Shares of cyber security company CyberArk Software (NASDAQ:$CYBR) spiraled down by 15% on Thursday, July 13. The stock fell after the company decreased its guidance, expecting a lower number in sales and profits in its second quarter report. The total revenue expected now ranges from $57 million to $57.5 million, whereas CyberArk’s previous guidance for revenue ranged between $61 million and $62 million. GAAP operating income is now predicted to be in the range of $700,000 to $1.1 million, and non-GAAP operating income is now predicted to be in the range of $8.5 million to $8.9 million. Both predictions are way below the previous guidance, which was an income between $10.9 million and $11.7 million. Full financial results for the second quarter, as well as an updated guidance from CyberArk, will be provided on August 8th.
CyberArk’s CEO Udi Mokady expressed the company’s disappointment for moving their guidance lower than previous predictions provided back in May in a statement. Mokady cited the main reason for the fall in revenue to be the performance in Africa and the Middle East regions. According to the company, some deals that CyberArk thought would close by the end of the quarter did not close.
This could just be a minor setback for the company, however, as CyberArk’s shares ended the regular trading day with a 1.1% increase. Although it’s not much, an increase is still better than a continuous decrease.
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