Stock Update (NASDAQ:CYBR): Cyberark Software Ltd Announces Record Fourth Quarter and Full Year 2015 Results


Cyberark Software Ltd (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 fourth quarter and year ended December 31, 2015.

“2015 was another record year for CyberArk,” said Udi Mokady, CyberArk CEO. “We executed on our strategy to expand our sales and marketing reach, enhance our product offering, and strengthen our position as the recognized leader in Privileged Account Security. Our investments delivered record results across all financial and operational metrics. As we enter 2016, we believe that the momentum in our business positions us to capitalize on the rapidly growing, greenfield opportunity for this must-have new layer of enterprise security and to continue to deliver strong growth and solid profitability.”

Financial Highlights for the Fourth Quarter Ended December 31, 2015

Revenue:

  • Total revenue reached $51.5 million, up 42% compared with the fourth quarter of 2014.
  • License revenue was $33.0 million, up 35% compared with the fourth quarter of 2014.
  • Maintenance and Professional Services revenue was $18.4 million, up 55% compared with the fourth quarter of 2014.

Operating Income:

  • GAAP operating income was $10.9 million, an increase from $9.5 million in the fourth quarter of 2014. Non-GAAP operating income was $15.2 million, an increase from $10.1 million in the fourth quarter of 2014.

Net Income:

  • GAAP net income was $9.9 million, or $0.28 per diluted share, compared to GAAP net income of $6.7 million, or$0.19 per diluted share, in the fourth quarter of 2014. Non-GAAP net income was $13.8 million, or $0.39 per diluted share, compared to $7.2 million, or $0.21 per diluted share, in the fourth quarter of 2014.

Financial Highlights for the Full Year Ended December 31, 2015

Revenue:

  • Total revenue was $160.8 million, up 56% compared with 2014.
  • License revenue was $100.1 million, up 63% compared with 2014.
  • Maintenance and Professional Services revenue was $60.7 million, up 46% compared with 2014.

Operating Income:

  • GAAP operating income was $33.2 million, an increase from $20.5 million in 2014. Non-GAAP operating income was$43.6 million, an increase compared to $22.0 million in 2014.

Net Income:

  • GAAP net income was $25.8 million, or $0.73 per diluted share, an increase compared to GAAP net income of $10.0 million, or $0.34 per diluted share, in 2014. Non-GAAP net income was $35.3 million, or $1.00 per diluted share, an increase compared to $15.8 million, or $0.53 per diluted share, in 2014.

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 and twelve months ended December 31, 2015 and 2014. An explanation of these measures is also included below under the heading “Non-GAAP Financial measures.”

Balance Sheet and Cash Flow From Operations:

  • As of December 31, 2015, CyberArk had $238.3 million in cash and cash equivalents and short-term deposits. This compares with $249.7 million in cash and cash equivalents and short-term deposits as of September 30, 2015 and$177.2 million as of December 31, 2014.
  • During 2015, the Company generated $59.2 million in cash flow from operations, an increase compared to $23.2 million during in 2014.

Business Outlook

Based on information available as of February 11, 2016, CyberArk is issuing guidance for the first quarter and full year 2016 as indicated below.

First Quarter 2016:

  • Total revenue is expected to be in the range of $42.5 million to $43.5 million which represents 29% to 32% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $6.9 million to $7.7 million.
  • Non-GAAP net income per share is expected to be in the range of $0.15 to $0.16. This assumes 35.9 million weighted average diluted shares.

Full Year 2016:

  • Total revenue is expected to be in the range of $205 million to $207 million which represents 27% to 29% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $49.7 million to $41.3 million.
  • Non-GAAP net income per share is expected to be in the range of $0.83 to $0.86. This assumes 36.3 million weighted average diluted shares. (Original Source)

As of this writing, shares of CyberArk are down nearly one percent in after-hours trading. CYBR has a 1-year high of $76.35 and a 1-year low of $33.89. The stock’s 50-day moving average is $43.08 and its 200-day moving average is $47.56.

On the ratings front, CyberArk has been the subject of a number of recent research reports. In a report issued on January 6, Barclays analyst Saket Kalia maintained a Hold rating on CYBR, with a price target of $52, which represents a potential upside of 48.3% from where the stock is currently trading. Separately, on December 22, Evercore ISI’s Kenneth Talanian initiated coverage with a Hold rating on the stock and has a price target of $43.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Saket Kalia and Kenneth Talanian have a total average return of -18.5% and -25.2% respectively. Kalia has a success rate of 18.5% and is ranked #3349 out of 3569 analysts, while Talanian has a success rate of 0.0% and is ranked #2629.

Overall, 3 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $70.00 which is 99.6% above where the stock opened today.

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