101,374

 

 

 

             138,844

 

 
   Sales and marketing   

 

             69,596

 

 

 

            90,298

 

 

 

           196,837

 

 

 

             254,536

 

 
   General and administrative   

 

             18,305

 

 

 

            20,738

 

 

 

             52,263

 

 

 

               60,342

 

 
                     
          Total operating expenses   

 

           125,915

 

 

 

          159,473

 

 

 

           350,474

 

 

 

             453,722

 

 
                     
   Operating loss   

 

            (27,729

)

 

 

           (39,268

)

 

 

            (66,488

)

 

 

            (122,381

)

 
                     
   Financial income (expense), net   

 

             (3,686

)

 

 

              3,641

 

 

 

              (9,747

)

 

 

                 6,269

 

 
                     
   Loss before taxes on income   

 

            (31,415

)

 

 

           (35,627

)

 

 

            (76,235

)

 

 

            (116,112

)

 
                     
   Tax benefit    

 

               2,309

 

 

 

              2,902

 

 

 

               9,176

 

 

 

                 7,948

 

 
                     
   Net loss   

 $

        (29,106

)

 

 $

       (32,725

)

 

 $

        (67,059

)

 

 $

        (108,164

)

 
                     
                     
   Basic loss per ordinary share, net   

 $

           (0.73

)

 

 $

          (0.80

)

 

 $

            (1.70

)

 

 $

              (2.67

)

 
   Diluted loss per ordinary share, net   

 $

           (0.73

)

 

 $

          (0.80

)

 

 $

            (1.70

)

 

 $

              (2.67

)

 
                     
   Shares used in computing net loss                   
   per ordinary shares, basic    

 

      39,848,343

 

 

 

     40,834,640

 

 

 

       39,531,960

 

 

 

         40,488,909

 

 
   Shares used in computing net loss                   
   per ordinary shares, diluted   

 

      39,848,343

 

 

 

     40,834,640

 

 

 

       39,531,960

 

 

 

         40,488,909

 

 

 CYBERARK SOFTWARE LTD.  

 Consolidated Balance Sheets   

 U.S. dollars in thousands   

 (Unaudited) 

       

December 31,

 

September 30,

       

2021

 

2022

             
             
   ASSETS           
             
   CURRENT ASSETS:         
   Cash and cash equivalents   

 $

             356,850

 

 $

        324,533

   Short-term bank deposits   

 

                369,645

 

 

           323,618

   Marketable securities   

 

                199,933

 

 

           301,341

   Trade receivables     

 

                113,211

 

 

             89,346

   Prepaid expenses and other current assets   

 

                 22,225

 

 

             22,807

             
   Total current assets   

 

             1,061,864

 

 

        1,061,645

             
   LONG-TERM ASSETS:         
   Marketable securities   

 

                300,662

 

 

           237,063

   Property and equipment, net   

 

                 20,183

 

 

             22,347

   Intangible assets, net   

 

                 17,866

 

 

             29,366

   Goodwill     

 

                123,717

 

 

           154,506

   Other long-term assets   

 

                121,743

 

 

           168,083

   Deferred tax asset   

 

                 47,167

 

 

             72,458

             
   Total long-term assets   

 

                631,338

 

 

           683,823

             
   TOTAL ASSETS     

 $

          1,693,202

 

 $

     1,745,468

             
   LIABILITIES AND SHAREHOLDERS' EQUITY         
             
   CURRENT LIABILITIES:         
   Trade payables     

 $

               10,076

 

 $

          10,416

   Employees and payroll accruals   

 

                 75,442

 

 

             63,314

   Accrued expenses and other current liabilities   

 

                 23,576

 

 

             35,964

   Deferred revenues   

 

                230,908

 

 

           288,847

             
   Total current liabilities   

 

                340,002

 

 

           398,541

             
   LONG-TERM LIABILITIES:         
   Convertible senior notes, net   

 

                520,094

 

 

           568,597

   Deferred revenues   

 

                 86,367

 

 

             87,242

   Other long-term liabilities   

 

                 20,227

 

 

             34,773

             
   Total long-term liabilities   

 

                626,688

 

 

           690,612

             
   TOTAL LIABILITIES   

 

                966,690

 

 

        1,089,153

             
   SHAREHOLDERS' EQUITY:         
   Ordinary shares of NIS 0.01 par value   

 

                      104

 

 

                 107

   Additional paid-in capital   

 

                588,937

 

 

           621,316

   Accumulated other comprehensive income (loss)   

 

                      397

 

 

           (20,621)

   Retained earnings     

 

                137,074

 

 

             55,513

             
   Total shareholders' equity   

 

                726,512

 

 

           656,315

             
   TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

 $

          1,693,202

 

 $

     1,745,468

CYBERARK SOFTWARE LTD. 

