CyberArk Software Ltd. (NASDAQ: CYBR) reported strong earnings and revenue growth for the third quarter, which also topped expectations. The company guided fourth-quarter revenue and earnings above the Street’s view, sending the stock higher early Wednesday.
Adjusted earnings climbed to $0.65 per share from $0.48 per share last year and came in above Wall Street’s prediction. On a reported basis, net income moved up to $15.2 million or $0.39 per share from $8.1 million or $0.22 per share in the third quarter of 2018.
Sales up 28%
The solid bottom-line performance reflects a 28% growth in revenues to $108.1 million, which also surpassed the estimates. Lifting the top-line, License revenue expanded by a quarter to $57.9 million, while Maintenance and Professional Services revenue climbed 30% to $50.2 million.
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“Organizations around the world recognize that Privileged Access Management is critical to a successful security program and are leveraging CyberArk to secure access across on-premises, cloud, and hybrid environments as well as the DevOps pipeline,” said CEO Udi Mokady.
In the third quarter, CyberArk achieved adjusted operating margin of 27% and signed 200 new customers.
Outlook
The management currently expects fourth-quarter revenues to be in the range of $125 million to $127 million, representing 15% to 16% year-over-year growth. Adjusted earnings are forecast to be between $0.78 per share and $0.82 per share and adjusted operating income in the $38.5-$40.0 million range.
For the whole of 2019, the company expects total revenue to be between $429.2 million and $431.2 million, up 25-26% annually. The forecast for full-year adjusted earnings is $2.58-$2.61 per share. Operating income, excluding special items, is forecast to be between $119.75 million and $121.25 million in 2019.
CyberArk shares gained 46% since the beginning of 2019 and 38% since last year. However, it dropped steadily in recent weeks after reaching a peak in July.
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