CYBR
$143.25
Cyberark Soft Ord
$4.34
3.12%
Earnings Details
Quarter December 2020
Thursday, February 11, 2021 7:05:00 AM
Tweet Share Watch
Summary

Cyberark Soft Ord Beats

Cyberark Soft Ord (CYBR) reported Quarter December 2020 earnings of $0.84 per share on revenue of $144.5 million. The consensus earnings estimate was $0.60 per share on revenue of $128.2 million. The Earnings Whisper number was $0.67 per share. Revenue grew 11.5% on a year-over-year basis.

The company said it expects first quarter non-GAAP results to range from a loss of $0.03 per share to earnings of $0.07 per share on revenue of $106.0 million to $112.0 million and 2021 earnings of $0.45 to $0.64 per share on revenue of $484.0 million to $496.0 million. The current consensus estimate is earnings of $0.28 per share on revenue of $112.20 million for the quarter ending March 31, 2021 and earnings of $1.30 per share on revenue of $477.23 million for the year ending December 31, 2021.

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

Results
Reported Earnings
$0.84
Earnings Whisper
$0.67
Consensus Estimate
$0.60
Reported Revenue
$144.5 Mil
Revenue Estimate
$128.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

CyberArk Announces Record Fourth Quarter and Full Year 2020 Results

Record fourth quarter total revenue of $145 million
Record full year total revenue of $464 million
Annual Recurring Revenue (ARR) of $274 million grew 43% year-over-year

NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)--CyberArk, (NASDAQ: CYBR), the global leader in identity security, today announced record financial results for the fourth quarter and year ended December 31, 2020.

“Our record fourth quarter results demonstrate the strength of demand across our identity security platform that has a foundation in Privileged Access Management (PAM),” said Udi Mokady, CyberArk Chairman and CEO. “Digital transformation, cloud migration and work from anywhere are creating a heightened sense of urgency to implement our solutions across DevSecOps, PAM and Access. As organizations embrace the flexibility and agility of cloud and automation, we are empowering customers to confidently and securely drive their mission critical strategies forward.”

Continued Mokady, “Our fourth quarter results, including another record for SaaS and subscription bookings, put us in a great position as we begin actively transitioning our business to a recurring revenue model in the first quarter of 2021, shifting our sales from perpetual licenses to recurring subscriptions. As we look ahead, we continue to see strong industry tailwinds, including increasing awareness of privileged access as a primary attack vector. We are the clear market leader in PAM and have set the standard for innovation with our differentiated identity security portfolio. We are confident that our identity security strategy and our comprehensive subscription transformation program will deliver long-term growth and profitability, creating significant value for CyberArk, our customers, partners and shareholders.”

Financial Highlights for the Fourth Quarter Ended December 31, 2020

Revenue:

  • Total revenue was $144.5 million.
  • License revenue was $80.8 million.
  • Maintenance and Professional Services revenue was $63.7 million.

Operating Income:

  • GAAP operating income was $18.8 million, and non-GAAP operating income was $39.9 million.

Net Income:

  • GAAP net income was $12.1 million, or $0.30 per diluted share, and non-GAAP net income was $32.6 million, or $0.82 per diluted share.

Financial Highlights for the Full Year Ended December 31, 2020

Revenue:

  • Total revenue was $464.4 million.
  • License revenue was $226.1 million.
  • Maintenance and Professional Services revenue was $238.3 million.

Operating Income:

  • GAAP operating income was $6.0 million, and non-GAAP operating income was $91.4 million.

Net Income (Loss):

  • GAAP net loss was $(5.8) million, or $(0.15) per basic and diluted share, and non-GAAP net income was $81.1 million, or $2.05 per diluted share.

The tables at the end of this press release include a reconciliation of the following non-GAAP financial measures to their most directly comparable GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and free cash flow. 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, 2020, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares to $1.1 billion in cash, cash equivalents, marketable securities and short-term deposits as of December 31, 2019.
  • As of December 31, 2020, total deferred revenue was $242.5 million, a 27% increase from $190.4 million at December 31, 2019.
  • During 2020, the Company generated $106.8 million in net cash provided by operating activities compared to $141.7 million in 2019.

Annual Recurring Revenue (ARR):

  • Annual Recurring Revenue (ARR) was $274 million, an increase of 43% from $192 million at December 31, 2019.

Business Outlook
Based on information available as of February 11, 2021, CyberArk is issuing guidance for the first quarter and full year 2021 as indicated below.

