Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CyberArk Announces Strong First Quarter 2021 Results By: CyberArk via Business Wire May 05, 2021 at 07:01 AM EDT Total Revenue of $113 Million Subscription Revenue of $25 Million Increased 180% Year-over-Year Strong Annual Recurring Revenue (ARR) of $288 Million Grew 41% Year-over-Year Cash Flow Provided by Operating Activities of $34 Million CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the first quarter ended March 31, 2021. “With our strong first quarter performance and accelerating business momentum, 2021 is off to a great start,” said Udi Mokady, CyberArk Chairman and CEO. “In early January, we formally kicked off our active transition to a recurring revenue model, and the execution of our strategy exceeded our expectations. We were thrilled with the faster than 40 percent growth in our Annual Recurring Revenue (ARR), greater than 250 percent growth in ARR related to SaaS and on-premises subscription contracts, the 180 percent increase in subscription revenue, and that subscription revenue represented 22 percent of total revenue for the quarter. The robust demand environment, particularly for our SaaS solutions, and execution of our strategy is further demonstrated by the fact that we exceeded the high end of our revenue guidance while also having a greater than expected mix of subscription bookings of 51 percent in the first quarter. The strong start to the year positions us well to execute on our subscription transition timeline, accelerate growth across our identity security portfolio, deliver profitability and increase shareholder returns.” Financial Highlights for the First Quarter Ended March 31, 2021 Revenue(1): Subscription revenue was $24.7 million in the first quarter of 2021, up 180 percent year over year. Perpetual license revenue was $26.7 million in the first quarter of 2021. Maintenance and professional services revenue was $61.3 million in the first quarter of 2021. Total revenue was $112.8 million in the first quarter of 2021. Operating Income (Loss): GAAP operating loss was $(15.3) million and Non-GAAP operating income was $5.4 million in the first quarter of 2021. Net Income (Loss): GAAP net loss was $(15.2) million, or $(0.39) per basic and diluted share, in the first quarter of 2021. Non-GAAP net income was $3.8 million, or $0.09 per diluted share, in the first quarter of 2021. (1) New Financial Disclosures: Beginning in the first quarter of 2021, CyberArk is revising 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. The tables at the end of this press release include a reconciliation of the following non-GAAP financial measures to their most directly comparable GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and free cash flow. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Balance Sheet and Net Cash Provided by Operating Activities: As of March 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares with $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits as of March 31, 2020. As of March 31, 2021, total deferred revenue was $259.7 million, a 23 percent increase from $210.7 million at March 31, 2020. During the first quarter of 2021, the Company generated $34.0 million in net cash provided by operating activities, compared to $33.8 million in the first quarter of 2020. Annual Recurring Revenue (ARR): Annual Recurring Revenue (ARR) was $288 million, an increase of 41 percent from $205 million at March 31, 2020. Business Outlook Based on information available as of May 5, 2021, CyberArk is issuing guidance for the second quarter and updating its guidance for full year 2021 as indicated below. Second Quarter 2021: Total revenue between $111.0 million and $119.0 million. Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(3.5) million to operating income of $3.5 million. Non-GAAP net income (loss) per share is expected to be in the range of a net loss of $(0.11) per basic and diluted share to net income of $0.06 per diluted share. Assumes 39.6 million weighted average basic and diluted shares and 40.7 million weighted average 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 $20.0 million to $30.0 million. Non-GAAP net income per share is expected to be in the range of $0.39 to $0.64 per diluted share. Assumes 40.9 million weighted average diluted shares. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Wednesday, May 5, 2021 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s first 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 7887845. 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 (416) 621-4642 (international). The replay pass code is 7887845. 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. 