Why Did CyberArk Software Stock Gain Despite Q2 EPS Miss? - CyberArk Software (NASDAQ:CYBR)

CyberArk Software Ltd CYBR reported second-quarter FY21 revenue growth of 10% year-on-year to $117.2 million, beating the analyst consensus of $116 million. Non-GAAP EPS of $0.01 missed the analyst consensus of $0.02.
Segments: Revenues from Subscription expanded 101% Y/Y to $27.1 million, Maintenance and professional services rose 10% Y/Y to $62.9 million, and Perpetual license reduced 23.5% Y/Y to $27.3 million.
Key Performance Indicators: Annual Recurring Revenue (ARR) increased 35% Y/Y to $315 million. The subscription portion of ARR was $109.5 million, implying a 128% Y/Y growth. The Maintenance portion of ARR was $205.7 million signifying a 10.9% Y/Y growth.
Recurring revenue grew 32% Y/Y to $80.6 million, and the company added over 185 new customers. CyberArk reached a 65% subscription booking mix.
CyberArk held $1.2 billion in cash and equivalents and generated $49.5 million in operating cash flow during the six months ended Jun. 30.
Margin: The non-GAAP gross margin contracted 164 bps to 83.5% as costs rose 14% Y/Y. The non-GAAP operating margin reduced 1,418 bps to 1.7% as expenses increased 29% Y/Y.
Outlook: CyberArk sees Q3 revenue of $116.0 million - $124.0 million against the analyst consensus of $117.9 million.
It sees non-GAAP EPS loss of $(0.19) - $(0.02) below the analyst consensus of $0.05.
CyberArk estimates FY21 revenue of $484.0 million - $496.0 million versus the analyst consensus of $492.64 million and sees non-GAAP EPS of $0.01 - $0.26, below the analyst consensus of $0.53.
Price Action: CYBR shares traded higher by 7% at $145.52 in the market session on the last check Thursday.

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