CyberArk Software, Ltd. (NASDAQ:CYBR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET


CyberArk Software, Ltd. (NASDAQ:CYBR) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Scott and I will be your conference operator today. At this time, I would like to welcome everyone to the CyberArk Third Quarter 2019 Earnings Conference Call. [Operator Instructions].

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

Erica E. Smith

Thank you, Scott. Good morning.Thank you for joining us today to review CyberArk's third 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 initial remarks, we will open the call up for 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 judgement based on currently available information specifically, our expectations and beliefs regarding our projected results of operations for the fourth quarter and the full year 2019. Our actual results might differ materially from those projected in these forward-looking statements. Please see 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 disclaims any application or undertaking to release publicly any updates or revisions to any forward-looking statements made today. Additionally, non-GAAP financial measures will be discussed on this conference call. A reconciliation to the most directly comparable GAAP financial measures is also available in our earnings press release, which can be found on in the Investor Relations section. Also, please note that a webcast of today's call will be available on our website in the Investor Relations section as well.

With that, I'd like to turn the call over to Udi Mokady. Udi?

Udi Mokady

Thanks, Erica and good morning, everyone. Thank you for joining the call today. I'm excited to discuss our third quarter results with you. We were pleased with our strong performance. Our results exceeded expectations across all guided metrics. Revenue grew by 28%, reaching $108 million and non-GAAP operating income increased by 40% to $29 million or a 27% operating margin. During the quarter, we reached a record for revenue in the Americas, a record for EPM SaaS bookings and generated record business in the global government vertical. We are also pleased to again deliver best-in-class growth and profitability, not only in the security industry, but also across technology companies. Given our execution and the robust demand environment for the third time this year, we are raising our guidance for revenue growth and operating income for the full year, which Josh will talk about later.

Overall, we continue to benefit from strong secular trends. It is estimated that two-thirds of Global 2000 CEOs are not only adopting digital transformation, they're centering their corporate strategies on building software-driven businesses.

At the same time, almost every enterprise customer is running on-premise, cloud or multi-cloud IT environments. Migrating workloads to drive more efficiencies and productivity into their business. This increased complexity and the rapid pace of change in business operations and