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 Record Fourth Quarter and Full Year 2021 Results By: CyberArk via Business Wire February 10, 2022 at 07:05 AM EST Record fourth quarter revenue of $151.3 million; Record full year revenue of $502.9 million Subscription Bookings Mix of 71% in the fourth quarter; 66% for the full year 2021 Subscription Portion of Annual Recurring Revenue (ARR) of $183 million with Growth Accelerating to 146% Total ARR of $393 million with Growth Accelerating to 44% Subscription Transition Goals Now Expected to be Met in Second Quarter of 2022 CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced record financial results for the fourth quarter and full year ended December 31, 2021. “2021 was a historic year for CyberArk characterized by transformation, outperformance and acceleration,” said Udi Mokady, CyberArk Chairman and CEO. “As we moved through 2021, momentum continued to build culminating in a record fourth quarter. In the fourth quarter, we experienced a step function change in demand resulting in the largest sequential increase in ARR. In addition, subscription ARR growth accelerated to 146 percent, and total ARR growth accelerated to 44 percent, and we added a record number of new logos, signing more than 375 customers. We again exceeded our subscription bookings mix framework, and revenue beat our guidance range in the fourth quarter, demonstrating that our bookings were significantly above our guidance framework. Given our performance in 2021, we are confident we will hit our subscription transition target goal of reaching about 85 percent bookings mix in the second quarter of 2022. With the acceleration in our business in 2021, our excellence in execution and strong competitive stance, we are in a great position to deliver long-term profitable growth and increase shareholder value.” Financial Summary for the Fourth Quarter Ended December 31, 2021 Subscription revenue was $47.6 million in the fourth quarter of 2021, an increase of 142 percent from $19.6 million in the fourth quarter of 2020. Maintenance and professional services revenue was $65.1 million in the fourth quarter of 2021, an increase of 6 percent from $61.4 million in the fourth quarter of 2020. Total revenue was $151.3 million in the fourth quarter of 2021, up 5 percent from $144.5 million in the fourth quarter of 2020. GAAP operating loss was $(11.8) million and non-GAAP operating income was $16.3 million in the fourth quarter of 2021. GAAP net loss was $(16.9) million, or $(0.42) per basic and diluted share, in the fourth quarter of 2021. Non-GAAP net income was $11.8 million, or $0.28 per diluted share, in the fourth quarter of 2021. Financial Summary for the Full Year Ended December 31, 2021 Subscription revenue was $134.6 million in the full year 2021, an increase of 139 percent from $56.4 million in the full year 2020. Maintenance and professional services revenue was $252.6 million in the full year 2021, an increase of 9 percent from $231.9 million in the full year 2020. Total revenue was $502.9 million in the full year 2021, up 8 percent from $464.4 million in the full year 2020. GAAP operating loss was $(78.3) million and non-GAAP operating income was $23.9 million in the full year 2021. GAAP net loss was $(83.9) million, or $(2.12) per basic and diluted share, in the full year 2021. Non-GAAP net income was $13.4 million, or $0.33 per diluted share, in the full year 2021. Balance Sheet and Net Cash Provided by Operating Activities As of December 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits. During the full year ended December 31, 2021, the Company generated $74.7 million in net cash provided by operating activities, compared to $106.8 million during the full year 2020. As of December 31, 2021, total deferred revenue was $317.3 million, a 31 percent increase from $242.5 million at December 31, 2020. Key Performance Indicators Annual Recurring Revenue (ARR) was $393 million, an increase of 44 percent from $274 million at December 31, 2020. The subscription portion of ARR was $183 million, representing 46 percent of total ARR at December 31, 2021. This represents an increase of 146 percent from $74 million, or 27 percent of total ARR at December 31, 2020. The Maintenance portion of ARR was $210 million at December 31, 2021, compared to $199 million at December 31, 2020. Recurring revenue was $102.9 million, an increase of 48 percent from $69.6 million for the fourth quarter of 2020. For the full year 2021, recurring revenue was $348.7 million, an increase of 41 percent from $247.3 million for the full year 2020. 71 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent in the fourth quarter of 2020. For the full year 2021, 66 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent for the full year 2020. Added a record number of new logos, signing more than 375 customers during the fourth quarter of 2021. Recent Developments CyberArk published of its first annual Environmental, Social and Governance (ESG) report, highlighting the progress of its ESG program on key focus areas such as Business Ethics and Corporate Governance, Human Capital Management, Diversity, Equity and Inclusion (DEI) and Environmental Stewardship Business Outlook Based on information available as of February 10, 2022, CyberArk is issuing guidance for the first quarter and full year 2022 as indicated below. First Quarter 2022: Total revenue is expected to be in the range of $125.0 million and $133.0 million. Non-GAAP operating loss is expected to be in the range of $(16.0) million to $(9.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.42) to $(0.25) per basic and diluted share. Assumes 40.3 million weighted average basic and diluted shares. Full Year 2022: Total revenue is expected to be in the range of $582.0 million to $598.0 million. Non-GAAP operating loss is expected to be in the range of $(34.0) million to $(20.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.98) to $(0.64) 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, $530.0 million to $536.0 million, representing growth of 35 percent to 36 percent from December 31, 2021. