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 second quarter ended June 30, 2016.
“The second quarter was another strong quarter for CyberArk,” said Udi Mokady, CyberArk Chairman and CEO. “Our top line growth demonstrates the increasing demand for our privileged account security platform while our bottom line outperformance shows the power of our business model. As we move into the second half of the year, we plan to continue making thoughtful investments including enhancing our technology platform and expanding market presence.”
Financial Highlights for the Second Quarter Ended June 30, 2016
- Total revenue was $50.4 million, up 39% year-over-year compared with the second quarter of 2015.
- License revenue was $30.0 million, up 35% compared with the second quarter of 2015.
- Maintenance and Professional Services revenue was $20.4 million, up 45% from the second quarter of 2015.
- GAAP operating income was $8.5 million for the quarter, up from $6.5 million in the second quarter of 2015.
- Non-GAAP operating income was $13.6 million for the quarter, up from $8.2 million in the second quarter of 2015.
- GAAP net income was $6.4 million, or $0.18 per diluted share, compared to GAAP net income of $4.9 million, or $0.14 per diluted share, in the second quarter of 2015.
- Non-GAAP net income was $10.5 million, or $0.29 per diluted share, compared to $6.5 million, or $0.19 per diluted share, in the second quarter of 2015.
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, 2016 and 2015. 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, 2016, CyberArk had $259.0 million in cash, cash equivalents, marketable securities and short-term deposits, compared to $238.3 million as of December 31, 2015.
- During the first six months of 2016, the Company generated $21.4 million in cash flow from operations, compared to $35.1 million in the first six months of 2015.
Based on information available as of August 9, 2016, CyberArk is issuing guidance for the third quarter and full year 2016 as indicated below.
Third Quarter 2016:
- Total revenue is expected to be in the range of $51.5 million to $52.5 million, which represents 29% to 31% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $10.1 million to $11.0 million.
- Non-GAAP net income per share is expected to be in the range of $0.21 to $0.23 per diluted share. This assumes 36.0 million weighted average diluted shares.
Full Year 2016:
- Total revenue is expected to be in the range of $210.5 million to $212.5 million, which represents 31% to 32% year-over-year growth.
- Non-GAAP operating income is expected to be in the range of $48.4 million to $50.0 million.
- Non-GAAP net income per share is expected to be in the range of $1.03 to $1.07 per diluted share. This assumes 35.9 million weighted average diluted shares. (Original Source)
Shares of CyberArk Software are down over 5% to $52.21 in after-hours trading Tuesday. CYBR has a 1-year high of $62.88 and a 1-year low of $31.50. The stock’s 50-day moving average is $52.28 and its 200-day moving average is $43.86.
On the ratings front, CYBR has been the subject of a number of recent research reports. In a report issued on July 15, Nomura analyst Frederick Grieb reiterated a Buy rating on CYBR, with a price target of $55, which represents a slight downside potential from current levels. Separately, on July 8, D.A. Davidson’s Jack Andrews reiterated a Hold rating on the stock and has a price target of $51.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Frederick Grieb and Jack Andrews have a total average return of 12.9% and -6.1% respectively. Grieb has a success rate of 65.4% and is ranked #266 out of 4105 analysts, while Andrews has a success rate of 40% and is ranked #3585.
The street is mostly Bullish on CYBR stock. Out of 8 analysts who cover the stock, 6 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $55.00, which represents a slight downside potential from current levels.
CyberArk Software Ltd. engages in the development, market, and sale of software based security solutions for enterprise. Its offers shared technology platform, account security, and sensitive information management solutions.