First Quarter 2021:

  • Total revenue is expected to be in the range of $106.0 million to $112.0 million.
  • Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(2.5) million to operating income of $2.5 million.
  • Non-GAAP net income (loss) per share is expected to be in the range of a net loss of $(0.03) per basic and diluted share to net income of $0.07 per diluted share.
    • Assumes 39.2 million weighted average basic and diluted shares and 40.7 million weighted average diluted shares.

Full Year 2021:

  • Total revenue is expected to be in the range of $484.0 million to $496.0 million.
  • Non-GAAP operating income is expected to be in the range of $20.0 million to $30.0 million.
  • Non-GAAP net income per share is expected to be in the range of $0.45 to $0.64 per diluted share.
    • Assumes 40.8 million weighted average diluted shares.

Conference Call Information
In conjunction with this announcement, CyberArk will host a conference call today, February 11, 2021, at 8:30 a.m. Eastern Time (ET) to discuss the company’s fourth quarter and year end financial results and its business outlook. To access this call, dial +1 (833) 968-2251 (U.S.) or +1 (778) 560-2670 (international). The conference ID is 6893829. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 (800) 585-8367 (U.S.) or (416) 621-4642 (international). The replay pass code is 6893829. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk
CyberArk (NASDAQ: CYBR) is the global leader in Identity Security. Centered on privileged access management, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud workloads, and throughout the DevOps lifecycle. The world’s leading organizations trust CyberArk to help secure their most critical assets. To learn more about CyberArk, visit www.cyberark.com.

Copyright © 2021 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

Key Performance Indicators and Non-GAAP Financial Measures

Annual Recurring Revenue (ARR)

  • Annual Recurring Revenue (ARR) is defined as the annualized value of active SaaS, subscription or term-based license and maintenance contracts related to perpetual licenses in effect at the end of the reported period.

Non-GAAP Financial Measures
CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating income, net income (loss) or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

  • Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, acquisition related expenses and amortization of intangible assets related to acquisitions.
  • Non-GAAP operating income is calculated as GAAP operating income excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs and amortization of intangible assets related to acquisitions.
  • Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transition costs, amortization of debt discount and issuance costs, intra-entity IP transfer tax effect, net and the tax effect of non-GAAP adjustments.
  • Free cash flow is calculated as net cash provided by operating activities less purchase of property and equipment.

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transition costs, non-cash interest expense related to the amortization of debt discount and issuance costs, intra-entity IP transfer tax effect, net the tax effect of the non-GAAP adjustments and purchase of property and equipment 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, amortization of intangible assets related to acquisitions, facility exit and transition costs, intra-entity IP transfer tax effect, net and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business.

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 U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. 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, amortization of intangible assets related to acquisitions, facility exit and transition costs, non-cash interest expense related to the amortization of debt discount and issuance costs, intra-entity IP transfer tax effect, net and the tax effect of the non-GAAP adjustments. 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, amortization 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.

Cautionary Language Concerning Forward-Looking Statements
This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: the duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response, on global and regional economies and economic activity and the resulting impact on the demand for the Company’s solutions and on its expected revenue growth rates and costs; the Company’s ability to adjust its operations in response to impacts from the COVID-19 pandemic; difficulties predicting future financial results, including due to impacts from the COVID-19 pandemic; the Company’s plan to begin actively transitioning its business to a recurring revenue model in 2021; changes to the drivers of the Company’s growth; the Company’s ability to sell into existing and new industry verticals; the Company’s sales cycles and multiple licensing models may cause results to fluctuate; the Company’s ability to sell into existing customers; potential changes in the Company’s operating and net profit margins and the Company’s revenue growth rate; the Company’s ability to successfully find, complete, fully integrate and achieve the expected benefits of future acquisitions, including the Company’s ability to integrate and achieve the expected benefits of Idaptive; real or perceived shortcomings, defects or vulnerabilities in the Company’s solutions or internal network systems; the Company’s ability to hire qualified personnel; the Company’s ability to expand its channel partnerships across existing and new geographies; the Company’s ability to further diversify its product deployments and licensing options; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

CYBERARK SOFTWARE LTD.
Consolidated Statements of Operations
U.S. dollars in thousands (except per share data)
(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2019

 

2020

2019

 

2020

   
Revenues:  
License

$ 76,526

 

$ 80,821

$ 237,879

 

$ 226,113

Maintenance and professional services

53,138

 

63,698

196,016

 

238,318

   
Total revenues

129,664

 

144,519

433,895

 

464,431

   
Cost of revenues:  
License

2,801

 

5,845

10,569

 

19,341

Maintenance and professional services

14,048

 

16,863

52,046

 

