CyberArk Software Ltd. (NASDAQ: CYBR) reported a 60% jump in earnings for the second quarter of 2019 as a 27% growth in license revenue and a 31% increase in maintenance and professional services revenue drove total revenues higher. The results exceeded analysts’ expectations. The company guides third-quarter revenue and earnings above the Street’s view.
Further, Ron Zoran, CyberArk’s Chief Revenue Officer, plans to leave the company to pursue other business opportunities, including assisting early-stage technology companies as a board member. Ron will continue to serve as Chief Revenue Officer through September 30, 2019, and to help ensure a smooth transition, he will also continue to serve as an advisor into the first quarter of 2020. The company has initiated a search to identify a new global head of sales.
Net income climbed by 60% to $8.38 million or $0.23 per share. Adjusted earnings soared by 64% to $0.59 per share. Total revenue grew by 29% to $100.2 million.
For the third quarter of 2019, CyberArk expects revenues to grow 20-23% year-over-year to a range of $102 million to $104 million, and adjusted EPS to be in the range of $0.45 to $0.48. Adjusted operating income is predicted to be in the range of $21.75 million to $23.25 million.
For the full year of 2019, the company lifted its revenue growth outlook to the range of 22% to 23% from the previous range of 21% to 22%, and its revenue estimate to the $419 million to $423 million range from the prior range of $415 million to $419 million. The adjusted EPS guidance is raised to the range of $2.24 to $2.30 from the previous forecast range of $2.10 to $2.16.
For the second quarter, the company generated a meaningful portion of revenue through deals of significant size and from customers in the financial services industry, including banking and insurance. The company incurred an increase in research and development and general and administrative costs associated with scaling of its business.
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As of June 30, 2019, total deferred revenue was $174.2 million, a 34% increase from $129.6 million at June 30, 2018. As of June 30, 2019, CyberArk had $537.9 million in cash, cash equivalents, marketable securities, and short-term deposits. This compared to $451.2 million as of December 31, 2018, and $377.5 million at June 30, 2018.
Shares of CyberArk Software ended Tuesday’s regular session up 1.09% at $127.20 on the Nasdaq. Following the earnings release, the stock advanced over 6% in the pre-market session.