• |
Subscription revenue was $24.7 million in the first quarter of 2021, up 180 percent year over year.
|
• |
Perpetual license revenue was $26.7 million in the first quarter of 2021.
|
• |
Maintenance and professional services revenue was $61.3 million in the first quarter of 2021.
|
• |
Total revenue was $112.8 million in the first quarter of 2021.
|
• |
GAAP operating loss was $(15.3) million and Non-GAAP operating income was $5.4 million in the first quarter of 2021.
|
• |
GAAP net loss was $(15.2) million, or $(0.39) per basic and diluted share, in the first quarter of 2021. Non-GAAP net income was $3.8 million, or $0.09 per diluted share, in the first quarter of 2021.
|
(1) |
New Financial Disclosures: Beginning in the first quarter of 2021, CyberArk is revising the presentation of its lines of revenue and cost of revenue. The Company
believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business. In addition, this disclosure will increase transparency into the Company’s
business and shift toward recurring revenues, providing investors with more visibility into the subscription transition program. Historical information by quarter for fiscal years 2020 and 2019, which has been retroactively reclassified
to reflect the new lines of revenue and cost of revenue, can be found in the PowerPoint presentation posted to CyberArk’s investor relations website. The new revenue lines consist of (a) Subscription revenue, which represents SaaS and
on-premises subscription revenue including the license portion of on-premises subscription revenue and the ratable maintenance component of on-premises subscription revenue (b) Perpetual license revenue and (c) Maintenance and
professional services revenue, which represents the maintenance component related to perpetual license sales and professional services revenue.
|
• |
As of March 31, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares with $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits
as of March 31, 2020.
|
• |
As of March 31, 2021, total deferred revenue was $259.7 million, a 23 percent increase from $210.7 million at March 31, 2020.
|
• |
During the first quarter of 2021, the Company generated $34.0 million in net cash provided by operating activities, compared to $33.8 million in the first quarter of 2020.
|
• |
Annual Recurring Revenue (ARR) was $288 million, an increase of 41 percent from $205 million at March 31, 2020.
|
• |
Total revenue between $111.0 million and $119.0 million.
|
• |
Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(3.5) million to operating income of $3.5 million.
|
• |
Non-GAAP net income (loss) per share is expected to be in the range of a net loss of $(0.11) per basic and diluted share to net income of $0.06 per diluted share.
|
o |
Assumes 39.6 million weighted average basic and diluted shares and 40.7 million weighted average diluted shares.
|
• |
Total revenue is expected to be in the range of $484.0 million to $496.0 million.
|
• |
Non-GAAP operating income is expected to be in the range of $20.0 million to $30.0 million.
|
• |
Non-GAAP net income per share is expected to be in the range of $0.39 to $0.64 per diluted share.
|
o |
Assumes 40.9 million weighted average diluted shares.
|
• |
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.
|
• |
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 income is calculated as GAAP operating income (loss) excluding share-based compensation expense, acquisition related expenses and amortization of intangible assets related to acquisitions.
