CyberArk Announces Strong Second Quarter 2024 Results

Results Exceeded all Guided Metrics

Subscription Portion of Annual Recurring Revenue (ARR) Grew 50% Year-Over-Year to $677 million

Total ARR Grew 33% Year-Over-Year to $868 million

Subscription Revenue Grew 49% Year-Over-Year to $158.4 million

Total Revenue Grew 28% Year-Over-Year Reaching a Record of $224.7 million

Net Cash Provided by Operating Activities for the Six Months Ended June 30, 2024 of $113.0 million

Company Raises Full Year Guidance Across all Metrics

NEWTON, Mass. & PETACH TIKVA, Israel--()--CyberArk (NASDAQ: CYBR), the identity security company, today announced strong financial results for the second quarter ended June 30, 2024.

We had a strong quarter, posting record revenue and increasing our profitability, resulting in CyberArk again outperforming our guidance across all metrics,” said Matt Cohen, CyberArk’s Chief Executive Officer. “With the explosion of new identities, new environments, and new attack methods, a new paradigm is needed to protect every identity – human or machine – with the right level of privilege controls. Customers are consolidating on our platform, driving land and expand, as evidenced by the 245 new logos we signed and our net new Subscription ARR of $56 million. Our consistent performance puts us in an elite class of companies that deliver 25 plus percent topline growth, strong profitability and cash flow margins. Given the mission-critical nature of identity security and durable demand for our platform, we are confidently raising our guidance for the full year 2024. We have a tremendous opportunity ahead of us and are well positioned to deliver strong long-term profitable growth.”

Financial Summary for the Second Quarter Ended June 30, 2024

  • Subscription revenue was $158.4 million in the second quarter of 2024, an increase of 49 percent from $106.2 million in the second quarter of 2023.
  • Maintenance and professional services revenue was $62.7 million in the second quarter of 2024, compared to $64.6 million in the second quarter of 2023.
  • Perpetual license revenue was $3.6 million in the second quarter of 2024, compared to $5.1 million in the second quarter of 2023.
  • Total revenue was $224.7 million in the second quarter of 2024, up 28 percent from $175.8 million in the second quarter of 2023.
  • GAAP operating loss was $(24.0) million compared to GAAP operating loss of $(39.9) million in the same period last year. Non-GAAP operating income was $23.7 million compared to non-GAAP operating loss of $(5.6) million, in the same period last year.
  • GAAP net loss was $(12.9) million, or $(0.30) per basic and diluted share, compared to GAAP net loss of $(25.8) million, or $(0.62) per basic and diluted share, in the same period last year. Non-GAAP net income was $26.1 million, or $0.54 per diluted share, compared to non-GAAP net income of $1.3 million, or $0.03 per diluted share, in the same period last year.

Balance Sheet and Net Cash Provided by Operating Activities

  • As of June 30, 2024, cash, cash equivalents, short-term deposits, and marketable securities were $1.4 billion.
  • During the six months ended June 30, 2024, net cash provided by (used in) operating activities was $113.0 million, compared to $(5.0) million in the six months ended June 30, 2023.

Key Business Highlights

  • Annual Recurring Revenue (ARR) was $868 million, an increase of 33 percent from $653 million at June 30, 2023.
    • The Subscription portion of ARR was $677 million, or 78 percent of total ARR at June 30, 2024. This represents an increase of 50 percent from $451 million, or 69 percent of total ARR, at June 30, 2023.
    • The Maintenance portion of ARR was $191 million at June 30, 2024, compared to $201 million at June 30, 2023.
  • Recurring revenue in the second quarter was $208.0 million, an increase of 32 percent from $157.8 million for the second quarter of 2023.

Recent Developments

Venafi Acquisition

The transaction is still expected to close in the second half of 2024, subject to required regulatory approvals, clearances, and other customary closing conditions.

Business Outlook

Based on information available as of August 8, 2024, CyberArk is issuing guidance for the third quarter and full year 2024 as indicated below.

CyberArk’s guidance for the third quarter and full year 2024 does not include contributions from the proposed acquisition of Venafi, Inc., which is expected to close in the second half of 2024, or the issuance of approximately 2.3 million CyberArk shares in connection with the closing of the proposed acquisition of Venafi, Inc.

