Expand / Collapse search
Watch TV
Menu

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions.  Legal Statement.

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Markets
Published | Updated

Deal Delays Dent CyberArk Software Ltd Earnings

CyberArk Software (NASDAQ: CYBR) reported second-quarter financial results on Aug. 8.

The Israeli cybersecurity company struggled to close deals on time, prompting it to reshuffle its leadership structure in order to right the ship.

CyberArk Software results: The raw numbers

What happened with CyberArk Software this quarter?

Revenue increased 14% year over year to $57.5 million, which was significantly below the $61 million to $62 million CyberArk guided for back in May.

CyberArk preannounced the shortfall in July. Management said the lower-than-expected revenue performance was primarily due to poor results in the company's EMEA (Europe, Middle East, and Africa) region, where several deals that were expected to close by the end of the quarter were delayed.

Even as revenue growth has slowed, operating expenses rose 33%, to $46.5 million, mainly due to the investments CyberArk is making to expand its sales force. In turn, operating income fell to $1 million from $8.5 million in the year-ago quarter. And non-GAAP operating income -- which excludes share-based compensation, acquisition-related expenses, and certain other items -- declined 35% to $8.8 million.

All told, non-GAAP net income dropped 26% to $7.7 million, and non-GAAP EPS decreased 28% to $0.21.

Looking forward

CyberArk expects third-quarter revenue of $62 million to $63 million, representing year-over-year growth of 13% to 15%. Non-GAAP operating income and earnings per share are forecast to be in the ranges of $8.2 million to $9 million and $0.17 to $0.19, respectively.

CyberArk also cut its 2017 full-year outlook, including:

  • Total revenue of $253 million to $256 million, down from a previous forecast of $268.5 million to $271.5 million
  • Non-GAAP operating income of $46.4 million to $48.4 million, down from $55 million to $57 million
  • Non-GAAP EPS of $1.02 to $1.06, versus $1.18 to $1.22

To help get growth back on track, CyberArk promoted Ron Zoran to the position of chief revenue officer. Zoran previously was the company's vice president of sales for its Americas division.

"Ron's proven track record across every role he's held at CyberArk, his passion for our mission and deep security expertise gives me great confidence in Ron's ability to deliver results and enable CyberArk to fully capitalize on our tremendous opportunity," Chairman and CEO Udi Mokady said in a press release. "With Ron at the helm of our global sales organization, we will drive consistent best practices across all sales, sales engineering and channel sales to enable CyberArk to expand our market reach, drive growth and scale our operations."

10 stocks we like better than CyberArk SoftwareWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and CyberArk Software wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 1, 2017

Joe Tenebruso has no position in any stocks mentioned. The Motley Fool recommends CyberArk Software. The Motley Fool has a disclosure policy.