CyberArk Software reported fourth quarter results on Feb. 11. The cybersecurity company is enjoying strong demand for its so-called "privileged accounts" solutions, which help to protect the highly sensitive areas inside an organization's IT network.
CyberArk Software results: the raw numbers
Q4 2015 earnings press release
What happened with CyberArk Software this quarter?
- Revenue jumped 42% year-over-year to $51.5 million, driven by a 35% increase in license revenue to $33.0 million and a 55% leap in maintenance and professional services revenue to $18.4 million.
- Non-GAAP operating income -- which excludes share-based compensation and acquisition-related expenses -- surged 50% to $15.2 million, even as CyberArk invested heavily to grow its sales force and strengthen its research and development program.
- Non-GAAP net income -- boosted by a lower effective tax rate -- soared 92% to $13.8 million. And non-GAAP earnings per share, which was affected by a higher share count compared to fourth quarter 2014, rose 86% to $0.39.
What management had to say
"We executed on our strategy to expand our sales and marketing reach, enhance our product offering, and strengthen our position as the recognized leader in Privileged Account Security," said CEO Udi Mokady in a press release. "Our investments delivered record results across all financial and operational metrics."
Looking forward
Management expects first quarter revenue to be in the range of $42.5 million to $43.5 million, which would represent year-over-year growth of 29% to 32%. Non-GAAP operating income is projected to be between $6.9 million and $7.7 million, and Non-GAAP earnings per share is anticipated to be in the range of $0.15 to $0.16.
The company also issued its full-year 2016 forecast, including:
- Revenue in the range of $205 million to $207 million, up 27% to 29% year-over-year
- Non-GAAP operating income in the range of $39.7 million to $41.3 million
- Non-GAAP EPS in the range of $0.83 to $0.86
"As we enter 2016, we believe that the momentum in our business positions us to capitalize on the rapidly growing, greenfield opportunity for this must-have new layer of enterprise security and to continue to deliver strong growth and solid profitability," said Mokady.
However, the market was unimpressed with management's outlook as the CyberArk shares shed nearly 11% during Friday's trading.
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The article CyberArk Software Ltd Earnings Boosted by Higher Privileged Account-Security Spending originally appeared on Fool.com.
Joe Tenebruso has no position in any stocks mentioned. The Motley Fool recommends CyberArk Software. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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