• |
Subscription revenue was $51.9 million in the first quarter of 2022, an increase of 110 percent from $24.7 million in the first quarter of 2021.
|
• |
Maintenance and professional services revenue was $65.1 million in the first quarter of 2022, compared to $61.3 million in the first quarter of 2021.
|
• |
Perpetual license revenue was $10.6 million in the first quarter of 2022, compared to $26.7 million in the first quarter of 2021.
|
• |
Total revenue was $127.6 million in the first quarter of 2022, up 13 percent from $112.8 million in the first quarter of 2021.
|
• |
GAAP operating loss was $(41.1) million and non-GAAP operating loss was $(11.8) million in the first quarter of 2022.
|
• |
GAAP net loss was $(37.8) million, or $(0.94) per basic and diluted share, in the first quarter of 2022. Non-GAAP net loss was $(11.9) million, or $(0.30) per basic and diluted share, in the first quarter of 2022.
|
• |
As of March 31, 2022, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
|
• |
During the first quarter of 2022, the Company generated $25.0 million in net cash provided by operating activities.
|
• |
As of March 31, 2022, total deferred revenue was $345.2 million, a 33 percent increase from $259.7 million at March 31, 2021.
|
• |
Annual Recurring Revenue (ARR) was $427 million, with growth accelerating to 48 percent from $288 million at March 31, 2021.
|
o |
The subscription portion of ARR was $219 million, 51 percent of total ARR at March 31, 2022. This represents an increase of 149 percent from $88 million, or 31 percent of total ARR at March 31, 2021.
|
o |
The Maintenance portion of ARR was $208 million at March 31, 2022, compared to $201 million at March 31, 2021.
|
• |
Recurring revenue was $106.9 million, an increase of 40 percent from $76.3 million for the first quarter of 2021.
|
• |
86 percent of total license bookings were related to subscription bookings, compared with approximately 51 percent in the first quarter of 2021.
|
• |
Added a strong number of new logos in the quarter, signing nearly 250 customers during the first quarter of 2022.
|
• |
Total revenue is expected to be in the range of $135.0 million and $141.0 million.
|
• |
Non-GAAP operating loss is expected to be in the range of $(14.5) million to $(9.5) million.
|
• |
Non-GAAP net loss per share is expected to be in the range of $(0.37) to $(0.25) per basic and diluted share.
|
o |
Assumes 40.6 million weighted average basic and diluted shares.
|
• |
Total revenue is expected to be in the range of $583.5 million to $598.5 million.
|
• |
Non-GAAP operating loss is expected to be in the range of $(33.5) million to $(20.5) million.
|
• |
Non-GAAP net loss per share is expected to be in the range of $(0.92) to $(0.60) per basic and diluted share.
|
o |
Assumes 40.7 million weighted average basic and diluted shares.
|
• |
ARR as of December 31, 2022 is expected to be in the range of $535.0 million to $541.0 million, representing growth of 36 percent to 38 percent from December 31, 2021.
|
• |
Annual Recurring Revenue (ARR) is defined as the annualized value of active SaaS, subscription or term-based license and maintenance contracts related to perpetual licenses in effect at the end of the reported period.
|
• |
Subscription portion of ARR is defined as the annualized value of active SaaS and subscription or term-based license 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 ARR is defined as the annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and subscription or term-based license contracts in effect at the
end of the reported period.
|
• |
Recurring Revenue is defined as revenue derived from SaaS and subscription or term-based license contracts, and maintenance contracts related to perpetual licenses during the reported period.
|
• |
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 operating activities less purchase of property and equipment.
|
CYBERARK SOFTWARE LTD.
|
|||||||
Consolidated Statements of Operations
|
|||||||
U.S. dollars in thousands (except per share data)
|
|||||||
(Unaudited)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Revenues:
|
||||||||
Subscription
|
$
|
24,727
|
$
|
51,950
|
||||
Perpetual license
|
26,694
|
10,557
|
||||||
Maintenance and professional services
|
61,341
|
65,055
|
||||||
|
||||||||
Total revenues
|
112,762
|
127,562
|
||||||
|
||||||||
Cost of revenues:
|
||||||||
Subscription
|
5,210
|
9,197
|
||||||
Perpetual license
|
1,004
|
892
|
||||||
Maintenance and professional services
|
14,718
|
17,945
|
||||||
|
||||||||
Total cost of revenues
|
20,932
|
28,034
|
||||||
|
||||||||
Gross profit
|
91,830
|
99,528
|
||||||
|
||||||||
Operating expenses:
|
||||||||
Research and development
|
29,737
|
43,443
|
||||||
Sales and marketing
|
61,440
|
77,433
|
||||||
General and administrative
|
15,999
|
19,736
|
||||||
|
||||||||
Total operating expenses
|
107,176
|
140,612
|
||||||
|
||||||||
Operating loss
|
(15,346
|
)
|
(41,084
|
)
|
||||
|
||||||||
Financial income (expense), net
|
(2,906
|
)
|
1,056
|
|||||
|
||||||||
Loss before taxes on income
|
(18,252
|
)
|
(40,028
|
)
|
||||
|
||||||||
Tax benefit
|
3,057
|
2,217
|
||||||
|
||||||||
Net loss
|
$
|
(15,195
|
)
|
$
|
(37,811
|
)
|
||
|
||||||||
Basic loss per ordinary share, net
|
$
|
(0.39
|
)
|
$
|
(0.94
|
)
|
||
Diluted loss per ordinary share, net
|
$
|
(0.39
|
)
|
$
|
(0.94
|
)
|
||
|
||||||||
Shares used in computing net loss
|
||||||||
per ordinary shares, basic
|
39,175,052
|
40,169,333
|
||||||
Shares used in computing net loss
|
||||||||
per ordinary shares, diluted
|
39,175,052
|
40,169,333
|
CYBERARK SOFTWARE LTD.
