What happened

Shares of CyberArk Software (NASDAQ:CYBR) have tanked today, down by 13% as of 12:20 p.m. EDT, after the company reported first-quarter earnings. The cybersecurity specialist also said it has acquired Idaptive to strengthen its access management offerings.

So what

Revenue in the first quarter was $106.8 million, which topped the consensus estimate of $105.6 million in sales. That translated into adjusted net income of $19.6 million, or $0.50 per share, also beating Wall Street's expectation of $0.36 per share in adjusted profits. CyberArk finished Q1 with $1.2 billion in cash on the balance sheet.

Red stock chart going down

Image source: Getty Images.

"The health and well-being of our global community of employees, customers and partners continues to be our first priority," CEO Udi Mokady said in a statement. "We were pleased to deliver results in line with or exceeding all guided metrics for the first quarter."

Now what

The tech company has purchased Idaptive for $70 million in cash. The deal will bolster CyberArk's identity management capabilities. "With cyber attacks on the rise, organizations need modern, comprehensive solutions to make better, continuous access and authorization decisions for the broadest range of users," Mokady said.

In terms of guidance, CyberArk expects revenue in the second quarter to be in the range of $95 million to $105 million, which should result in adjusted operating income of $7 million to $16 million. Adjusted EPS is expected to be $0.17 to $0.35. Those forecasts include expenses related to the Idaptive acquisition. CyberArk is also withdrawing its full-year 2020 guidance due to ongoing uncertainty related to the COVID-19 pandemic.