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, 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 income (loss), net income (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 income is calculated as GAAP operating income (loss) excluding share-based compensation expense, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, 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, 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 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, 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. CYBERARK SOFTWARE LTD. Consolidated Statements of Operations U.S. dollars in thousands (except per share data) (Unaudited) Three Months Ended March 31, 2020 2021 Revenues: Subcription $ 8,824 $ 24,727 Perpetual license 43,774 26,694 Maintenance and professional services 54,228 61,341 Total revenues 106,826 112,762 Cost of revenues: Subcription 1,940 5,210 Perpetual license 1,345 1,004 Maintenance and professional services 13,800 14,718 Total cost of revenues 17,085 20,932 Gross profit 89,741 91,830 Operating expenses: Research and development 21,285 29,737 Sales and marketing 51,196 61,440 General and administrative 14,689 15,999 Total operating expenses 87,170 107,176 Operating income (loss) 2,571 (15,346 ) Financial expense, net (736 ) (2,906 ) Income (loss) before taxes on income 1,835 (18,252 ) Tax benefit 551 3,057 Net income (loss) $ 2,386 $ (15,195 ) Basic net income (loss) per ordinary share $ 0.06 $ (0.39 ) Diluted net income (loss) per ordinary share $ 0.06 $ (0.39 ) Shares used in computing net income (loss) per ordinary shares, basic 38,222,867 39,175,052 Shares used in computing net income (loss) per ordinary shares, diluted 39,309,750 39,175,052 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, March 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 515,178 Short-term bank deposits 256,143 251,362 Marketable securities 196,856 211,803 Trade receivables 93,128 66,716 Prepaid expenses and other current assets 15,312 20,987 Total current assets 1,061,431 1,066,046 LONG-TERM ASSETS: Marketable securities 202,190 205,534 Property and equipment, net 18,537 18,816 Intangible assets, net 23,676 22,224 Goodwill 123,717 123,717 Other long-term assets 99,992 96,669 Deferred tax asset 32,809 39,169 Total long-term assets 500,921 506,129 TOTAL ASSETS $ 1,562,352 $ 1,572,175 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 5,928 Employees and payroll accruals 52,169 41,205 Accrued expenses and other current liabilities 24,915 22,847 Deferred revenues 161,679 175,819 Total current liabilities 247,013 245,799 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 506,692 Deferred revenues 80,829 83,863 Other long-term liabilities 24,920 23,022 Total long-term liabilities 608,051 613,577 TOTAL LIABILITIES 855,064 859,376 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 102 Additional paid-in capital 481,992 505,463 Accumulated other comprehensive income 4,175 1,409 Retained earnings 221,020 205,825 Total shareholders' equity 707,288 712,799 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,572,175 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Three Months Ended March 31, 2020 2021 Cash flows from operating activities: Net income (loss) $ 2,386 $ (15,195 ) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,479 3,370 Amortization of premium and accretion of discount on marketable securities, net (80 ) 1,789 Share-based compensation 16,308 19,297 Deferred income taxes, net (2,516 ) (5,121 ) Decrease in trade receivables 20,983 26,412 Amortization of debt discount and issuance costs 4,240 4,390 Decrease (increase ) in prepaid expenses and other current and long-term assets (8,160 ) 444 Increase (decrease) in trade payables 421 (1,783 ) Increase in short-term and long-term deferred revenues 20,298 17,174 Decrease in employees and payroll accruals (14,162 ) (12,312 ) Decrease in accrued expenses and other current and long-term liabilities (8,371 ) (4,490 ) Net cash provided by operating activities 33,826 33,975 Cash flows from investing activities: Investment in short and long term deposits (12,527 ) (1,313 ) Investment in marketable securities (44,921 ) (71,137 ) Proceeds from maturities of marketable securities 41,246 49,957 Purchase of property and equipment (1,327 ) (2,665 ) Net cash used in investing activities (17,529 ) (25,158 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans (799 ) �� 1,411 Proceeds from exercise of stock options 4,806 4,961 Net cash provided by financing activities 4,007 6,372 Increase in cash, cash equivalents and restricted cash 20,304 15,189 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 $ 812,717 $ 515,233 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 March 31, 2020 2021 Net cash provided by operating activities $ 33,826 $ 33,975 Less: Purchase of property and equipment (1,327 ) (2,665 ) Free cash flow $ 32,499 $ 31,310 GAAP net cash used in investing activities (17,529 ) (25,158 ) GAAP net cash provided by financing activities 4,007 6,372 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended March 31, 2020 2021 Gross profit $ 89,741 $ 91,830 Plus: Share-based compensation (1) 