CyberArk Announces Strong Third Quarter 2023 Results
- None.
- None.
Company Exceeds Expectations Across all Guided Metrics
Subscription Portion of Annual Recurring Revenue (ARR) of
Total ARR of
Subscription Revenue of
Record Total Revenue of
Company Significantly Raises Full Year ARR Guidance to a Range of
“Strong execution and robust industry tailwinds drove our outperformance in the third quarter and our results significantly exceeded expectations across all guided metrics,” said Matt Cohen, CyberArk's Chief Executive Officer. “We delivered one of the best financial performances in the company’s history in the third quarter and our business accelerated. Our identity security platform is gaining momentum in both our customer base and with new customers who recognize the critical requirement to secure all identities, human and machine, with intelligent privileged controls. The durable demand for our solutions is the result of the severe threat landscape paired with the exponential growth of identities and environments. We delivered robust net new ARR, 68 percent growth in Subscription ARR to
Financial Summary for the Third Quarter Ended September 30, 2023
-
Subscription revenue was
$122.9 million $74.2 million -
Maintenance and professional services revenue was
$64.3 million $64.6 million -
Perpetual license revenue was
$4.1 million $13.8 million -
Total revenue was
$191.2 million $152.7 million -
GAAP operating loss was
$(25.7) million $16.9 million -
GAAP net loss was
$(14.6) million $(0.35) $19.6 million $0.42
Balance Sheet and Net Cash Provided by Operating Activities
-
As of September 30, 2023, CyberArk had
$1.2 billion -
During the nine months ended September 30, 2023, the Company’s net cash provided by operating activities was
$9.3 million -
As of September 30, 2023, total deferred revenue was
$423.1 million $376.1 million
Key Business Highlights
-
Annual Recurring Revenue (ARR) was
$705 million $512 million -
The Subscription portion of ARR was
$504 million $301 million -
The Maintenance portion of ARR was
$200 million $211 million
-
The Subscription portion of ARR was
-
Recurring revenue in the third quarter was
$174.4 million $128.5 million
Recent Developments
- CyberArk was named a Leader in 2023 Gartner Magic Quadrant for Privileged Access Management.(1) CyberArk is recognized in this report for the fifth consecutive time.
- CyberArk launched Artificial Intelligence Center of Excellence to combat attacker innovation with identity security innovation.
- CyberArk was named a Leader in The Forrester Wave™: Privileged Identity Management, Q4 2023,(2) receiving the top score in the ‘Current Offering’ category as well as the highest possible score in 16 criteria including: least privilege access, just-in-time access, development and DevOps support, threat detection and response, innovation and partner ecosystem.
Business Outlook
Based on information available as of November 2, 2023, CyberArk is issuing guidance for the fourth quarter and full year 2023 as indicated below.
Fourth Quarter 2023:
-
Total revenue is expected to be in the range of
$206.5 million $211.5 million -
Non-GAAP operating income is expected to be in the range of
$19.0 million $23.0 million -
Non-GAAP net income per share is expected to be in the range of
$0.41 $0.50 - Assumes 47.1 million weighted average diluted shares.
Full Year 2023:
-
Total revenue is expected to be in the range of
$735.3 million $740.3 million -
Non-GAAP operating income is expected to be in the range of
$17.7 million $21.7 million -
Non-GAAP net income per share is expected to be in the range of
$0.72 $0.80 - Assumes 46.5 million weighted average diluted shares.
-
ARR as of December 31, 2023 is expected to be in the range of
$758 million $768 million
(1) |
Gartner® Magic Quadrant™ for Privileged Access Management, by Felix Gaehtgens, James Hoover, Michael Kelley, Brian Guthrie, Abhyuday Data, 5 September 2023 | |
(2) |
The Forrester Wave™: Privileged Identity Management, Q4 2023 by Geoff Cairns, October 11, 2023 |
Conference Call Information
In conjunction with this announcement, CyberArk will host a conference call on Thursday, November 2, 2023 at 8:30 a.m. Eastern Time (ET) to discuss the Company’s third quarter financial results and its business outlook. To access this call, dial +1 (888) 330-2455 (
Following the conference call, a replay will be available for one week at +1 (800) 770-2030 (
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, Twitter, Facebook or YouTube.
