CyberArk Software ( CYBR Quick Quote CYBR - Free Report) reported a non-GAAP loss of 27 cents, which was narrower than the Zacks Consensus Estimate of 30 cents per share. The bottom line was far lower than the year-ago quarter’s non-GAAP earnings of a penny per share.
For second-quarter 2022, the leading Identity Security solution provider reported revenues of $142.3 million, beating the consensus mark of $139 million. The top line witnessed a year-over-year improvement of 21%. Markedly, 85% of quarterly revenues were recurring in nature, which surged 49% year over year to $120 million.
Annual Recurring Revenues (ARR) increased 48% to $465 million. The maintenance portion, representing 45% of total ARR, increased 1.9% year over year to $210 million. The subscription portion, which accounted for 55% of the total ARR, soared 133% year over year to $255 million. This upside was primarily driven by a record number of software-as-a-service (“SaaS”) solutions bookings and strong demand for on-premises subscription offerings.
CyberArk’s subscription transition has been witnessing strong momentum, with a rapidly growing base of recurring revenues. Subscription bookings made up 88% of the license bookings in the quarter, which was significantly higher than 65% in the year-ago quarter.
Segment-wise, subscription revenues (46% of total revenues) were $66 million, up 144% from the year-ago quarter.
Maintenance and professional services revenues (45.9% of total revenues) climbed 3.8% to $65.3 million from the year-ago quarter.
Perpetual license revenues (7.7% of total revenues) plunged 59.7% to $11 million at the close of this quarter.
The signing of new logos across all industries highlighted a steady increase in new business. The new business pipeline is encouraging.
During the second quarter, CyberArk added around 250 new customers.
CyberArk’s non-GAAP gross profit increased 19% year over year to $116.9 million.
Non-GAAP operating expenses escalated 33% year over year to $127.5 million. This was primarily due to 39.9%, 31.9% and 10.6% year-over-year increases in R&D, S&M and G&A expenses, respectively, from the year-earlier reported figures. S&M expenses comprised almost 57% of the total quarterly operating expenses.
The company’s non-GAAP operating loss was $11 million at the end of second-quarter 2022, against a non-GAAP operating income of $2 million a year ago.
CyberArk ended the April-June quarter with cash and cash equivalents, marketable securities, and short-term deposits of $1.2 billion.
As of Jun 30, 2022, total deferred revenues were $352 million, up 28% year over year.
During the second quarter, CyberArk used operating cash flow worth $14.3 million and free cash flow worth $16.4 million. In the first six months of 2022, the company generated $10.7 million in operating cash flow and $6.6 million in free cash flow.
For the third quarter of 2022, CyberArk expects revenues between $147 million and $153 million. It projects to post a non-GAAP loss per share in the range of 14-27 cents.
Non-GAAP operating loss is estimated between $6 million and $11 million.
For full-year 2022, CyberArk now expects revenues to be $589-$601 million, up from a prior estimate of $583.5-$598.5 million. The company now projects non-GAAP loss to be 57-82 cents per share compared with the previously estimated range of 60-92 cents per share.
Non-GAAP operating loss for full-year 2022 is estimated in the $20.5-$30.5 million band.
Zacks Rank & Key Picks
CyberArk currently carries a Zacks Rank #3 (Hold). Shares of CYBR have increased 1.8% in the past year.
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