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CyberArk Software Ltd. (CYBR - Free Report) delivered better-than-expected bottom-line results in the first quarter of 2023. The company reported a non-GAAP loss of 17 cents per share in the first quarter, narrower than the Zacks Consensus Estimate of a loss of 26 cents. Moreover, the bottom line improved from the year-ago quarter’s loss of 30 cents per share.
Top-Line Performance
In the first quarter of 2023, the Identity Security solution provider’s reported revenues increased 27% year over year to $161.7 million but fell short of the consensus mark of $162.1 million. Markedly, 90% of quarterly revenues were recurring in nature, which surged 37% year over year to $145.9 million.
Annual Recurring Revenues (“ARR”) increased 42% to $604 million. The subscription portion, which accounted for 67% of the total ARR, soared 84% year over year to $403 million. This upside was primarily driven by a record number of software-as-a-service solution bookings and strong demand for on-premise subscription offerings. However, the maintenance portion, representing 33% of the total ARR, decreased to $202 million from $208 million on Mar 31, 2022.
CyberArk’s subscription transition has been witnessing strong momentum with a rapidly growing base of recurring revenues. Subscription bookings made up 95% of the license bookings in the quarter, higher than 90% in the previous quarter.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
Segment-wise, Subscription revenues (57% of the total revenues) were $92.7 million, up 78% from the year-ago quarter.
Maintenance and professional services revenues (40% of the total revenues) remained flat at $65.1 million.
Perpetual license revenues (3% of the total revenues) plunged 63.2% to $3.9 million. The decline reflects the company’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
The signing of new logos across all industries highlighted a steady increase in new businesses. The new business pipeline is encouraging.
Operating Details
CyberArk’s non-GAAP gross profit increased 26.3% year over year to $131.5 million. However, the non-GAAP gross margin contracted 30 basis points (bps) to 81.3%.
Non-GAAP operating expenses escalated 24.3% year over year to $144.1 million. Higher operating expenses reflect the company’s aggressive sales and marketing initiatives and sustained investments in research and development to boost product offerings and capabilities.
The company reported a non-GAAP operating loss of $12.6 million in the first quarter, higher than the loss of $11.8 million in the year-ago quarter.
Balance Sheet
CyberArk ended the January-March 2023 quarter with cash and cash equivalents, marketable securities and short-term deposits of $1.2 billion. As of Mar 31, 2022, total deferred revenues were $415.8 million, up 20% year over year.
In the first quarter, CyberArk generated operating cash flow of $5.8 million and free cash flow worth $4 million.
Guidance
For the full-year 2023, CyberArk still expects revenues in the range of $724-$736 million. The non-GAAP operating income/(loss) for the full-year 2023 is still estimated between a loss of $5 million and an income of $5 million. However, the company raised its non-GAAP earnings guidance range to 16-38 cents per share from the band of 7-28 cents per share anticipated previously.
For the second quarter of 2023, CyberArk expects revenues between $170 million and $175 million. The non-GAAP operating loss is estimated between $6.5 million and $10.5 million. It projects to post a non-GAAP loss in the range of 9-19 cents per share.
Zacks Rank & Stocks to Consider
Currently, CyberArk carries a Zacks Rank #3 (Hold). Shares of CYBR have increased 5.9% year to date.
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The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past 60 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have increased 0.8% YTD.
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CyberArk (CYBR) Posts Narrower Q1 Loss, Misses Revenues
CyberArk Software Ltd. (CYBR - Free Report) delivered better-than-expected bottom-line results in the first quarter of 2023. The company reported a non-GAAP loss of 17 cents per share in the first quarter, narrower than the Zacks Consensus Estimate of a loss of 26 cents. Moreover, the bottom line improved from the year-ago quarter’s loss of 30 cents per share.
