Company Update (NASDAQ:CYBR): CytRx Corporation Announces Strong 2Q:15 Results


CytRx Corporation (NASDAQ:CYBR), the company that protects organizations from cyber attacks that have made their way inside the network perimeter, today announced financial results for the second quarter ended June 30, 2015.

“CyberArk had a strong second quarter and delivered results that again exceeded our guidance across all financial metrics,” said Udi Mokady, CyberArk CEO. “Our business continues to be driven by the shift from tactical, compliance-driven projects to strategic approaches to implementing enterprise-wide privileged account security as privileged accounts remain at the epicenter of cyber attacks. This shift is enabling us to capitalize on expanding cyber security budgets, participate in larger opportunities, and position ourselves as a strategic, trusted partner.”

Financial Highlights for the Second Quarter Ended June 30, 2015

Revenue:

  • Total revenue was $36.4 million, up 70% year-over-year compared with the second quarter of 2014.
  • License revenue was $22.3 million, up 100% compared with the second quarter of 2014.
  • Maintenance and Professional Services revenue was $14.1 million, up 38% from the second quarter of 2014.

Operating Income:

  • GAAP operating income was $6.5 million for the quarter, up from $3.1 million in the second quarter of 2014.
  • Non-GAAP operating income was $8.2 million for the quarter, up from $3.3 million in the second quarter of 2014.

Net Income:

  • GAAP net income was $4.9 million, up from $1.2 million in the second quarter of 2014.
  • GAAP net income per share was $0.14, compared to a GAAP net loss per share of $(0.01) in the second quarter of 2014, based on 35.0 and 7.1 million weighted average diluted shares, respectively.
  • Non-GAAP net income was $6.6 million, up from $2.4 million in the second quarter of 2014.
  • Non-GAAP net income per share was $0.19, compared to non-GAAP net income per share of $0.09 in the second quarter of 2014, based on 35.0 and 27.4 million weighted average diluted shares, respectively.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP operating income and net income for the three months and six months ended June 30, 2015 and 2014. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Balance Sheet and Cash Flow:

  • As of June 30, 2015, CyberArk had $283.8 million in cash and cash equivalents and short-term deposits inclusive of$52.7 million raised in the Company’s public offering that closed on June 16, 2015. This compares with $191.7 millionin cash and cash equivalents and short-term deposits as of March 31, 2015 and $177.2 million as of December 31, 2014.
  • During the first six months of 2015, the Company generated $36.3 million in cash flow from operations, an increase compared to $12.7 million in the first six months of 2014.

Announces acquisition of Cybertinel Ltd.

CyberArk today announced that it has acquired Cybertinel Ltd. an approximately 20 person Israel-based cyber security company. Cybertinel Ltd. specializes in cyber threat detection technology that will enhance CyberArk’s ability to detect credential threats at the beginning stages of the attack cycle. The terms of the acquisition were not disclosed. The acquisition is not expected to have a material impact on the Company’s third quarter and full year 2015 financial results.

Business Outlook

Based on information available as of August 11, 2015, CyberArk is issuing guidance for the third quarter and full year 2015 as indicated below.

Third Quarter 2015:

  • Total revenue is expected to be in the range of $36.0 million to $37.0 million which represents 29% to 32% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $5.0 million to $5.9 million.
  • Non-GAAP net income per share is expected to be in the range of $0.11 to $0.13. This assumes 35.5 million weighted average diluted shares.

Full Year 2015:

  • Total revenue is expected to be in the range of $145.0 million to $147.0 million which represents 41% to 43% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $28.8 million to $30.5 million.
  • Non-GAAP net income per share is expected to be in the range of $0.62 to $0.65. This assumes 35.4 million weighted average diluted shares. (Original Source)

Shares of CyberArk Software opened today at $61.6 and are currently trading down at $59.75. CYBR has a 1-year high of $70.48 and a 1-year low of $22.12. The stock’s 50-day moving average is $60.64 and its 200-day moving average is $58.22.

On the ratings front, CyberArk has been the subject of a number of recent research reports. In a report released yesterday, Deutsche Bank analyst Karl Keirstead maintained a Hold rating on CYBR, with a price target of $65, which implies an upside of 5.5% from current levels. Separately, on May 8, Piper Jaffray’s Andrew Nowinski maintained a Hold rating on the stock and has a price target of $54.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Karl Keirstead and Andrew Nowinski have a total average return of 11.6% and 10.1% respectively. Keirstead has a success rate of 63.1% and is ranked #379 out of 3729 analysts, while Nowinski has a success rate of 55.6% and is ranked #621.

The street is mostly Neutral on CYBR stock. Out of 7 analysts who cover the stock, 4 suggest a Hold rating and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $58.83, which represents a slight downside potential from current levels.

CyberArk Software Ltd offers IT security solutions to protect organizations from cyber attacks. Its services include Maintenance and Support and Professional Services.