CyberArk Software Shares Tumble After Profits Fall Short | Financial Buzz

CyberArk Software Shares Tumble After Profits Fall Short

CyberArk Software Ltd. (NASDAQ: CYBR) announced record financial results for the fourth quarter and year ended December 31, 2019. However, profit guidance fell short of Wall Street expectations. As a result, shares of the Company tumbled more than 14% on Wednesday.

Financial Highlights for the Fourth Quarter Ended December 31, 2019

Revenue:

• Total revenue was $129.7 million, up 19% compared with the fourth quarter of 2018.

• License revenue was $76.5 million, up 15% compared with the fourth quarter of 2018.

• Maintenance and Professional Services revenue was $53.1 million, up 26% compared with the fourth quarter of 2018.

“Our record fourth quarter results capped off another great year of strong growth driven by disciplined investments,” said Udi Mokady, CyberArk Chairman and CEO. “We were thrilled to win a record number of logos in the fourth quarter, signing nearly 300 new customers. Throughout 2019, organizations continued to recognize that protecting privileged access is foundational to a comprehensive security program and increasingly turned to CyberArk as a trusted advisor, particularly to secure mission-critical digital transformation and cloud migration strategies. Our clear leadership position in the market and ongoing commitment to deliver innovation, positions us well to deliver profitable growth in 2020 and beyond.”

As for the Company’s outlook, based on information available as of February 12, 2020, CyberArk is issuing guidance for the first quarter and full year 2020 of total revenue is expected to be in the range of $106.0 million to $110.0 million. Non-GAAP operating income is expected to be in the range of $16.5 million to $19.5 million. Non-GAAP net income per share is expected to be in the range of $0.35 to $0.41 per share. This assumes 39.6 million weighted average diluted shares.