Third Quarter 2024:

  • Total revenue is expected to be in the range of $230.0 million and $236.0 million, representing growth of 20 percent to 23 percent compared to the third quarter of 2023.
  • Non-GAAP operating income is expected to be in the range of $20.5 million to $25.5 million.
  • Non-GAAP net income per share is expected to be in the range of $0.38 to $0.49 per diluted share.
    • Assumes 48.2 million weighted average diluted shares.

Full Year 2024:

  • Total revenue is expected to be in the range of $932.0 million to $942.0 million, representing growth of 24 percent to 25 percent compared to the full year 2023.
  • Non-GAAP operating income is expected to be in the range of $107.5 million to $116.5 million.
  • Non-GAAP net income per share is expected to be in the range of $2.17 to $2.36 per diluted share.
    • Assumes 48.2 million weighted average diluted shares.
  • ARR as of December 31, 2024 is expected to be in the range of $985 million to $995 million, representing growth of 27 percent to 29 percent from December 31, 2023.
  • Non-GAAP free cash flow is expected to be in the range of $145.0 million to $155.0 million for the full year 2024.

Conference Call Information

In conjunction with this announcement, CyberArk will host a conference call on Thursday, August 8, 2024 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s second quarter financial results and its business outlook. To access this call, dial +1 (888) 596-4144 (U.S.) or +1 (646) 968-2525 (international). The conference ID is 9488637. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 (800) 770-2030 (U.S.) or +1 (609) 800-9909 (international). The replay pass code is 9488637. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in identity security. Centered on intelligent privilege controls, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud environments and throughout the DevOps lifecycle. The world’s leading organizations trust CyberArk to help secure their most critical assets. To learn more about CyberArk, visit https://www.cyberark.com, read the CyberArk blogs or follow on LinkedIn, X, Facebook or YouTube.

Copyright © 2024 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

Key Performance Indicators and Non-GAAP Financial Measures

Recurring Revenue

  • Recurring Revenue is defined as revenue derived from SaaS and self-hosted subscription contracts, and maintenance contracts related to perpetual licenses during the reported period.

Annual Recurring Revenue (ARR)

  • ARR is defined as the annualized value of active SaaS, self-hosted subscriptions and their associated maintenance and support services, and maintenance contracts related to the perpetual licenses in effect at the end of the reported period.

Subscription Portion of Annual Recurring Revenue

  • Subscription portion of ARR is defined as the annualized value of active SaaS and self-hosted subscription contracts in effect at the end of the reported period. The subscription portion of ARR excludes maintenance contracts related to perpetual licenses.

Maintenance Portion of Annual Recurring Revenue

  • Maintenance portion of ARR is defined as the annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and self-hosted subscription contracts in effect at the end of the reported period.

Net New Subscription ARR

  • Net new Subscription ARR refers to the difference between Subscription ARR as of March 31, 2024 and Subscription ARR as of June 30, 2024.

Annual Recurring Revenue (ARR), Subscription portion of ARR and Maintenance portion of ARR are performance indicators that provide more visibility into the growth of our recurring business in the upcoming year. This visibility allows us to make informed decisions about our capital allocation and level of investment. Each of these measures should be viewed independently of revenues and total deferred revenue as each is an operating measure and is not intended to be combined with or to replace either of those measures. ARR, Subscription portion of ARR and Maintenance portion of ARR are not forecasts of future revenues and can be impacted by contract start and end dates and renewal rates.

Non-GAAP Financial Measures

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income (loss), non-GAAP net income (loss) and free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net (loss) or net cash provided by (used in) operating activities or any other performance measures derived in accordance with GAAP.

  • Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, and amortization of intangible assets related to acquisitions.
  • Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, acquisition related expenses, and amortization of intangible assets related to acquisitions.
  • Non-GAAP operating income (loss) is calculated as GAAP operating loss excluding share-based compensation expense, acquisition related expenses, and amortization of intangible assets related to acquisitions.
  • Non-GAAP net income (loss) is calculated as GAAP net (loss) excluding share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, and the tax effect of non-GAAP adjustments.
  • Free cash flow is calculated as net cash provided by (used in) operating activities less purchase of property and equipment.

