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Shares of CyberArk Software Ltd. (NASDAQ: CYBR) fell 16.6% in July, according to data from S&P Global Market Intelligence, after the company announced disappointing second-quarter 2017 results.
Nearly all of CyberArk's decline last month came on July 14, when the company issued a press release detailing its preliminary performance for the period ended June 30. When all was said and done and CyberArk announced its final figures on Aug. 8, it confirmed that second-quarter revenue had climbed 14.1% year over year to $57.5 million -- well below its previous guidance for revenue in the range of $61 million to $62 million. On the bottom line, adjusted net income declined to $7.7 million, or $0.21 per share, compared with net income of $10.5 million, or $0.29 per share, in the same year-ago period.
According to CyberArk Chairman and CEO Udi Mokady, the company's performance was hurt by deals in the Europe, Middle East, and Africa region that didn't close as expected by the end of the quarter. Nonetheless, CyberArk still sees solid demand for its portfolio of products.
"Our global leadership position in the market, strong demand for our solutions and recent organizational changes position us well to delver long-term growth and capitalize on the tremendous opportunity for privileged account security," Mokady added.
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More specifically regarding the organizational changes, CyberArk also announced that its VP of sales, Ron Zoran, has been named chief revenue officer and will be responsible for carrying out the company's global sales strategy.
Looking ahead, however, CyberArk also reduced its full-year guidance to call for revenue of $253 million to $256 million, down from $268.5 million to $271.5 million previously; adjusted operating income of $46.4 million to $48.4 million, down from $55 million to $57 million before; and adjusted net income per share of $1.02 to $1.06, down from prior guidance of $1.18 to $1.22 per share.
All things considered, CyberArk's long-term growth story appears to remain intact. But given its relative underperformance in Q2 and its freshly lowered guidance for the year, it was no surprise to see shares plunge last month.
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