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Thursday, February 10, 2022 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter and year-end 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 9918439. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com. Following the conference call, a replay will be available for one week at +1 (800) 585-8367 (U.S.) or +1 (416) 621-4642 (international). The replay pass code is 9918439. 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. Financial Presentation Beginning in the first quarter of 2021, CyberArk revised the presentation of its lines of revenue and cost of revenue. The Company believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business. In addition, this disclosure will increase transparency into the Company’s business and shift toward recurring revenues, providing investors with more visibility into the subscription transition program. Historical information by quarter for fiscal year 2020, 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 self-hosted subscription revenue including the license portion of self-hosted subscription revenue and the ratable maintenance component of self-hosted 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income and free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net loss or net cash provided by operating activities or any other performance measures derived in accordance with GAAP. Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions and acquisition related expenses. Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, facility exit and transition costs, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP operating income is calculated as GAAP operating income (loss) excluding share-based compensation expense, facility exit and transition costs, 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, facility exit and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, and the tax effect of non-GAAP adjustments and IP transfer. 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 and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, the tax effect of the non-GAAP adjustments and IP transfer, and purchase of property and equipment allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its facility exits, acquisitions, amortization of intangible assets related to acquisitions and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business. Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the non-GAAP adjustments and IP transfer. 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 continued transition of 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Revenues: Subscription $ 19,630 $ 47,557 $ 56,425 $ 134,628 Perpetual license 63,441 38,674 176,061 115,738 Maintenance and professional services 61,448 65,089 231,945 252,551 Total revenues 144,519 151,320 464,431 502,917 Cost of revenues: Subscription 5,289 8,123 17,513 25,837 Perpetual license 1,365 979 4,925 3,904 Maintenance and professional services 16,054 16,594 60,133 63,566 Total cost of revenues 22,708 25,696 82,571 93,307 Gross profit 121,811 125,624 381,860 409,610 Operating expenses: Research and development 26,659 40,747 95,426 142,121 Sales and marketing 61,038 77,564 219,999 274,401 General and administrative 15,325 19,162 60,429 71,425 Total operating expenses 103,022 137,473 375,854 487,947 Operating income (loss) 18,789 (11,849 ) 6,006 (78,337 ) Financial expense, net (2,733 ) (3,245 ) (6,395 ) (12,992 ) Income (loss) before taxes on income 16,056 (15,094 ) (389 ) (91,329 ) Tax benefit (taxes on income) (4,002 ) (1,793 ) (5,369 ) 7,383 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Basic net income (loss) per ordinary share, net $ 0.31 $ (0.42 ) $ (0.15 ) $ (2.12 ) Diluted net income (loss) per ordinary share, net $ 0.30 $ (0.42 ) $ (0.15 ) $ (2.12 ) Shares used in computing net income (loss) per ordinary shares, basic 38,913,923 39,982,230 38,628,770 39,645,453 Shares used in computing net income (loss) per ordinary shares, diluted 39,938,780 39,982,230 38,628,770 39,645,453 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, December 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 356,850 Short-term bank deposits 256,143 369,645 Marketable securities 196,856 199,933 Trade receivables 93,128 113,211 Prepaid expenses and other current assets 15,312 22,225 Total current assets 1,061,431 1,061,864 LONG-TERM ASSETS: Marketable securities 202,190 300,662 Property and equipment, net 18,537 20,183 Intangible assets, net 23,676 17,866 Goodwill 123,717 123,717 Other long-term assets 99,992 121,743 Deferred tax asset 32,809 47,167 Total long-term assets 500,921 631,338 TOTAL ASSETS $ 1,562,352 $ 1,693,202 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 10,076 Employees and payroll accruals 52,169 75,442 Accrued expenses and other current liabilities 24,915 23,576 Deferred revenues 161,679 230,908 Total current liabilities 247,013 340,002 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 520,094 Deferred revenues 80,829 86,367 Other long-term liabilities 24,920 20,227 Total long-term liabilities 608,051 626,688 TOTAL LIABILITIES 855,064 966,690 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 104 Additional paid-in capital 481,992 588,937 Accumulated other comprehensive income 4,175 397 Retained earnings 221,020 137,074 Total shareholders' equity 707,288 726,512 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,693,202 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Twelve Months Ended December 31, 2020 2021 Cash flows from operating activities: Net loss $ (5,758 ) $ (83,946 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,475 14,228 Amortization of premium and accretion of discount on marketable securities, net 3,068 7,532 Share-based compensation 71,849 95,436 Deferred income taxes, net (1,988 ) (11,972 ) Increase in trade receivables (17,315 ) (20,083 ) Amortization of debt discount and issuance costs 17,183 17,792 Increase in prepaid expenses, other current and long-term assets and others (20,487 ) (38,219 ) Increase in trade payables 558 1,499 Increase in short-term and long-term deferred revenues 45,397 74,767 Increase in employees and payroll accruals 7,846 23,821 Decrease in accrued expenses and other current