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance cost, and the tax effect of the non-GAAP adjustments and purchase of property and equipment allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its acquisitions, amortization of intangible assets related to acquisitions, and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow is a liquidity measure that, after the purchase of property and equipment, provides useful information about the amount of cash generated by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, non-cash interest expense related to the amortization of debt discount and issuance costs, the tax effect of the non-GAAP adjustments, and purchase of property and equipment. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortization of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance, as well as changes in interest rates and foreign exchange rates, which impact other GAAP performance metrics. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.

Cautionary Language Concerning Forward-Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating, but not limited to: the ability of the parties to consummate the proposed transaction regarding the Company’s acquisition of Venafi Holdings, Inc. (“Venafi”) in a timely manner or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, in a timely manner or at all; the potential impact of the announcement of the proposed transaction on the ability of the Company or Venafi to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom the Company or Venafi do business, or on the Company’s or Venafi’s operating results and business generally; disruption of the current plans and operations of the Company and Venafi as a result of the proposed transaction or its announcement, including increased risks of cyberattacks; risks that Venafi’s business will not be integrated successfully into the Company’s operations; risks relating to the Company’s ability to realize anticipated benefits of the combined operations; changes to the drivers of the Company’s growth and the Company’s ability to adapt its solutions to the information security market changes and demands, including artificial intelligence (“AI”); the Company’s ability to acquire new customers and maintain and expand the Company’s revenues from existing customers; intense competition within the information security market; real or perceived security vulnerabilities, gaps, or cybersecurity breaches of the Company, or the Company’s customers’ or partners’ systems, solutions or services; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to successfully operate its business as a subscription company and fluctuation in the quarterly results of operations; the Company’s reliance on third-party cloud providers for its operations and software-as-a-service (“SaaS”) solutions; the Company’s ability to hire, train, retain and motivate qualified personnel; the Company’s ability to effectively execute its sales and marketing strategies; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; the Company’s ability to maintain successful relationships with channel partners, or if the Company’s channel partners fail to perform; risks related to sales made to government entities; prolonged economic uncertainties or downturns; the Company’s history of incurring net losses, the Company’s ability to generate sufficient revenue to achieve and sustain profitability and the Company’s ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property claims; fluctuations in currency exchange rates; the ability of the Company’s products to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software; risks related to stock price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a “passive foreign investment company”; risks related to the Company’s Convertible Senior Notes due 2024 (the “Convertible Notes”), including the potential dilution to existing shareholders and the Company’s ability to raise the funds necessary to repurchase the Convertible Notes; changes in tax laws; the Company’s expectation to not pay dividends on the Company’s ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including the ongoing war between Israel and Hamas and conflict in the region; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

 
CYBERARK SOFTWARE LTD.
Consolidated Statements of Operations
U.S. dollars in thousands (except per share data)
(Unaudited)
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
Revenues:
Subscription

$

106,167

 

$

158,414

 

$

198,887

 

$

314,653

 

Perpetual license

 

5,090

 

 

3,637

 

 

8,972

 

 

6,588

 

Maintenance and professional services

 

64,586

 

 

62,655

 

 

129,689

 

 

125,015

 

 
Total revenues

 

175,843

 

 

224,706

 

 

337,548

 

 

446,256

 

 
Cost of revenues:
Subscription

 

17,633

 

 

22,601

 

 

33,578

 

 

43,563

 

Perpetual license

 

319

 

 

303

 

 

531

 

 

782

 

Maintenance and professional services

 

20,815

 

 

22,114

 

 

40,630

 

 

43,081

 

 
Total cost of revenues

 

38,767

 

 

45,018

 

 

74,739

 

 

87,426

 

 
Gross profit

 

137,076

 

 

179,688

 

 

262,809

 

 

358,830

 

 
Operating expenses:
Research and development

 

53,664

 

 

56,556

 

 

105,920

 

 

110,470

 

Sales and marketing

 

101,089

 

 

115,339

 

 

200,517

 

 

