Exhibit 99.1

CyberArk Announces Strong Third Quarter 2018 Results

Record total revenue of $84.7 million increases by 31% year-over-year

GAAP operating income of $8.8 million and record non-GAAP operating income of $21.0 million

Net cash provided by operating activities for the nine months of $89.2 million

Deferred revenue of $136.0 million increases by 59% year-over-year

Newton, Mass. and Petach Tikva, Israel – November 7, 2018 – CyberArk (NASDAQ: CYBR), the global leader in privileged access security, today announced record total revenue and strong financial results for the third quarter ended September 30, 2018.

“We exceeded our financial outlook across all guided metrics, while generating record revenue and non-GAAP operating income in the third quarter,” said Udi Mokady, CyberArk Chairman and CEO. “Our strong results reflect our success executing our growth strategy across sales and marketing as well as delivering innovative solutions that help strengthen customers’ overall security posture on premises, in the cloud and across the DevOps pipeline. Given our strong leadership position in the privileged access security market and our performance year to date, we are pleased to raise our full year guidance for 2018.”

Financial Highlights for the Third Quarter Ended September 30, 2018

Revenue:

Total revenue was $84.7 million, a 31% increase from $64.8 million in the third quarter of 2017.

License revenue was $46.1 million, a 29% increase compared to $35.8 million in the third quarter of 2017.

Maintenance and Professional Services revenue was $38.5 million, a 33% increase from $29.0 million in the third quarter of 2017.

Operating Income:

GAAP operating income was $8.8 million for the quarter, compared to $1.7 million in the third quarter of 2017.

Non-GAAP operating income was $21.0 million for the quarter, compared to $10.7 million in the third quarter of 2017.

Net Income:

GAAP net income was $8.1 million, or $0.22 per diluted share, compared to GAAP net income of $1.7 million, or $0.05 per diluted share, in the third quarter of 2017.

Non-GAAP net income was $17.8 million, or $0.48 per diluted share, compared to $8.9 million, or $0.25 per diluted share, in the third quarter of 2017.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating income and net income for the three months and nine months ended September 30, 2018 and 2017. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Balance Sheet and Cash Flow:

As of September 30, 2018, CyberArk had $410.0 million in cash, cash equivalents, marketable securities and short-term deposits. This compares to $330.3 million as of December 31, 2017 and $296.8 million at September 30, 2017.

As of September 30, 2018, total deferred revenue was $136.0 million, a 29% increase from $105.2 million at December 31, 2017 and a 59% increase from $85.6 million at September 30, 2017.

During the first nine months of 2018, CyberArk generated $89.2 million in net cash provided by operating activities, an increase of 100% from $44.6 million in the first nine months of 2017.

Business Outlook

Based on information available as of November 7, 2018, CyberArk is issuing guidance for the fourth quarter and increasing its guidance for the full year 2018 as indicated below.

Fourth Quarter 2018:

Total revenue is expected to be in the range of $94.75 million to $96.25 million which represents 18% to 20% year-over-year growth.

Non-GAAP operating income is expected to be in the range of $27.3 million to $28.5 million, or an operating margin of 29% to 30%.

Non-GAAP net income per share is expected to be in the range of $0.58 to $0.60 per diluted share. This assumes 37.9 million weighted average diluted shares.

Full Year 2018:

Total revenue is expected to be in the range of $328.9 million to $330.4 million, which represents 26% year-over-year growth.

Non-GAAP operating income is expected to be in the range of $78.0 million to $79.2 million, or an operating margin of 24%.

Non-GAAP net income per share is expected to be in the range of $1.75 to $1.77 per diluted share. This assumes 37.2 million weighted average diluted shares.

Conference Call Information

CyberArk will host a conference call on today, Wednesday, November 7, 2018 at 4:30 p.m. Eastern Time (ET) to discuss the company’s third quarter financial results and its business outlook. To access this call, dial +1 844-237-3590 (U.S.) or +1 484-747-6582 (international). The conference ID is 2673547. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s web site at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 855-859-2056 (U.S.) or +1 404-537-3406 (international). The replay pass code is 2673547. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s web site at www.cyberark.com.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in privileged access security, a critical layer of IT security to protect data, infrastructure and assets across the enterprise, in the cloud and throughout the DevOps pipeline. CyberArk delivers the industry’s most complete solution to reduce risk created by privileged credentials and secrets. The company is trusted by the world’s leading organizations, including more than 50 percent of the Fortune 100, to protect against external attackers and malicious insiders. A global company, CyberArk is headquartered in Petach Tikva, Israel, with U.S. headquarters located in Newton, Mass. The company also has offices throughout the Americas, EMEA, Asia Pacific and Japan. To learn more about CyberArk, visit www.cyberark.com, read the CyberArk blogs or follow on Twitter via @CyberArk, LinkedIn or Facebook.