and long-term liabilities (9,059 ) (6,115 ) Net cash provided by operating activities 106,769 74,740 Cash flows from investing activities: Investment in short and long term deposits, net (123,054 ) (105,069 ) Investment in marketable securities (405,193 ) (357,210 ) Proceeds from sales and maturities of marketable securities 191,637 243,013 Purchase of property and equipment (7,174 ) (8,928 ) Payments for business acquisitions, net of cash acquired (68,603 ) - Net cash used in investing activities (412,387 ) (228,194 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans 1,069 (789 ) Proceeds from exercise of stock options 12,180 11,738 Net cash provided by financing activities 13,249 10,949 Decrease in cash, cash equivalents and restricted cash (292,369 ) (142,505 ) Effect of exchange rate differences on cash and cash equivalents - (689 ) 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 $ 500,044 $ 356,850 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 38,948 $ 20,437 $ 106,769 $ 74,740 Less: Purchase of property and equipment (2,237 ) (1,741 ) (7,174 ) (8,928 ) Free cash flow $ 36,711 $ 18,696 $ 99,595 $ 65,812 GAAP net cash used in investing activities (52,121 ) (96,339 ) (412,387 ) (228,194 ) GAAP net cash provided by (used in) financing activities 6,084 (3,157 ) 13,249 10,949 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Gross profit $ 121,811 $ 125,624 $ 381,860 $ 409,610 Plus: Share-based compensation (1) 2,409 3,167 8,734 11,158 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,415 1,279 8,244 5,112 Acquisition related expenses - - 447 - Non-GAAP gross profit $ 126,635 $ 130,140 $ 399,285 $ 426,122 Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating expenses $ 103,022 $ 137,473 $ 375,854 $ 487,947 Less: Share-based compensation (1) 16,065 23,495 63,115 84,278 Amortization of intangible assets (2) 205 175 683 698 Acquisition related expenses - - 4,079 - Facility exit and transition costs - - 140 760 Non-GAAP operating expenses $ 86,752 $ 113,803 $ 307,837 $ 402,211 Reconciliation of Operating Income (loss) to Non-GAAP Operating Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating income (loss) $ 18,789 $ (11,849 ) $ 6,006 $ (78,337 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Non-GAAP operating income $ 39,883 $ 16,337 $ 91,448 $ 23,911 Reconciliation of Net Income (Loss) to Non-GAAP Net Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Amortization of debt discount and issuance costs 4,352 4,505 17,183 17,790 Taxes on income related to non-GAAP adjustments (4,851 ) (4,045 ) (20,807 ) (22,682 ) Intra-entity IP transfer tax effect, net - - 5,036 - Non-GAAP net income $ 32,649 $ 11,759 $ 81,096 $ 13,410 Non-GAAP net income per share Basic $ 0.84 $ 0.29 $ 2.10 $ 0.34 Diluted $ 0.82 $ 0.28 $ 2.05 $ 0.33 Weighted average number of shares Basic 38,913,923 39,982,230 38,628,770 39,645,453 Diluted 39,938,780 41,622,091 39,553,203 40,804,053 (1) Share-based Compensation : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 112 $ 309 $ 540 $ 853 Cost of revenues - Perpetual license 57 66 177 234 Cost of revenues - Maintenance and Professional services 2,240 2,792 8,017 10,071 Research and development 4,085 5,620 14,691 20,498 Sales and marketing 6,996 10,926 28,220 38,546 General and administrative 4,984 6,949 20,204 25,234 Total share-based compensation $ 18,474 $ 26,662 $ 71,849 $ 95,436 (2) Amortization of intangible assets : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 2,140 $ 1,157 $ 6,856 $ 4,468 Cost of revenues - Perpetual license 275 122 1,388 644 Sales and marketing 205 175 683 698 Total amortization of intangible assets $ 2,620 $ 1,454 $ 8,927 $ 5,810 (3) Classified as Cost of revenues - Subscription. View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005336/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 Record Fourth Quarter and Full Year 2021 Results By: CyberArk via Business Wire February 10, 2022 at 07:05 AM EST Record fourth quarter revenue of $151.3 million; Record full year revenue of $502.9 million Subscription Bookings Mix of 71% in the fourth quarter; 66% for the full year 2021 Subscription Portion of Annual Recurring Revenue (ARR) of $183 million with Growth Accelerating to 146% Total ARR of $393 million with Growth Accelerating to 44% Subscription Transition Goals Now Expected to be Met in Second Quarter of 2022 CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced record financial results for the fourth quarter and full year ended December 31, 2021. “2021 was a historic year for CyberArk characterized by transformation, outperformance and acceleration,” said Udi Mokady, CyberArk Chairman and CEO. “As we moved through 2021, momentum continued to build culminating in a record fourth quarter. In the fourth quarter, we experienced a step function change in demand resulting in the largest sequential increase in ARR. In addition, subscription ARR growth accelerated to 146 percent, and total ARR growth accelerated to 44 percent, and we added a record number of new logos, signing more than 375 customers. We again exceeded our subscription bookings mix framework, and revenue beat our guidance range in the fourth quarter, demonstrating that our bookings were significantly above our guidance framework. Given our performance in 2021, we are confident we will hit our subscription transition target goal of reaching about 85 percent bookings mix in the second quarter of 2022. With the acceleration in our business in 2021, our excellence in execution and strong competitive stance, we are in a great position to deliver long-term profitable growth and increase shareholder value.” Financial Summary for the Fourth Quarter Ended December 31, 2021 Subscription revenue was $47.6 million in the fourth quarter of 2021, an increase of 142 percent from $19.6 million in the fourth quarter of 2020. Maintenance and professional services revenue was $65.1 million in the fourth quarter of 2021, an increase of 6 percent from $61.4 million in the fourth quarter of 2020. Total revenue was $151.3 million in the fourth quarter of 2021, up 5 percent from $144.5 million in the fourth quarter of 2020. GAAP operating loss was $(11.8) million and