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CyberArk Software Earnings Soar

Joe Tenebruso, The Motley Fool

CyberArk Software (NASDAQ: CYBR) reported first-quarter financial results on May 14. The Israel-based cybersecurity company delivered sharply higher revenue and earnings, driven by strong sales of its privileged access security solutions, which help to protect organizations from internal threats.

CyberArk Software results: The raw numbers

Metric

Q1 2019

Q1 2018

Year-Over-Year Change

Revenue

$95.9 million

$71.8 million

34%

Net income

$13.7 million

$6.4 million

113%

Earnings per share

$0.36

$0.18

100%

Data Source: CyberArk Software Q1 2019 earnings press release.

What happened with CyberArk Software this quarter?

License revenue jumped 33% year over year to $51.3 million, while maintenance and professional services revenue leapt 34% to $44.7 million. In turn, total revenue rose 34%, to $95.9 million.

"Our results demonstrate that Privileged Access Security is the foundation of comprehensive cybersecurity programs," Chairman and CEO Udi Mokady said in a press release. "As the leader in the market, organizations of all sizes and industries are turning to CyberArk as a trusted advisor to secure digital transformation and cloud migration strategies."

A digital lock in the center of computer circuits

More businesses are turning to CyberArk to secure their most sensitive data. Image source: Getty Images.

The scalability of CyberArk's business model was on full display during the quarter. Non-GAAP operating income -- which excludes share-based compensation and acquisition-related items -- surged 101% to $25.5 million. Non-GAAP net income, meanwhile, increased 82% to $21.5 million, or $0.56 per share.

Moreover, CyberArk's cash generation remains strong. Operating cash flow grew 39% to $45.9 million, and free cash flow climbed 42% to $43.6 million. "We were pleased to deliver results ahead of all guided metrics as well as record cash flow from operations," Mokady said.

Looking forward

These strong results prompted CyberArk to raise its full-year 2019 guidance. The company now expects:

  • Total revenue of $415 million to $419 million, up from a previous forecast of $411 million to $415 million.
  • Non-GAAP operating income of $100.5 million to $103.5 million, up from $92.5 million to $95.5 million.
  • Non-GAAP earnings per share of $2.10 to $2.16, up from $1.94 to $2.

For the second quarter, CyberArk is guiding for:

  • Total revenue of $96 million to $98 million, up 24%-26% year over year.
  • Non-GAAP operating income of $22 million to $23.5 million.
  • Non-GAAP EPS of $0.45 to $0.48.

"As we look at the remainder of 2019 and beyond, we are committed to delivering sustainable growth, strong profitability and continual innovation to secure privileged access across on-premises, hybrid, and cloud environments," Mokady said.

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends CyberArk Software. The Motley Fool has a disclosure policy.