CyberArk announces financial results for Q2 2021

CyberArk announced strong financial results for the second quarter ended June 30, 2021.

“We are thrilled with our performance in the second quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Our momentum continued, and our underlying business growth meaningfully accelerated in the second quarter, driven by robust industry tailwinds and excellence in our execution.

“A combination of record bookings across all of our SaaS solutions and strong demand for our on-premises subscription offerings resulted in 128 percent growth in the Subscription portion of ARR and 35 percent growth in total ARR. With our push to execute our subscription transition, we achieved a 65 percent subscription booking mix, which was significantly higher than our guidance framework.

“With the increased headwind from this mix acceleration, we were still able to generate $117.2 million in total revenue, above the mid-point of our guidance, which demonstrates that our bookings in the second quarter were well ahead of our expectations.

“With these exceptional results in the second quarter and our continued leadership position in identity security anchored on privileged access, we are increasing the assumption for total bookings growth underlying our guidance framework for the year. As we look ahead, we are in a great position to execute our strategy and deliver long term-growth and profitability.”

Financial summary for the second quarter ended June 30, 2021

Subscription revenue was $27.1 million in the second quarter of 2021, an increase of 101 percent from $13.4 million in the second quarter of 2020.
Maintenance and professional services revenue was $62.9 million in the second quarter of 2021, an increase of 10 percent from $57.3 million in the second quarter of 2020.
Total revenue was $117.2 million in the second quarter of 2021, up 10 percent from $106.5 million in second quarter of 2020.
GAAP operating loss was $(23.4) million and non-GAAP operating income was $2.0 million in the second quarter of 2021.
GAAP net loss was $(22.8) million, or $(0.58) per basic and diluted share, in the second quarter of 2021. Non-GAAP net income was $0.3 million, or $0.01 per diluted share, in the second quarter of 2021.

Balance sheet and net cash provided by operating activities

As of June 30, 2021, CyberArk had $1.2 billion in cash, cash equivalents, marketable securities, and short-term deposits.
As of June 30, 2021, total deferred revenue was $275.0 million, a 22 percent increase from $225.7 million at June 30, 2020.
During the six months ended June 30, 2021, the Company generated $49.5 million in net cash provided by operating activities, compared to $53.3 million in the first six months of 2020.

Key performance indicators

Recurring revenue was $80.6 million, an increase of 32 percent from $60.8 million for the second quarter of 2020.
65 percent of total license bookings were related to subscription bookings, compared with 39 percent in the second quarter of 2020.
Added more than 185 new customers during the second quarter of 2021.

Annual Recurring Revenue (ARR) was $315 million, an increase of 35 percent from $234 million at June 30, 2020.
The subscription portion of ARR was $109.5 million, representing 35 percent of total ARR at June 30, 2021. This represents an increase of 128 percent from $48.1 million, or 21 percent of total ARR at June 30, 2020.
The Maintenance portion of ARR was $205.7 million at June 30, 2021, compared to $185.5 million at June 30, 2020.

Recent developments

CyberArk was named a Leader in the 2021 Gartner Magic Quadrant for Privileged Access Management. The company was positioned both highest in ability to execute and furthest in completeness of vision for the third time in a row.

Business outlook

Based on information available as of August 12, 2021, CyberArk is issuing guidance for the third quarter and for full year 2021 as indicated below.

Third quarter 2021:

Total revenue between $116.0 million and $124.0 million.
Non-GAAP operating income (loss) is expected to be in the range of an operating loss of $(6.0) million to operating income of $1.0 million.
Non-GAAP net loss per share is expected to be in the range of a net loss of $(0.19) to $(0.02) per basic and diluted share.
Assumes 40.2 million weighted average basic and diluted shares.

Full year 2021:

Total revenue is expected to be in the range of $484.0 million to $496.0 million.
Non-GAAP operating income is expected to be in the range of $7.0 million to $17.0 million.
Non-GAAP net income per share is expected to be in the range of $0.01 to $0.26 per diluted share.
Assumes 40.8 million weighted average diluted shares.

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