|
|
Consolidated Balance Sheets
|
|
U.S. dollars in thousands
(Unaudited)
|
|
December 31,
|
March 31,
|
||||||
|
2021
|
2022
|
||||||
|
||||||||
ASSETS
|
||||||||
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
356,850
|
$
|
347,852
|
||||
Short-term bank deposits
|
369,645
|
353,063
|
||||||
Marketable securities
|
199,933
|
259,748
|
||||||
Trade receivables
|
113,211
|
76,372
|
||||||
Prepaid expenses and other current assets
|
22,225
|
25,072
|
||||||
|
||||||||
Total current assets
|
1,061,864
|
1,062,107
|
||||||
|
||||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
300,662
|
262,314
|
||||||
Property and equipment, net
|
20,183
|
19,409
|
||||||
Intangible assets, net
|
17,866
|
23,153
|
||||||
Goodwill
|
123,717
|
135,526
|
||||||
Other long-term assets
|
121,743
|
149,623
|
||||||
Deferred tax asset
|
47,167
|
59,481
|
||||||
|
||||||||
Total long-term assets
|
631,338
|
649,506
|
||||||
|
||||||||
TOTAL ASSETS
|
$
|
1,693,202
|
$
|
1,711,613
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
10,076
|
$
|
11,232
|
||||
Employees and payroll accruals
|
75,442
|
53,028
|
||||||
Accrued expenses and other current liabilities
|
23,576
|
26,913
|
||||||
Deferred revenues
|
230,908
|
254,613
|
||||||
|
||||||||
Total current liabilities
|
340,002
|
345,786
|
||||||
|
||||||||
LONG-TERM LIABILITIES:
|
||||||||
Convertible senior notes, net
|
520,094
|
567,108
|
||||||
Deferred revenues
|
86,367
|
90,595
|
||||||
Other long-term liabilities
|
20,227
|
38,442
|
||||||
|
||||||||
Total long-term liabilities
|
626,688
|
696,145
|
||||||
|
||||||||
TOTAL LIABILITIES
|
966,690
|
1,041,931
|
||||||
|
||||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Ordinary shares of NIS 0.01 par value
|
104
|
105
|
||||||
Additional paid-in capital
|
588,937
|
551,299
|
||||||
Accumulated other comprehensive income (loss)
|
397
|
(7,588
|
)
|
|||||
Retained earnings
|
137,074
|
125,866
|
||||||
|
||||||||
Total shareholders' equity
|
726,512
|
669,682
|
||||||
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,693,202
|
$
|
1,711,613
|
CYBERARK SOFTWARE LTD.
|
Consolidated Statements of Cash Flows
|
U.S. dollars in thousands
|
(Unaudited)
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(15,195
|
)
|
$
|
(37,811
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,370
|
3,884
|
||||||
Amortization of premium and accretion of discount on marketable securities, net
|
1,789
|
1,877
|
||||||
Share-based compensation
|
19,297
|
27,278
|
||||||
Deferred income taxes, net
|
(5,121
|
)
|
(4,238
|
)
|
||||
Decrease in trade receivables
|
26,412
|
36,839
|
||||||
Amortization of debt discount and issuance costs
|
4,390
|
744
|
||||||
Decrease (increase) in prepaid expenses, other current and long-term assets and others
|
444
|
(8,675
|
)
|
|||||
Increase (decrease) in trade payables
|
(1,783
|
)
|
1,298
|
|||||
Increase in short-term and long-term deferred revenues
|
17,174
|
27,933
|
||||||
Decrease in employees and payroll accruals
|
(12,312
|
)
|
(21,588
|
)
|
||||
Decrease in accrued expenses and other current and long-term liabilities
|
(4,490
|
)
|
(2,557
|
)
|
||||
|
||||||||
Net cash provided by operating activities
|
33,975
|
24,984
|
||||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Proceeds from (investment in) short and long term deposits, net
|
(1,313
|
)
|
16,026
|
|||||
Investment in marketable securities and other
|
(77,158
|
)
|
(104,477
|
)
|
||||
Proceeds from sales and maturities of marketable securities
|
55,978
|
69,905
|
||||||
Purchase of property and equipment
|
(2,665
|
)
|
(2,013
|
)
|
||||
Payments for business acquisitions, net of cash acquired
|
-
|
(12,987
|
)
|
|||||
|
||||||||
Net cash used in investing activities
|
(25,158
|
)
|
(33,546
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from (payment of) withholding tax related to employee stock plans
|
1,411
|
(620
|
)
|
|||||
Proceeds from exercise of stock options
|
4,961
|
1,100
|
