CyberArk (CYBR 2.55%) reported second-quarter financial results on Tuesday after the close, and its robust sales and earnings growth prompted it to raise its financial forecast for the full year.
CyberArk Software results: The raw numbers
|
Metric |
Q2 2018 |
Q2 2017 |
Year-Over-Year Change |
|---|---|---|---|
|
Revenue |
$77.71 million |
$57.48 million |
35% |
|
Net income |
$8.38 million |
$3.25 million |
158% |
|
Earnings per share |
$0.23 |
$0.09 |
156% |
Data source: CyberArk Software Q2 2018 earnings press release.
What happened this quarter?
Total revenue for the Israel-based cybersecurity company surged 35% to $77.7 million, coming in well ahead of CyberArk's guidance for revenue of between $72 million and $73.5 million. The increase was attributable to a 36% spike in license revenue to $41.1 million, and a 35% jump in maintenance and professional services revenue to $36.6 million.
"Our growth was driven by strong execution and robust demand from both new and existing customers across all geographies," Chairman and CEO Udi Mokady said in a press release. "We were thrilled to sign nearly 200 new logos in the second quarter bringing our total number of customers to more than 4,000, which demonstrates that we are still in the early innings of our market opportunity."
The CEO sees plenty of growth ahead for CyberArk. Image source: Getty Images.
CyberArk also enjoyed a sharp increase in profits during the quarter. GAAP operating income rose to $7 million, up from $1 million in Q2 2017. Meanwhile, non-GAAP operating income -- which excludes share-based compensation and acquisition-related items -- soared 93% to $17 million.
All told, non-GAAP net income increased 75% to $13.5 million, or $0.36 per share.
Looking forward
These strong results prompted CyberArk to raise its full-year financial forecast. The company now expects:
- Total revenue of $320 million to $324 million -- up from a prior estimated range of $315 million to $319 million -- which would represent year-over-year growth of 22% to 24%.
- Non-GAAP operating income of $64 million to $67 million, up from an estimate of $57.5 million to $60.5 million.
- Non-GAAP earnings per share of $1.43 to $1.50, up from an estimate of $1.31 to $1.37.
For the third quarter, CyberArk anticipates revenue in the $77.75 million to $79.25 million range, which would be year-over-year growth of 20% to 22%. On the non-GAAP operating income front, it has targeted a range of $11.4 million to $12.6 million, and earnings per share of $0.25 to $0.28.
"Given our strong execution in the first half of the year and our tremendous market opportunity, we are positioned well for the remainder of 2018," Mokady said.