non-GAAP operating income was $16.3 million in the fourth quarter of 2021. GAAP net loss was $(16.9) million, or $(0.42) per basic and diluted share, in the fourth quarter of 2021. Non-GAAP net income was $11.8 million, or $0.28 per diluted share, in the fourth quarter of 2021. Financial Summary for the Full Year Ended December 31, 2021 Subscription revenue was $134.6 million in the full year 2021, an increase of 139 percent from $56.4 million in the full year 2020. Maintenance and professional services revenue was $252.6 million in the full year 2021, an increase of 9 percent from $231.9 million in the full year 2020. Total revenue was $502.9 million in the full year 2021, up 8 percent from $464.4 million in the full year 2020. GAAP operating loss was $(78.3) million and non-GAAP operating income was $23.9 million in the full year 2021. GAAP net loss was $(83.9) million, or $(2.12) per basic and diluted share, in the full year 2021. Non-GAAP net income was $13.4 million, or $0.33 per diluted share, in the full year 2021. Balance Sheet and Net Cash Provided by Operating Activities As of December 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits. During the full year ended December 31, 2021, the Company generated $74.7 million in net cash provided by operating activities, compared to $106.8 million during the full year 2020. As of December 31, 2021, total deferred revenue was $317.3 million, a 31 percent increase from $242.5 million at December 31, 2020. Key Performance Indicators Annual Recurring Revenue (ARR) was $393 million, an increase of 44 percent from $274 million at December 31, 2020. The subscription portion of ARR was $183 million, representing 46 percent of total ARR at December 31, 2021. This represents an increase of 146 percent from $74 million, or 27 percent of total ARR at December 31, 2020. The Maintenance portion of ARR was $210 million at December 31, 2021, compared to $199 million at December 31, 2020. Recurring revenue was $102.9 million, an increase of 48 percent from $69.6 million for the fourth quarter of 2020. For the full year 2021, recurring revenue was $348.7 million, an increase of 41 percent from $247.3 million for the full year 2020. 71 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent in the fourth quarter of 2020. For the full year 2021, 66 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent for the full year 2020. Added a record number of new logos, signing more than 375 customers during the fourth quarter of 2021. Recent Developments CyberArk published of its first annual Environmental, Social and Governance (ESG) report, highlighting the progress of its ESG program on key focus areas such as Business Ethics and Corporate Governance, Human Capital Management, Diversity, Equity and Inclusion (DEI) and Environmental Stewardship Business Outlook Based on information available as of February 10, 2022, CyberArk is issuing guidance for the first quarter and full year 2022 as indicated below. First Quarter 2022: Total revenue is expected to be in the range of $125.0 million and $133.0 million. Non-GAAP operating loss is expected to be in the range of $(16.0) million to $(9.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.42) to $(0.25) per basic and diluted share. Assumes 40.3 million weighted average basic and diluted shares. Full Year 2022: Total revenue is expected to be in the range of $582.0 million to $598.0 million. Non-GAAP operating loss is expected to be in the range of $(34.0) million to $(20.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.98) to $(0.64) 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, $530.0 million to $536.0 million, representing growth of 35 percent to 36 percent from December 31, 2021. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Thursday, February 10, 2022 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter and year-end 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 9918439. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com. Following the conference call, a replay will be available for one week at +1 (800) 585-8367 (U.S.) or +1 (416) 621-4642 (international). The replay pass code is 9918439. 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. Financial Presentation Beginning in the first quarter of 2021, CyberArk revised the presentation of its lines of revenue and cost of revenue. The Company believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business. In addition, this disclosure will increase transparency into the Company’s business and shift toward recurring revenues, providing investors with more visibility into the subscription transition program. Historical information by quarter for fiscal year 2020, 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 self-hosted subscription revenue including the license portion of self-hosted subscription revenue and the ratable maintenance component of self-hosted 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income and free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net loss or net cash provided by operating activities or any other performance measures derived in accordance with GAAP. Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions and acquisition related expenses. Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, facility exit and transition costs, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP operating income is calculated as GAAP operating income (loss) excluding share-based compensation expense, facility exit and transition costs, 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, facility exit and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, and the tax effect of non-GAAP adjustments and IP transfer. 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 and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, the tax effect of the non-GAAP adjustments and IP transfer, and purchase of property and equipment allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its facility exits, acquisitions, amortization of intangible assets related to acquisitions and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business. Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the non-GAAP adjustments and IP transfer. 