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2018 Press Releases

November 08, 2018

CyberArk Announces Strong Third Quarter 2018 Results

CyberArk, the global leader in privileged access security, today announced record total revenue and strong financial results for the third quarter ended September 30, 2018.

“We exceeded our financial outlook across all guided metrics, while generating record revenue and non-GAAP operating income in the third quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Our strong results reflect our success executing our growth strategy across sales and marketing as well as delivering innovative solutions that help strengthen customers’ overall security posture on premises, in the cloud and across the DevOps pipeline. Given our strong leadership position in the privileged access security market and our performance year to date, we are pleased to raise our full year guidance for 2018.”

Financial Highlights for the Third Quarter Ended September 30, 2018
Revenue:

  • Total revenue was $84.7 million, a 31% increase from $64.8 million in the third quarter of 2017.

  • License revenue was $46.1 million, a 29% increase compared to $35.8 million in the third quarter of 2017.

  • Maintenance and Professional Services revenue was $38.5 million, a 33% increase from $29.0 million in the third quarter of 2017.

Operating Income:

  • GAAP operating income was $8.8 million for the quarter, compared to $1.7 million in the third quarter of 2017.

  • Non-GAAP operating income was $21.0 million for the quarter, compared to $10.7 million in the third quarter of 2017.

Net Income:

  • GAAP net income was $8.1 million, or $0.22 per diluted share, compared to GAAP net income of $1.7 million, or $0.05 per diluted share, in the third quarter of 2017.

  • Non-GAAP net income was $17.8 million, or $0.48 per diluted share, compared to $8.9 million, or $0.25 per diluted share, in the third quarter of 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 months and nine months ended September 30, 2018 and 2017. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow:

  • As of September 30, 2018, CyberArk had $410.0 million in cash, cash equivalents, marketable securities and short-term deposits. This compares to $330.3 million as of December 31, 2017 and $296.8 million at September 30, 2017.

  • As of September 30, 2018, total deferred revenue was $136.0 million, a 29% increase from $105.2 million at December 31, 2017 and a 59% increase from $85.6 million at September 30, 2017.

  • During the first nine months of 2018, CyberArk generated $89.2 million in net cash provided by operating activities, an increase of 100% from $44.6 million in the first nine months of 2017.

Business Outlook
Based on information available as of November 7, 2018, CyberArk is issuing guidance for the fourth quarter and increasing its guidance for the full year 2018 as indicated below.
Fourth Quarter 2018:

  • Total revenue is expected to be in the range of $94.75 million to $96.25 million which represents 18% to 20% year-over-year growth.

  • Non-GAAP operating income is expected to be in the range of $27.3 million to $28.5 million, or an operating margin of 29% to 30%.

  • Non-GAAP net income per share is expected to be in the range of $0.58 to $0.60 per diluted share. This assumes 37.9 million weighted average diluted shares.

Full Year 2018:

  • Total revenue is expected to be in the range of $328.9 million to $330.4 million, which represents 26% year-over-year growth.

  • Non-GAAP operating income is expected to be in the range of $78.0 million to $79.2 million, or an operating margin of 24%.

  • Non-GAAP net income per share is expected to be in the range of $1.75 to $1.77 per diluted share. This assumes 37.2 million weighted average diluted shares.