cyberark powerpoint template · 3 notes: 1. presented on non-gaap basis. for a reconciliation to...
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INVESTOR PRESENTATIONJune 2020
1CONFIDENTIAL INFORMATION
This presentation contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some
cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”
“expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and
uncertainties that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements
expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: the
duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response, on global and regional economies and economic
activity, which may have a material impact on the demand for the Company’s solutions and on its expected revenue growth rates and costs; the Company’s
ability to adjust its operations in response to any impacts from the COVID-19 pandemic; difficulties predicting future financial results, including due to impacts
from the COVID-19 pandemic; the drivers of the Company’s growth may change; the Company’s ability to sell into existing and new industry verticals; the
Company’s sales cycles and multiple licensing models may cause results to fluctuate; the Company’s ability to sell into existing customers; potential changes in
the Company’s operating and net profit margins and the Company’s revenue growth rate; the Company’s ability to successfully find, complete, fully integrate and
achieve the expected benefits of future acquisitions, including the Company’s ability to integrate and achieve the expected benefits of Idaptive; real or perceived
shortcomings, defects or vulnerabilities in the Company’s solutions or internal network system; the Company’s ability to hire qualified personnel; the Company’s
ability to expand its channel partnerships across existing and new geographies; the Company’s ability to further diversify its product deployments and licensing
options; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and
Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future events or otherwise.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
2
3
Notes:
1. Presented on Non-GAAP basis. For a reconciliation to GAAP operating income at end of presentation
2. As of Q1 2020
3. We measure the perpetual license maintenance renewal rate for our customers over a 12-month period, based on a dollar renewal rate of contracts expiring during that time period. Our perpetual license maintenance renewal rate is measured three months after the 12-month period ends to account for late renewals; Info is
for the year ended December 31, 2019
Maintenance
Renewal Rate (3) Channel Partners
~5,500
Customers (2)
Certified C3 Partners
>450 >14028%Operating
Margin
Revenue Operating Income (1)
33%2014 – 2019
Revenue CAGR
Global 2000
>90%
>50%
Fortune 500
>35%
CYBERARK AT A GLANCE
STRONG BUSINESS MOMENTUM
4
2014
2019
$23M
OPERATING CASH FLOW
6x
$22M
OPERATING INCOME
6x
CUSTOMERS
1.8K
24%CAGR
REVENUE
$103M
33%CAGR
$142M$123M 5.3K$434M
18 OF THE TOP 25
Pharma
21 OF THE TOP 25
Manufacturing
20 OF THE TOP 25
Telecom
21 OF THE TOP 25
Energy
20 OF THE TOP 25
Insurance
23 OF THE TOP 25
Banks
5,500+
Global Customers
More than
50% of Fortune 500
More than
35% of Global
2000
STRONG BUSINESS MOMENTUM
6
PRIVILEGED CREDENTIALS IN THE NEWS
PRIVILEGE IS EVERYWHERE
7
CYBERARK’S MISSION
8
Provide a modern approach
to IDENTITY SECURITY
anchored on privilege to
protect against advanced
cyber threats
Notes:
1. Verizon, 2019 Data Breach Investigations Report
MANAGING RISK
CLOUD MIGRATION
COMPLIANCE
DIGITAL TRANSFORMATION
• Proliferation of IT Assets and
Devices
• Rise of DevOps
• Complex, Hybrid Architecture
• Multiple and Decentralized Data
Sources and Environments
• Data Breach
• Network Takeover
• Loss of Critical Information
• Reputational Damage
HACKER INNOVATION
• GDPR
• Sarbanes Oxley
• HIPAA
• PCI
• Organized criminal groups were
behind 39% of breaches(1)
• 23% of attackers identified as
nation-states or state-affiliated(1)
SECULAR TRENDS ARE DRIVING ENTERPRISES’ NEED FOR SECURITY
THE ATTACK SURFACE CONTINUES TO GROW
10
CONFIDENTIAL INFORMATION
CYBERARK PRIVILEGED ACCESS SECURITY SOLUTION
12
13
DELIVERING THE MOST COMPREHENSIVE PAM SAAS PORTFOLIO
Enforce least
privilege, credential
theft protection and
application control at
scale
Store, rotate and isolate
credentials, monitor
sessions and deliver
risk reduction to the
business
