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CyberArk (CYBR) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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CyberArk Software (CYBR - Free Report) reported fourth-quarter 2020 non-GAAP earnings of 82 cents per share that exceeded the Zacks Consensus Estimate by 41.38%. The bottom line, however, declined 15.5% year over year.
CyberArk’s revenues grew 11.5% year over year to $144.52 million but missed the consensus mark by 12.78%. Markedly, 48% of quarterly revenues were recurring in nature, which grew 41% year over year to $70 million.
Annual Recurring Revenues increased 43% year over year to $274 million, as of Dec 31, 2020.
Notably, CyberArk’s subscription transition is in force with strong momentum, with a rapidly growing base of recurring revenues.
SaaS and subscription bookings created increasing headwinds of about $18 million for the fourth quarter. However, strong demand for the company’s solutions more than offset this headwind and drove top-line growth.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
Segment-wise, License revenues (55.9% of total revenues) increased 5.6% year over year to $80.8 million. Recurring license revenues were $17.4 million (22% of license revenues). On a combined basis, SaaS revenues increased roughly 300% year over year to $9 million and subscription-based license revenues reached $8 million.
Maintenance and Professional Services (44.1%) revenues increased 20% year over year to $63.7 million. Within the segment, professional services revenues came in at $11.5 million and revenues from recurring maintenance contracts came in at $52 million.
Solid demand across PAM including on-premise and cloud, Endpoint Privilege Manager and Application Access Manager was a major growth driver.
Growth in existing customers to an all-time high was also a tailwind. Moreover, a steady increase in new business was reflected in the signing of about 280 marquee logos across various industries. The new business pipeline is also encouraging.
CyberArk’s non-GAAP gross profit was $126.6 million, marking a year-over-year increase of 9.5%. However, gross margin contracted 100 basis points (bps) to 88% on unfavorable revenue mix (higher SaaS revenues) and increased cloud infrastructure costs related to the SaaS business.
Operating expenses increased 18% year over year to $87 million. This inflation was driven by 28% year-on-year growth in R&D expenses, 16% increase in S&M, single-digit growth in G&A expenses, and $6 million additional expenses related to the integration of Idaptive operations. However, reduced travel spending was a breather during the quarter.
The company reported non-GAAP operating income of $39.9 million, down 5.2% year over year. Non-GAAP operating margin contracted 450 bps from the year-ago quarter to 28% in the reported quarter.
Balance Sheet
As of Dec 31, 2020, CyberArk had $953 million in cash, cash equivalents, marketable securities and short-term deposits compared with $1.1 billion reported in the previous quarter.
Total deferred revenues were $243 million, up 27% year over year, at the end of the year.
Guidance
For the first quarter of 2021, CyberArk estimates revenues of $106-$112 million.
Non-GAAP operating income is expected between a loss of $2.5 million and an income of $2.5 million. The company projects the bottom line between a non-GAAP loss of 3 cents and a non-GAAP earnings of 7 cents per share.
Approximately 47% of new license bookings are expected to come from SaaS and subscription, resulting in a revenue headwind of about $10 million for the first quarter of 2021.
For 2021, CyberArk expects revenues between $484 million and $496 million. Revenues from SaaS and subscription are expected to constitute 55% of license bookings, leading to a revenue headwind of $39 million.
Non-GAAP earnings per share are expected in the range of 45-64 cents.
Zacks Rank & Stocks to Consider
CyberArk currently carries a Zacks Rank #4 (Sell).
The long-term earnings growth rate for Skyworks Solutions, NXP Semiconductors and Shopify is currently pegged at 18.98%, 10% and 32.5%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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CyberArk (CYBR) Q4 Earnings Beat Estimates, Revenues Up Y/Y
CyberArk Software (CYBR - Free Report) reported fourth-quarter 2020 non-GAAP earnings of 82 cents per share that exceeded the Zacks Consensus Estimate by 41.38%. The bottom line, however, declined 15.5% year over year.
CyberArk’s revenues grew 11.5% year over year to $144.52 million but missed the consensus mark by 12.78%. Markedly, 48% of quarterly revenues were recurring in nature, which grew 41% year over year to $70 million.
Annual Recurring Revenues increased 43% year over year to $274 million, as of Dec 31, 2020.
Notably, CyberArk’s subscription transition is in force with strong momentum, with a rapidly growing base of recurring revenues.
SaaS and subscription bookings created increasing headwinds of about $18 million for the fourth quarter. However, strong demand for the company’s solutions more than offset this headwind and drove top-line growth.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote
Quarter Details
Segment-wise, License revenues (55.9% of total revenues) increased 5.6% year over year to $80.8 million. Recurring license revenues were $17.4 million (22% of license revenues). On a combined basis, SaaS revenues increased roughly 300% year over year to $9 million and subscription-based license revenues reached $8 million.
Maintenance and Professional Services (44.1%) revenues increased 20% year over year to $63.7 million. Within the segment, professional services revenues came in at $11.5 million and revenues from recurring maintenance contracts came in at $52 million.
Solid demand across PAM including on-premise and cloud, Endpoint Privilege Manager and Application Access Manager was a major growth driver.
Growth in existing customers to an all-time high was also a tailwind. Moreover, a steady increase in new business was reflected in the signing of about 280 marquee logos across various industries. The new business pipeline is also encouraging.
CyberArk’s non-GAAP gross profit was $126.6 million, marking a year-over-year increase of 9.5%. However, gross margin contracted 100 basis points (bps) to 88% on unfavorable revenue mix (higher SaaS revenues) and increased cloud infrastructure costs related to the SaaS business.
Operating expenses increased 18% year over year to $87 million. This inflation was driven by 28% year-on-year growth in R&D expenses, 16% increase in S&M, single-digit growth in G&A expenses, and $6 million additional expenses related to the integration of Idaptive operations. However, reduced travel spending was a breather during the quarter.
The company reported non-GAAP operating income of $39.9 million, down 5.2% year over year. Non-GAAP operating margin contracted 450 bps from the year-ago quarter to 28% in the reported quarter.
Balance Sheet
As of Dec 31, 2020, CyberArk had $953 million in cash, cash equivalents, marketable securities and short-term deposits compared with $1.1 billion reported in the previous quarter.
Total deferred revenues were $243 million, up 27% year over year, at the end of the year.
Guidance
For the first quarter of 2021, CyberArk estimates revenues of $106-$112 million.
Non-GAAP operating income is expected between a loss of $2.5 million and an income of $2.5 million. The company projects the bottom line between a non-GAAP loss of 3 cents and a non-GAAP earnings of 7 cents per share.
Approximately 47% of new license bookings are expected to come from SaaS and subscription, resulting in a revenue headwind of about $10 million for the first quarter of 2021.
For 2021, CyberArk expects revenues between $484 million and $496 million. Revenues from SaaS and subscription are expected to constitute 55% of license bookings, leading to a revenue headwind of $39 million.
Non-GAAP earnings per share are expected in the range of 45-64 cents.
Zacks Rank & Stocks to Consider
CyberArk currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include Skyworks Solutions (SWKS - Free Report) , NXP Semiconductors (NXPI - Free Report) and Shopify (SHOP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Skyworks Solutions, NXP Semiconductors and Shopify is currently pegged at 18.98%, 10% and 32.5%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>