Consolidated Statements of Cash Flows 

U.S. dollars in thousands 

(Unaudited) 

   
     
  Nine Months Ended
  September 30,
 

2021

2022

     
 Cash flows from operating activities:     
 Net loss 

 $

      (67,059)

 $

  (108,164)

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

 

           10,523

 

         11,883

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

 

             5,593

 

           3,976

 Share-based compensation 

 

           68,774

 

         88,593

 Deferred income taxes, net 

 

          (11,928)

 

        (14,267)

 Decrease in trade receivables 

 

           11,681

 

         23,865

 Amortization of debt discount and issuance costs 

 

           13,285

 

           2,234

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

 

          (14,049)

 

        (16,988)

 Increase in trade payables 

 

             1,628

 

              509

 Increase in short-term and long-term deferred revenues 

 

           38,353

 

         58,814

 Increase (decrease) in employees and payroll accruals 

 

             3,385

 

        (16,285)

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

 

            (5,883)

 

         (4,959)

     
 Net cash provided by operating activities 

 

           54,303

 

         29,211

     
 Cash flows from investing activities:     
 Proceeds from (investment in) short and long term deposits, net 

 

          (73,832)

 

         43,585

 Investment in marketable securities and other

 

        (221,347)

 

      (318,566)

 Proceeds from sales and maturities of marketable securities 

 

          170,511

 

       256,899

 Purchase of property and equipment 

 

            (7,187)

 

         (8,778)

 Payments for business acquisitions, net of cash acquired 

 

                  -  

 

        (41,285)

     
 Net cash used in investing activities 

 

        (131,855)

 

        (68,145)

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

 

             4,498

 

            (811)

 Proceeds from exercise of stock options 

 

             9,608

 

           1,729

 Proceeds in connection with employees stock purchase plan  

 

                  -  

 

         12,322

 Payments of contingent consideration related to acquisitions 

 

                  -  

 

         (1,578)

     
 Net cash provided by financing activities 

 

           14,106

 

         11,662

     
 Decrease in cash, cash equivalents and restricted cash 

 

          (63,446)

 

        (27,272)

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

 

               (788)

 

         (5,045)

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

 

500,044

 

       356,850

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

 $

       435,810

 $

    324,533

 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   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
                     
   Net cash provided by operating activities   

 $

             4,801

 

 $

         18,481

 

 $

      54,303

 

 $

          29,211

 
   Less:                   
   Purchase of property and equipment   

 

               (2,862)

 

 

            (4,618)

 

 

         (7,187)

 

 

             (8,778)

 
                     
   Free cash flow   

 $

             1,939

 

 $

         13,863

 

 $

      47,116

 

 $

          20,433

 
                     
   GAAP net cash used in investing activities   

 

               (2,068)

 

 

           (72,380)

 

 

      (131,855)

 

 

            (68,145)

 
   GAAP net cash provided by (used in) financing activities   

 

                6,648

 

 

            (1,602)

 

 

         14,106

 

 

             11,662

 
                     
   Reconciliation of Gross Profit to Non-GAAP Gross Profit:                   
                     
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
                     
   Gross profit   

 $

            98,186

 

 $

       120,205

 

 $

    283,986

 

 $

        331,341

 
   Plus:                   
   Share-based compensation (1)   

 

                2,984

 

 

              4,030

 

 

           7,991

 

 

             10,962

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

 

                     65

 

 

                  88

 

 

              172

 

 

                  264

 
   Amortization of intangible assets (2)   

 

                1,277

 

 

              1,639

 

 

           3,833

 

 

               4,339

 
                     
   Non-GAAP gross profit   

 $

          102,512

 

 $

       125,962

 

 $

    295,982

 

 $

        346,906

 
                     
   Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:                 
                     
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
                     
   Operating expenses   

 $

          125,915

 

 $

       159,473

 

 $

    350,474

 

 $

        453,722

 
   Less:                   
   Share-based compensation (1)   

 

              23,358

 

 

            27,712

 

 

         60,783

 

 

             77,631

 
   Amortization of intangible assets (2)   

 

                   175

 

 

                 154

 

 

              523

 

 

                  458

 
   Acquisition related expenses   

 

                     -  

 

 

              1,653

 

 

                -  

 

 

               2,244

 
   Facility exit and transition costs   

 

                     -  

 

 

                   -  

 

 

              760

 

 

                    -  

 
                     
   Non-GAAP operating expenses   

 $

          102,382

 

 $

       129,954

 

 $

    288,408

 

 $

        373,389

 
                     
   Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss):                 
                     
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
                 
                     
   Operating loss   

 $

         (27,729)

 

 $

       (39,268)

 

 $

    (66,488)

