What happened

Shares of CyberArk Software (NASDAQ:CYBR) slumped on Friday after the cybersecurity company reported its first-quarter results. While revenue and earnings came in above analyst expectations, CyberArk's second-quarter guidance proved disappointing. The stock was down about 11% at 11:45 a.m. EDT.

So what

CyberArk reported first-quarter revenue of $59 million, up 26% year over year and about $1 million higher than the average analyst estimate. License revenue jumped 20% to $33 million, while maintenance and professional services revenue rose 34% to $26 million.

The CyberArk logo.

Image source: CyberArk Software.

Non-GAAP earnings per share came in at $0.28, up from $0.23 in the prior-year period and $0.05 better than analysts were expecting. GAAP operating income dipped slightly, but a tax benefit provided a boost to net income.

For the second quarter, CyberArk expects to produce revenue between $61 million and $62 million, below analyst expectations of $62.4 million. Non-GAAP EPS is expected between $0.23 and $0.25, also below analyst expectations of $0.27.

Now what

Shares of CyberArk are far from cheap, trading for nearly nine times sales prior to Friday's slump. Combine a lofty valuation and disappointing guidance and the result is often a significant decline in the stock price.

CyberArk is now down about 33% from its all-time high in mid-2015. The company will need to start impressing investors again for the stock to recover.

Timothy Green has no position in any stocks mentioned. The Motley Fool recommends CyberArk Software. The Motley Fool has a disclosure policy.