Implement Zero Trust
access, Just-in-Time
provisioning and
biometric
authentication for
remote vendors
ENDPOINT
PRIVILEGE
MANAGER
PRIVILEGE
CLOUD
ALERO
Modern AI-powered
IDaaS Platform
enables adaptive
MFA, SSO for context
aware zero trust
access
IDAPTIVE
CYBERARK + IDAPTIVE: ACQUISITION EXTENDS REACH
14
CyberArk Bottoms-Up Analysis
4th
SaaS offering
accelerates ARR growth
Expands CyberArk
customer base to
~600050+
Engineers with deep
identity security expertise
2000+Application Integrations
+ $25B TAMExpands TAM to sell into
IDaaS MarketFuture of Identity Security
2015: Detect and Prevent
Kerberos Attacks
2011: Secure Cloud and
Virtual Infrastructure
INNOVATION IS PART OF OUR DNA
2003: Vault and Rotate
Privileged Credentials
2007: Protect Privilege in
Applications
2009: Secure and Monitor
Privileged Sessions
2012:
Discover Unprotected
Privileged Accounts
2013: Detect and Prevent
Privileged Threats
2015: Privileged Attacks
Research
2016: Secure Endpoint
Credentials
2017: Secure DevOps
Secrets
2017: Automate on-boarding
of credentials with AWS
2018: Admins and Privileged
Business Users
2019: Zero Trust Remote
Vendor Access SaaS Offering
2020: IDaaS platform for
adaptive SSO and MFA
Analytics ICSAuthentic
ation
Identity &
Access
Manage
ment
DetectionITSM DevOps
Orchestra
tion &
Respons
e
Discovery
Robotic
Process
Automati
on
Governan
ceSIEM HSM
Vulnerabi
lity
Manage
ment
200+ CERTIFIED JOINT SOLUTIONS
CPM Plug-ins PSM Plug-ins
200+ PLUG-INS
C3 ALLIANCE
140+ CERTIFIED PARTNERS
Escalating Cyber
Threatscape
Digital TransformationFavorable Competitive
Landscape
Industry
Tailwinds
Growth
Vectors
Expand & Cross-Sell
with New Products
Land New
Customers
Extend CORE
PAS Deployment
Deliver New
Innovation
Increasing Attack Surface
MULTIPLE DRIVERS FOR LONG-TERM GROWTH
18
40%of the companies involved in the largest
recent breaches turned to CyberArk
Source: IDG’s “Biggest breaches of the 21st Century”
19
CyberArk positioned highest for ability to execute and furthest for completeness of vision
CYBERARK NAMED A LEADER IN GARTNER 2018 MAGIC QUADRANT FOR PRIVILEGED ACCESS MANAGEMENT
Gartner, Magic Quadrant for Privileged Access Management, Felix Gaehtgens, Dale Gardner, Justin Taylor, Abhyuday Data, Michael Kelley, 3 December 2018
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from https://lp.cyberark.com/gartner-mq-pam-leader
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
20
FINANCIAL OVERVIEW
COVID-19 RELATED LICENSE REVENUE IMPACT IN Q1 2020
TRACK RECORD OF STRONG GROWTH
21
$148$192
$238
$51 $52
$114
$151
$196
$45 $55
$262
$343
$96 $107
2017 2018 2019 3 Months 2019 3 Months 2020
26%GROWTH
Maint. / PS
License
($mm)
$43431%
GROWTH
GLOBAL BUSINESS ACROSS DIVERSE INDUSTRIES
Americas
EMEA
APJ
5%
4%9%
Verticals
FY2017
Bookings by VerticalRevenue by Geography
Banking
Government
Manufacturing
Healthcare
Energy
IT Services & Software
Insurance
Telecom
Retail
Professional Services
Pharmaceuticals
Transportation & Travel
Other
5%
4%9%
5%
4%9%
28%
14%
8%7%
7%
6%
6%
5%
5%
4%4%
3%3%
61%
30%
9%
Geographies
FY2019
Verticals
FY2019
PROFITABLE WHILE INVESTING FOR GROWTH
23
$52
$90
$123
$25 $22
2017 2018 2019 3 Months 2019 3 Months 2020
Non-GAAP Operating Income1 and Margins
1 See appendix for Non-GAAP reconciliation
($mm)
20%
27%
26%
28%
20%
HISTORY OF STRONG CASH FLOW
24
$81
$130$142
$46$34
2017 2018 2019 3M 2019 3M 2020
Operating Cash Flow
($mm)
$105
$150
$190$171
$211
2017 2018 2019 Mar-19 Mar-20
Total Deferred Revenue
($mm)
25
NASDAQ: CYBRwww.cyberark.com
GAAP TO NON-GAAP RECONCILIATION
26
(in thousands) 2017 2018 2019 Q1 2019 Q1 2020
GAAP operating income to Non-GAAP operating income:
Operating Income $20,326 $47,292 $62,284 $13,627 $2,571
Share-based compensation 25,237 35,964 55,517 10,252 16,308
Acquisition related costs &
amortization of acquired intangibles5,945 6,624 5,605 1,588 2,659
Facility exit costs 342 580 -- -- --
Non-GAAP operating income $51,850 $90,460 $123,406 $25,467 $21,538
GAAP net income to Non-GAAP net income:
Net Income $16,015 $47,072 $63,064 $13,677 $2,386
Share-based compensation 25,237 35,964 55,517 10,252 16,308
Acquisition related costs &
amortization of acquired intangibles5,945 6,624 5,605 1,588 2,659
Facility exit costs 342 580 -- -- --
Amortization of debt discount and issuance costs -- -- 1,966 -- 4,240
Non-GAAP tax adjustments (5,644) (13,717) (18,251) (4,046) (6,012)
Non-GAAP net income $41,895 $76,523 $107,901 $21,471 $19,581