63,230

   
Total cost of revenues

16,849

 

22,708

62,615

 

82,571

   
Gross profit

112,815

 

121,811

371,280

 

381,860

   
Operating expenses:  
Research and development

20,930

 

26,659

72,520

 

95,426

Sales and marketing

52,939

 

61,038

184,168

 

219,999

General and administrative

16,005

 

15,325

52,308

 

60,429

   

Total operating expenses

89,874

 

103,022

308,996

 

375,854

   
Operating income

22,941

 

18,789

62,284

 

6,006

   
Financial income (expenses), net

2,394

 

(2,733)

7,800

 

(6,395)

   
Income (loss) before taxes on income

25,335

 

16,056

70,084

 

(389)

   
Taxes on income

(4,599)

 

(4,002)

(7,020)

 

(5,369)

   
Net income (loss)

$ 20,736

 

$ 12,054

$ 63,064

 

$ (5,758)

   
   
Basic net income (loss) per ordinary share

$ 0.55

 

$ 0.31

$ 1.68

 

$ (0.15)

Diluted net income (loss) per ordinary share

$ 0.53

 

$ 0.30

$ 1.62

 

$ (0.15)

   
Shares used in computing net income (loss)  
per ordinary shares, basic

37,957,899

 

38,913,923

37,586,387

 

38,628,770

Shares used in computing net income (loss)  
per ordinary shares, diluted

39,148,849

 

39,938,780

38,890,108

 

38,628,770

   
Share-based Compensation Expense:   

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2019

 

2020

2019

 

2020

   
Cost of revenues

$ 1,802

 

$ 2,409

$ 5,690

 

$ 8,734

Research and development

3,347

 

4,085

10,960

 

14,691

Sales and marketing

6,464

 

6,996

20,976

 

28,220

General and administrative

6,418

 

4,984

17,891

 

20,204

   
Total share-based compensation expense

$ 18,031

 

$ 18,474

$ 55,517

 

$ 71,849

CYBERARK SOFTWARE LTD.

Consolidated Balance Sheets

U.S. dollars in thousands

(Unaudited)

December 31,

 

December 31,

2019

 

2020

ASSETS
 
CURRENT ASSETS:
Cash and cash equivalents

792,363

499,992

Short-term bank deposits

140,067

256,143

Marketable securities

132,412

196,856

Trade receivables

72,953

93,128

Prepaid expenses and other current assets

8,406

15,312

 
Total current assets

1,146,201

1,061,431

 
LONG-TERM ASSETS:
Marketable securities

54,408

202,190

Property and equipment, net

16,472

18,537

Intangible assets, net

9,143

23,676

Goodwill

82,400

123,717

Other long-term assets

72,091

99,992

Deferred tax asset

24,451

32,809

 
Total long-term assets

258,965

500,921

 
TOTAL ASSETS

$ 1,405,166

$ 1,562,352

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Trade payables

$ 5,675

$ 8,250

Employees and payroll accruals

41,345

52,169

Accrued expenses and other current liabilities

27,132

24,915

Deferred revenues

118,519

161,679

 
Total current liabilities

192,671

247,013

 
LONG-TERM LIABILITIES:
Convertible senior notes, net

485,119

502,302

Deferred revenues

71,836

80,829

Other long-term liabilities

31,408

24,920

 
Total long-term liabilities

588,363

608,051

 
TOTAL LIABILITIES

781,034

855,064

 
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value

99

101

Additional paid-in capital

396,437

481,992

Accumulated other comprehensive income

818

4,175

Retained earnings

226,778

221,020

 
Total shareholders' equity

624,132

707,288

 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 1,405,166

$ 1,562,352

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

Twelve Months Ended

December 31,

2019

 

2020

 
Cash flows from operating activities:
Net income (loss)

$ 63,064

$ (5,758)

Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization

10,646

15,475

Amortization of premium and accretion of discount on marketable securities, net

(47)

3,068

Share-based compensation

55,517

71,849

Deferred income taxes, net

(6,974)

(1,988)

Increase in trade receivables

(24,522)

(17,315)

Amortization of debt discount and issuance costs

1,966

17,183

Increase in prepaid expenses and other current and long-term assets

(14,321)

(20,487)

Increase in trade payables

1,571

558

Increase in short-term and long-term deferred revenues

40,821

45,397

Increase in employees and payroll accruals

7,337

7,846

Increase (decrease) in accrued expenses and other current and long-term liabilities

6,652

(9,059)

 
Net cash provided by operating activities

141,710

106,769

 
Cash flows from investing activities:
Investment in short and long term deposits

(33,961)

