CyberArk Software (NASDAQ: CYBR) reported third-quarter financial results on Nov. 2. The Israeli cybersecurity company saw its revenue growth accelerate, prompting management to lift its sales forecast for the year ahead.
CyberArk Software results: The raw numbers
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What happened with CyberArk Software this quarter?
Total revenue jumped 18% year over year, to $64.8 million, coming in nicely above CyberArk's guidance of $62 million to $63 million. License revenue rose 7%, to $35.8 million, while maintenance and professional-services sales surged 34%, to $29 million.
"Our results were driven by both new and add-on business," Chairman and CEO Udi Mokady said in a press release. "We are making early progress executing our strategy to globalize the sales organization, which we believe will position us to capitalize on the long-term opportunity for Privileged Account Security."
Still, operating expenses increased 35%, to $45.1 million, mostly due to the investments CyberArk is making in research and development, as well as growing its global sales and marketing teams. In turn, operating income declined to $1.7 million, down from $8.1 million in the third quarter of 2016. And non-GAAP operating income -- which excludes share-based compensation, acquisition-related expenses, and certain other items -- decreased 25%, to $10.7 million.
All told, non-GAAP net income fell 25%, to $8.9 million, or $0.25 per share -- though that was well above CyberArk's guidance for $0.17 to $0.19 in non-GAAP EPS.
For the fourth quarter, CyberArk expects revenue of $75 million to $76 million, representing year-over-year growth of 17% to 18%. The company also anticipates non-GAAP operating income of $16.8 million to $17.6 million and earnings per share of $0.35 to $0.36.
Thus, CyberArk's full-year outlook now includes:
- Total revenue of $256.3 million to $257.3 million, up from a prior estimate of $253 million to $256 million.
- Non-GAAP operating income of $48.9 million to $49.7 million, up from $46.4 million to $48.4 million.
- Non-GAAP EPS of $1.09 to $1.10 compared to $1.02 to $1.06.
Mokady highlighted the opportunity that lies ahead for CyberArk during a conference call with analysts.
As the leader in "privileged account" security -- which guards against cyber attacks that use insider privileges to infiltrate the most vital areas of an enterprise's IT infrastructure -- CyberArk is well positioned to meet the growing need for advanced cybersecurity services.
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