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 continued transition of 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Revenues: Subscription $ 19,630 $ 47,557 $ 56,425 $ 134,628 Perpetual license 63,441 38,674 176,061 115,738 Maintenance and professional services 61,448 65,089 231,945 252,551 Total revenues 144,519 151,320 464,431 502,917 Cost of revenues: Subscription 5,289 8,123 17,513 25,837 Perpetual license 1,365 979 4,925 3,904 Maintenance and professional services 16,054 16,594 60,133 63,566 Total cost of revenues 22,708 25,696 82,571 93,307 Gross profit 121,811 125,624 381,860 409,610 Operating expenses: Research and development 26,659 40,747 95,426 142,121 Sales and marketing 61,038 77,564 219,999 274,401 General and administrative 15,325 19,162 60,429 71,425 Total operating expenses 103,022 137,473 375,854 487,947 Operating income (loss) 18,789 (11,849 ) 6,006 (78,337 ) Financial expense, net (2,733 ) (3,245 ) (6,395 ) (12,992 ) Income (loss) before taxes on income 16,056 (15,094 ) (389 ) (91,329 ) Tax benefit (taxes on income) (4,002 ) (1,793 ) (5,369 ) 7,383 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Basic net income (loss) per ordinary share, net $ 0.31 $ (0.42 ) $ (0.15 ) $ (2.12 ) Diluted net income (loss) per ordinary share, net $ 0.30 $ (0.42 ) $ (0.15 ) $ (2.12 ) Shares used in computing net income (loss) per ordinary shares, basic 38,913,923 39,982,230 38,628,770 39,645,453 Shares used in computing net income (loss) per ordinary shares, diluted 39,938,780 39,982,230 38,628,770 39,645,453 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, December 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 356,850 Short-term bank deposits 256,143 369,645 Marketable securities 196,856 199,933 Trade receivables 93,128 113,211 Prepaid expenses and other current assets 15,312 22,225 Total current assets 1,061,431 1,061,864 LONG-TERM ASSETS: Marketable securities 202,190 300,662 Property and equipment, net 18,537 20,183 Intangible assets, net 23,676 17,866 Goodwill 123,717 123,717 Other long-term assets 99,992 121,743 Deferred tax asset 32,809 47,167 Total long-term assets 500,921 631,338 TOTAL ASSETS $ 1,562,352 $ 1,693,202 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 10,076 Employees and payroll accruals 52,169 75,442 Accrued expenses and other current liabilities 24,915 23,576 Deferred revenues 161,679 230,908 Total current liabilities 247,013 340,002 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 520,094 Deferred revenues 80,829 86,367 Other long-term liabilities 24,920 20,227 Total long-term liabilities 608,051 626,688 TOTAL LIABILITIES 855,064 966,690 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 104 Additional paid-in capital 481,992 588,937 Accumulated other comprehensive income 4,175 397 Retained earnings 221,020 137,074 Total shareholders' equity 707,288 726,512 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,693,202 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Twelve Months Ended December 31, 2020 2021 Cash flows from operating activities: Net loss $ (5,758 ) $ (83,946 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,475 14,228 Amortization of premium and accretion of discount on marketable securities, net 3,068 7,532 Share-based compensation 71,849 95,436 Deferred income taxes, net (1,988 ) (11,972 ) Increase in trade receivables (17,315 ) (20,083 ) Amortization of debt discount and issuance costs 17,183 17,792 Increase in prepaid expenses, other current and long-term assets and others (20,487 ) (38,219 ) Increase in trade payables 558 1,499 Increase in short-term and long-term deferred revenues 45,397 74,767 Increase in employees and payroll accruals 7,846 23,821 Decrease in accrued expenses and other current and long-term liabilities (9,059 ) (6,115 ) Net cash provided by operating activities 106,769 74,740 Cash flows from investing activities: Investment in short and long term deposits, net (123,054 ) (105,069 ) Investment in marketable securities (405,193 ) (357,210 ) Proceeds from sales and maturities of marketable securities 191,637 243,013 Purchase of property and equipment (7,174 ) (8,928 ) Payments for business acquisitions, net of cash acquired (68,603 ) - Net cash used in investing activities (412,387 ) (228,194 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans 1,069 (789 ) Proceeds from exercise of stock options 12,180 11,738 Net cash provided by financing activities 13,249 10,949 Decrease in cash, cash equivalents and restricted cash (292,369 ) (142,505 ) Effect of exchange rate differences on cash and cash equivalents - (689 ) 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 $ 500,044 $ 356,850 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 38,948 $ 20,437 $ 106,769 $ 74,740 Less: Purchase of property and equipment (2,237 ) (1,741 ) (7,174 ) (8,928 ) Free cash flow $ 36,711 $ 18,696 $ 99,595 $ 65,812 GAAP net cash used in investing activities (52,121 ) (96,339 ) (412,387 ) (228,194 ) GAAP net cash provided by (used in) financing activities 6,084 (3,157 ) 13,249 10,949 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Gross profit $ 121,811 $ 125,624 $ 381,860 $ 409,610 Plus: Share-based compensation (1) 2,409 3,167 8,734 11,158 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,415 1,279 8,244 5,112 Acquisition related expenses - - 447 - Non-GAAP gross profit $ 126,635 $ 130,140 $ 399,285 $ 426,122 Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating expenses $ 103,022 $ 137,473 $ 375,854 $ 487,947 Less: Share-based compensation (1) 16,065 23,495 63,115 84,278 Amortization of intangible assets (2) 205 175 683 698 Acquisition related expenses - - 4,079 - Facility exit and transition costs - - 140 760 Non-GAAP operating expenses $ 86,752 $ 113,803 $ 307,837 $ 402,211 Reconciliation of Operating Income (loss) to Non-GAAP Operating Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating income (loss) $ 18,789 $ (11,849 ) $ 6,006 $ (78,337 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Non-GAAP operating income $ 39,883 $ 16,337 $ 91,448 $ 23,911 Reconciliation of Net Income (Loss) to Non-GAAP Net Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Amortization