CyberArk (CYBR +0.00%) reported second-quarter financial results on Aug. 7. The leading provider of privileged-access security, which helps safeguard the most vital aspects of a company's IT infrastructure, is enjoying robust growth in revenue and earnings.
CyberArk Software results: The raw numbers
|
Metric |
Q2 2019 |
Q2 2018 |
Change |
|---|---|---|---|
|
Revenue |
$100.2 million |
$77.7 million |
29% |
|
Net income |
$13.4 million |
$8.4 million |
60% |
|
Earnings per share |
$0.34 |
$0.23 |
48% |
Data source: CyberArk Software Q2 2019 earnings press release.
What happened with CyberArk Software this quarter?
CyberArk's total revenue climbed 29% year over year to $100.2 million. The gains were fueled by a 27% rise in license revenue, to $52.2 million, and a 31% increase in maintenance and professional services revenue, to $48 million.
"While digital transformation and cloud migration strategies are accelerating business operations, they are also exponentially increasing the complexity of enterprise IT, creating opportunities for CyberArk with new and existing customers," said chairman and CEO Udi Mokady during a conference call with analysts.
Better still, CyberArk is becoming more profitable as its revenue expands. The company's non-GAAP (adjusted) operating income -- which excludes share-based compensation and acquisition-related items -- jumped 56% to $26.5 million. And CyberArk's non-GAAP net income leapt 70% to $23 million, or $0.59 per share.
Looking forward
For the third quarter, CyberArk expects:
- Total revenue of $102 million and $104 million, signifying year-over-year growth of 20% to 23%
- Non-GAAP operating income of $21.75 million to $23.25 million
- Non-GAAP earnings per share of $0.45 to $0.48
Image source: Getty Images.
During CyberArk's earnings call, Mokady said that recent high profile cybersecurity breaches are boosting demand for the company's cyber protection solutions.
Regulators are flexing their muscles, making headlines in the last few weeks by imposing staggering fines of $700 million, $250 million and $125 million related to breaches. The stakes have never been higher in security. And in almost every successful breach, a hacker infiltrates the network or cloud environment and exploits privileged access, putting our solution at the top of chief information security officers' priority lists.
In turn, CyberArk hiked its full-year sales and profit forecast, including:
- Total revenue of $419 million to $423 million, up from prior guidance of $415 million to $419 million.
- Non-GAAP operating income of $106 million to $109 million, up from $100.5 million to $103.5 million.
- Non-GAAP earnings per share of $2.24 to $2.30, up from $2.10 to $2.16.
"Our innovation not only sets the standard for privileged access security but also strengthens our leadership position in the market," Mokady said. "With our strong first half of 2019, we are pleased to increase our guidance for the full year on both the top and bottom line."