220,303

 

General and administrative

 

22,221

 

 

31,769

 

 

42,396

 

 

58,411

 

 
Total operating expenses

 

176,974

 

 

203,664

 

 

348,833

 

 

389,184

 

 
Operating loss

 

(39,898

)

 

(23,976

)

 

(86,024

)

 

(30,354

)

 
Financial income, net

 

11,882

 

 

13,347

 

 

21,488

 

 

27,399

 

 
Loss before taxes on income

 

(28,016

)

 

(10,629

)

 

(64,536

)

 

(2,955

)

 
Tax benefit (taxes on income)

 

2,238

 

 

(2,294

)

 

3,730

 

 

(4,498

)

 
Net loss

$

(25,778

)

$

(12,923

)

$

(60,806

)

$

(7,453

)

 
 
Basic loss per ordinary share

$

(0.62

)

$

(0.30

)

$

(1.47

)

$

(0.17

)

Diluted loss per ordinary share

$

(0.62

)

$

(0.30

)

$

(1.47

)

$

(0.17

)

 
Shares used in computing net loss
per ordinary shares, basic

 

41,599,364

 

 

42,948,191

 

 

41,384,895

 

 

42,689,375

 

Shares used in computing net loss
per ordinary shares, diluted

 

41,599,364

 

 

42,948,191

 

 

41,384,895

 

 

42,689,375

 

 

CYBERARK SOFTWARE LTD.

Consolidated Balance Sheets

U.S. dollars in thousands

(Unaudited)

 
 
December 31, June 30,

 

2023

 

 

 

2024

 

 
 
ASSETS
 
CURRENT ASSETS:
Cash and cash equivalents

$

355,933

 

$

641,014

 

Short-term bank deposits

 

354,472

 

 

231,037

 

Marketable securities

 

283,016

 

 

528,086

 

Trade receivables

 

186,472

 

 

156,049

 

Prepaid expenses and other current assets

 

31,550

 

 

34,983

 

 
Total current assets

 

1,211,443

 

 

1,591,169

 

 
LONG-TERM ASSETS:
Marketable securities

 

324,548

 

 

30,871

 

Property and equipment, net

 

16,494

 

 

16,477

 

Intangible assets, net

 

20,202

 

 

16,665

 

Goodwill

 

153,241

 

 

153,241

 

Other long-term assets

 

214,816

 

 

227,140

 

Deferred tax asset

 

81,464

 

 

85,021

 

 
Total long-term assets

 

810,765

 

 

529,415

 

 
TOTAL ASSETS

$

2,022,208

 

$

2,120,584

 

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Trade payables

$

10,971

 

$

6,189

 

Employees and payroll accruals

 

95,538

 

 

75,909

 

Accrued expenses and other current liabilities

 

36,562

 

 

37,979

 

Convertible senior notes, net

 

572,340

 

 

573,824

 

Deferred revenues

 

409,219

 

 

442,223

 

 
Total current liabilities

 

1,124,630

 

 

1,136,124

 

 
LONG-TERM LIABILITIES:
Deferred revenues

 

71,413

 

 

75,887

 

Other long-term liabilities

 

33,839

 

 

31,601

 

 
Total long-term liabilities

 

105,252

 

 

107,488

 

 
TOTAL LIABILITIES

 

1,229,882

 

 

1,243,612

 

 
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value

 

111

 

 

113

 

Additional paid-in capital

 

827,260

 

 

918,948

 

Accumulated other comprehensive loss

 

(1,849

)

 

(1,440

)

Accumulated deficit

 

(33,196

)

 

(40,649

)

 
Total shareholders' equity

 

792,326

 

 

876,972

 

 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

2,022,208

 

$

2,120,584

 

 

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

 
Six Months Ended
June 30,

 

2023

 

 

2024

 

 
Cash flows from operating activities:
Net loss

$

(60,806

)

$

(7,453

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization

 

8,787

 

 

8,046

 

Amortization of premium and accretion of discount on marketable securities, net

 

(1,474

)

 

(3,632

)

Impairment of available for sale marketable securities

 

-

 

 

2,674

 

Share-based compensation

 

63,966

 

