CyberArk beats analysts in Q2, raises guidance

cyber  image: Shutterstock
cyber image: Shutterstock

The company's profit grew 28.3% to $149 million in the first half of 2018.

Israeli cybersecurity company CyberArk Software Inc. (Nasdaq:CYBR) reported strong results for the second quarter of 2018 and again upwardly revised its guidance for 2018 as a whole. The company, which provides IT security solutions for enterprises that secure privileged accounts on computer systems, outperformed the analysts' forecasts in the quarter, reporting a $0.36 per share net profit on $77.7 million in revenue, compared with forecasts of $0.24 per share in profit on $72.9 million in revenue.

CyberArk enjoyed more than 10% growth in license sales, services, and maintenance. License sales totaled $41.1 million, 35.6% more than in the second quarter of 2017, while revenue from services grew 34.7% to $36.6 million.

The company's net profit in the second according to GAAP standards totaled $8.4 million, $3.2 million more than in the corresponding quarter last year, while its non-GAAP net profit (excluding various accounting items) reached $13.5 million, up 74% compared with the second quarter last year. Non-GAAP profit in the first half of the year grew 28.3% to $149 million and the company generated a $56.2 million cash flow during this period, ending the quarter with $378 million in cash.

The guidance for the third quarter that CyberArk provided yesterday is similar to the analysts' forecasts for revenue and lower for profit. The company envisions $77.8-79.3 million in revenue, 20-22% more than in the corresponding quarter last year, and a non-GAAP profit of $0.25-0.28 per share - a total profit of $9.4-10.5 million, up from $8.9 million in the corresponding quarter last year.

CyberArk raised its guidance for 2018 as a whole by $5 million. The company now projects $320-324 million in revenue, 22-24% more than in 2017 and a net profit of $1.43-1.50 per share, compared with its previous guidance of $1.31-1.37 per share. CyberArk expects its non-GAAP profit to hit $52.9-55.5 million in 2018 as a whole, with the company's revenue increasing every quarter from the preceding quarter, but says that its third quarter profit will be poorer than in the second quarter, while the fourth quarter will be stronger.

"CyberArk had a great second quarter,” said CyberArk chairperson and CEO Udi Mokady. “We exceeded our guidance across all metrics. We posted strong revenue growth, profitability and operating cash flow. Our growth was driven by strong execution and robust demand from both new and existing customers across all geographies… Given our strong execution in the first half of the year and our tremendous market opportunity, we are positioned well for the remainder of 2018.”

CyberArk's share price has climbed 53.7% over the past year, pushing its market cap up to $2.2 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

cyber  image: Shutterstock
cyber image: Shutterstock
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