of debt discount and issuance costs 4,352 4,505 17,183 17,790 Taxes on income related to non-GAAP adjustments (4,851 ) (4,045 ) (20,807 ) (22,682 ) Intra-entity IP transfer tax effect, net - - 5,036 - Non-GAAP net income $ 32,649 $ 11,759 $ 81,096 $ 13,410 Non-GAAP net income per share Basic $ 0.84 $ 0.29 $ 2.10 $ 0.34 Diluted $ 0.82 $ 0.28 $ 2.05 $ 0.33 Weighted average number of shares Basic 38,913,923 39,982,230 38,628,770 39,645,453 Diluted 39,938,780 41,622,091 39,553,203 40,804,053 (1) Share-based Compensation : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 112 $ 309 $ 540 $ 853 Cost of revenues - Perpetual license 57 66 177 234 Cost of revenues - Maintenance and Professional services 2,240 2,792 8,017 10,071 Research and development 4,085 5,620 14,691 20,498 Sales and marketing 6,996 10,926 28,220 38,546 General and administrative 4,984 6,949 20,204 25,234 Total share-based compensation $ 18,474 $ 26,662 $ 71,849 $ 95,436 (2) Amortization of intangible assets : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 2,140 $ 1,157 $ 6,856 $ 4,468 Cost of revenues - Perpetual license 275 122 1,388 644 Sales and marketing 205 175 683 698 Total amortization of intangible assets $ 2,620 $ 1,454 $ 8,927 $ 5,810 (3) Classified as Cost of revenues - Subscription. View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005336/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
Record fourth quarter revenue of $151.3 million; Record full year revenue of $502.9 million Subscription Bookings Mix of 71% in the fourth quarter; 66% for the full year 2021 Subscription Portion of Annual Recurring Revenue (ARR) of $183 million with Growth Accelerating to 146% Total ARR of $393 million with Growth Accelerating to 44% Subscription Transition Goals Now Expected to be Met in Second Quarter of 2022
CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced record financial results for the fourth quarter and full year ended December 31, 2021. “2021 was a historic year for CyberArk characterized by transformation, outperformance and acceleration,” said Udi Mokady, CyberArk Chairman and CEO. “As we moved through 2021, momentum continued to build culminating in a record fourth quarter. In the fourth quarter, we experienced a step function change in demand resulting in the largest sequential increase in ARR. In addition, subscription ARR growth accelerated to 146 percent, and total ARR growth accelerated to 44 percent, and we added a record number of new logos, signing more than 375 customers. We again exceeded our subscription bookings mix framework, and revenue beat our guidance range in the fourth quarter, demonstrating that our bookings were significantly above our guidance framework. Given our performance in 2021, we are confident we will hit our subscription transition target goal of reaching about 85 percent bookings mix in the second quarter of 2022. With the acceleration in our business in 2021, our excellence in execution and strong competitive stance, we are in a great position to deliver long-term profitable growth and increase shareholder value.” Financial Summary for the Fourth Quarter Ended December 31, 2021 Subscription revenue was $47.6 million in the fourth quarter of 2021, an increase of 142 percent from $19.6 million in the fourth quarter of 2020. Maintenance and professional services revenue was $65.1 million in the fourth quarter of 2021, an increase of 6 percent from $61.4 million in the fourth quarter of 2020. Total revenue was $151.3 million in the fourth quarter of 2021, up 5 percent from $144.5 million in the fourth quarter of 2020. GAAP operating loss was $(11.8) million and non-GAAP operating income was $16.3 million in the fourth quarter of 2021. GAAP net loss was $(16.9) million, or $(0.42) per basic and diluted share, in the fourth quarter of 2021. Non-GAAP net income was $11.8 million, or $0.28 per diluted share, in the fourth quarter of 2021. Financial Summary for the Full Year Ended December 31, 2021 Subscription revenue was $134.6 million in the full year 2021, an increase of 139 percent from $56.4 million in the full year 2020. Maintenance and professional services revenue was $252.6 million in the full year 2021, an increase of 9 percent from $231.9 million in the full year 2020. Total revenue was $502.9 million in the full year 2021, up 8 percent from $464.4 million in the full year 2020. GAAP operating loss was $(78.3) million and non-GAAP operating income was $23.9 million in the full year 2021. GAAP net loss was $(83.9) million, or $(2.12) per basic and diluted share, in the full year 2021. Non-GAAP net income was $13.4 million, or $0.33 per diluted share, in the full year 2021. Balance Sheet and Net Cash Provided by Operating Activities As of December 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits. During the full year ended December 31, 2021, the Company generated $74.7 million in net cash provided by operating activities, compared to $106.8 million during the full year 2020. As of December 31, 2021, total deferred revenue was $317.3 million, a 31 percent increase from $242.5 million at December 31, 2020. Key Performance Indicators Annual Recurring Revenue (ARR) was $393 million, an increase of 44 percent from $274 million at December 31, 2020. The subscription portion of ARR was $183 million, representing 46 percent of total ARR at December 31, 2021. This represents an increase of 146 percent from $74 million, or 27 percent of total ARR at December 31, 2020. The Maintenance portion of ARR was $210 million at December 31, 2021, compared to $199 million at December 31, 2020. Recurring revenue was $102.9 million, an increase of 48 percent from $69.6 million for the fourth quarter of 2020. For the full year 2021, recurring revenue was $348.7 million, an increase of 41 percent from $247.3 million for the full year 2020. 