 

78,030

 

Deferred income taxes, net

 

(8,430

)

 

(314

)

Decrease in trade receivables

 

15,322

 

 

30,423

 

Amortization of debt discount and issuance costs

 

1,496

 

 

1,504

 

Increase in prepaid expenses, other current and long-term assets and others

 

(16,328

)

 

(16,629

)

Changes in operating lease right-of-use assets

 

3,865

 

 

3,346

 

Increase (decrease) in trade payables

 

370

 

 

(4,619

)

Increase in short-term and long-term deferred revenues

 

10,212

 

 

37,478

 

Decrease in employees and payroll accruals

 

(17,868

)

 

(12,394

)

Increase in accrued expenses and other current and long-term liabilities

 

614

 

 

671

 

Changes in operating lease liabilities

 

(4,773

)

 

(4,153

)

 
Net cash provided by (used in) operating activities

 

(5,047

)

 

112,978

 

 
Cash flows from investing activities:
Investment in short and long term deposits

 

(87,318

)

 

(170,820

)

Proceeds from short and long term deposits

 

178,603

 

 

292,675

 

Investment in marketable securities

 

(228,232

)

 

(129,480

)

Proceeds from sales and maturities of marketable securities and other

 

181,569

 

 

181,482

 

Purchase of property and equipment

 

(3,522

)

 

(4,485

)

 
Net cash provided by investing activities

 

41,100

 

 

169,372

 

 
Cash flows from financing activities:
Proceeds from (payment of) withholding tax related to employee stock plans

 

5,213

 

 

(7,361

)

Proceeds from exercise of stock options

 

777

 

 

3,845

 

Proceeds in connection with employees stock purchase plan

 

7,695

 

 

9,771

 

 
Net cash provided by financing activities

 

13,685

 

 

6,255

 

 
Increase in cash and cash equivalents

 

49,738

 

 

288,605

 

 
Effect of exchange rate differences on cash and cash equivalents

 

(892

)

 

(3,524

)

 
Cash and cash equivalents at the beginning of the period

 

347,338

 

 

355,933

 

 
Cash and cash equivalents at the end of the period

$

396,184

 

$

641,014

 

 
CYBERARK SOFTWARE LTD.
Reconciliation of GAAP Measures to Non-GAAP Measures
U.S. dollars in thousands (except per share data)
(Unaudited)
 
 
Reconciliation of Net cash provided by (used in) operating activities to Free cash flow:
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
Net cash provided by (used in) operating activities

$

(10,868

)

$

44,343

 

$

(5,047

)

$

112,978

 

Less:
Purchase of property and equipment

 

(1,747

)

 

(2,620

)

 

(3,522

)

 

(4,485

)

 
Free cash flow

$

(12,615

)

$

41,723

 

$

(8,569

)

$

108,493

 

 
GAAP net cash provided by investing activities

 

35,816

 

 

152,476

 

 

41,100

 

 

169,372

 

GAAP net cash provided by financing activities

 

8,468

 

 

4,376

 

 

13,685

 

 

6,255

 

 
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
Gross profit

$

137,076

 

$

179,688

 

$

262,809

 

$

358,830

 

Plus:
Share-based compensation (1)

 

4,379

 

 

5,413

 

 

8,332

 

 

10,233

 

Amortization of share-based compensation capitalized in software development costs (3)

 

103

 

 

81

 

 

206

 

 

153

 

Amortization of intangible assets (2)

 

1,705

 

 

1,705

 

 

3,409

 

 

3,409

 

 
Non-GAAP gross profit

$

143,263

 

$

186,887

 

$

274,756

 

$

372,625

 

 
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
Operating expenses

$

176,974

 

$

203,664

 

$

348,833

 

$

389,184

 

Less:
Share-based compensation (1)

 

27,991

 

 

35,118

 

 

55,634

 

 

67,797

 

Amortization of intangible assets (2)

 

134

 

 

125

 

 

271

 

 

250

 

Acquisition related expenses

 

-

 

 

5,281

 

 

-

 

 

5,281

 

 
Non-GAAP operating expenses

$

148,849

 

$

163,140

 

$

292,928

 