1,803 2,395 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 936 1,278 Non-GAAP gross profit $ 92,480 $ 95,550 Reconciliation of Operating Income (Loss) to Non-GAAP Operating Income: Three Months Ended March 31, 2020 2021 Operating income (loss) $ 2,571 $ (15,346 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Non-GAAP operating income $ 21,538 $ 5,450 Reconciliation of Net Income (loss) to Non-GAAP Net Income: Three Months Ended March 31, 2020 2021 Net income (loss) $ 2,386 $ (15,195 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Amortization of debt discount and issuance costs 4,240 4,390 Taxes on income related to non-GAAP adjustments (6,012 ) (6,159 ) Non-GAAP net income $ 19,581 $ 3,832 Non-GAAP net income per share Basic $ 0.51 $ 0.10 Diluted $ 0.50 $ 0.09 Weighted average number of shares Basic 38,222,867 39,175,052 Diluted 39,309,750 40,491,989 (1) Share-based Compensation : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 100 $ 254 Cost of revenues - Perpetual license 36 54 Cost of revenues - Maintenance and Professional services 1,667 2,087 Research and development 3,021 4,350 Sales and marketing 6,400 7,498 General and administrative 5,084 5,054 Total share-based compensation $ 16,308 $ 19,297 (2) Amortization of intangible assets : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 541 $ 1,089 Cost of revenues - Perpetual license 395 189 Sales and marketing 113 174 Total amortization of intangible assets $ 1,049 $ 1,452 (3) Classified as Cost of revenues - Subscription. View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005535/en/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CyberArk Announces Strong First Quarter 2021 Results By: CyberArk via Business Wire May 05, 2021 at 07:01 AM EDT Total Revenue of $113 Million Subscription Revenue of $25 Million Increased 180% Year-over-Year Strong Annual Recurring Revenue (ARR) of $288 Million Grew 41% Year-over-Year Cash Flow Provided by Operating Activities of $34 Million CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the first quarter ended March 31, 2021. “With our strong first quarter performance and accelerating business momentum, 2021 is off to a great start,” said Udi Mokady, CyberArk Chairman and CEO. “In early January, we formally kicked off our active transition to a recurring revenue model, and the execution of our strategy exceeded our expectations. We were thrilled with the faster than 40 percent growth in our Annual Recurring Revenue (ARR), greater than 250 percent growth in ARR related to SaaS and on-premises subscription contracts, the 180 percent increase in subscription revenue, and that subscription revenue represented 22 percent of total revenue for the quarter. The robust demand environment, particularly for our SaaS solutions, and execution of our strategy is further demonstrated by the fact that we exceeded the high end of our revenue guidance while also having a greater than expected mix of subscription bookings of 51 percent in the first quarter. The strong start to the year positions us well to execute on our subscription transition timeline, accelerate growth across our identity security portfolio, deliver profitability and increase shareholder returns.” Financial Highlights for the First Quarter Ended March 31, 2021 Revenue(1): Subscription revenue was $24.7 million in the first quarter of 2021, up 180 percent year over year. Perpetual license revenue was $26.7 million in the first quarter of 2021. Maintenance and professional services revenue was $61.3 million in the first quarter of 2021. Total revenue was $112.8 million in the first quarter of 2021. Operating Income (Loss): GAAP operating loss was $(15.3) million and Non-GAAP operating income was $5.4 million in the first quarter of 2021. Net Income (Loss): GAAP net loss was $(15.2) million, or $(0.39) per basic and diluted share, in the first quarter of 2021. Non-GAAP net income was $3.8 million, or $0.09 per diluted share, in the first quarter of 2021. (1) New Financial Disclosures: Beginning in the first quarter of 2021, CyberArk is revising 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. The tables at the end of this press release include a reconciliation of the following non-GAAP financial measures to their most directly comparable GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and free cash flow. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Balance Sheet and Net Cash Provided by Operating Activities: As of March 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares with $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits as of March 31, 2020. As of March 31, 2021, total deferred revenue was $259.7 million, a 23 percent increase from $210.7 million at March 31, 2020. During the first quarter of 2021, the Company generated $34.0 million in net cash provided by operating activities, compared to $33.8 million in the first quarter of 2020. Annual Recurring Revenue (ARR): Annual Recurring Revenue (ARR) was $288 million, an increase of 41 percent from $205 million at March 31, 2020. Business Outlook Based on information available as of May 5, 2021, CyberArk is issuing guidance for the second quarter and updating its guidance for full year 2021 as indicated below. Second Quarter 2021: Total revenue between $111.0 million and $119.0 million. Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(3.5) million to operating income of $3.5 million. Non-GAAP net income (loss) per share is expected to be in the range of a net loss of $(0.11) per basic and diluted share to net income of $0.06 per diluted share. Assumes 39.6 million weighted average basic and diluted shares and 40.7 million weighted average 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 $20.0 million to $30.0 million. Non-GAAP net income per share is expected to be in the range of $0.39 to $0.64 per diluted share. Assumes 40.9 million weighted average diluted shares. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Wednesday, May 5, 2021 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s first 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 7887845. 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 (416) 621-4642 (international). The replay pass code is 7887845. 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. 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, 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 income (loss), net income (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 income is calculated as GAAP operating income (loss) excluding share-based compensation expense, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, 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, 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 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, 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. CYBERARK SOFTWARE LTD. Consolidated Statements of Operations U.S. dollars in thousands (except per share data) (Unaudited) Three Months Ended March 31, 2020 2021 Revenues: Subcription $ 8,824 $ 24,727 Perpetual license 43,774 26,694 Maintenance and professional services 54,228 61,341 Total revenues 106,826 112,762 Cost of revenues: Subcription 1,940 5,210 Perpetual license 1,345 1,004 Maintenance and professional services 13,800 14,718 Total cost of revenues 17,085 20,932 Gross profit 89,741 91,830 Operating expenses: Research and development 21,285 29,737 Sales and marketing 51,196 61,440 General and administrative 14,689 15,999 Total operating expenses 87,170 107,176 Operating income (loss) 2,571 (15,346 ) Financial expense, net (736 ) (2,906 ) Income (loss) before taxes on income 1,835 (18,252 ) Tax benefit 551 3,057 Net income (loss) $ 2,386 $ (15,195 ) Basic net income (loss) per ordinary share $ 0.06 $ (0.39 ) Diluted net income (loss) per ordinary share $ 0.06 $ (0.39 ) Shares used in computing net income (loss) per ordinary shares, basic 38,222,867 39,175,052 Shares used in computing net income (loss) per ordinary shares, diluted 39,309,750 39,175,052 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, March 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 515,178 Short-term bank deposits 256,143 251,362 Marketable securities 196,856 211,803 Trade receivables 93,128 66,716 Prepaid expenses and other current assets 15,312 20,987 Total current assets 1,061,431 1,066,046 LONG-TERM ASSETS: Marketable securities 202,190 205,534 Property and equipment, net 18,537 18,816 Intangible assets, net 23,676 22,224 Goodwill 123,717 123,717 Other long-term assets 99,992 96,669 Deferred tax asset 32,809 39,169 Total long-term assets 500,921 506,129 TOTAL ASSETS $ 1,562,352 $ 1,572,175 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 5,928 Employees and payroll accruals 52,169 41,205 Accrued expenses and other current liabilities 24,915 22,847 Deferred revenues 161,679 175,819 Total current liabilities 247,013 245,799 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 506,692 Deferred revenues 80,829 83,863 Other long-term liabilities 24,920 23,022 Total long-term liabilities 608,051 613,577 TOTAL LIABILITIES 855,064 859,376 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 102 Additional paid-in capital 481,992 505,463 Accumulated other comprehensive income 4,175 1,409 Retained earnings 221,020 205,825 Total shareholders' equity 707,288 712,799 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,572,175 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Three Months Ended March 31, 2020 2021 Cash flows from operating activities: Net income (loss) $ 2,386 $ (15,195 ) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,479 3,370 Amortization of premium and accretion of discount on marketable securities, net (80 ) 1,789 Share-based compensation 16,308 19,297 Deferred income taxes, net (2,516 ) (5,121 ) Decrease in trade receivables 20,983 26,412 Amortization of debt discount and