We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CyberArk Software Ltd. (CYBR - Free Report) reported better-than-expected second-quarter 2020 results. Non-GAAP earnings per share of 42 cents exceeded the Zacks Consensus Estimate by 61.5%. The bottom line, however, is lower than the year-ago quarter’s 59 cents.
CyberArk’s revenues grew 6.3% year over year to $106.5 million and beat the consensus mark of $101 million. Solid revenue growth across all geographical regions aided the top line. Moreover, an expanding customer base was a tailwind.
Increasing demand for privileged access security on the back of digital transformation and cloud migration strategies was a key growth driver. Moreover, growing pipelines across verticals such as banking, insurance, healthcare, global government, pharmaceuticals and utilities, which have been less affected by the coronavirus pandemic, boosted revenues.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
Segment wise, License revenues (45% of total revenues) decreased 8.2% year over year to $47.9 million. Add-on business contributed 75% of license revenues in the second quarter.
The company’s products, Application Access Manager and Endpoint Privilege Manager, represented nearly 15 and 9% of license revenues, respectively.
Maintenance and Professional Services (55%) revenues were up 22% to $58.6 million. Within the segment, professional services revenues came in at $9.9 million, representing 9% of total revenues.
The company witnessed top-line growth in every region. On a year-over-year basis, revenues of $64.5 million from the Americas increased 4.4%. Revenues of $11.6 million from the APJ jumped 20%. EMEA revenues of $30.4 million rose 5.9%.
Operating Results
CyberArk’s non-GAAP gross profit was $90.7 million, marking year-over-year growth of 3.5%. However, gross margin contracted 300 basis points (bps) to 85% on lower license revenues.
The company reported non-GAAP operating income of $16.9 million compared with the year-ago quarter’s $26.5 million. Non-GAAP operating margin shrunk 10.5 percentage points to 15.9% on higher operating expenses.
Balance Sheet & Cash Flow
CyberArk exited the second quarter with cash, cash equivalents, short-term deposits and marketable securities of $1.1 billion, down from the $1.2 billion witnessed at the end of the previous quarter. The company’s balance sheet does not show any long-term debt.
During the first six months of 2020, the company generated operating cash flow of $53.3 million.
Guidance
For the third quarter of 2020, CyberArk estimates revenues of $107-$115 million.
Non-GAAP operating income is expected in the band of $8-$15 million. The company projects non-GAAP earnings in the 19-33 cents range.
Zacks Rank and Key Picks
Currently, CyberArk carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
CyberArk's (CYBR) Q2 Earnings & Revenues Beat Estimates
CyberArk Software Ltd. (CYBR - Free Report) reported better-than-expected second-quarter 2020 results. Non-GAAP earnings per share of 42 cents exceeded the Zacks Consensus Estimate by 61.5%. The bottom line, however, is lower than the year-ago quarter’s 59 cents.
CyberArk’s revenues grew 6.3% year over year to $106.5 million and beat the consensus mark of $101 million. Solid revenue growth across all geographical regions aided the top line. Moreover, an expanding customer base was a tailwind.
Increasing demand for privileged access security on the back of digital transformation and cloud migration strategies was a key growth driver. Moreover, growing pipelines across verticals such as banking, insurance, healthcare, global government, pharmaceuticals and utilities, which have been less affected by the coronavirus pandemic, boosted revenues.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote
Quarter Details
Segment wise, License revenues (45% of total revenues) decreased 8.2% year over year to $47.9 million. Add-on business contributed 75% of license revenues in the second quarter.
The company’s products, Application Access Manager and Endpoint Privilege Manager, represented nearly 15 and 9% of license revenues, respectively.
Maintenance and Professional Services (55%) revenues were up 22% to $58.6 million. Within the segment, professional services revenues came in at $9.9 million, representing 9% of total revenues.
The company witnessed top-line growth in every region. On a year-over-year basis, revenues of $64.5 million from the Americas increased 4.4%. Revenues of $11.6 million from the APJ jumped 20%. EMEA revenues of $30.4 million rose 5.9%.
Operating Results
CyberArk’s non-GAAP gross profit was $90.7 million, marking year-over-year growth of 3.5%. However, gross margin contracted 300 basis points (bps) to 85% on lower license revenues.
The company reported non-GAAP operating income of $16.9 million compared with the year-ago quarter’s $26.5 million. Non-GAAP operating margin shrunk 10.5 percentage points to 15.9% on higher operating expenses.
Balance Sheet & Cash Flow
CyberArk exited the second quarter with cash, cash equivalents, short-term deposits and marketable securities of $1.1 billion, down from the $1.2 billion witnessed at the end of the previous quarter. The company’s balance sheet does not show any long-term debt.
During the first six months of 2020, the company generated operating cash flow of $53.3 million.
Guidance
For the third quarter of 2020, CyberArk estimates revenues of $107-$115 million.
Non-GAAP operating income is expected in the band of $8-$15 million. The company projects non-GAAP earnings in the 19-33 cents range.
Zacks Rank and Key Picks
Currently, CyberArk carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>