CyberArk Software Ltd. (NASDAQ: CYBR) released preliminary earning results yesterday after closing bell and has seen a massive slide of roughly 16%.
The company gave an early glimpse at its performance over its second quarter, with CEO Udi Mokady summarizing the results, “We are disappointed that our results for the second quarter will be below the guidance we provided in May.” The failure to hit guidance came from a slowdown in sales in EMEA, or, Europe, the Middle East and Africa. The inability to close a number of deals resulted in a loss of revenue and the subsequent miss, the first for CyberArk since their IPO three years ago. The problems in EMEA have been known to investors and management alike for a number of quarters, with the latter trying to focus efforts on educating and promoting its products in the region.
CyberArk reported total revenue in the range of $57 to $57.5 million compared to guidance range of $61 to $62 million, as well as non-GAAP operating income of $8.5 to $8.9 million, well below the prior estimate of $10.9 to $11.7 million. We would have to wait to see further information but chances are that CyberArk will bounce back as is likely in this sector, especially since the company is still a global leader in the field.