Top-Line Performance
In the first quarter of 2023, the Identity Security solution provider’s reported revenues increased 27% year over year to $161.7 million but fell short of the consensus mark of $162.1 million. Markedly, 90% of quarterly revenues were recurring in nature, which surged 37% year over year to $145.9 million.
Annual Recurring Revenues (“ARR”) increased 42% to $604 million. The subscription portion, which accounted for 67% of the total ARR, soared 84% year over year to $403 million. This upside was primarily driven by a record number of software-as-a-service solution bookings and strong demand for on-premise subscription offerings. However, the maintenance portion, representing 33% of the total ARR, decreased to $202 million from $208 million on Mar 31, 2022.
CyberArk’s subscription transition has been witnessing strong momentum with a rapidly growing base of recurring revenues. Subscription bookings made up 95% of the license bookings in the quarter, higher than 90% in the previous quarter.
CyberArk Software Ltd. Price, Consensus and EPS Surprise
CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote
Quarterly Details
Segment-wise, Subscription revenues (57% of the total revenues) were $92.7 million, up 78% from the year-ago quarter.
Maintenance and professional services revenues (40% of the total revenues) remained flat at $65.1 million.
Perpetual license revenues (3% of the total revenues) plunged 63.2% to $3.9 million. The decline reflects the company’s continued efforts toward shifting the business model to subscription-based from a perpetual license.
The signing of new logos across all industries highlighted a steady increase in new businesses. The new business pipeline is encouraging.
Operating Details
CyberArk’s non-GAAP gross profit increased 26.3% year over year to $131.5 million. However, the non-GAAP gross margin contracted 30 basis points (bps) to 81.3%.
Non-GAAP operating expenses escalated 24.3% year over year to $144.1 million. Higher operating expenses reflect the company’s aggressive sales and marketing initiatives and sustained investments in research and development to boost product offerings and capabilities.
The company reported a non-GAAP operating loss of $12.6 million in the first quarter, higher than the loss of $11.8 million in the year-ago quarter.
Balance Sheet
CyberArk ended the January-March 2023 quarter with cash and cash equivalents, marketable securities and short-term deposits of $1.2 billion. As of Mar 31, 2022, total deferred revenues were $415.8 million, up 20% year over year.
In the first quarter, CyberArk generated operating cash flow of $5.8 million and free cash flow worth $4 million.
Guidance
For the full-year 2023, CyberArk still expects revenues in the range of $724-$736 million. The non-GAAP operating income/(loss) for the full-year 2023 is still estimated between a loss of $5 million and an income of $5 million. However, the company raised its non-GAAP earnings guidance range to 16-38 cents per share from the band of 7-28 cents per share anticipated previously.
For the second quarter of 2023, CyberArk expects revenues between $170 million and $175 million. The non-GAAP operating loss is estimated between $6.5 million and $10.5 million. It projects to post a non-GAAP loss in the range of 9-19 cents per share.
Zacks Rank & Stocks to Consider
Currently, CyberArk carries a Zacks Rank #3 (Hold). Shares of CYBR have increased 5.9% year to date.
Some better-ranked stocks from the broader technology sector are Meta Platforms (META - Free Report) , Manhattan Associates (MANH - Free Report) and Wix.com (WIX - Free Report) . While Meta and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), Wix.com carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta's second-quarter 2023 earnings has been revised 36 cents northward to $2.79 per share in the past 30 days. For 2023, earnings estimates have been revised 12.6% upward to $11.76 per share in the past 30 days.
Meta’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on two occasions, the average surprise being 15.5%. Shares of META have surged 93.6% YTD.
The Zacks Consensus Estimate for Manhattan Associates' second-quarter 2023 earnings has been revised upward by a couple of cents to 72 cents per share for the past 30 days. For 2023, earnings estimates have moved upward by 17 cents to $2.87 per share in the past 30 days.
Manhattan Associates' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 33.6%. Shares of MANH have soared 41.4% YTD.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past 60 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have increased 0.8% YTD.