CyberArk announces record fourth quarter and full year 2018 results

Issued by fama PR for CyberArk
Johannesburg, 22 Feb 2019

* Fourth quarter total revenue of $109.1 million increases 36% year-over-year.
* Fourth quarter GAAP operating income of $27.5 million and non-GAAP operating income of $39.8 million.
* Full year total revenue of $343.2 million increases 31% year-over-year.
* Full year GAAP operating income of $47.3 million and non-GAAP operating income of $90.5 million.
* Full year net cash provided by operating activities of $130.1 million increases 61% year-over-year.

CyberArk (NASDAQ: CYBR), the global leader in privileged access security, today announced record financial results for the fourth quarter and year ended 31 December 2018.

"Our record fourth quarter results capped off a tremendous year for CyberArk," said Udi Mokady, CyberArk Chairman and CEO.

"We delivered record results across all operating metrics, including revenue, GAAP and non-GAAP operating income and net income, as well as cash flow from operations and new customer additions. We were pleased to accelerate revenue growth across the Americas, EMEA and APJ, which demonstrates our strong execution, commitment to innovation, and the robust market fundamentals. As the recognised leader in privileged access security, we enter 2019 with strong momentum and are well positioned to deliver sustainable growth and profitability."

Financial highlights for the fourth quarter ended 31 December 2018

Revenue:

* Total revenue was $109.1 million, up 36% compared with the fourth quarter of 2017.
* Licence revenue was $66.8 million, up 38% compared with the fourth quarter of 2017.
* Maintenance and professional services revenue was $42.3 million, up 33% compared with the fourth quarter of 2017.

Operating income:

GAAP operating income was $27.5 million, compared to $11.6 million in the fourth quarter of 2017. Non-GAAP operating income was $39.8 million, compared to $19.7 million in the fourth quarter of 2017.

Net income:

GAAP net income was $24.2 million, or $0.64 per diluted share, compared to GAAP net income of $3.6 million, or $0.10 per diluted share, in the fourth quarter of 2017. Non-GAAP net income was $33.4 million, or $0.89 per diluted share, compared to $15.0 million, or $0.41 per diluted share, in the fourth quarter of 2017.

Financial highlights for the full year ended 31 December 2018

Revenue:

* Total revenue was $343.2 million, up 31% compared with 2017.
* Licence revenue was $192.5 million, up 30% compared with 2017.
* Maintenance and professional services revenue was $150.7 million, up 32% compared with 2017.

Operating income:

GAAP operating income was $47.3 million, compared to $20.3 million in 2017. Non-GAAP operating income was $90.5 million, compared to $51.9 million in 2017.

Net income:

GAAP net income was $47.1 million, or $1.27 per diluted share, compared to GAAP net income of $16.0 million, or $0.44 per diluted share, in 2017. Non-GAAP net income was $76.5 million, or $2.06 per diluted share, compared to $41.9 million, or $1.16 per diluted share, in 2017.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating income and net income for the three and 12 months ended 31 December 2018 and 2017. 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 31 December 2018, CyberArk had $451.2 million in cash, cash equivalents, marketable securities and short-term deposits. This compares with $410.0 million in cash, cash equivalents, marketable securities and short-term deposits as of 30 September 2018 and $330.3 million as of 31 December 2017.

As of 31 December 2018, total deferred revenue was $149.5 million, a 42% increase from $105.2 million at 31 December 2017.

During 2018, the Company generated $130.1 million in net cash provided by operating activities, a 61% increase compared to $80.7 million in 2017.

Business outlook

Based on information available as of 14 February 2019, CyberArk is issuing guidance for the first quarter and full year 2019 as indicated below.

First quarter 2019:

* Total revenue is expected to be in the range of $91.0 million to $93.0 million, which represents 27% to 30% year-over-year growth.
* Non-GAAP operating income is expected to be in the range of $18.5 million to $20.0 million.
* Non-GAAP net income per share is expected to be in the range of $0.39 to $0.42 per share. This assumes 38.2 million weighted average diluted shares.

Full year 2019:

* Total revenue is expected to be in the range of $411.0 million to $415.0 million, which represents 20% to 21% year-over-year growth.
* Non-GAAP operating income is expected to be in the range of $92.5 million to $95.5 million.
* Non-GAAP net income per share is expected to be in the range of $1.94 to $2.00 per share. This assumes 38.5 million weighted average diluted shares.

Conference call information

In conjunction with this announcement, CyberArk hosted a conference call on Thursday, 14 February 2019 at 8:30am Eastern Time (ET) to discuss the company's fourth quarter and year end financial results and its business outlook. A live Web cast of the conference call is available via the "Investor Relations" section of the company's Web site at www.cyberark.com.

Following the conference call, a replay has been available for one week, at +1 855-859-2056 (US) or +1 404-537-3406 (international). The replay pass code is 1675647. An archived Web cast of the conference call is also available in the "Investor Relations" section of the company's Web site, at: www.cyberark.com.

CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in privileged access security, a critical layer of IT security to protect data, infrastructure and assets across the enterprise, in the cloud and throughout the DevOps pipeline. CyberArk delivers the industry's most complete solution to reduce risk created by privileged credentials and secrets. The company is trusted by the world's leading organisations, including more than 50% of the Fortune 500, to protect against external attackers and malicious insiders. A global company, CyberArk is headquartered in Petach Tikva, Israel, with US headquarters located in Newton, Massachusetts. The company also has offices throughout the Americas, EMEA, Asia Pacific and Japan. To learn more about CyberArk, visit www.cyberark.com, read the CyberArk blogs or follow on Twitter via @CyberArk, LinkedIn or Facebook.

Non-GAAP financial measures

CyberArk believes the use of non-GAAP gross profit, non-GAAP operating income and non-GAAP net income is helpful to its investors. These financial measures are not measures of the company's financial performance under US GAAP and should not be considered as alternatives to gross profit, operating income or net income or any other performance measures derived in accordance with GAAP.

The company believes that providing non-GAAP financial measures that exclude share-based compensation, acquisition-related expenses, amortisation of intangible assets related to acquisitions, facility exit and transitions costs, intra-entity intellectual property transfer tax effects, changes in the US federal tax rate and the tax effect of the non-GAAP adjustments allows for more meaningful comparisons of its period-to-period operating results. Share-based compensation expense has been and will continue to be for the foreseeable future, a significant recurring expense in the company's business and an important part of the compensation provided to its employees. Share-based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company's non-cash expense. The company believes that expenses related to its acquisitions and amortisation of intangible assets related to acquisitions, facility exit and transitions costs, intra-entity intellectual property transfer tax effects and changes in the US federal tax rate do not reflect the performance of its core business and impact period-to-period comparability.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the company's industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the company's reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with US GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable US GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, facility exit and transitions costs, and amortisation of intangible assets related to acquisitions. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortisation of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.

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