Stock Update (NASDAQ:CYBR): Cyberark Software Ltd Announces Strong First Quarter 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 first quarter ended March 31, 2015.

“CyberArk had an exceptional first quarter, exceeding our expectations across all financial metrics, and giving us the confidence to raise our full year guidance” said Udi Mokady, CyberArk CEO. “The increased demand and strong momentum that we built throughout 2014 continued into the first quarter. Privileged accounts are at the center of all serious security breaches, and companies are increasingly realizing that without CyberArk, they are very vulnerable to attacks. The investments we are making in our product suite and go-to-market are paying off, and we are well positioned to take advantage of the massive opportunity in front of us.”

Financial Highlights for the First Quarter Ended March 31, 2015

Revenue:

  • Total revenue was $32.9 million, up 89% year-over-year compared with the first quarter of 2014.
  • License revenue was $20.0 million, up 119% compared with the first quarter of 2014.
  • Maintenance and Professional Services revenue was $12.9 million, up 56% year-over-year.

Operating Income:

  • GAAP operating income was $7.5 million for the quarter, an increase compared to $0.2 million in the first quarter of 2014.
  • Non-GAAP operating income was $9.0 million for the quarter, an increase compared to $0.3 million in the first quarter of 2014.

Net Income:

  • GAAP net income was $4.2 million, an increase compared to GAAP net loss of ($1.2) million in the first quarter of 2014.
  • GAAP net income per share was $0.12, compared to GAAP net loss per share of ($0.35) in the first quarter of 2014, based on 34.8 and 7.1 million weighted average diluted shares, respectively.
  • Non-GAAP net income was $5.7 million, an increase compared to $0.3 million in the first quarter of 2014.
  • Non-GAAP net income per share was $0.16, compared to Non-GAAP net loss per share of ($0.14) in the first quarter of 2014, based on 34.8 and 7.1 million weighted average diluted shares, respectively.

Balance Sheet and Cash Flow:

  • As of March 31, 2015, CyberArk had $191.7 million in cash and cash equivalents and short-term deposits compared with $177.2 million as of December 31, 2014.
  • During the first quarter of 2015, the Company generated $14.9 million in cash flow from operations, an increase compared to $8.9 million in the first quarter of 2014.

Business Outlook

Based on information available as of May 7, 2015, CyberArk is issuing guidance for the second quarter and full year 2015 as indicated below.

Second Quarter 2015:

  • Total revenue is expected to be in the range of $31.5 million to $32.5 million which represents 48% to 52% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $1.9 million to $2.8 million.
  • Non-GAAP net income per share is expected to be in the range of $0.04 to $0.06. This assumes 35.0 million weighted average diluted shares.

Full Year 2015:

  • Total revenue is expected to be in the range of $136.0 million to $138.0 million which represents 32% to 34% year-over-year growth.
  • Non-GAAP operating income is expected to be in the range of $18.7 million to $20.4 million.
  • Non-GAAP net income per share is expected to be in the range of $0.40 to $0.44. This assumes 35.3 million weighted average diluted shares.(Original Source)

Shares of CyberArk Software closed today at $63.35, up $0.67 or 1.07%. 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 $59.24 and its 200-day moving average is $46.57.

On the ratings front, CyberArk has been the subject of a number of recent research reports. In a report issued on April 23, Deutsche Bank analyst Karl Keirstead reiterated a Hold rating on CYBR, with a price target of $65, which represents a slight upside potential from current levels. Separately, on April 17, JMP’s Erik Suppiger initiated coverage with a Buy rating on the stock and has a price target of $72.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Karl Keirstead and Erik Suppiger have a total average return of 10.9% and 18.4% respectively. Keirstead has a success rate of 61.8% and is ranked #471 out of 3594 analysts, while Suppiger has a success rate of 60.7% and is ranked #522.

Overall, 2 research analysts have rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 4 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 $61.92 which is 15.8% under 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.

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