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

May 14, 2019 • 08:32 am ET

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

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Q & A
Operator
Operator

Thank you. (Operator Instructions) Our first question comes from the line of Shaul Eyal with Oppenheimer. Your line is open.

Analyst
Shaul Eyal

Thank you. Hi, good afternoon guys. Congrats on solid set of results, as well as the guidance. Udi, I want to start actually big picture. You mentioned in your opening remarks, cloud, digital transformation as driving or even accelerating from our perspective, the business. Can you specifically touch on the digital transformation trends you're seeing out there? And I have a follow-up.

Executive
Udi Mokady

Sure. Thanks Shaul. So definitely, first and foremost, we're seeing Privileged Access Security be a top priority for security and Chief Information Security Officers, but we're continuously excited to see that we are an enabler in a big part of organizations, adoption of digital transformation strategy, whether it's moving their application workloads into the cloud, and therefore the need to manage application secrets with our AIM, or previously we called it Conjur, supporting digitization like Robotic Process Automation more and more.

Those robots are actually mega super administrators and users and we weave in and enable the use of RPA for these projects. And then increasingly also to bridge that gap of trust with the cloud providers and moving servers and the administration of workloads in the cloud, we provide that layer that enables trust for adopting this move.

Analyst
Shaul Eyal

Got it. Got it. And maybe a follow-up, either for you Udi or even for Josh, and it could be a little bit of a tricky one. When you look for example at, I don't know your Top 10, even Top 20 customers, especially those that have been with you for the past, let's say, 10, 15 years, do you have some sort of an LTV analysis or even maybe some sort of a magic number meaning to say though that started with you 10 years ago investing. What would that number be now? Is it 3x, is it 4x, is it 10x, anything along these lines that can assist us a little bit?

Executive
Josh Siegel

Yeah. Hi Shaul. Thanks for calling in. I think when we look at the analysis and we've done a lot of cohort analysis going back, seven, eight, nine, 10 and plus years, and I would say that if we look at cohorts that are eight, nine years old, we're looking at 7 times their first year purchase.

Analyst
Shaul Eyal

Got it. Thank you, Josh.

Executive
Josh Siegel

That would include obviously some -- some component maintenance obviously as part of it, but we see that, probably two-thirds of it coming from license and then a third coming from maintenance.

Operator
Operator

Our next question comes from the line of Melissa Franchi with Morgan Stanley. Your line is open.

Analyst
Melissa Franchi

Okay. Good morning and congrats on the quarter. So it seems like it was sort of business as usual for CyberArk in Q1, but if I look across the security space, it was a little bit of mixed results, kind of across the board with your peers. So I'm just wondering from your perspective, Udi,