Non-GAAP Financial Measures

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating income and non-GAAP net income is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to operating income or net income or any other performance measures derived in accordance with GAAP.

Non-GAAP gross profit is calculated as gross profit excluding share-based compensation expense and amortization of intangible assets related to acquisitions.

Non-GAAP operating income is calculated as operating income excluding share-based compensation expense, acquisition related expenses, facility exit and transitions costs and amortization of intangible assets related to acquisitions.

Non-GAAP net income is calculated as net income excluding share-based compensation expense, acquisition related expenses, facility exit and transitions costs, amortization of intangible assets related to acquisitions, intra-entity IP transfer tax effect and the tax effect of the other non-GAAP adjustments.

The Company believes that providing non-GAAP financial measures that exclude share-based compensation, acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transitions costs, intra-entity IP transfer tax effect and the tax effect of the non-GAAP adjustments allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that expenses related to its acquisitions and amortization of intangible assets related to acquisitions, facility exit and transitions cost and intra-entity IP transfer tax effect do not reflect the performance of its core business and impact period-to-period comparability.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, facility exit and transitions costs, amortization of intangible assets related to acquisitions, intra-entity IP transfer tax effect and the tax effect of the other non-GAAP adjustments. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortization of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.

Cautionary Language Concerning Forward-Looking Statements

This release 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: changes in the rapidly evolving cyber threat landscape; failure to effectively manage growth; near-term declines in our operating and net profit margins and our revenue growth rate; real or perceived shortcomings, defects or vulnerabilities in the Company’s solutions or internal network system, or the failure of the Company’s customers or channel partners to correctly implement the Company’s solutions; fluctuations in quarterly results of operations; the inability to acquire new customers or sell additional products and services to existing customers; competition from IT security vendors; the Company’s ability to successfully integrate recent and or future acquisitions; 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.

###

Investor Contact:

Erica Smith

CyberArk

Phone: +1- 617-558-2132

ir@cyberark.com

Media Contact:

Liz Campbell

CyberArk

Phone: +1-617-558-2191

press@cyberark.com

CYBERARK SOFTWARE LTD.
Consolidated Statements of Operations
U.S. dollars in thousands (except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2018			2017		2018
Revenues:
License	$	35,818		$	46,130		$	99,088	$	125,745
Maintenance and professional services		29,000			38,523			82,245		108,404

Total revenues		64,818			84,653			181,333		234,149

Cost of revenues:
License		2,161			2,614			5,652		7,521
Maintenance and professional services		8,801			9,530			24,577		27,619

Total cost of revenues		10,962			12,144			30,229		35,140

Gross profit		53,856			72,509			151,104		199,009

Operating expenses:
Research and development		11,369			14,980			30,144		41,772
Sales and marketing		32,877			37,880			90,055		107,983
General and administrative		7,927			10,870			22,214		29,483

Total operating expenses		52,173			63,730			142,413		179,238

Operating income		1,683			8,779			8,691		19,771

Financial income, net		816			1,407			2,491		3,473

Income before taxes on income		2,499			10,186			11,182		23,244

Tax benefit (taxes on income)		(818	)		(2,092	)		1,281		(352	)

Net income	$	1,681		$	8,094		$	12,463	$	22,892

Basic net income per ordinary share	$	0.05		$	0.22		$	0.36	$	0.64
Diluted net income per ordinary share	$	0.05		$	0.22		$	0.34	$	0.62

Shares used in computing net income
per ordinary shares, basic		34,979,389			36,485,724			34,703,328		35,981,177
Shares used in computing net income
per ordinary shares, diluted		36,184,151			37,475,729			36,153,515		36,894,457

Share-based Compensation Expense:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Cost of revenues	$	701	$	957	$	1,658	$	2,370
Research and development		1,775		2,237		4,607		5,748
Sales and marketing		2,459		3,770		6,148		9,061
General and administrative		2,267		3,371		6,230		8,492

Total share-based compensation expense	$	7,202	$	10,335	$	18,643	$	25,671

CYBERARK SOFTWARE LTD.