71 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent in the fourth quarter of 2020. For the full year 2021, 66 percent of total license bookings were related to subscription bookings, compared with approximately 35 percent for the full year 2020. Added a record number of new logos, signing more than 375 customers during the fourth quarter of 2021. Recent Developments CyberArk published of its first annual Environmental, Social and Governance (ESG) report, highlighting the progress of its ESG program on key focus areas such as Business Ethics and Corporate Governance, Human Capital Management, Diversity, Equity and Inclusion (DEI) and Environmental Stewardship Business Outlook Based on information available as of February 10, 2022, CyberArk is issuing guidance for the first quarter and full year 2022 as indicated below. First Quarter 2022: Total revenue is expected to be in the range of $125.0 million and $133.0 million. Non-GAAP operating loss is expected to be in the range of $(16.0) million to $(9.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.42) to $(0.25) per basic and diluted share. Assumes 40.3 million weighted average basic and diluted shares. Full Year 2022: Total revenue is expected to be in the range of $582.0 million to $598.0 million. Non-GAAP operating loss is expected to be in the range of $(34.0) million to $(20.0) million. Non-GAAP net loss per share is expected to be in the range of $(0.98) to $(0.64) 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, $530.0 million to $536.0 million, representing growth of 35 percent to 36 percent from December 31, 2021. Conference Call Information In conjunction with this announcement, CyberArk will host a conference call on Thursday, February 10, 2022 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter and year-end 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 9918439. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com. Following the conference call, a replay will be available for one week at +1 (800) 585-8367 (U.S.) or +1 (416) 621-4642 (international). The replay pass code is 9918439. 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. Financial Presentation Beginning in the first quarter of 2021, CyberArk revised the presentation of its lines of revenue and cost of revenue. The Company believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business. In addition, this disclosure will increase transparency into the Company’s business and shift toward recurring revenues, providing investors with more visibility into the subscription transition program. Historical information by quarter for fiscal year 2020, 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 self-hosted subscription revenue including the license portion of self-hosted subscription revenue and the ratable maintenance component of self-hosted 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. Non-GAAP Financial Measures CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income and free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net loss or net cash provided by operating activities or any other performance measures derived in accordance with GAAP. Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions and acquisition related expenses. Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, facility exit and transition costs, acquisition related expenses and amortization of intangible assets related to acquisitions. Non-GAAP operating income is calculated as GAAP operating income (loss) excluding share-based compensation expense, facility exit and transition costs, 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, facility exit and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, and the tax effect of non-GAAP adjustments and IP transfer. 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 and transition costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, the tax effect of the non-GAAP adjustments and IP transfer, and purchase of property and equipment allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its facility exits, acquisitions, amortization of intangible assets related to acquisitions and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business. Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, facility exit costs, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the non-GAAP adjustments and IP transfer. 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 continued transition of 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Revenues: Subscription $ 19,630 $ 47,557 $ 56,425 $ 134,628 Perpetual license 63,441 38,674 176,061 115,738 Maintenance and professional services 61,448 65,089 231,945 252,551 Total revenues 144,519 151,320 464,431 502,917 Cost of revenues: Subscription 5,289 8,123 17,513 25,837 Perpetual license 1,365 979 4,925 3,904 Maintenance and professional services 16,054 16,594 60,133 63,566 Total cost of revenues 22,708 25,696 82,571 93,307 Gross profit 121,811 125,624 381,860 409,610 Operating expenses: Research and development 26,659 40,747 95,426 142,121 Sales and marketing 61,038 77,564 219,999 274,401 General and administrative 15,325 19,162 60,429 71,425 Total operating expenses 103,022 137,473 375,854 487,947 Operating income (loss) 18,789 (11,849 ) 6,006 (78,337 ) Financial expense, net (2,733 ) (3,245 ) (6,395 ) (12,992 ) Income (loss) before taxes on income 16,056 (15,094 ) (389 ) (91,329 ) Tax benefit (taxes on income) (4,002 ) (1,793 ) (5,369 ) 7,383 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Basic net income (loss) per ordinary share, net $ 0.31 $ (0.42 ) $ (0.15 ) $ (2.12 ) Diluted net income (loss) per ordinary share, net $ 0.30 $ (0.42 ) $ (0.15 ) $ (2.12 ) Shares used in computing net income (loss) per ordinary shares, basic 38,913,923 39,982,230 38,628,770 39,645,453 Shares used in computing net income (loss) per ordinary shares, diluted 39,938,780 39,982,230 38,628,770 39,645,453 CYBERARK SOFTWARE LTD. Consolidated Balance Sheets U.S. dollars in thousands (Unaudited) December 31, December 31, 2020 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 499,992 $ 356,850 Short-term bank deposits 256,143 369,645 Marketable securities 196,856 199,933 Trade receivables 93,128 113,211 Prepaid expenses and other current assets 15,312 22,225 Total current assets 1,061,431 1,061,864 LONG-TERM ASSETS: Marketable securities 202,190 300,662 Property and equipment, net 18,537 20,183 Intangible assets, net 23,676 17,866 Goodwill 123,717 123,717 Other long-term assets 99,992 