CyberArk Software Ltd.

Good morning. My name is Rob and I'll be your conference operator today. At this time, I would like to welcome everyone to the CyberArk first quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you, Erica Smith, SVP, Investor Relations, and ESG. You may begin your conference.

Thank you, Rob. Good morning. Thank you for joining us today to review CyberWorks' first quarter 2023 financial results. With me on the call today are Matt Cohen, our Chief Executive Officer, and Josh Siegel, our Chief Financial Officer. After prepared remarks, we will open up the call to a question and answer session. Before we begin, let me remind you that certain statements made on the call today may be considered forward-looking statements, which reflects management's best judgment based on currently available information. I refer specifically to the discussion of our expectations and beliefs regarding our projected results of operation for the second quarter, full year 2023, and beyond. Our actual results might differ materially from those projected in these forward-looking statements. I direct your attention to the risk factors contained in the company's annual report on Form 20F filed with the U.S. Securities and Exchange Commission and those referenced in today's press release that are posted on CyberArk's website. CyberArk expressly disclaims any application or undertaking to release publicly any updates or revisions to any forward-looking statements made today. Additionally, non-GAAP financial measures will be discussed on this conference call. Reconciliations to the most directly comparable GAAP financial measures are also available in today's press release as well as in an updated investor presentation that outlines the financial discussion in today's call. We also want to remind you that we provide information for additional color regarding subscription mixed bookings, but it should not be viewed as comparable to or a substitute for reported gap revenues or other gap metrics. A webcast of today's call is also available on our website in the IR section. With that, I'd like to turn the call over to our CEO, Matt Cohen. Matt?

