NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)--CyberArk, (NASDAQ: CYBR), the global leader in privileged access security, today announced strong financial results for the second quarter ended June 30, 2019.

“We were pleased that our results exceeded expectations across all guided metrics,” said Udi Mokady, CyberArk Chairman and CEO. “Every region contributed to our strong growth and we were thrilled to sign more than 200 new logos in the second quarter. Our innovation not only sets the standard for Privileged Access Security but also strengthens our leadership position in the market. With our strong first half of 2019, we are pleased to increase our guidance for the full year on both the top and bottom line.”

Financial Highlights for the Second Quarter Ended June 30, 2019

Revenue:

• Total revenue was $100.2 million, up 29% compared with the second quarter of 2018.
• License revenue was $52.2 million, up 27% compared with the second quarter of 2018.
• Maintenance and professional services revenue was $48.0 million, up 31% compared with the second quarter of 2018.

Operating Income:

• GAAP operating income was $13.0 million, an increase from $7.0 million in the second quarter of 2018. Non-GAAP operating income was $26.5 million, an increase from $17.0 million in the second quarter of 2018.

Net Income:

• GAAP net income was $13.4 million, or $0.34 per diluted share, an increase from GAAP net income of $8.4 million, or $0.23 per diluted share, in the second quarter of 2018. Non-GAAP net income was $23.0 million, or $0.59 per diluted share, an increase from $13.5 million, or $0.36 per diluted share, in the second quarter of 2018.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross margin, operating income and net income for the three months and six months ended June 30, 2019 and 2018. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Balance Sheet and Cash Flow:

• As of June 30, 2019, CyberArk had $537.9 million in cash, cash equivalents, marketable securities and short-term deposits. This compares to $451.2 million as of December 31, 2018 and $377.5 million at June 30, 2018.
• As of June 30, 2019, total deferred revenue was $174.2 million, a 34% increase from $129.6 million at June 30, 2018.
• During the six months ended June 30, 2019, the Company generated $67.3 million in cash flow from operations, a 20% increase from $56.2 million in the first six months of 2018.

Business Outlook

Based on information available as of August 7, 2019, CyberArk is issuing guidance for the third quarter and increasing its guidance for the full year 2019 as indicated below.

Third Quarter 2019:

• Total revenue between $102.0 million and $104.0 million, representing 20% to 23% year-over-year growth.
• Non-GAAP operating income between $21.75 million and $23.25 million.

• Non-GAAP net income per share between of $0.45 and $0.48 per diluted share.
  • Assumes 39.4 million weighted average diluted shares.

Full Year 2019:

• Total revenue between $419.0 million and $423.0 million, representing 22% to 23% year-over-year growth.
• Non-GAAP operating income between $106.0 million and $109.0 million.
• Non-GAAP net income per share between $2.24 and $2.30 per diluted share.
  • Assumes 39.1 million weighted average diluted shares.

Chief Revenue Officer Transition Ron Zoran, CyberArk’s Chief Revenue Officer, plans to transition from the Company to pursue other business opportunities, including assisting early stage technology companies as a board member. Ron will continue to serve as Chief Revenue Officer of CyberArk through September 30, 2019 and to help ensure a smooth transition, he will also continue to serve as an advisor into the first quarter of 2020. The Company has initiated a search to identify a new global head of sales.

“Ron was one of the very first employees of CyberArk and has provided invaluable technology and sales leadership over the years,” continued Mr. Mokady. “On behalf of the Company and the Board, I want to thank him for his significant contributions to the company, which have been instrumental in helping establish CyberArk as the leader in Privileged Access Security. We wish Ron all the best in his future pursuits and believe his extensive experience will be valuable to emerging technology companies. Ron has built an exceptional sales organization that is well positioned to capitalize on the opportunities ahead of us. We appreciate his commitment to the Company, support and leadership during this transition period.”

“CyberArk has provided me with significant opportunities including being part of the world’s most talented and progressive team of security professionals extending across CyberArk executives, employees, customers and partners,” stated Ron Zoran, CyberArk Chief Revenue Officer. “My decision to leave the Company was difficult, but at this stage of my career I want to leverage my experience to scale and grow early stage technology companies. Given my long tenure at the company and strong personal relationships with the entire team, I remain fully engaged to ensure a smooth transition.”

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 500, 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.