Consolidated Balance Sheets

U.S. dollars in thousands

(Unaudited)

	December 31,		September 30,
	2017		2018
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	161,261	$	205,247
Short-term bank deposits		107,647		127,695
Marketable securities		34,025		53,532
Trade receivables		45,315		29,707
Prepaid expenses and other current assets		7,407		8,413

Total current assets		355,655		424,594

LONG-TERM ASSETS:
Property and equipment, net		9,230		13,596
Intangible assets, net		15,664		16,374
Goodwill		69,217		83,156
Marketable securities		27,407		23,544
Severance pay fund		3,692		3,669
Other long-term assets		2,368		21,379
Deferred tax asset		19,343		23,076

Total long-term assets		146,921		184,794

TOTAL ASSETS	$	502,576	$	609,388

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	1,960	$	2,841
Employees and payroll accruals		25,253		25,861
Accrued expenses and other current liabilities		10,209		7,623
Deferred revenues		66,986		84,176

Total current liabilities		104,408		120,501

LONG-TERM LIABILITIES:
Deferred revenues		38,249		51,838
Other long-term liabilities		242		1,218
Accrued severance pay		5,712		5,692

Total long-term liabilities		44,203		58,748

TOTAL LIABILITIES		148,611		179,249

SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value		91		95
Additional paid-in capital		249,874		291,087
Accumulated other comprehensive income (loss)		107		(577	)
Retained earnings		103,893		139,534

Total shareholders' equity		353,965		430,139

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	502,576	$	609,388

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

	Nine Months Ended
	September 30,
	2017			2018
Cash flows from operating activities:
Net income	$	12,463		$	22,892
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,731			7,327
Amortization of premium on marketable securities		286			270
Share-based compensation expenses		18,643			25,671
Deferred income taxes, net		(3,387	)		(6,669	)
Decrease (increase) in trade receivables		(222	)		15,608
Increase in prepaid expenses and other current and long-term assets		(578	)		(5,669	)
Increase (decrease) in trade payables		(913	)		771
Increase in short term and long term deferred revenues		12,074			34,298
Increase (decrease) in employees and payroll accruals		384			(2,315	)
Decrease in accrued expenses and other current and long-term liabilities		(279	)		(3,031	)
Increase in accrued severance pay, net		382			3

Net cash provided by operating activities		44,584			89,156

Cash flows from investing activities:
Investment in short and long term deposits		(14,132	)		(19,768	)
Investment in marketable securities		(28,303	)		(47,316	)
Proceeds from maturities of marketable securities		13,217			31,198
Purchase of property and equipment		(3,840	)		(7,130	)
Payments for business acquisitions, net of cash acquired		(41,329	)		(18,450	)

Net cash used in investing activities		(74,387	)		(61,466	)

Cash flows from financing activities:
Proceeds from withholding tax related to employee stock plans		-			2,220
Proceeds from exercise of stock options		2,080			14,038

Net cash provided by financing activities		2,080			16,258

Increase (decrease) in cash, cash equivalents and restricted cash		(27,723	)		43,948

Cash, cash equivalents and restricted cash at the beginning of the period		174,156			162,518

Cash, cash equivalents and restricted cash at the end of the period	$	146,433		$	206,466

CYBERARK SOFTWARE LTD.

Reconciliation of GAAP Measures to Non-GAAP Measures

U.S. dollars in thousands (except per share data)

(Unaudited)

Reconciliation of Gross Profit to Non-GAAP Gross Profit:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Gross profit	$	53,856	$	72,509	$	151,104	$	199,009
Plus:
Share-based compensation - Maintenance & professional services		701		957		1,658		2,370
Amortization of intangible assets - License		1,195		1,444		3,030		4,118

Non-GAAP gross profit	$	55,752	$	74,910	$	155,792	$	205,497

Reconciliation of Operating Income to Non-GAAP Operating Income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Operating income	$	1,683	$	8,779	$	8,691	$	19,771
Plus:
Share-based compensation		7,202		10,335		18,643		25,671
Amortization of intangible assets - Cost of revenues		1,195		1,444		3,030		4,118
Amortization of intangible assets - Sales and marketing		249		198		784		595
Acquisition related expenses		-		-		686		268
Facility exit and transitions costs		342		253		342		253

Non-GAAP operating income	$	10,671	$	21,009	$	32,176	$	50,676

Reconciliation of Net Income to Non-GAAP Net Income:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Net income	$	1,681		$	8,094		$	12,463		$	22,892
Plus:
Share-based compensation		7,202			10,335			18,643			25,671
Amortization of intangible assets - Cost of revenues		1,195			1,444			3,030			4,118
Amortization of intangible assets - Sales and marketing		249			198			784			595
Acquisition related expenses		-			-			686			268
Facility exit and transitions costs		342			253			342			253
Taxes on income related to non-GAAP adjustments		(1,757	)		(4,764	)		(9,046	)		(12,957	)
Intra-entity IP transfer tax effect, net		-			2,243			-			2,243

Non-GAAP net income	$	8,912		$	17,803		$	26,902		$	43,083

Non-GAAP net income per share
Basic	$	0.25		$	0.49		$	0.78		$	1.20
Diluted	$	0.25		$	0.48		$	0.74		$	1.17

Weighted average number of shares
Basic		34,979,389			36,485,724			34,703,328			35,981,177
Diluted		36,184,151			37,475,729			36,153,515			36,894,457