CyberArk Software, Ltd. (NASDAQ:CYBR) Q1 2019 Earnings Conference Call - Final Transcript

May 14, 2019 • 08:32 am ET


CyberArk Software, Ltd. (NASDAQ:CYBR) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning, my name is Emily, and I will be your conference operator today. At this time, I would like to welcome everyone to the CyberArk Q1 2019 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

(Operator Instructions)

Thank you. Erica Smith, VP Investor Relations, you may begin your conference.

Erica Smith

Thank you, Emily. Good morning. Thank you for joining us today to review CyberArk's first quarter 2019 financial results. With me on the call today are Udi Mokady, Chairman and Chief Executive Officer; and Josh Siegel, Chief Financial Officer. After prepared remarks, we will open the call up to a question-and-answer session.

Before we begin, let me remind you that certain statements made on the call today may be considered forward-looking statements, which reflect management's best judgment based on currently available information. I refer specifically to the discussion of our expectations and beliefs regarding our projected results of operations for the second quarter and the full-year 2019. Our actual results might differ materially from those projected in these forward-looking statements.

I direct your attention to the risk factors contained in the Company's annual report on Form 20-F filed with the US Securities and Exchange Commission and those referenced in today's press release. CyberArk expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements made herein.

Additionally, non-GAAP financial measures will be discussed on this conference call. Reconciliations to the most directly comparable GAAP financial measures are also available in today's press release, or in the supplemental disclosure information, both of which can be found at in the Investor Relations section. Also a webcast of today's call will be available in the Investor Relations section of our website.

With that, I'd like to turn the call over to our Chairman and Chief Executive Officer, Udi Mokady. Udi?

Udi Mokady

Thanks Erica, and thank you everyone for joining our first quarter earnings call. We were pleased to start the year with strong results exceeding guidance across all metrics. Revenue accelerated year-over-year to 34% reaching $96 million. Operating income was $25 million and our powerful business model generated a record $46 million in cash flow from operations.

Before we dive into the details of the quarter, I wanted to discuss the broader market. Since we founded CyberArk, security solutions have evolved to keep pace with the expanding attack surface and hacker innovation. Over the last few years, we have reached a level of unprecedented change.

Digital transformation strategies, the migration to cloud, hybrid and modern architectures, and increasing connectivity among enterprise systems are accelerating business and at the same time creating massive security challenges. These trends have been driving progressive shift in our business. In our major markets, we no longer educate enterprise customers and prospects the importance of privileged access.

Today, we are recognized as a mission-critical solution that empowers and protects business operations by reducing risk across on-premise, cloud and