CyberArk Software (NASDAQ: CYBR) reported Q1 EPS of $0.50, $0.14 better than the analyst estimate of $0.36. Revenue for the quarter came in at $106.8 million versus the consensus estimate of $105.63 million.

Financial Highlights for the First Quarter Ended March 31, 2020

Revenue:

• Total revenue was $106.8 million, up 11% compared with the first quarter of 2019.
• License revenue was $51.7 million, up from $51.3 million in the first quarter of 2019.
• Maintenance and professional services revenue was $55.2 million, compared to $44.7 million in the first quarter of 2019.

Operating Income:

• GAAP operating income was $2.6 million, compared to $13.6 million in the first quarter of 2019. Non-GAAP operating income was $21.5 million, compared to $25.5 million in the first quarter of 2019.

Net Income:

• GAAP net income was $2.4 million, or $0.06 per diluted share, compared to GAAP net income of $13.7 million, or $0.36 per diluted share, in the first quarter of 2019. Non-GAAP net income was $19.6 million, or $0.50 per diluted share, compared to $21.5 million, or $0.56 per diluted share, in the first quarter of 2019.

“The health and well-being of our global community of employees, customers and partners continues to be our first priority,” said Udi Mokady, CyberArk Chairman and CEO. “We were pleased to deliver results in line with or exceeding all guided metrics for the first quarter. Privileged Access Management (PAM) is even more critical today with attackers exploiting the sudden and dramatic change in enterprise IT created by remote work environments. In this higher threat environment, our level of engagement with customers has increased as they look to better secure their extended enterprise by expanding their PAM programs. Given our leadership position in PAM, our team’s extensive experience during prior market downturns as well as our ongoing commitment to innovation and customer satisfaction, we believe that we will emerge from the COVID-19 pandemic stronger than before. We are also pleased with today’s acquisition of Idaptive, which positions us as the only modern identity security platform, adds another SaaS offering to our portfolio, and expands our Total Addressable Market.”

“Given the weakened economic environment due to Covid-19, we expect customers to make more cautious purchasing decisions which will impact our revenue and cash flow from operations in the near term,” stated Josh Siegel, CyberArk Chief Financial Officer. “We believe deal close rates, particularly for new business and in certain verticals, will be less predictable and have therefore decided to withdraw our full year 2020 guidance. We continue to believe in the long-term growth opportunity given that Privileged Access Management is a priority for customers. The management team remains focused on delivering growth and profitability in 2020. As we monitor COVID-19 developments, our current plan is to manage expenses for the full year to better align with our top line, but also make disciplined investments and hire for key roles. We believe this approach will allow CyberArk to navigate through the current environment and prepare the Company for accelerated growth when the business environment stabilizes.”

GUIDANCE:

CyberArk Software sees Q2 2020 EPS of $0.17-$0.35, versus the consensus of $0.36.

Based on information available as of May 13, 2020, CyberArk is issuing guidance as indicated below:

Second Quarter 2020:

• Total revenue between $95.0 million and $105.0 million.
• Non-GAAP operating income between $7.0 million and $16.0 million, which includes expenses from the acquisition of Idaptive.
• Non-GAAP net income per share between $0.17 and $0.35 per diluted share, which includes expenses from the acquisition of Idaptive.
  • Assumes 39.4 million weighted average diluted shares.

Full Year 2020:

• Given the uncertainty created by the COVID-19 pandemic as well as its impact on the overall economy, our business, our customers and our partners, we are withdrawing our full year 2020 guidance for total revenue, non-GAAP operating income, and non-GAAP earnings per share that we provided on February 12, 2020.

For earnings history and earnings-related data on CyberArk Software (CYBR) click here.