CyberArk falls despite beating analysts

Udi Mokady / Photo: CyberArk
Udi Mokady / Photo: CyberArk

The Israeli privileged access security company reported higher revenue on lower profit.

Israeli cybersecurity company CyberArk Software Inc.(Nasdaq:CYBR) saw its share price fall in premarket trading on Nasdaq after reporting its second quarter financial results and third quarter guidance. The company share price is down 2.39% in premarket trading at $117, giving a market cap of $4.5 billion, even though revenue and profit beat the analysts' expectations.

CyberArk's revenue in the second quarter was $106.5 million, up from $100.2 million in the second quarter of 2019. GAAP net loss was $4.3 million (-$0.11 per share), or $(0.11) compared with GAAP net profit of $13.4 million, ($0.34 per share) in the second quarter of 2019. Non-GAAP net profit was $16.7 million ($0.42 per share) compared with $23 million ($0.59 per share) in the second quarter of 2019.

The Petah Tikva based company provides privileged access security software to protect enterprise networks.

In the third quarter the company sees revenue between $107 million and $115 million with non-GAAP net profit earnings per share between $0.19 and $0.33 per share.

CyberArk chairman and CEO Udi Mokady said, "We were pleased to deliver results ahead of all guided metrics for the second quarter. The integration of our Idaptive acquisition is progressing well and the feedback from customers and partners has been positive. Our SaaS solutions are gaining momentum resulting in record SaaS bookings in the second quarter, contributing to our strong 30 percent deferred revenue growth. While SaaS acceleration results in a short-term revenue headwind, the recurring revenue base creates significant longer-term value for both our customers and CyberArk. It was a very active quarter overall with the impact from the global pandemic confined to new business progression, which was in line with our expectations. Cybersecurity market fundamentals remain strong, identity security is at the top of customers’ priority lists, and our pipeline growth is robust. We are confident that we are positioned to accelerate growth as the overall business environment stabilizes."

Published by Globes, Israel business news - en.globes.co.il - on August 4, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Udi Mokady / Photo: CyberArk
Udi Mokady / Photo: CyberArk
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