$

315,856

 

 
Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss):
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
 
Operating loss

$

(39,898

)

$

(23,976

)

$

(86,024

)

$

(30,354

)

Plus:
Share-based compensation (1)

 

32,370

 

 

40,531

 

 

63,966

 

 

78,030

 

Amortization of share-based compensation capitalized in software development costs (3)

 

103

 

 

81

 

 

206

 

 

153

 

Amortization of intangible assets (2)

 

1,839

 

 

1,830

 

 

3,680

 

 

3,659

 

Acquisition related expenses

 

-

 

 

5,281

 

 

-

 

 

5,281

 

 
Non-GAAP operating income (loss)

$

(5,586

)

$

23,747

 

$

(18,172

)

$

56,769

 

 
Reconciliation of Net Loss to Non-GAAP Net Income (Loss):
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
 
Net loss

$

(25,778

)

$

(12,923

)

$

(60,806

)

$

(7,453

)

Plus:
Share-based compensation (1)

 

32,370

 

 

40,531

 

 

63,966

 

 

78,030

 

Amortization of share-based compensation capitalized in software development costs (3)

 

103

 

 

81

 

 

206

 

 

153

 

Amortization of intangible assets (2)

 

1,839

 

 

1,830

 

 

3,680

 

 

3,659

 

Acquisition related expenses

 

-

 

 

5,281

 

 

-

 

 

5,281

 

Amortization of debt discount and issuance costs

 

748

 

 

752

 

 

1,496

 

 

1,504

 

Gain from investment in privately held companies

 

(294

)

 

-

 

 

(294

)

 

-

 

Taxes on income related to non-GAAP adjustments

 

(7,708

)

 

(9,457

)

 

(13,914

)

 

(19,209

)

 
Non-GAAP net income (loss)

$

1,280

 

$

26,095

 

$

(5,666

)

$

61,965

 

 
Non-GAAP net income (loss) per share
Basic

$

0.03

 

$

0.61

 

$

(0.14

)

$

1.45

 

Diluted

$

0.03

 

$

0.54

 

$

(0.14

)

$

1.30

 

 
Weighted average number of shares
Basic

 

41,599,364

 

 

42,948,191

 

 

41,384,895

 

 

42,689,375

 

Diluted

 

46,065,943

 

 

47,900,949

 

 

41,384,895

 

 

47,804,286

 

 
 
(1) Share-based Compensation :
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
 
Cost of revenues - Subscription

$

978

 

$

1,617

 

$

1,810

 

$

3,029

 

Cost of revenues - Perpetual license

 

12

 

 

7

 

 

19

 

 

12

 

Cost of revenues - Maintenance and Professional services

 

3,389

 

 

3,789

 

 

6,503

 

 

7,192

 

Research and development

 

7,192

 

 

8,157

 

 

13,930

 

 

15,717

 

Sales and marketing

 

13,595

 

 

16,912

 

 

28,190

 

 

31,791

 

General and administrative

 

7,204

 

 

10,049

 

 

13,514

 

 

20,289

 

 
Total share-based compensation

$

32,370

 

$

40,531

 

$

63,966

 

$

78,030

 

 
 
 
(2) Amortization of intangible assets :
Three Months Ended Six Months Ended
June 30, June 30,

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 
 
Cost of revenues - Subscription

$

1,705

 

$

1,705

 

$

3,409

 

$

3,409

 

Sales and marketing

 

134

 

 

125

 

 

271

 

 

250

 

 
Total amortization of intangible assets

$

1,839

 

$

1,830

 

$

3,680

 

$

3,659

 

 
 
 
(3) Classified as Cost of revenues - Subscription.

 

Contacts

Investor Relations Contact:
Srinivas Anantha, CFA
CyberArk
617-558-2132
ir@cyberark.com

Media Contact:
Nick Bowman
CyberArk
+44 (0) 7841 673378
press@cyberark.com

Contacts

Investor Relations Contact:
Srinivas Anantha, CFA
CyberArk
617-558-2132
ir@cyberark.com

Media Contact:
Nick Bowman
CyberArk
+44 (0) 7841 673378
press@cyberark.com