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
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