Update Ahead Of August Print
CyberArk announced after Thursday’s market close that its second-quarter revenue will fall short of expectations. The company reported in its preliminary results that its revenue will fall in a range of $57 million to $57.5 million and an operating income of $8.5 million to $8.9 million. By comparison, the company previously guided its revenue to be $61.5 million at the midpoint and operating income of $11.3 million.
Meanwhile, analysts were expecting the Israel-based provider of information technology security solutions to protect organizations from cyberattacks to report revenue of $61.9 million in the quarter. The company will report its finalized results on Aug. 8.
CyberArk’s CEO and chairman Udi Mokady acknowledged in a press release the company’s performance was disappointing and can be attributed to poor performance in the EMEA region. The company was expecting to close several deals during the period but failed to do so by the end of the quarter.
On the other hand, the company did note several positive trends in the quarter, including growth in the Americas and APJ region, and an expansion of its product lines across all geographies.
“We believe that our significant greenfield opportunity, leadership position in the market, and strategy will deliver long term value to our shareholders,” Mokady also said.
Friday morning, both JPMorgan (Neutral) and Deutsche Bank (Hold) downgraded the stock.