CyberArk Software prices Nasdaq IPO above range

The cyber security company begins trading on Wall Street on Wednesday.

Israeli cyber security company CyberArk Software Ltd. has priced its Nasdaq IPO above the range. The company is selling 5.36 million shares at $16 per share, above the planned range of $13-15.

The Petah Tikva based company has developed a new layer of IT security solutions that protects organizations from cyber attacks that have made their way inside the network perimeter.

CyberArk has granted the underwriters a 30-day option to purchase up to an additional 804,000 ordinary shares to cover over-allotments, if any. The shares begin trading on Nasdaq on Wednesday using the ticker symbol “CYBR.”

J.P. Morgan and Deutsche Bank are acting as joint book-running managers and as representatives of the underwriters in the offering. Barclays Capital is also a book-runner in the offering. William Blair & Company, Nomura Securities International, and Oppenheimer are acting as co-managers in the offering.

CyberArk was founded 15 years ago by CEO Udi Mokady. The company has raised $70 million to date and its largest investor is Jerusalem Venture Partners (JVP).

The company recently revised its second quarter results. Its second quarter revenue totaled $21.3 million, reflecting 29.4% annual growth and 22.7% quarterly growth. CyberArk derives its revenue from the sale of licenses to use its software, and from the sale of maintenance services. License sales accounted for 52.2% of revenue in the second quarter, down from 58.9% in the corresponding quarter last year.

CyberArk has been making a profit for at least two and a half years, a respectable record, given the tendency of companies like it to invest a great deal in sales and marketing at the expense of their profit. CyberArk's operating profit in the second quarter was $3.1 million, compared with $2.9 million in the second quarter of 2013 and a negligible $190,000 in the first quarter of 2014, making its second quarter operating profit margin 14.4%, compared with 17.5% in the second quarter of 2013.

The company posted a $2.1 million net profit in the second quarter, compared with $2.6 million in the corresponding quarter last year and a $1.2 million loss in the first quarter. The erosion of its operating profit is reflected in its net profit margin, which declined from 15.8% in the second quarter of 2013 to 5.8% in the second quarter of 2014.

Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018