CyberArk Software Shares Sink 6% on Weak Sales Outlook

Shares in CyberArk Software (CYBR) fell more than 6% after the company warned that more “cautious” buying decisions by its customers will impact sales and cash flow in the near-term. Read More... The post CyberArk Software Shares Sink 6% on Weak Sales Outlook appeared first on TipRanks Financial Blog.

CyberArk Software Shares Sink 6% on Weak Sales Outlook

Shares in CyberArk Software (CYBR) fell more than 6% after the company warned that more “cautious” buying decisions by its customers will impact sales and cash flow in the near-term.

The stock declined 6.3% to $102.80 in morning U.S. trading. The cybersecurity company said profit in the first quarter dropped to 50 cents per share from 56 cents in the year-earlier period, while beating the consensus estimate by 16 cents. Total revenue in the first three months of the year increased 11% to $106.8 million year-on-year, which was $21 million above market estimates.

“Given the weakened economic environment due to Covid-19, we expect customers to make more cautious purchasing decisions which will impact our revenue and cash flow from operations in the near term,” said Josh Siegel, CyberArk Chief Financial Officer. “We believe deal close rates, particularly for new business and in certain verticals, will be less predictable and have therefore decided to withdraw our full year 2020 guidance.”

The cybersecurity company however still provided financial guidance for the second quarter. Total revenue is expected to decline to a range of $95 million-$105 million, which is below market consensus of $109.7 million. Diluted earnings per share in the second quarter are estimated to fall in a range of 17 cents-35 cents versus market consensus of 40 cents.

“We were pleased to deliver results in line with or exceeding all guided metrics for the first quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Privileged Access Management (PAM) is even more critical today with attackers exploiting the sudden and dramatic change in enterprise IT created by remote work environments. In this higher threat environment, our level of engagement with customers has increased as they look to better secure their extended enterprise by expanding their PAM programs.”

Turning now to Wall Street, analysts take a cautious stance on the company’s stock. The Moderate Buy consensus splits into 6 Holds and 5 Buys. The $109.70 average price target indicates 5.3% upside potential in the shares in the coming 12 months. (See CyberArk stock analysis on TipRanks).

Looking ahead, CyberArk plans to manage expenses for the full year to better align with its top line, while also making investments and hire for key roles.

In a separate statement, the company announced the acquisition of identity security company Idaptive in a $70 million cash deal.

In the first quarter, CyberArk generated $33.8 million in net cash provided by operating activities, down from $45.9 million year-on-year. As of March 31, it had $1.2 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares with $509.7 million in cash, cash equivalents, marketable securities and short-term deposits during the same period last year.

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The post CyberArk Software Shares Sink 6% on Weak Sales Outlook appeared first on TipRanks Financial Blog.

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Twilio Partners With Zocdoc For Telehealth Video Consultations

Twilio (TWLO) announced on Wednesday that it will power Zocdoc’s new telehealth online video service, which helps connect more doctors with patients during the coronavirus pandemic. The terms of the Read More... The post Twilio Partners With Zocdoc For Telehealth Video Consultations appeared first on TipRanks Financial Blog.

Twilio Partners With Zocdoc For Telehealth Video Consultations

Twilio () announced on Wednesday that it will power Zocdoc’s new telehealth online video service, which helps connect more doctors with patients during the coronavirus pandemic.

The terms of the agreement were not disclosed. Twilio will be offering three months of free use of its video product for healthcare customers as well as for those in education and nonprofit sectors if they sign up before June 30.

“Zocdoc’s new telehealth solution makes it easier for healthcare professionals to utilize video visits in a time where providers and patients need virtual care most,” said Susan Collins, global head of healthcare services at Twilio. “Twilio Programmable Video’s software agility and cloud scale enabled Zocdoc to make remote visits available in a matter of weeks.”

Twilio disclosed that it has seen a surge in usage across its video platform in response to COVID-19, including a more than 850% increase in peak concurrent participants on its video products and a more than 500% increase in daily video minutes compared with pre-February levels. Usage of Twilio's platform across its healthcare customers is up more than 90% since its February pre-coronavirus averages.

Shares in Twilio have skyrocketed over the past month almost doubling in value after the company posted strong sales figures as the coronavirus-related stay-at-home orders fueled demand for its cloud technology solutions.

After talking to Twilio management, five-star analyst Ittai Kidron at Oppenheimer came back with a bullish outlook and reiterated his Buy recommendation on the stock with a $160 price target.

“Management maintained a cautious tone on 2H as the effects of COVID-19 on customers/activity are not yet fully understood,” Kidron wrote in a note to investors. “We continue to see Twilio as a foundational vendor enabling enterprise digitization activity, closer businesss-to-consumer relationship, and business activity in times of social distancing.”

Looking ahead Kidron sees several opportunities for Twilio that can contribute more meaningfully in 2021 and thereafter, including telehealth video services and in areas of healthcare.

Turning now to the rest of Wall Street analysts the Moderate Buy consensus is split into 12 Buys and 6 Holds. Given the recent rally in the stock the $157.50 average price target implies 15% downside potential in the next 12 months. (See Twilio stock analysis on TipRanks).

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The post Twilio Partners With Zocdoc For Telehealth Video Consultations appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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