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CyberArk's (CYBR) Q1 Loss Matches Estimates, Revenues Miss

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CyberArk Software CYBR reported non-GAAP loss of 30 cents, which came in line with the Zacks Consensus Estimate. The bottom line was lower than the year-ago quarter’s non-GAAP earnings of 9 cents per share.

For first-quarter 2022, the leading Identity Security solution provider reported revenues of $127.6 million, missing the consensus mark of $131.1 million. The top line, however, witnessed a year-over-year improvement of 13%. Markedly, 84% of quarterly revenues were recurring in nature, which surged 40% year over year to $107 million.

Annual Recurring Revenues (ARR) increased 48% to $427 million. The maintenance portion, representing 48.7% of total ARR, increased 3.5% year over year to $208 million. The subscription portion, which accounted for 51% of the total ARR, soared 149% year over year to $219 million. This upside was primarily driven by a record number of software-as-a-service (“SaaS”) solutions bookings and strong demand for on-premises subscription offerings.

CyberArk’s subscription transition has been witnessing strong momentum, with a rapidly growing base of recurring revenues. Subscription bookings made up 86% of the license bookings in the quarter, which was significantly higher than 51% in the year-ago quarter and outpaced management’s target of achieving an 85% subscription bookings mix.

CyberArk Software Ltd. Price, Consensus and EPS Surprise

CyberArk Software Ltd. Price, Consensus and EPS Surprise
CyberArk Software Ltd. Price, Consensus and EPS Surprise

CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote

Quarter Details

Segment-wise, subscription revenues (40.1% of total revenues) were $51.9 million, up by 110% from the year-ago quarter.

Maintenance and professional services revenues (51% of total revenues) climbed 6.2% to $65.1 million from the year-ago quarter.

Perpetual license revenues (8.3% of total revenues) plunged 60.3% to $10.6 million at the close of this quarter.

The signing of new logos across all industries highlighted a steady increase in new business. The new business pipeline is encouraging.

During the first quarter, CyberArk added around 250 new customers.

Operating Details

CyberArk’s non-GAAP gross profit increased 8.9% year over year to $104.1 million.

Non-GAAP operating expenses escalated 28.6% year over year to $115.9 million. This was primarily due to 46.1%, 26.1% and 23.1% year-over-year increases in R&D, S&M and G&A expenses, respectively, from the year-earlier reported figures. S&M expenses comprised almost 55.1% of the total quarterly operating expenses.

The company’s non-GAAP operating loss was $11.8 million at the end of first-quarter 2022, against non-GAAP operating income of $5.5 million a year ago.

Balance Sheet

CyberArk ended the January-March quarter with cash and cash equivalents, marketable securities, and short-term deposits of $1.2 billion.
As of Mar 31, 2022, total deferred revenues were $345.2 million, up 33% year over year.

During the first quarter, CyberArk generated operating cash flow worth $25 million and free cash flow worth $23 million.

Guidance

For the second quarter of 2021, CyberArk expects revenues between $135 million and $141 million. It projects to post non-GAAP loss per share in the range of 25 cents to 37 cents.

Non-GAAP operating loss is estimated between $9.5 million and $14.5 million.

For full-year 2022, CyberArk expects revenues to be $583.5-$598.5 million. The company now projects non-GAAP loss to be 60-92 cents per share, compared with the previously estimated range of 64-98 cents per share.

Non-GAAP operating loss for full-year 2022is estimated in the $20.5-$33.5 million band.

Zacks Rank & Other Key Picks

CyberArk currently carries a Zacks Rank #2 (Buy). Shares of CYBR have decreased 0.8% in the past year.

Some other top-ranked stocks from the broader Computer and Technology sector are Avnet AVT, Axcelis Technologies ACLS and Analog Devices ADI. While Avnet and Axcelis sport a Zacks Rank #1 (Strong Buy), Analog Devices carry a Zacks Rank of 2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.

Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 4.5% in the past year.

The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.

Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 41.8% in the past year.

The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 2.2% in the past year.


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