Copyright © 2023 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
Annual Recurring Revenue (ARR)
- Annual Recurring Revenue (ARR) is defined as the annualized value of active SaaS, self-hosted subscription and maintenance contracts related to 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.
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.
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
- Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, amortization of intangible assets related to acquisitions, and impairment of capitalized software development costs.
- 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, impairment of capitalized software development costs, 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, impairment of capitalized software development costs, amortization of debt discount and issuance costs, gain from investment in privately held companies, and the tax effect of non-GAAP adjustments.
- Free cash flow is calculated as net cash provided by 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, impairment of capitalized software development costs, non-cash interest expense related to the amortization of debt discount and issuance cost, gain from investment in privately held companies, 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
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 and the tax effect of the non-GAAP adjustments. 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. 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 to: changes to the drivers of the Company’s growth and its ability to adapt its solutions to IT security market demands; fluctuation in the Company’s quarterly results of operations due to sales cycles and multiple pricing and delivery models; the Company’s ability to sell into existing and new customers and industry verticals; an increase in competition within the Privileged Access Management and Identity Security markets; unanticipated product vulnerabilities or cybersecurity breaches of the Company’s, or the Company’s customers’ or partners’ systems; complications or risks in connection with the Company’s subscription model, including uncertainty regarding renewals from its existing customer base, and retaining sufficient subscription or maintenance and support service renewal rates; risks related to compliance with privacy and data protection laws and regulations; risks regarding potential negative economic conditions in the global economy or certain regions, including conditions resulting from financial and credit market fluctuations, rising interest rates, bank failures, inflation, and the potential for regional or global recessions; the Company’s ability to hire, train, retain and motivate qualified personnel; reliance on third-party cloud providers for the Company’s operations and SaaS solutions; the Company’s history of incurring net losses and its ability to achieve profitability in the future; risks related to the Company’s ongoing transition to a new Chief Executive Officer; risks related to sales made to government entities; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of strategic acquisitions; the duration and scope of the COVID-19 pandemic and its resulting effect on the demand for the Company’s solutions and on its expected revenue growth rates and costs; the Company’s ability to expand its sales and marketing efforts and expand its channel partnerships across existing and new geographies; regulatory and geopolitical risks associated with global sales and operations, as well as the location of our principal executive offices, most of our research and development activities and other significant operations in