(123,054)

Investment in marketable securities

(165,714)

(403,279)

Proceeds from maturities of marketable securities

63,489

189,723

Purchase of property and equipment

(7,036)

(7,174)

Payments for business acquisitions, net of cash acquired

-

(68,603)

 
Net cash used in investing activities

(143,222)

(412,387)

 
Cash flows from financing activities:
Proceeds from withholding tax related to employee stock plans

1,155

1,069

Proceeds from the issuance of convertible senior notes, net of issuance costs

560,107

-

Purchase of capped calls

(53,648)

-

Proceeds from exercise of stock options

24,428

12,180

 
Net cash provided by financing activities

532,042

13,249

 
Increase (decrease) in cash, cash equivalents and restricted cash

530,530

(292,369)

 
Cash, cash equivalents and restricted cash at the beginning of the period

261,883

792,413

 
Cash, cash equivalents and restricted cash at the end of the period

$ 792,413

$ 500,044

CYBERARK SOFTWARE LTD.
Reconciliation of GAAP Measures to Non-GAAP Measures
U.S. dollars in thousands (except per share data)
(Unaudited)
 
Reconciliation of Net cash provided by operating activities to Free cash flow:
 
 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

2019

 

2020

 

2019

 

2020

 
Net cash provided by operating activities

$ 53,113

$ 38,948

$ 141,710

$ 106,769

Less:
Purchase of property and equipment

(1,647)

(2,237)

(7,036)

(7,174)

 
Free cash flow

$ 51,466

$ 36,711

$ 134,674

$ 99,595

 
GAAP net cash used in investing activities

$ (119,768)

$ (52,121)

$ (143,222)

$ (412,387)

GAAP net cash provided by financing activities

$ 511,985

$ 6,084

$ 532,042

$ 13,249

 
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
 
 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

2019

 

2020

 

2019

 

2020

 
Gross profit

$ 112,815

$ 121,811

$ 371,280

$ 381,860

Plus:
Share-based compensation - License, Maintenance & professional services

1,802

2,409

5,690

8,734

Amortization of intangible assets - License

968

2,415

5,029

8,244

Acquisition related expenses

-

-

-

447

 
Non-GAAP gross profit

$ 115,585

$ 126,635

$ 381,999

$ 399,285

 
Reconciliation of Operating Income to Non-GAAP Operating Income:
 
 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

2019

 

2020

 

2019

 

2020

 
Operating income

$ 22,941

$ 18,789

$ 62,284

$ 6,006

Plus:
Share-based compensation

18,031

18,474

55,517

71,849

Amortization of intangible assets - Cost of revenues

968

2,415

5,029

8,244

Amortization of intangible assets - Sales and marketing

144

205

576

683

Acquisition related expenses

-

-

-

4,526

Facility exit and transitions costs

-

-

-

140

 
Non-GAAP operating income

$ 42,084

$ 39,883

$ 123,406

$ 91,448

 
Reconciliation of Net Income (Loss) to Non-GAAP Net Income:
 
 

Three Months Ended

 

Twelve Months Ended

December 31,

 

December 31,

2019

 

2020

 

2019

 

2020

 
Net income (loss)

$ 20,736

$ 12,054

$ 63,064

$ (5,758)

Plus:
Share-based compensation

18,031

18,474

55,517

71,849

Amortization of intangible assets - Cost of revenues

968

2,415

5,029

8,244

Amortization of intangible assets - Sales and marketing

144

205

576

683

Acquisition related expenses

-

-

-

4,526

Facility exit and transitions costs

-

-

-

140

Amortization of debt discount and issuance costs

1,966

4,352

1,966

17,183

Taxes on income related to non-GAAP adjustments

(4,014)

(4,851)

(18,251)

(20,807)

Intra-entity IP transfer tax effect, net

-

-

-

5,036

 
Non-GAAP net income

$ 37,831

$ 32,649

$ 107,901

$ 81,096

 
Non-GAAP net income per share
Basic

$ 1.00

$ 0.84

$ 2.87

$ 2.10

Diluted

$ 0.97

$ 0.82

$ 2.77

$ 2.05

 
Weighted average number of shares
Basic

37,957,899

38,913,923

37,586,387

38,628,770

Diluted

39,148,849

39,938,780

38,890,108

39,553,203

 

Investor Relations Contact:
Erica Smith
CyberArk
617-558-2132
ir@cyberark.com

Media Contact:
Liz Campbell
CyberArk
617-558-2191
press@cyberark.com

Source: CyberArk