|
• |
Non-GAAP net income is calculated as GAAP net income (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.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Revenues:
|
||||||||
Subcription
|
$
|
8,824
|
$
|
24,727
|
||||
Perpetual license
|
43,774
|
26,694
|
||||||
Maintenance and professional services
|
54,228
|
61,341
|
||||||
Total revenues
|
106,826
|
112,762
|
||||||
Cost of revenues:
|
||||||||
Subcription
|
1,940
|
5,210
|
||||||
Perpetual license
|
1,345
|
1,004
|
||||||
Maintenance and professional services
|
13,800
|
14,718
|
||||||
Total cost of revenues
|
17,085
|
20,932
|
||||||
Gross profit
|
89,741
|
91,830
|
||||||
Operating expenses:
|
||||||||
Research and development
|
21,285
|
29,737
|
||||||
Sales and marketing
|
51,196
|
61,440
|
||||||
General and administrative
|
14,689
|
15,999
|
||||||
Total operating expenses
|
87,170
|
107,176
|
||||||
Operating income (loss)
|
2,571
|
(15,346
|
)
|
|||||
Financial expense, net
|
(736
|
)
|
(2,906
|
)
|
||||
Income (loss) before taxes on income
|
1,835
|
(18,252
|
)
|
|||||
Tax benefit
|
551
|
3,057
|
||||||
Net income (loss)
|
$
|
2,386
|
$
|
(15,195
|
)
|
|||
Basic net income (loss) per ordinary share
|
$
|
0.06
|
$
|
(0.39
|
)
|
|||
Diluted net income (loss) per ordinary share
|
$
|
0.06
|
$
|
(0.39
|
)
|
|||
Shares used in computing net income (loss) per ordinary shares, basic
|
38,222,867
|
39,175,052
|
||||||
Shares used in computing net income (loss) per ordinary shares, diluted
|
39,309,750
|
39,175,052
|
December 31,
|
March 31,
|
|||||||
2020
|
2021
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
499,992
|
$
|
515,178
|
||||
Short-term bank deposits
|
256,143
|
251,362
|
||||||
Marketable securities
|
196,856
|
211,803
|
||||||
Trade receivables
|
93,128
|
66,716
|
||||||
Prepaid expenses and other current assets
|
15,312
|
20,987
|
||||||
Total current assets
|
1,061,431
|
1,066,046
|
||||||
LONG-TERM ASSETS:
|
||||||||
Marketable securities
|
202,190
|
205,534
|
||||||
Property and equipment, net
|
18,537
|
18,816
|
||||||
Intangible assets, net
|
23,676
|
22,224
|
||||||
Goodwill
|
123,717
|
123,717
|
||||||
Other long-term assets
|
99,992
|
96,669
|
||||||
Deferred tax asset
|
32,809
|
39,169
|
||||||
Total long-term assets
|
500,921
|
506,129
|
||||||
TOTAL ASSETS
|
$
|
1,562,352
|
$
|
1,572,175
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
8,250
|
$
|
5,928
|
||||
Employees and payroll accruals
|
52,169
|
41,205
|
||||||
Accrued expenses and other current liabilities
|
24,915
|
22,847
|
||||||
Deferred revenues
|
161,679
|
175,819
|
||||||
Total current liabilities
|
247,013
|
245,799
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Convertible senior notes, net
|
502,302
|
506,692
|
||||||
Deferred revenues
|
80,829
|
83,863
|
||||||
Other long-term liabilities
|
24,920
|
23,022
|
||||||
Total long-term liabilities
|
608,051
|
613,577
|
||||||
TOTAL LIABILITIES
|
855,064
|
859,376
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Ordinary shares of NIS 0.01 par value
|
101
|
102
|
||||||
Additional paid-in capital
|
481,992
|
505,463
|
||||||
Accumulated other comprehensive income
|
4,175
|
1,409
|
||||||
Retained earnings
|
221,020
|
205,825
|
||||||
Total shareholders' equity
|
707,288
|
712,799
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
1,562,352
|
$
|
1,572,175
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
2,386
|
$
|
(15,195
|
)
|
|||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,479
|
3,370
|
||||||
Amortization of premium and accretion of discount on marketable securities, net
|
(80
|
)
|
1,789
|
|||||
Share-based compensation
|
16,308
|
19,297
|
||||||
Deferred income taxes, net
|
(2,516
|
)
|
(5,121
|
)
|
||||
Decrease in trade receivables
|
20,983
|
26,412
|
||||||
Amortization of debt discount and issuance costs
|
4,240
|
4,390
|
||||||
Decrease (increase) in prepaid expenses and other current and long-term assets
|
(8,160
|
)
|
444
|
|||||
Increase (decrease) in trade payables
|
421
|
(1,783