issuance costs 4,240 4,390 Decrease (increase ) in prepaid expenses and other current and long-term assets (8,160 ) 444 Increase (decrease) in trade payables 421 (1,783 ) Increase in short-term and long-term deferred revenues 20,298 17,174 Decrease in employees and payroll accruals (14,162 ) (12,312 ) Decrease in accrued expenses and other current and long-term liabilities (8,371 ) (4,490 ) Net cash provided by operating activities 33,826 33,975 Cash flows from investing activities: Investment in short and long term deposits (12,527 ) (1,313 ) Investment in marketable securities (44,921 ) (71,137 ) Proceeds from maturities of marketable securities 41,246 49,957 Purchase of property and equipment (1,327 ) (2,665 ) Net cash used in investing activities (17,529 ) (25,158 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans (799 ) �� 1,411 Proceeds from exercise of stock options 4,806 4,961 Net cash provided by financing activities 4,007 6,372 Increase in cash, cash equivalents and restricted cash 20,304 15,189 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 $ 812,717 $ 515,233 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 March 31, 2020 2021 Net cash provided by operating activities $ 33,826 $ 33,975 Less: Purchase of property and equipment (1,327 ) (2,665 ) Free cash flow $ 32,499 $ 31,310 GAAP net cash used in investing activities (17,529 ) (25,158 ) GAAP net cash provided by financing activities 4,007 6,372 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended March 31, 2020 2021 Gross profit $ 89,741 $ 91,830 Plus: Share-based compensation (1) 1,803 2,395 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 936 1,278 Non-GAAP gross profit $ 92,480 $ 95,550 Reconciliation of Operating Income (Loss) to Non-GAAP Operating Income: Three Months Ended March 31, 2020 2021 Operating income (loss) $ 2,571 $ (15,346 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Non-GAAP operating income $ 21,538 $ 5,450 Reconciliation of Net Income (loss) to Non-GAAP Net Income: Three Months Ended March 31, 2020 2021 Net income (loss) $ 2,386 $ (15,195 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Amortization of debt discount and issuance costs 4,240 4,390 Taxes on income related to non-GAAP adjustments (6,012 ) (6,159 ) Non-GAAP net income $ 19,581 $ 3,832 Non-GAAP net income per share Basic $ 0.51 $ 0.10 Diluted $ 0.50 $ 0.09 Weighted average number of shares Basic 38,222,867 39,175,052 Diluted 39,309,750 40,491,989 (1) Share-based Compensation : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 100 $ 254 Cost of revenues - Perpetual license 36 54 Cost of revenues - Maintenance and Professional services 1,667 2,087 Research and development 3,021 4,350 Sales and marketing 6,400 7,498 General and administrative 5,084 5,054 Total share-based compensation $ 16,308 $ 19,297 (2) Amortization of intangible assets : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 541 $ 1,089 Cost of revenues - Perpetual license 395 189 Sales and marketing 113 174 Total amortization of intangible assets $ 1,049 $ 1,452 (3) Classified as Cost of revenues - Subscription. View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005535/en/Contacts 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
Total Revenue of $113 Million Subscription Revenue of $25 Million Increased 180% Year-over-Year Strong Annual Recurring Revenue (ARR) of $288 Million Grew 41% Year-over-Year Cash Flow Provided by Operating Activities of $34 Million
CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced strong financial results for the first quarter ended March 31, 2021. “With our strong first quarter performance and accelerating business momentum, 2021 is off to a great start,” said Udi Mokady, CyberArk Chairman and CEO. “In early January, we formally kicked off our active transition to a recurring revenue model, and the execution of our strategy exceeded our expectations. We were thrilled with the faster than 40 percent growth in our Annual Recurring Revenue (ARR), greater than 250 percent growth in ARR related to SaaS and on-premises subscription contracts, the 180 percent increase in subscription revenue, and that subscription revenue represented 22 percent of total revenue for the quarter. The robust demand environment, particularly for our SaaS solutions, and execution of our strategy is further demonstrated by the fact that we exceeded the high end of our revenue guidance while also having a greater than expected mix of subscription bookings of 51 percent in the first quarter. The strong start to the year positions us well to execute on our subscription transition timeline, accelerate growth across our identity security portfolio, deliver profitability and increase shareholder returns.” Financial Highlights for the First Quarter Ended March 31, 2021 Revenue(1): Subscription revenue was $24.7 million in the first quarter of 2021, up 180 percent year over year. Perpetual license revenue was $26.7 million in the first quarter of 2021. Maintenance and professional services revenue was $61.3 million in the first quarter of 2021. Total revenue was $112.8 million in the first quarter of 2021. Operating Income (Loss): GAAP operating loss was $(15.3) million and Non-GAAP operating income was $5.4 million in the first quarter of 2021. Net Income (Loss): GAAP net loss was $(15.2) million, or $(0.39) per basic and diluted share, in the first quarter of 2021. Non-GAAP net income was $3.8 million, or $0.09 per diluted share, in the first quarter of 2021. (1) New Financial Disclosures: Beginning in the first quarter of 2021, CyberArk is revising 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. The tables at the end of this press release include a reconciliation of the following non-GAAP financial measures to their most directly comparable GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and free cash flow. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Balance Sheet and Net Cash Provided by Operating Activities: As of March 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares with $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits as of March 31, 2020. As of March 31, 2021, total deferred revenue was $259.7 million, a 23 percent increase from $210.7 million at March 31, 2020. During the first quarter of 2021, the Company generated $34.0 million in net cash provided by operating activities, compared to $33.8 million in the first quarter of 2020. Annual Recurring Revenue (ARR): Annual Recurring Revenue (ARR) was $288 million, an increase of 41 percent from $205 million at March 31, 2020. Business Outlook Based on information available as of May 5, 2021, CyberArk is issuing guidance for the second quarter and updating its guidance for full year 2021 as indicated below. Second Quarter 2021: Total revenue between $111.0 million and $119.0 million. Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(3.5) million to operating income of $3.5 million. Non-GAAP net income (loss) per share is expected to be in the range of a net loss of $(0.11) per basic and diluted share to net income of $0.06 per diluted share. Assumes 39.6 million weighted average basic and diluted shares and 40.7 million weighted average 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 $20.0 million to $30.0 million. Non-GAAP net income per share is expected to be in the range of $0.39 to $0.64 per diluted share. Assumes 40.9 million weighted average diluted shares. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Wednesday, May 5, 2021 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s first 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 7887845. 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 (416) 621-4642 (international). The replay pass code is 7887845. 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. 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, 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 income (loss), net income (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 income is calculated as GAAP operating income (loss) excluding share-based compensation expense, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, 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, 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 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, 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. CYBERARK SOFTWARE LTD. Consolidated Statements of Operations U.S. dollars in thousands (except per share data) (Unaudited) Three Months Ended March 31, 2020 2021 Revenues: Subcription $ 8,824 $ 24,727 Perpetual license 43,774 26,694 Maintenance and professional services 54,228 61,341 Total revenues 106,826 112,762 Cost of revenues: Subcription 1,940 5,210 Perpetual license 1,345 1,004 Maintenance and professional services 13,800 14,718 Total cost of revenues 17,085 20,932 Gross profit 89,741 91,830 Operating expenses: Research and development 21,285 29,737 Sales and marketing 51,196 61,440 General and administrative 14,689 15,999 Total operating expenses 87,170 107,176 Operating income (loss) 2,571 (15,346 ) Financial expense, net (736 ) (2,906 ) Income (loss) before taxes on income 1,835 (18,252 ) Tax benefit 551 3,057 Net income (loss) $ 2,386 $ (15,195 ) Basic net income (loss) per ordinary share $ 0.06 $ (0.39 ) Diluted net income (loss) per ordinary share $ 0.06 $ (0.39 ) Shares used in computing net income (loss) per ordinary shares, basic 38,222,867 39,175,052 Shares used in computing net income (loss) per ordinary shares, diluted 39,309,750 39,175,052 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, March 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 515,178 Short-term bank deposits 256,143 251,362 Marketable securities 196,856 211,803 Trade receivables 93,128 66,716 Prepaid expenses and other current assets 15,312 20,987 Total current assets 1,061,431 1,066,046 LONG-TERM ASSETS: