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 third quarter ended September 30, 2015.

“We delivered a record quarter, highlighted by robust revenue growth and bottom line expansion,” said Udi Mokady, CyberArk CEO. “Solid execution coupled with positive market trends for privileged account security drove our results again this quarter. We continued to strengthen our platform and extend our Privileged Account Security Solution across a larger portion of the attack cycle.”

Financial Highlights for the Third Quarter Ended September 30, 2015

Revenue:

  • Total revenue was $40.1 million, up 43% year-over-year compared with the third quarter of 2014.
  • License revenue was $24.8 million, up 49% compared with the third quarter of 2014.
  • Maintenance and Professional Services revenue was $15.2 million, up 34% from the third quarter of 2014.

Operating Income:

  • GAAP operating income was $8.3 million for the quarter, up from $7.7 million in the third quarter of 2014.
  • Non-GAAP operating income was $11.1 million for the quarter, up from $8.4 million in the third quarter of 2014.

Net Income:

  • GAAP net income was $6.8 million, up from $3.3 million in the third quarter of 2014.
  • GAAP net income per share was $0.19, compared to GAAP net income per share of $0.11 in the third quarter of 2014, based on 35.8 and 29.5 million weighted average diluted shares, respectively.
  • Non-GAAP net income was $9.2 million, up from $5.9 million in the third quarter of 2014.
  • Non-GAAP net income per share was $0.26, compared to non-GAAP net income per share of $0.20 in the third quarter of 2014, based on 35.8 and 29.5 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 nine months ended September 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 September 30, 2015, CyberArk had $249.7 million in cash and cash equivalents and short-term deposits. This compares with $283.8 million in cash and cash equivalents and short-term deposits as of June 30, 2015 and $177.2 million as of December 31, 2014.
  • During the first nine months of 2015, the Company generated $40.3 million in cash flow from operations, compared to$13.4 million in the first nine months of 2014.

Business Outlook

Based on information available as of November 5, 2015, CyberArk is issuing guidance for the fourth quarter and full year 2015 as indicated below.

Fourth Quarter 2015:

  • Total revenue is expected to be in the range of $43.0 million to $44.0 million which represents 18% to 21% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $8.9 million to $9.7 million.
  • Non-GAAP net income per share is expected to be in the range of $0.18 to $0.20. This assumes 36.2 million weighted average diluted shares.

Full Year 2015:

  • Total revenue is expected to be in the range of $152.3 million to $153.3 million which represents 48% to 49% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $37.3 million to $38.1 million.
  • Non-GAAP net income per share is expected to be in the range of $0.80 to $0.82. This assumes 35.5 million weighted average diluted shares. (Original Source)

Shares of Cyberark Software are up 1.52% to $52.00 in after-hours trading. CYBR has a 1-year high of $76.35 and a 1-year low of $31.69. The stock’s 50-day moving average is $49.96 and its 200-day moving average is $57.72.

On the ratings front, CyberArk has been the subject of a number of recent research reports. In a report issued on October 8, Deutsche Bank analyst Karl Keirstead reiterated a Buy rating on CYBR, with a price target of $65, which implies an upside of 29.0% from current levels. Separately, on October 7, William Blair’s Jonathan Ho reiterated a Buy rating on the stock .

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Karl Keirstead and Jonathan Ho have a total average return of 5.5% and 15.4% respectively. Keirstead has a success rate of 59.5% and is ranked #714 out of 3824 analysts, while Ho has a success rate of 64.9% and is ranked #462.

The street is mostly Bullish on CYBR stock. Out of 10 analysts who cover the stock, 7 suggest a Buy rating , 2 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $64.17, which implies an upside of 27.3% 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.