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| CYBERARK SOFTWARE LTD. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Revenues: | ||||||||||||||||
| Subscription | $ |
74,249 |
|
$ |
122,879 |
|
$ |
192,198 |
|
$ |
321,766 |
|
||||
| Perpetual license |
|
13,790 |
|
|
4,056 |
|
|
35,385 |
|
|
13,028 |
|
||||
| Maintenance and professional services |
|
64,631 |
|
|
64,301 |
|
|
194,976 |
|
|
193,990 |
|
||||
| Total revenues |
|
152,670 |
|
|
191,236 |
|
|
422,559 |
|
|
528,784 |
|
||||
| Cost of revenues: | ||||||||||||||||
| Subscription |
|
12,214 |
|
|
21,281 |
|
|
32,487 |
|
|
54,859 |
|
||||
| Perpetual license |
|
703 |
|
|
642 |
|
|
1,980 |
|
|
1,173 |
|
||||
| Maintenance and professional services |
|
19,548 |
|
|
19,816 |
|
|
56,751 |
|
|
60,446 |
|
||||
| Total cost of revenues |
|
32,465 |
|
|
41,739 |
|
|
91,218 |
|
|
116,478 |
|
||||
| Gross profit |
|
120,205 |
|
|
149,497 |
|
|
331,341 |
|
|
412,306 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development |
|
48,437 |
|
|
51,733 |
|
|
138,844 |
|
|
157,653 |
|
||||
| Sales and marketing |
|
90,298 |
|
|
98,859 |
|
|
254,536 |
|
|
299,376 |
|
||||
| General and administrative |
|
20,738 |
|
|
24,642 |
|
|
60,342 |
|
|
67,038 |
|
||||
| Total operating expenses |
|
159,473 |
|
|
175,234 |
|
|
453,722 |
|
|
524,067 |
|
||||
| Operating loss |
|
(39,268 |
) |
|
(25,737 |
) |
|
(122,381 |
) |
|
(111,761 |
) |
||||
| Financial income, net |
|
3,641 |
|
|
12,424 |
|
|
6,269 |
|
|
33,912 |
|
||||
| Loss before taxes on income |
|
(35,627 |
) |
|
(13,313 |
) |
|
(116,112 |
) |
|
(77,849 |
) |
||||
| Tax benefit (taxes on income) |
|
2,902 |
|
|
(1,296 |
) |
|
7,948 |
|
|
2,434 |
|
||||
| Net loss | $ |
(32,725 |
) |
$ |
(14,609 |
) |
$ |
(108,164 |
) |
$ |
(75,415 |
) |
||||
| Basic loss per ordinary share | $ |
(0.80 |
) |
$ |
(0.35 |
) |
$ |
(2.67 |
) |
$ |
(1.82 |
) |
||||
| Diluted loss per ordinary share | $ |
(0.80 |
) |
$ |
(0.35 |
) |
$ |
(2.67 |
) |
$ |
(1.82 |
) |
||||
| Shares used in computing net loss | ||||||||||||||||
| per ordinary shares, basic |
|
40,834,640 |
|
|
41,899,371 |
|
|
40,488,909 |
|
|
41,539,052 |
|
||||
| Shares used in computing net loss | ||||||||||||||||
| per ordinary shares, diluted |
|
40,834,640 |
|
|
41,899,371 |
|
|
40,488,909 |
|
|
41,539,052 |
|
||||
CYBERARK SOFTWARE LTD. |
||||||||
Consolidated Balance Sheets |
||||||||
|
||||||||
(Unaudited) |
||||||||
| December 31, | September 30, | |||||||
|
2022 |
|
|
|
2023 |
|
||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ |
347,338 |
|
$ |
372,196 |
|
||
| Short-term bank deposits |
|
305,843 |
|
|
284,461 |
|
||
| Marketable securities |
|
301,101 |
|
|
249,539 |
|
||
| Trade receivables |
|
120,817 |
|
|
118,983 |
|
||
| Prepaid expenses and other current assets |
|
22,482 |
|
|
26,308 |
|
||
| Total current assets |
|
1,097,581 |
|
|
1,051,487 |
|
||
| LONG-TERM ASSETS: | ||||||||
| Marketable securities |
|
227,748 |
|
|
322,026 |
|
||
| Property and equipment, net |
|
23,474 |
|
|
17,814 |
|
||
| Intangible assets, net |
|
27,508 |
|
|
22,050 |
|
||
| Goodwill |
|
153,241 |
|
|