Marketable securities 202,190 205,534 Property and equipment, net 18,537 18,816 Intangible assets, net 23,676 22,224 Goodwill 123,717 123,717 Other long-term assets 99,992 96,669 Deferred tax asset 32,809 39,169 Total long-term assets 500,921 506,129 TOTAL ASSETS $ 1,562,352 $ 1,572,175 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 5,928 Employees and payroll accruals 52,169 41,205 Accrued expenses and other current liabilities 24,915 22,847 Deferred revenues 161,679 175,819 Total current liabilities 247,013 245,799 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 506,692 Deferred revenues 80,829 83,863 Other long-term liabilities 24,920 23,022 Total long-term liabilities 608,051 613,577 TOTAL LIABILITIES 855,064 859,376 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 102 Additional paid-in capital 481,992 505,463 Accumulated other comprehensive income 4,175 1,409 Retained earnings 221,020 205,825 Total shareholders' equity 707,288 712,799 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,572,175 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Three Months Ended March 31, 2020 2021 Cash flows from operating activities: Net income (loss) $ 2,386 $ (15,195 ) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,479 3,370 Amortization of premium and accretion of discount on marketable securities, net (80 ) 1,789 Share-based compensation 16,308 19,297 Deferred income taxes, net (2,516 ) (5,121 ) Decrease in trade receivables 20,983 26,412 Amortization of debt discount and issuance costs 4,240 4,390 Decrease (increase ) in prepaid expenses and other current and long-term assets (8,160 ) 444 Increase (decrease) in trade payables 421 (1,783 ) Increase in short-term and long-term deferred revenues 20,298 17,174 Decrease in employees and payroll accruals (14,162 ) (12,312 ) Decrease in accrued expenses and other current and long-term liabilities (8,371 ) (4,490 ) Net cash provided by operating activities 33,826 33,975 Cash flows from investing activities: Investment in short and long term deposits (12,527 ) (1,313 ) Investment in marketable securities (44,921 ) (71,137 ) Proceeds from maturities of marketable securities 41,246 49,957 Purchase of property and equipment (1,327 ) (2,665 ) Net cash used in investing activities (17,529 ) (25,158 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans (799 ) �� 1,411 Proceeds from exercise of stock options 4,806 4,961 Net cash provided by financing activities 4,007 6,372 Increase in cash, cash equivalents and restricted cash 20,304 15,189 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 $ 812,717 $ 515,233 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 March 31, 2020 2021 Net cash provided by operating activities $ 33,826 $ 33,975 Less: Purchase of property and equipment (1,327 ) (2,665 ) Free cash flow $ 32,499 $ 31,310 GAAP net cash used in investing activities (17,529 ) (25,158 ) GAAP net cash provided by financing activities 4,007 6,372 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended March 31, 2020 2021 Gross profit $ 89,741 $ 91,830 Plus: Share-based compensation (1) 1,803 2,395 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 936 1,278 Non-GAAP gross profit $ 92,480 $ 95,550 Reconciliation of Operating Income (Loss) to Non-GAAP Operating Income: Three Months Ended March 31, 2020 2021 Operating income (loss) $ 2,571 $ (15,346 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Non-GAAP operating income $ 21,538 $ 5,450 Reconciliation of Net Income (loss) to Non-GAAP Net Income: Three Months Ended March 31, 2020 2021 Net income (loss) $ 2,386 $ (15,195 ) Plus: Share-based compensation (1) 16,308 19,297 Amortization of share-based compensation capitalized in software development costs (3) - 47 Amortization of intangible assets (2) 1,049 1,452 Acquisition related expenses 1,610 - Amortization of debt discount and issuance costs 4,240 4,390 Taxes on income related to non-GAAP adjustments (6,012 ) (6,159 ) Non-GAAP net income $ 19,581 $ 3,832 Non-GAAP net income per share Basic $ 0.51 $ 0.10 Diluted $ 0.50 $ 0.09 Weighted average number of shares Basic 38,222,867 39,175,052 Diluted 39,309,750 40,491,989 (1) Share-based Compensation : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 100 $ 254 Cost of revenues - Perpetual license 36 54 Cost of revenues - Maintenance and Professional services 1,667 2,087 Research and development 3,021 4,350 Sales and marketing 6,400 7,498 General and administrative 5,084 5,054 Total share-based compensation $ 16,308 $ 19,297 (2) Amortization of intangible assets : Three Months Ended March 31, 2020 2021 Cost of revenues - Subscription $ 541 $ 1,089 Cost of revenues - Perpetual license 395 189 Sales and marketing 113 174 Total amortization of intangible assets $ 1,049 $ 1,452 (3) Classified as Cost of revenues - Subscription. View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005535/en/
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