 

 $

      (122,381)

 
   Plus:                   
   Share-based compensation (1)   

 

              26,342

 

 

            31,742

 

 

         68,774

 

 

             88,593

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

 

                     65

 

 

                  88

 

 

              172

 

 

                  264

 
   Amortization of intangible assets (2)   

 

                1,452

 

 

              1,793

 

 

           4,356

 

 

               4,797

 
   Acquisition related expenses   

 

                     -  

 

 

              1,653

 

 

                -  

 

 

               2,244

 
   Facility exit and transition costs   

 

                     -  

 

 

                   -  

 

 

              760

 

 

                    -  

 
                     
   Non-GAAP operating income (loss)   

 $

                130

 

 $

         (3,992)

 

 $

        7,574

 

 $

        (26,483)

 
                     
   Reconciliation of Net Loss to Non-GAAP Net Income (loss):                   
                     
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
             
                     
   Net loss   

 $

         (29,106)

 

 $

       (32,725)

 

 $

    (67,059)

 

 $

      (108,164)

 
   Plus:                   
   Share-based compensation (1)   

 

              26,342

 

 

            31,742

 

 

         68,774

 

 

             88,593

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

 

                     65

 

 

                  88

 

 

              172

 

 

                  264

 
   Amortization of intangible assets (2)   

 

                1,452

 

 

              1,793

 

 

           4,356

 

 

               4,797

 
   Acquisition related expenses   

 

                     -  

 

 

              1,653

 

 

                -  

 

 

               2,244

 
   Facility exit and transition costs   

 

                     -  

 

 

                   -  

 

 

              760

 

 

                    -  

 
   Amortization of debt discount and issuance costs    

 

                4,467

 

 

                 746

 

 

         13,285

 

 

               2,234

 
   Unrealized Gain from investment in private held companies    

 

                     -  

 

 

               (324)

 

 

                -  

 

 

                (324)

 
   Taxes on income related to non-GAAP adjustments   

 

               (5,651)

 

 

            (5,307)

 

 

        (18,637)

 

 

            (14,629)

 
                     
   Non-GAAP net income (loss)   

 $

           (2,431)

 

 $

         (2,334)

 

 $

        1,651

 

 $

        (24,985)

 
                     
   Non-GAAP net income (loss) per share                   
   Basic   

 $

             (0.06)

 

 $

          (0.06)

 

 $

          0.04

 

 $

           (0.62)

 
   Diluted   

 $

             (0.06)

 

 $

          (0.06)

 

 $

          0.04

 

 $

           (0.62)

 
                     
   Weighted average number of shares                   
   Basic   

 

        39,848,343

 

 

     40,834,640

 

 

  39,531,960

 

 

      40,488,909

 
   Diluted   

 

        39,848,343

 

 

     40,834,640

 

 

  40,609,680

 

 

      40,488,909

 
                     
                     
                     
                     
                     
                     
   (1) Share-based Compensation :                   
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2021

 

2022

 

2021

 

2022

 
                     
                     
   Cost of revenues - Subscription   

 $

                216

 

 $

              634

 

 $

           544

 

 $

            1,527

 
   Cost of revenues - Perpetual license   

 

                     54

 

 

                  42

 

 

              168

 

 

                  103

 
   Cost of revenues - Maintenance and Professional services   

 

                2,714

 

 

              3,354

 

 

           7,279

 

 

               9,332

 
   Research and development   

 

                5,591

 

 

              6,983

 

 

         14,878

 

 

             19,787

 
   Sales and marketing   

 

              10,856

 

 

            13,654

 

 

         27,620

 

 

             37,415

 
   General and administrative   

 

                6,911

 

 

              7,075

 

 

         18,285

 

 

             20,429

 
                     
   Total share-based compensation   

 $

            26,342

 

 $

         31,742

 

 $

      68,774

 

 $

          88,593

 
                     
                     
                     
   (2) Amortization of intangible assets :                   
      Three Months Ended   Nine Months Ended  
      September 30,   September 30,  
     

2022

 

2022

 

2021

 

2022

 
                     
                     
   Cost of revenues - Subscription   

 $

             1,111

 

 $

           1,598

 

 $

        3,311

 

 $

            4,231

 
   Cost of revenues - Perpetual license   

 

                   166

 

 

                  41

 

 

              522

 

 

                  108

 
   Sales and marketing   

 

                   175

 

 

                 154

 

 

              523

 

 

                  458

 
                     
   Total amortization of intangible assets   

 $

             1,452

 

 $

           1,793

 

 $

        4,356

 

 $

            4,797

 
                     
                     
                     
  (3) Classified as Cost of revenues - Subscription.                  

 

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

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

Source: CyberArk
Categories: Press Releases
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