Thanks, Erica. And thanks, everyone, for joining my first earnings call as CyberArk CEO. Since starting my new role about six weeks ago, I've met extensively with our team and with customers and partners from around the world. The support, passion, and commitment to our mission is palpable. My meetings reinforce that we have amazing people an impressive base of customers and partners. And we are the only vendor tackling the critical security challenge of applying privileged controls to all human and machine identities through a unified identity security platform. We are adding the mission-critical controls that stops attacks from progressing, a requirement in today's threat landscape. Because of our unique value proposition, CyberArk is being prioritized even in today's macroeconomic backdrop. And I am pleased with how we are navigating the current environment. Subscription ARR reached 403 million and grew 84% year-over-year. Total ARR reached 604 million and grew 42% year-over-year. Total revenue growth accelerated to 27% and came in at 161.7 million for the first quarter. Our subscription bookings mix reached 95%, an all-time high driven by a demand for our SaaS solutions and our platform selling motion. Before getting into the details of the quarter, I wanted to talk about the macro environment itself. We are pleased that our SaaS and subscription bookings outperformed the macro assumptions embedded in our Q1 guidance. We did continue to see longer cycles in Q1, and select larger deals downsized, reducing the scope of these initial engagements. But we are confident that identity security programs are moving forward because many of those customers are already back in the pipeline, and we expect expansion opportunities as we move through the year. The strength of our subscription ARR, our ARR guidance, and our ability to maintain our full-year revenue guidance despite a material increase in subscription bookings mix speaks to the durability of demand and the prioritization of our identity security platform. Deals are progressing through the pipeline, and we are seeing record pipeline growth across the entire portfolio, with strong momentum in our access, EPM, and secrets business, as well as for our privileged cloud offering. Moving on to the quarter, we will frame the discussion as always around growth, innovation, and profitability. The persistent secular tailwinds of digital transformation, cloud migration, and attacker innovation are only accelerating. AI is a new powerful example of technology that will shape the cyber landscape. With weaponized AI, organizations become even more vulnerable to attacks that are difficult, if not impossible, to detect. An assumed breach posture, including implementing privilege controls and least privilege, is one of the best ways to protect against these emerging threats. At our impact customer event taking place in just under two weeks, you will not only hear about AI as an attack vector, but also how we can leverage AI to make our customers more secure. Recently conducted a survey of 1,500 cybersecurity professionals, and 92% consider identity security as mission critical, but only 9% stated that they had a comprehensive strategy in place. There is an enormous gap between the level of identity protection and the maturity of organizations, a massive opportunity for us at CyberArk. We have architected our platform strategy to capitalize on these secular tailwinds, and our go-to-market engine is built to scale CyberArk well beyond our 1 billion ARR target. Our recent innovations are gaining traction, workforce password management, secure web sessions, privileged lifecycle management, compliance, flows, Conjure Cloud and Secrets Hub, all had key wins in the quarter. and are contributing to customer excitement. Our land and expand motion begins with new logos, and we signed over 200 customers in the first quarter. A few key Q1 wins include a major insurance company was struggling to scale and secure its cloud-first strategy with a point PAM provider. This customer wanted deeper protection and to increase security and control by layering privilege controls across every identity. Our identity security platform will be deployed globally, including secure web sessions, identity flows, identity compliance, and of course, privileged cloud. For many customers, the AWS marketplace is reducing friction in our sales cycle. In the first quarter, a leading healthcare provider leveraged this new route to market to buy workforce password management, as well as privileged cloud and secrets management to secure the DevOps pipeline. Regulation, compliance, and cyber insurance are broad drivers that contributed to our results, including wins in the banking, insurance, and healthcare verticals. Early in Q2, we formalized the cyber insurance referral program with a leading company, and already we're receiving opportunities in the pipe. In addition to signing marquee customers, we had a strong expansion quarter for SaaS and subscriptions. Our land and expand motion is accelerating across the identity security platform and the most visible metric is the over 40% increase in customers with more than 100,000 in annual recurring revenue, which reached 1400 customers at the end of Q1. A few examples include an existing IT software company that purchased identity flows to automate PAM workflows in order to increase efficiency and also expanded its protection with workforce password management to provide peace of mind by not only managing but securing employee passwords. A Fortune 100 transportation company who has been a longtime PAM customer and began protecting endpoints in the second half of 2022 cited the threat of weaponized AI and our ability to protect against ransomware as key motivators in a significant Q1 expansion deal. The channel is extending our market reach with more feet on the street and momentum is building with partner certifications in CyberArk Identity and now also in Secrets Management. While still a relatively small contributor to our overall business, MSSPs across APJ, EMEA, and Americas are helping us move down market and reach customers who rely on managed services to secure and scale their environments. On the innovation side, we were recognized by Coupanger Coal, as a leader in privileged access management. Further validation of the strength of our solutions. Workforce password management is another example where we are setting the pace of innovation in identity security. In the first quarter, we announced that workforce password management used in conjunction with secure web sessions create an industry first way of accessing sensitive applications. The platform effect is accelerating. Today, early access customers are leveraging EPM and Privileged Cloud to discover, review, and automatically onboard all local Windows and Mac OS endpoint privileged accounts. This enhanced capability improves security and lowers risk of credential theft and privilege escalation at the endpoint. Josh will cover profitability in just a few moments, but I wanted to reiterate that as we look into 2023, we will continue to invest with discipline and leverage each of our operating expense lines this year and beyond. Importantly, with our growth, we have the ability to be agile in our investment plans and make adjustments as we move through the year. As I've done the round with investors, I've been asked about what I would be changing as CEO. As we talked about in February with Udi, at the highest level, we're not changing the strategy. We have all the ingredients to execute and deliver growth and profitability. That said, there remains areas where we can improve our execution, and drive the next level of performance. One key focus area is harnessing the data that comes with the subscription transition to drive expansion opportunities, boost productivity, and deliver operational excellence. This data combined with the same rigorous programmatic execution that allowed us to shift our entire business model in only five quarters will empower the company to take customer success to the next level, increase our sales and marketing productivity, and drive more efficiency through our innovation engine as we enhance our identity security platform. A second focus area and one that we are all laser focused on is our role as the leader in identity security and fully realizing this tremendous opportunity. Consolidation of trust for identity is underway within our customers. Identity is more critical than ever and organizations are increasingly moving towards trusted partners that can secure the broadest set of use across identities and environments. With this in mind, we are accelerating our platform selling motion, our new platform services, and how we leverage our robust partner ecosystem to extend our reach and drive our growth. Securing all identities, not just managing human access, is a requirement at the center of our customers' cybersecurity strategies. And with our approach based on privilege controls, we are best positioned to capture the market. We are becoming the platform of choice for customers and driving deep alignment across the organization while creating a disciplined execution machine will help ensure we extend our commanding lead in the identity security market. In the first quarter, we made great progress executing our strategy, and we delivered strong results as we navigated a challenging macro environment. We are executing and on pace to accelerate growth, improve profitability, and generate strong cash flow for the year. I will now turn the call over to Josh who will discuss our financial results in more detail and provide you with our outlook for the second quarter. The increase in our full year ARR guidance and what is essentially a guidance raise for the full 2023. when you look through the subscription bookings mix, Edwin. Josh?