||||||
|
||||||||
Net cash provided by financing activities
|
6,372
|
480
|
||||||
|
||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
15,189
|
(8,082
|
)
|
|||||
|
||||||||
Effect of exchange rate differences on cash and cash equivalents
|
-
|
(916
|
)
|
|||||
|
||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
500,044
|
356,850
|
||||||
|
||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
515,233
|
$
|
347,852
|
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 operating activities to Free cash flow:
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
33,975
|
$
|
24,984
|
||||
Less:
|
||||||||
Purchase of property and equipment
|
(2,665
|
)
|
(2,013
|
)
|
||||
|
||||||||
Free cash flow
|
$
|
31,310
|
$
|
22,971
|
||||
|
||||||||
GAAP net cash used in investing activities
|
(25,158
|
)
|
(33,546
|
)
|
||||
GAAP net cash provided by financing activities
|
6,372
|
480
|
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Gross profit
|
$
|
91,830
|
$
|
99,528
|
||||
Plus:
|
||||||||
Share-based compensation (1)
|
2,395
|
3,190
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
47
|
88
|
||||||
Amortization of intangible assets (2)
|
1,278
|
1,278
|
||||||
|
||||||||
Non-GAAP gross profit
|
$
|
95,550
|
$
|
104,084
|
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Operating expenses
|
$
|
107,176
|
$
|
140,612
|
||||
Less:
|
||||||||
Share-based compensation (1)
|
16,902
|
24,088
|
||||||
Amortization of intangible assets (2)
|
174
|
152
|
||||||
Acquisition related expenses
|
-
|
478
|
||||||
|
||||||||
Non-GAAP operating expenses
|
$
|
90,100
|
$
|
115,894
|
Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss):
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Operating loss
|
$
|
(15,346
|
)
|
$
|
(41,084
|
)
|
||
Plus:
|
||||||||
Share-based compensation (1)
|
19,297
|
27,278
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
47
|
88
|
||||||
Amortization of intangible assets (2)
|
1,452
|
1,430
|
||||||
Acquisition related expenses
|
-
|
478
|
||||||
|
||||||||
Non-GAAP operating income (loss)
|
$
|
5,450
|
$
|
(11,810
|
)
|
Reconciliation of Net Loss to Non-GAAP Net Income (Loss):
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Net loss
|
$
|
(15,195
|
)
|
$
|
(37,811
|
)
|
||
Plus:
|
||||||||
Share-based compensation (1)
|
19,297
|
27,278
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
47
|
88
|
||||||
Amortization of intangible assets (2)
|
1,452
|
1,430
|
||||||
Acquisition related expenses
|
-
|
478
|
||||||
Amortization of debt discount and issuance costs
|
4,390
|
744
|
||||||
Taxes on income related to non-GAAP adjustments
|
(6,159
|
)
|
(4,111
|
)
|
||||
|
||||||||
Non-GAAP net income (loss)
|
$
|
3,832
|
$
|
(11,904
|
)
|
|||
|
||||||||
Non-GAAP net income (loss) per share
|
||||||||
Basic
|
$
|
0.10
|
$
|
(0.30
|
)
|
|||
Diluted
|
$
|
0.09
|
$
|
(0.30
|
)
|
|||
|
||||||||
Weighted average number of shares
|
||||||||
Basic
|
39,175,052
|
40,169,333
|
||||||
Diluted
|
40,491,989
|
40,169,333
|
(1) Share-based Compensation:
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Cost of revenues - Subscription
|
$
|
254
|
$
|
376
|
||||
Cost of revenues - Perpetual license
|
54
|
30
|
||||||
Cost of revenues - Maintenance and Professional services
|
2,087
|
2,784
|
||||||
Research and development
|
4,350
|
6,050
|
||||||
Sales and marketing
|
7,498
|
11,400
|
||||||
General and administrative
|
5,054
|
6,638
|
||||||
|
||||||||
Total share-based compensation
|
$
|
19,297
|
$
|
27,278
|
(2) Amortization of intangible assets:
|
|
|
|
|
|
|
|
Three Months Ended
|
|||||||
|
March 31,
|
|||||||
|
2021
|
2022
|
||||||
|
||||||||
Cost of revenues - Subscription
|
$
|
1,089
|
$
|
1,208
|
||||
Cost of revenues - Perpetual license
|
189
|
70
|
||||||
Sales and marketing
|
174
|
152
|
||||||
|
||||||||
Total amortization of intangible assets
|
$
|
1,452
|
$
|
1,430
|
(3) Classified as Cost of revenues - Subscription.
|
|
|
|
|
|
|