Shares of CyberArk Software (CYBR Quick QuoteCYBR - Free Report) fell in afternoon trading on Friday, closing the day down 16.31% to $42.68 a share after JPMorgan (JPM Quick QuoteJPM - Free Report) downgraded the security software firm from “overweight” to “neutral.”

JPMorgan analyst Sterling Auty said that today’s downgrade is a result of the company’s shortfall in its second quarter financial results.

CyberArk now forecasts Q2 revenues of $57 to $57.5 million, down from its previous guidance of $61 to $62 million it reported May 11. This reduction amounts to a $4.25 million hit, falling nearly 7%.

The company blames the inability to close deals in Europe, the Middle East and Africa for the loss of revenue. Auty noted that several large deals in the UK and Northern Europe fell through during the quarter as the company’s deals became “backend loaded.” As a result, deals took longer to close and the company failed to execute.

JMP Securities analyst Erik Suppiger says that the company’s European market is ‘volatile,” likely from the recent wave of ransomware attacks that has been hitting the continent.

CYBR remains a Zacks Rank #3 (Hold), with a Growth score of ‘B.’ CyberArk will provide full financial results and updated guidance during its conference call on August 8.

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