153,241 |
|
||
| Other long-term assets |
|
217,040 |
|
|
213,243 |
|
||
| Deferred tax asset |
|
72,809 |
|
|
85,005 |
|
||
| Total long-term assets |
|
721,820 |
|
|
813,379 |
|
||
| TOTAL ASSETS | $ |
1,819,401 |
|
$ |
1,864,866 |
|
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ |
13,642 |
|
$ |
12,624 |
|
||
| Employees and payroll accruals |
|
77,328 |
|
|
70,750 |
|
||
| Accrued expenses and other current liabilities |
|
33,584 |
|
|
33,022 |
|
||
| Deferred revenues |
|
327,918 |
|
|
357,282 |
|
||
| Total current liabilities |
|
452,472 |
|
|
473,678 |
|
||
| LONG-TERM LIABILITIES: | ||||||||
| Convertible senior notes, net |
|
569,344 |
|
|
571,590 |
|
||
| Deferred revenues |
|
80,524 |
|
|
65,773 |
|
||
| Other long-term liabilities |
|
38,917 |
|
|
33,376 |
|
||
| Total long-term liabilities |
|
688,785 |
|
|
670,739 |
|
||
| TOTAL LIABILITIES |
|
1,141,257 |
|
|
1,144,417 |
|
||
| SHAREHOLDERS' EQUITY: | ||||||||
| Ordinary shares of |
|
107 |
|
|
110 |
|
||
| Additional paid-in capital |
|
660,289 |
|
|
774,882 |
|
||
| Accumulated other comprehensive income (loss) |
|
(15,560 |
) |
|
(12,436 |
) |
||
| Retained earnings (accumulated deficit) |
|
33,308 |
|
|
(42,107 |
) |
||
| Total shareholders' equity |
|
678,144 |
|
|
720,449 |
|
||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ |
1,819,401 |
|
$ |
1,864,866 |
|
||
CYBERARK SOFTWARE LTD. |
||||||||
Consolidated Statements of Cash Flows |
||||||||
|
||||||||
(Unaudited) |
||||||||
| Nine Months Ended | ||||||||
| September 30, | ||||||||
|
2022 |
|
|
|
2023 |
|
||
| Cash flows from operating activities: | ||||||||
| Net loss | $ |
(108,164 |
) |
$ |
(75,415 |
) |
||
| Adjustments to reconcile net loss to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and amortization |
|
11,883 |
|
|
15,097 |
|
||
| Amortization of premium and accretion of discount on marketable securities, net |
|
3,976 |
|
|
(2,724 |
) |
||
| Share-based compensation |
|
88,593 |
|
|
102,565 |
|
||
| Deferred income taxes, net |
|
(14,267 |
) |
|
(10,763 |
) |
||
| Decrease in trade receivables |
|
23,865 |
|
|
1,834 |
|
||
| Amortization of debt discount and issuance costs |
|
2,234 |
|
|
2,245 |
|
||
| Increase in prepaid expenses, other current and long-term assets and others |
|
(19,769 |
) |
|
(22,564 |
) |
||
| Changes in operating lease right-of-use assets |
|
2,781 |
|
|
5,495 |
|
||
| Increase (decrease) in trade payables |
|
509 |
|
|
(980 |
) |
||
| Increase in short-term and long-term deferred revenues |
|
58,814 |
|
|
14,613 |
|
||
| Decrease in employees and payroll accruals |
|
(16,285 |
) |
|
(13,579 |
) |
||
| Increase in accrued expenses and other current and long-term liabilities |
|
2,259 |
|
|
669 |
|
||
| Changes in operating lease liabilities |
|
(7,218 |
) |
|
(7,187 |
) |
||
| Net cash provided by operating activities |
|
29,211 |
|
|
9,306 |
|
||
| Cash flows from investing activities: | ||||||||
| Investment in short and long term deposits |
|
(320,320 |
) |
|
(204,461 |
) |
||
| Proceeds from short and long term deposits |
|
363,905 |
|
|
243,630 |
|
||
| Investment in marketable securities and other |
|
(318,566 |
) |
|
(322,049 |
) |
||
| Proceeds from sales and maturities of marketable securities and other |
|
256,899 |
|
|
285,445 |
|
||
| Purchase of property and equipment |
|
(8,778 |
) |
|
(4,253 |
) |
||
| Payments for business acquisitions, net of cash acquired |
