Please ensure Javascript is enabled for purposes of website accessibility

CyberArk Software Ltd Earnings Boosted by Higher Privileged Account-Security Spending

By Joe Tenebruso – Feb 12, 2016 at 5:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Businesses are increasingly turning to the cyber attack-prevention specialist to safeguard the most vital aspects of their IT infrastructure.

Source: CyberArk Software

CyberArk Software (CYBR 0.52%) reported fourth quarter results on Feb. 11. The cybersecurity company is enjoying strong demand for its so-called "privileged accounts" solutions, which help to protect the highly sensitive areas inside an organization's IT network.

CyberArk Software results: the raw numbers


Q4 2015

Q4 2014

YoY Growth


$51.5 million

$36.3 million


Net Income

$9.9 million

$6.7 million


Earnings Per Share




Source: CyberArk Software Q4 2015 earnings press release

What happened with CyberArk Software this quarter?

  • Revenue jumped 42% year-over-year to $51.5 million, driven by a 35% increase in license revenue to $33.0 million and a 55% leap in maintenance and professional services revenue to $18.4 million.
  • Non-GAAP operating income -- which excludes share-based compensation and acquisition-related expenses -- surged 50% to $15.2 million, even as CyberArk invested heavily to grow its sales force and strengthen its research and development program. 
  • Non-GAAP net income -- boosted by a lower effective tax rate -- soared 92% to $13.8 million. And non-GAAP earnings per share, which was affected by a higher share count compared to fourth quarter 2014, rose 86% to $0.39.

What management had to say
"We executed on our strategy to expand our sales and marketing reach, enhance our product offering, and strengthen our position as the recognized leader in Privileged Account Security," said CEO Udi Mokady in a press release. "Our investments delivered record results across all financial and operational metrics."

Looking forward
Management expects first quarter revenue to be in the range of $42.5 million to $43.5 million, which would represent year-over-year growth of 29% to 32%. Non-GAAP operating income is projected to be between $6.9 million and $7.7 million, and Non-GAAP earnings per share is anticipated to be in the range of $0.15 to $0.16.

The company also issued its full-year 2016 forecast, including:

  • Revenue in the range of $205 million to $207 million, up 27% to 29% year-over-year
  • Non-GAAP operating income in the range of $39.7 million to $41.3 million
  • Non-GAAP EPS in the range of $0.83 to $0.86

"As we enter 2016, we believe that the momentum in our business positions us to capitalize on the rapidly growing, greenfield opportunity for this must-have new layer of enterprise security and to continue to deliver strong growth and solid profitability," said Mokady.

However, the market was unimpressed with management's outlook as the CyberArk shares shed nearly 11% during Friday's trading.

Joe Tenebruso has no position in any stocks mentioned. The Motley Fool recommends CyberArk Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CyberArk Software Ltd. Stock Quote
CyberArk Software Ltd.
$149.94 (0.52%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.