CyberArk Software Ltd.

Today's conference is being recorded. 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 would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I would like to turn the conference over to Erica Smith, SVP, Investor Relations, and ESG. Please go ahead.

Thank you, Audra. Good morning. Thank you for joining us today to review CyberArk's second 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 reflect 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 operations for the third 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. Cyber 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 the updated investor presentation that outlines the financial discussion in today's call. A webcast of this call is available on our website in the investor relations section. With that, I'd like to turn the call over to our CEO, Matt Cohen. Matt?

Thanks, Erica, and thanks everyone for joining the call today. Momentum continues to build across our business. Our strong second quarter performance underscores the three key reasons we are winning. First, the power of our identity security platform to drive our land and expand motion. Our comprehensive portfolio and the depth of our SaaS solutions are continuing to increase the velocity in our business. Second, identity security is a non-negotiable requirement for organizations. This is only amplified by the ever-increasing importance of protecting hybrid and cloud-native environments. And third, we are executing against their strategic imperatives, accelerating our platform selling motion, extending our reach through the channel, enhancing our customer success organization, and delivering cutting-edge innovation. The strength of our execution and the durability of demand is evident in our performance. Subscription ARR reached 451 million, growing 77% year over year. Total ARR reached 653 million, growing 40 percent. We added a robust 49 million in net new ARR, and we exceeded our guidance range across revenue, operating loss, and EPS, with total revenue growing 24 percent to 176 million, non-GAAP operating loss coming in at 6 million, and non-GAAP earnings per share of 3 cents, all above the range. I am incredibly proud of how we are navigating the macroeconomic backdrop. Our go-to-market teams continue to adjust their selling approach to overcome the increased deal scrutiny and longer approval cycles that we have seen for several quarters, enabling us to deliver a really well-executed performance. We had a strong new business quarter, and customers continued to broaden their CyberArk relationships, buying new users and expanding to new solutions across the platform. Our pipeline continues to build at a record pace. Deals are progressing, and our win rates are really strong. We hosted our Impact customer event in May. It was great to see so many of you who attended in person, and we appreciate those who tuned into the virtual sessions. Impact in Boston is our marquee event, but we are also hosting our Impact World Tour across 20 cities across the world throughout the summer and fall. Over the last few months, we have touched thousands of customers, prospects, and partners as part of this program. The feedback is resoundingly positive. We are helping customers mitigate risk and drive efficiency as they manage the explosion of new identities, new environments, and new attack methods. Moving on to the details of the quarter, we will frame the discussion around growth, innovation, and profitability. Starting with our growth drivers, A typical organization has thousands of unique identities, and those identities have more access today than ever before. In a recently released identity security threat landscape report, every organization we surveyed expects an identity-related compromise in the year ahead. And more than half say this will happen as part of a digital transformation initiative. Generative AI is compounding these trends. Attackers are innovating faster than ever. and are more sophisticated, further elevating the urgency for comprehensive identity security. As a result, organizations are consolidating across security vendors based on trust, what we refer to as a consolidation of trust. They are choosing long-term partners like CyberArk because of deep domain expertise, leadership position, breadth of platform, and superior technology. Our differentiation includes our ability to secure all identities, human and machine, as they access all environments, including hybrid and multi-cloud environments, while applying our comprehensive intelligent privilege controls across standing access, just-in-time access, and our zero standing privilege approach. Our most recent product introduction, Secure Cloud Access, which provides secure native access with zero standing privileges across multi-cloud environments is resonating with customers. When combined with just-in-time access for cloud workloads, it creates the ability for customers to reimagine their PAM programs. In addition, when secure cloud access is combined with Secrets Hub and Conjure Cloud, developers and the security teams can innovate even faster in the cloud. For the workforce, we take this one step further, providing privileged controls to the enterprise with secure web sessions and workforce password management. These are great examples of how our platform is delivering compelling value to customers and driving our long-term growth. Our innovation engine and go-to-market execution contributed to our strong new business quarter and 235 new logos. While PAM continues to be the primary landing spot Our platform has been key to our success, with customers increasingly landing with two or more solutions. Digging into a few wins in the quarter, driven by cyber insurance requirements, an industry-leading Fortune 500 transportation company wanted a solution that would evolve and scale with the company's cloud strategy. In addition to Privileged