CyberArk shares rise despite mixed results in latest earnings report

CyberArk shares rise despite mixed results in latest earnings report

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Shares in  CyberArk Software Ltd. were up in regular trading despite the information security company reporting mixed results in its latest earnings report.

For the quarter ending March 31, CyberArk reported a non-generally acceptable accounting principles loss of $11.9 million or 30 cents per share compared to a profit of $3.8 million or 10 cents per share in the same quarter of last year. Revenue came in at $127.6 million, up 13% year-over-year.

Analysts had predicted an EPS loss of 31 cents on revenue of $130.42 million.

CyberArk subscription revenue came in at $51.9 million in the quarter, up 110% year-over-year and the company’s maintenance and professional services revenue was $65.1 million, up from $61.3 million. CyberArk is a company moving away from traditional software licensing to cloud services and this reflects in its perpetual license revenue, which came in at $10.6 million in the quarter compared to $26.7 million in the same quarter last year.

The company has $1.2 billion in cash, cash equivalent, marketable securities and short-term deposits as of the end of March. CyberArk generated $25 million in net cash through operating activities throughout the quarter.

Highlights in the quarter included annual recurring revenue hitting $427 million, up 48% year-over-year with the company singing some 250 new “logo” customers in the quarter.

“Driven by continued strong demand for our Identity Security platform, our subscription bookings mix reached 86 percent in the first quarter, beating our guidance framework and passing our transition target for subscription bookings mix of 85 percent in just five quarters from the start of the transition,” Udi Mokady, CyberArk chairman and chief executive officer, said in a statement. “Digital transformation, the adoption of zero trust and attacker innovation contributed to our momentum and another great bookings quarter with our growth rate further accelerating off an incredible fourth quarter of 2021.”

Looking forward, CyberArk estimates that its second quarter of 2022 will deliver a non-GAAP operating loss per share of between 25 cents and 35 cents on revenue of $135 million to $141 million. Analysts had expected a loss of 27 cents on revenue of $137 million.

For the full financial year 2022, the company predicts an EPS loss of 60 cents to 90 cents on revenue of $583.5 million to $598.5 million. Analysts had predicted a non-GAAP EPS loss of 75 cents on revenue $590.2 million.

Despite the mixed results – some hits and misses on what was expected, investors liked CyberArks figures. Share in CyberArk – which reported earnings in the morning, were up 12.27% to $120.50 as of 4 p.m. EDT.

Photo: Train825/Wikimedia Commons

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