CyberArk Beats First-Quarter Expectations and Withdraws 2020 Guidance

CyberArk shares were lower after the security-software provider beat Wall Street's earnings expectations but withdrew its full-year guidance.
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CyberArk (CYBR) - Get Report beat Wall Street's first-quarter earnings expectations and withdrew its full-year guidance, as the security-software provider said it expected customers to be more cautious due to the coronavirus pandemic.

Shares of the Petach Tikva, Israel, company were down 5.6% to $103.56 at last check.

The company reported net income of $19.6 million, or 50 cents a share, compared with $21.5 million, or 56 cents, in the year-earlier period. The Zacks consensus estimate of analysts called for earnings of 37 cents a share.

Revenue totaled $106.8 million, up 11% from a year earlier and edging out the Zacks estimate of $106.7 million. License revenue was $51.7 million, up from $51.3 million.

Looking ahead, CyberArk forecast second-quarter revenue of $95 million to $105 million and net income of 17 cents to 35 cents a share.

"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," Josh Siegel, chief financial officer, said in a statement. 

"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."

Separately, CyberArk said it had acquired ID security company Idaptive Holdings for $70 million cash.

"With cyberattacks on the rise, organizations need modern, comprehensive solutions to make better, continuous access and authorization decisions for the broadest range of users," Udi Mokady, founder, chairman and CEO of CyberArk, said in a statement.