|
)
|
|||||
Increase in short-term and long-term deferred revenues
|
20,298
|
17,174
|
||||||
Decrease in employees and payroll accruals
|
(14,162
|
)
|
(12,312
|
)
|
||||
Decrease in accrued expenses and other current and long-term liabilities
|
(8,371
|
)
|
(4,490
|
)
|
||||
Net cash provided by operating activities
|
33,826
|
33,975
|
||||||
Cash flows from investing activities:
|
||||||||
Investment in short and long term deposits
|
(12,527
|
)
|
(1,313
|
)
|
||||
Investment in marketable securities
|
(44,921
|
)
|
(71,137
|
)
|
||||
Proceeds from maturities of marketable securities
|
41,246
|
49,957
|
||||||
Purchase of property and equipment
|
(1,327
|
)
|
(2,665
|
)
|
||||
Net cash used in investing activities
|
(17,529
|
)
|
(25,158
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from (payment of) withholding tax related to employee stock plans
|
(799
|
)
|
1,411
|
|||||
Proceeds from exercise of stock options
|
4,806
|
4,961
|
||||||
Net cash provided by financing activities
|
4,007
|
6,372
|
||||||
Increase in cash, cash equivalents and restricted cash
|
20,304
|
15,189
|
||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
$
|
792,413
|
$
|
500,044
|
||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
812,717
|
$
|
515,233
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Net cash provided by operating activities
|
$
|
33,826
|
$
|
33,975
|
||||
Less:
|
||||||||
Purchase of property and equipment
|
(1,327
|
)
|
(2,665
|
)
|
||||
Free cash flow
|
$
|
32,499
|
$
|
31,310
|
||||
GAAP net cash used in investing activities
|
(17,529
|
)
|
(25,158
|
)
|
||||
GAAP net cash provided by financing activities
|
4,007
|
6,372
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Gross profit
|
$
|
89,741
|
$
|
91,830
|
||||
Plus:
|
||||||||
Share-based compensation (1)
|
1,803
|
2,395
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
-
|
47
|
||||||
Amortization of intangible assets (2)
|
936
|
1,278
|
||||||
Non-GAAP gross profit
|
$
|
92,480
|
$
|
95,550
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Operating income (loss)
|
$
|
2,571
|
$
|
(15,346
|
)
|
|||
Plus:
|
||||||||
Share-based compensation (1)
|
16,308
|
19,297
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
-
|
47
|
||||||
Amortization of intangible assets (2)
|
1,049
|
1,452
|
||||||
Acquisition related expenses
|
1,610
|
-
|
||||||
Non-GAAP operating income
|
$
|
21,538
|
$
|
5,450
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Net income (loss)
|
$
|
2,386
|
$
|
(15,195
|
)
|
|||
Plus:
|
||||||||
Share-based compensation (1)
|
16,308
|
19,297
|
||||||
Amortization of share-based compensation capitalized in software development costs (3)
|
-
|
47
|
||||||
Amortization of intangible assets (2)
|
1,049
|
1,452
|
||||||
Acquisition related expenses
|
1,610
|
-
|
||||||
Amortization of debt discount and issuance costs
|
4,240
|
4,390
|
||||||
Taxes on income related to non-GAAP adjustments
|
(6,012
|
)
|
(6,159
|
)
|
||||
Non-GAAP net income
|
$
|
19,581
|
$
|
3,832
|
||||
Non-GAAP net income per share
|
||||||||
Basic
|
$
|
0.51
|
$
|
0.10
|
||||
Diluted
|
$
|
0.50
|
$
|
0.09
|
||||
Weighted average number of shares
|
||||||||
Basic
|
38,222,867
|
39,175,052
|
||||||
Diluted
|
39,309,750
|
40,491,989
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Cost of revenues - Subscription
|
$
|
100
|
$
|
254
|
||||
Cost of revenues - Perpetual license
|
36
|
54
|
||||||
Cost of revenues - Maintenance and Professional services
|
1,667
|
2,087
|
||||||
Research and development
|
3,021
|
4,350
|
||||||
Sales and marketing
|
6,400
|
7,498
|
||||||
General and administrative
|
5,084
|
5,054
|
||||||
Total share-based compensation
|
$
|
16,308
|
$
|
19,297
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2020
|
2021
|
|||||||
Cost of revenues - Subscription
|
$
|
541
|
$
|
1,089
|
||||
Cost of revenues - Perpetual license
|
395
|
189
|
||||||
Sales and marketing
|
113
|
174
|
||||||
Total amortization of intangible assets
|
$
|
1,049
|
$
|
1,452
|