Image source: CyberArk Software.
CyberArk Software (CYBR +0.00%) saw its second-quarter revenue surge nearly 40%, prompting the cybersecurity specialist to boost its sales and profit outlook for the year ahead. The company reported results Aug. 9.
CyberArk Software results: The raw numbers
| Metric |
Q2 2016 |
Q2 2015 |
Growth (YOY) |
|---|---|---|---|
|
Revenue |
$50.380 million |
$36.375 million |
39% |
|
Net income |
$6.449 million |
$4.922 million |
31% |
|
Earnings per share |
$0.18 |
$0.14 |
29% |
Data source: CyberArk Software Q2 2016 earnings press release. YOY = year over year.
What happened with CyberArk Software this quarter?
- Revenue soared 39% year over year, to $50.4 million, driven by a 35% increase in license revenue, to $30 million, and a 45% jump in maintenance and professional services revenue, to $20.4 million.
- Non-GAAP operating income -- which excludes share-based compensation, acquisition-related expenses, and certain other items -- surged 66%, to $13.6 million, with non-GAAP operating margin improving to 27% from 23% in the prior-year period.
- Non-GAAP net income jumped 62%, to $10.5 million, and non-GAAP EPS -- which was impacted by a higher share count compared to Q2 2015 -- rose 53%, to $0.29.
- Notably, CyberArk's cash generation remains strong, with $21.4 million in operating cash flow in the first six months of 2016. That helped the company end the second quarter with $259 million in cash and investments, and zero long-term debt.
What management had to say
"The second quarter was another strong quarter for CyberArk," said CEO Udi Mokady in a press release. "Our top line growth demonstrates the increasing demand for our privileged account security platform while our bottom line outperformance shows the power of our business model. As we move into the second half of the year, we plan to continue making thoughtful investments including enhancing our technology platform and expanding market presence."
Looking forward
In the third quarter, CyberArk expects revenue of between $51.5 million and $52.5 million, which would represent year-over-year growth of 29% to 31%. The company is also forecasting non-GAAP operating income of $10.1 million to $11.0 million and non-GAAP EPS of $0.21 to $0.23.
Additionally, management boosted its full-year 2016 forecast. Revenue is now projected to be in the range of $210.5 million to $212.5 million, up from prior expectations of $209 million to $211 million. Estimates for non-GAAP operating income and non-GAAP EPS of $48.4 million to $50 million and $1.03 to $1.07, respectively, are likewise up from CyberArk's previous projections of $41.7 million to $43.3 million and $0.87 to $0.91.
"Demand for our solution remains strong, and we believe we are making investments that balance the significant opportunities in this greenfield market with building a profitable organization," said Mokady during a conference call with analysts. "We believe our formula will continue to deliver long-term value to shareholders, customers, partners, and employees."