121,743 Deferred tax asset 32,809 47,167 Total long-term assets 500,921 631,338 TOTAL ASSETS $ 1,562,352 $ 1,693,202 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 8,250 $ 10,076 Employees and payroll accruals 52,169 75,442 Accrued expenses and other current liabilities 24,915 23,576 Deferred revenues 161,679 230,908 Total current liabilities 247,013 340,002 LONG-TERM LIABILITIES: Convertible senior notes, net 502,302 520,094 Deferred revenues 80,829 86,367 Other long-term liabilities 24,920 20,227 Total long-term liabilities 608,051 626,688 TOTAL LIABILITIES 855,064 966,690 SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value 101 104 Additional paid-in capital 481,992 588,937 Accumulated other comprehensive income 4,175 397 Retained earnings 221,020 137,074 Total shareholders' equity 707,288 726,512 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,562,352 $ 1,693,202 CYBERARK SOFTWARE LTD. Consolidated Statements of Cash Flows U.S. dollars in thousands (Unaudited) Twelve Months Ended December 31, 2020 2021 Cash flows from operating activities: Net loss $ (5,758 ) $ (83,946 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 15,475 14,228 Amortization of premium and accretion of discount on marketable securities, net 3,068 7,532 Share-based compensation 71,849 95,436 Deferred income taxes, net (1,988 ) (11,972 ) Increase in trade receivables (17,315 ) (20,083 ) Amortization of debt discount and issuance costs 17,183 17,792 Increase in prepaid expenses, other current and long-term assets and others (20,487 ) (38,219 ) Increase in trade payables 558 1,499 Increase in short-term and long-term deferred revenues 45,397 74,767 Increase in employees and payroll accruals 7,846 23,821 Decrease in accrued expenses and other current and long-term liabilities (9,059 ) (6,115 ) Net cash provided by operating activities 106,769 74,740 Cash flows from investing activities: Investment in short and long term deposits, net (123,054 ) (105,069 ) Investment in marketable securities (405,193 ) (357,210 ) Proceeds from sales and maturities of marketable securities 191,637 243,013 Purchase of property and equipment (7,174 ) (8,928 ) Payments for business acquisitions, net of cash acquired (68,603 ) - Net cash used in investing activities (412,387 ) (228,194 ) Cash flows from financing activities: Proceeds from (payment of) withholding tax related to employee stock plans 1,069 (789 ) Proceeds from exercise of stock options 12,180 11,738 Net cash provided by financing activities 13,249 10,949 Decrease in cash, cash equivalents and restricted cash (292,369 ) (142,505 ) Effect of exchange rate differences on cash and cash equivalents - (689 ) 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 $ 500,044 $ 356,850 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 Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net cash provided by operating activities $ 38,948 $ 20,437 $ 106,769 $ 74,740 Less: Purchase of property and equipment (2,237 ) (1,741 ) (7,174 ) (8,928 ) Free cash flow $ 36,711 $ 18,696 $ 99,595 $ 65,812 GAAP net cash used in investing activities (52,121 ) (96,339 ) (412,387 ) (228,194 ) GAAP net cash provided by (used in) financing activities 6,084 (3,157 ) 13,249 10,949 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Gross profit $ 121,811 $ 125,624 $ 381,860 $ 409,610 Plus: Share-based compensation (1) 2,409 3,167 8,734 11,158 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,415 1,279 8,244 5,112 Acquisition related expenses - - 447 - Non-GAAP gross profit $ 126,635 $ 130,140 $ 399,285 $ 426,122 Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating expenses $ 103,022 $ 137,473 $ 375,854 $ 487,947 Less: Share-based compensation (1) 16,065 23,495 63,115 84,278 Amortization of intangible assets (2) 205 175 683 698 Acquisition related expenses - - 4,079 - Facility exit and transition costs - - 140 760 Non-GAAP operating expenses $ 86,752 $ 113,803 $ 307,837 $ 402,211 Reconciliation of Operating Income (loss) to Non-GAAP Operating Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Operating income (loss) $ 18,789 $ (11,849 ) $ 6,006 $ (78,337 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Non-GAAP operating income $ 39,883 $ 16,337 $ 91,448 $ 23,911 Reconciliation of Net Income (Loss) to Non-GAAP Net Income: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Net income (loss) $ 12,054 $ (16,887 ) $ (5,758 ) $ (83,946 ) Plus: Share-based compensation (1) 18,474 26,662 71,849 95,436 Amortization of share-based compensation capitalized in software development costs (3) - 70 - 242 Amortization of intangible assets (2) 2,620 1,454 8,927 5,810 Acquisition related expenses - - 4,526 - Facility exit and transition costs - - 140 760 Amortization of debt discount and issuance costs 4,352 4,505 17,183 17,790 Taxes on income related to non-GAAP adjustments (4,851 ) (4,045 ) (20,807 ) (22,682 ) Intra-entity IP transfer tax effect, net - - 5,036 - Non-GAAP net income $ 32,649 $ 11,759 $ 81,096 $ 13,410 Non-GAAP net income per share Basic $ 0.84 $ 0.29 $ 2.10 $ 0.34 Diluted $ 0.82 $ 0.28 $ 2.05 $ 0.33 Weighted average number of shares Basic 38,913,923 39,982,230 38,628,770 39,645,453 Diluted 39,938,780 41,622,091 39,553,203 40,804,053 (1) Share-based Compensation : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 112 $ 309 $ 540 $ 853 Cost of revenues - Perpetual license 57 66 177 234 Cost of revenues - Maintenance and Professional services 2,240 2,792 8,017 10,071 Research and development 4,085 5,620 14,691 20,498 Sales and marketing 6,996 10,926 28,220 38,546 General and administrative 4,984 6,949 20,204 25,234 Total share-based compensation $ 18,474 $ 26,662 $ 71,849 $ 95,436 (2) Amortization of intangible assets : Three Months Ended Twelve Months Ended December 31, December 31, 2020 2021 2020 2021 Cost of revenues - Subscription $ 2,140 $ 1,157 $ 6,856 $ 4,468 Cost of revenues - Perpetual license 275 122 1,388 644 Sales and marketing 205 175 683 698 Total amortization of intangible assets $ 2,620 $ 1,454 $ 8,927 $ 5,810 (3) Classified as Cost of revenues - Subscription. 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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