|
(41,285 |
) |
|
- |
|
||
| Net cash used in investing activities |
|
(68,145 |
) |
|
(1,688 |
) |
||
| Cash flows from financing activities: | ||||||||
| Proceeds from (payment of) withholding tax related to employee stock plans |
|
(811 |
) |
|
3,210 |
|
||
| Proceeds from exercise of stock options |
|
1,729 |
|
|
4,209 |
|
||
| Proceeds in connection with employees stock purchase plan |
|
12,322 |
|
|
11,776 |
|
||
| Payments of contingent consideration related to acquisitions |
|
(1,578 |
) |
|
- |
|
||
| Net cash provided by financing activities |
|
11,662 |
|
|
19,195 |
|
||
| Increase (decrease) in cash, cash equivalents |
|
(27,272 |
) |
|
26,813 |
|
||
| Effect of exchange rate differences on cash, cash equivalents |
|
(5,045 |
) |
|
(1,955 |
) |
||
| Cash and cash equivalents at the beginning of the period |
|
356,850 |
|
|
347,338 |
|
||
| Cash and cash equivalents at the end of the period | $ |
324,533 |
|
$ |
372,196 |
|
||
| CYBERARK SOFTWARE LTD. | ||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Reconciliation of Net cash provided by operating activities to Free cash flow: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Net cash provided by operating activities | $ |
18,481 |
|
$ |
14,353 |
|
$ |
29,211 |
|
$ |
9,306 |
|
||||
| Less: | ||||||||||||||||
| Purchase of property and equipment |
|
(4,618 |
) |
|
(731 |
) |
|
(8,778 |
) |
|
(4,253 |
) |
||||
| Free cash flow | $ |
13,863 |
|
$ |
13,622 |
|
$ |
20,433 |
|
$ |
5,053 |
|
||||
| GAAP net cash used in investing activities |
|
(72,380 |
) |
|
(42,788 |
) |
|
(68,145 |
) |
|
(1,688 |
) |
||||
| GAAP net cash provided by (used in) financing activities |
|
(1,602 |
) |
|
5,510 |
|
|
11,662 |
|
|
19,195 |
|
||||
| Reconciliation of Gross Profit to Non-GAAP Gross Profit: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Gross profit | $ |
120,205 |
|
$ |
149,497 |
|
$ |
331,341 |
|
$ |
412,306 |
|
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
4,030 |
|
|
4,780 |
|
|
10,962 |
|
|
13,112 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
88 |
|
|
103 |
|
|
264 |
|
|
309 |
|
||||
| Amortization of intangible assets (2) |
|
1,639 |
|
|
1,704 |
|
|
4,339 |
|
|
5,113 |
|
||||
| Impairment of capitalized software development costs |
|
- |
|
|
2,067 |
|
|
- |
|
|
2,067 |
|
||||
| Non-GAAP gross profit | $ |
125,962 |
|
$ |
158,151 |
|
$ |
346,906 |
|
$ |
432,907 |
|
||||
| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Operating expenses | $ |
159,473 |
|
$ |
175,234 |
|
$ |
453,722 |
|
$ |
524,067 |
|
||||
| Less: | ||||||||||||||||
| Share-based compensation (1) |
|
27,712 |
|
|
33,821 |
|
|
77,631 |
|
|
89,454 |
|
||||
| Amortization of intangible assets (2) |
|
154 |
|
|
139 |
|
|
458 |
|
|
410 |
|
||||
| Acquisition related expenses |
|
1,653 |
|
|
- |
|
|
2,244 |
|
|
- |
|
||||
| Non-GAAP operating expenses | $ |
129,954 |
|
$ |
141,274 |
|
$ |
373,389 |
|
$ |
434,203 |
|
||||
| Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss): | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Operating loss | $ |
(39,268 |
) |
$ |
(25,737 |
) |
$ |
(122,381 |
) |
$ |
(111,761 |
) |
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
31,742 |
|
|
38,601 |
|
|
88,593 |
|
|
102,566 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
88 |
|
|
103 |
|
|
264 |
|
|
309 |
|
||||
| Amortization of intangible assets (2) |
|
1,793 |
|
|
1,843 |
