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CyberArk Software Ltd Sales Leap 25%

By Joe Tenebruso - Feb 20, 2018 at 2:48PM

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CEO Udi Mokady said the cybersecurity specialist delivered a "strong finish" to 2017.

CyberArk Software (CYBR 4.08%) reported fourth-quarter financial results on Feb. 15. The Israel-based cybersecurity company is enjoying robust demand for its Privileged Account Security solutions, which help to protect against cyberattacks that can infiltrate the most vital areas of an organization's IT infrastructure.

CyberArk Software results: The raw numbers


Q4 2017

Q4 2016

Year-Over-Year Change


$80.368 million

$64.358 million


Adjusted operating income

$19.674 million

$19.422 million


Adjusted net income

$14.993 million

$14.670 million


Data Source: CyberArk Software Q4 2017 earnings press release.

What happened with CyberArk Software this quarter?

Total revenue jumped 25% year over year to $80.4 million, fueled by a 19% rise in license revenue, to $48.6 million, and a 35% surge in maintenance and professional services revenue, to $31.8 million.

CyberArk's growth was broad-based. Sales in its Americas division rose 18% to $43.6 million, while sales in its Europe, Middle East, and Africa (EMEA) division soared 41% to $32.5 million. Moreover, CyberArk's insurance, transportation, and healthcare segments all enjoyed growth of more than 100%, while its government, manufacturing, and information technology business lines each delivered growth of over 40%.

"Our results demonstrate the healthy demand for our solutions across companies of all sizes and vertical markets," Chairman and CEO Udi Mokady said in a press release.

Computer circuits in the shape of a lock

More companies are turning to CyberArk for their cybersecurity needs. Image source: Getty Images.

Still, adjusted operating expenses increased 38% to $50.9 million, as CyberArk continues to expand its sales force and ramp up its investments in research and development. Expenses related to CyberArk's acquisition of software development and operations security provider Conjur also contributed to the increase.

In turn, non-GAAP operating income -- which excludes share-based compensation, acquisition-related expenses, and certain other items -- inched up 1% to $19.7 million, as non-GAAP operating margin fell to 24% from 30% in the year-ago quarter. And non-GAAP net income increased 2% to $15 million, or $0.41 per share.

More importantly, CyberArk's cash generation remains strong. The cyber-protection specialist's operating cash flow topped $80 million in 2017, while its free cash flow came in under just under $74 million. Those figures represent growth of 43% and 38%, respectively, from the prior-year period.

Looking forward

CyberArk expects first-quarter revenue of $68.25 million to $69.75 million, representing year-over-year growth of 16% to 18%. The company also forecasts non-GAAP operating income of $9.2 million to $10.4 million and earnings per share of $0.19 to $0.22. 

In addition, CyberArk issued financial guidance for 2018, including:

  • Total revenue of $312 million to $316 million, up 19% to 21% year over year.
  • Non-GAAP operating income of $54.5 million to $57.5 million, up 5% to 11%.
  • Non-GAAP EPS of $1.18 to $1.24 per share, up 2% to 7%.

"During the fourth quarter, we introduced enhancements to our Privileged Account Security solution that strengthened our leadership position as the most comprehensive solution across on-premises, hybrid, and cloud environments, as well as DevOps," said Mokady. "As we look ahead, we remain focused on creating long-term shareholder value by delivering sustainable, profitable growth."

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