Cloud, the customer will centrally secure human and non-human privilege access, across its global multi-cloud infrastructure with secure cloud access and Secrets Hub. As part of its zero trust strategy, a leading cybersecurity company landed with our endpoint privilege manager to remove local admin rights from all endpoints and help mitigate the risk of ransomware attacks. A leading telecommunication provider in South America is embracing our identity security platform to achieve operational efficiencies and measurable risk reduction. This customer is consolidating vendors and will be using the CyberArk platform, including PAM, Endpoint Privilege Manager, and Secrets Manager across all seven of its companies. The velocity of our business is also picking up as customers achieve faster time to value with our SaaS solutions. The success of our land and expand motion is represented by the nearly 40% increase in customers with more than 100,000 in annual recurring revenue to approximately 1,500 at the end of Q2. A few examples include a global 500 energy company embraced our identity security vision and expanded from a large PAM footprint to DevOps and cloud security in Q2 with Conjure Cloud, Secrets Hub, and Secure Cloud Access. An auto manufacturing company who bought CyberArk PAM in the third quarter of 2022 was looking to expand with a modern identity security partner. During the second quarter, they bought more privileged cloud and added Workforce Password Manager as its first CyberArk identity solution. Accenture is one of our most successful advisory partners with a strong CyberArk identity security practice. Given their deep understanding of the security market, we are pleased they will expand their use of CyberArk Privileged Cloud to deliver advanced cybersecurity controls for clients and also utilize it themselves. We look forward to continuing to extend our relationship with Accenture. The channel is extending our market reach with more feet on the street and more services power. Certifications for Endpoint Privilege Manager, CyberArk Identity, and Secrets Management are growing quickly. MSPs remain a key pillar for the future growth, and we are gaining traction with GuidePoint, Kendrell, NTT, among others, who delivered key wins in Q2 and are helping us reach new customer segments. In fact, BT, a leading British multinational telecommunications company, needed a modern, scalable security partner as it rapidly scales its global managed services operations to help ensure their customers' critical identities are protected. During the second quarter, they made the strategic decision to leverage CyberArk Identity as their key access solution. Moving on to innovation. At our impact customer event in May, we were excited to share how we are at the leading edge of innovation in identity security, including the introduction of AI-powered automation and policy creation for EPM to help reduce risk and implement least privilege at the endpoint. CyberArk has a long track record of working to stay ahead of both the competition and attackers. Today, the attackers are leveraging AI to exponentially increase their effectiveness, and capacity to change tactics and techniques and procedures continues to increase. While attack methods are evolving rapidly, the common denominator in these attacks remains identities. We are harnessing generative AI to develop new security solutions and enhancements for our customers innovation to combat innovation. We have a team dedicated to integrating AI across our product portfolio, as well as new innovations, and we are looking forward to sharing information about our initiatives later in the year. At Impact, we also launched Secrets Hub for Azure and Pam self-hosted. Since launching last year, security professionals love the security controls, while developers can continue their workflow, but with frictionless protection. making CyberArk the secrets backbone of the enterprise. CyberArk Secure Browser was one of the highlights of the event. Secure Browser is purpose-built for the enterprise and delivers security, privacy, and productivity. It can act as a front end to CyberArk's identity security platform while also securing the overall browsing experience for privileged users. One of the areas that our customers are most intrigued by is the ability to stop session hijacking. an increasingly dangerous form of attack where hackers are looking to steal cookies and take over sessions to harvest critical data and IP. Moving on to profitability. As the dynamics of the subscription transition begin to subside, we are marching towards our Rule of 40 goal. As you see in our full year bottom line raise, our identity security platform will not only help increase our go-to-market productivity, but also drive operating leverage by supporting rapid, cost-effective innovation across all of our product groups. We have always made disciplined investments to support our growth, and I remain very confident in the long-term profit goals we put out at our investor day just a few months ago. In summary, our go-to-market organization and innovation engine are delivering. We are accelerating our platform selling motion, our new platform services, and how we leverage our robust partner relationships to extend our reach and drive our growth. We are thrilled with the early adoption of our cloud security solutions and the momentum we are seeing in the market. Securing all identities, not just managing human access, is a requirement at the center of our customer cybersecurity strategies. As we look ahead, the momentum in our business, strong execution in the first half, and disciplined investment approach positioned us to confidently raise our full-year guidance for ARR and improve our operating profitability. I will now turn the call over to Josh, who will discuss our outperformance in more detail and provide you with our guidance for the third quarter of the year.