|
|
4,797 |
|
|
5,523 |
|
||||
| Acquisition related expenses |
|
1,653 |
|
|
- |
|
|
2,244 |
|
|
- |
|
||||
| Impairment of capitalized software development costs |
|
2,067 |
|
|
- |
|
|
2,067 |
|
|||||||
| Non-GAAP operating income (loss) | $ |
(3,992 |
) |
$ |
16,877 |
|
$ |
(26,483 |
) |
$ |
(1,296 |
) |
||||
| Reconciliation of Net Loss to Non-GAAP Net Income (loss): | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Net loss | $ |
(32,725 |
) |
$ |
(14,609 |
) |
$ |
(108,164 |
) |
$ |
(75,415 |
) |
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
31,742 |
|
|
38,601 |
|
|
88,593 |
|
|
102,566 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
88 |
|
|
103 |
|
|
264 |
|
|
309 |
|
||||
| Amortization of intangible assets (2) |
|
1,793 |
|
|
1,843 |
|
|
4,797 |
|
|
5,523 |
|
||||
| Acquisition related expenses |
|
1,653 |
|
|
- |
|
|
2,244 |
|
|
- |
|
||||
| Amortization of debt discount and issuance costs |
|
746 |
|
|
748 |
|
|
2,234 |
|
|
2,244 |
|
||||
| Unrealized Gain from investment in privately held companies |
|
(324 |
) |
|
(250 |
) |
|
(324 |
) |
|
(544 |
) |
||||
| Impairment of capitalized software development costs |
|
- |
|
|
2,067 |
|
|
- |
|
|
2,067 |
|
||||
| Taxes on income related to non-GAAP adjustments |
|
(5,307 |
) |
|
(8,894 |
) |
|
(14,629 |
) |
|
(22,808 |
) |
||||
| Non-GAAP net income (loss) | $ |
(2,334 |
) |
$ |
19,609 |
|
$ |
(24,985 |
) |
$ |
13,942 |
|
||||
| Non-GAAP net income (loss) per share | ||||||||||||||||
| Basic | $ |
(0.06 |
) |
$ |
0.47 |
|
$ |
(0.62 |
) |
$ |
0.34 |
|
||||
| Diluted | $ |
(0.06 |
) |
$ |
0.42 |
|
$ |
(0.62 |
) |
$ |
0.30 |
|
||||
| Weighted average number of shares | ||||||||||||||||
| Basic |
|
40,834,640 |
|
|
41,899,371 |
|
|
40,488,909 |
|
|
41,539,052 |
|
||||
| Diluted |
|
40,834,640 |
|
|
46,641,527 |
|
|
40,488,909 |
|
|
46,134,041 |
|
||||
| (1) Share-based Compensation : | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Cost of revenues - Subscription | $ |
634 |
|
$ |
1,149 |
|
$ |
1,527 |
|
$ |
2,959 |
|
||||
| Cost of revenues - Perpetual license |
|
42 |
|
|
11 |
|
|
103 |
|
|
30 |
|
||||
| Cost of revenues - Maintenance and Professional services |
|
3,354 |
|
|
3,620 |
|
|
9,332 |
|
|
10,123 |
|
||||
| Research and development |
|
6,983 |
|
|
7,867 |
|
|
19,787 |
|
|
21,797 |
|
||||
| Sales and marketing |
|
13,654 |
|
|
15,800 |
|
|
37,415 |
|
|
43,990 |
|
||||
| General and administrative |
|
7,075 |
|
|
10,154 |
|
|
20,429 |
|
|
23,667 |
|
||||
| Total share-based compensation | $ |
31,742 |
|
$ |
38,601 |
|
$ |
88,593 |
|
$ |
102,566 |
|
||||
| (2) Amortization of intangible assets : | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
||
| Cost of revenues - Subscription | $ |
1,598 |
|
$ |
1,704 |
|
$ |
4,231 |
|
$ |
5,113 |
|
||||
| Cost of revenues - Perpetual license |
|
41 |
|
|
- |
|
|
108 |
|
|
- |
|
||||
| Sales and marketing |
|
154 |
|
|
139 |
|
|
458 |
|
|
410 |
|
||||
| Total amortization of intangible assets | $ |
1,793 |
|
$ |
1,843 |
|
$ |
4,797 |
|
$ |
5,523 |
|
||||
| (3) Classified as Cost of revenues - Subscription. | ||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20231102454423/en/
Investor Contact:
Erica Smith
CyberArk
Phone: +1-617-558-2132
ir@cyberark.com
Media Contact:
Liz Campbell
CyberArk
Phone: +1-617-558-2191
press@cyberark.com
Source: CyberArk
FAQ
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