Security company CyberArk Software Ltd. saw its stock gain in extended trading today despite posting mixed second-quarter financial results that saw it miss earnings targets.

The Israel-based company reported a profit before certain costs such as stock compensation of a penny per share on revenue of $117.2 million, up 10% from the same period one year ago. Wall Street was looking for a profit of 3 cents per share on revenue of $116.3 million.

The company also posted a net operating loss of $22.8 million for the quarter.

Despite the earnings miss, CyberArk Chairman and Chief Executive Udi Mokady (pictured) said he was “thrilled” with the company’s second-quarter performance. “Our momentum continued and our underlying business growth meaningfully accelerated in the second quarter, driven by robust industry tailwinds and excellence in our execution,” he said.

CyberArk sells identity access management tools that are used to enforce privilege, enables access and secure DevOps and enable access to business resources. Last month, the company expanded on this offering with the launch of a new open-source tool designed to identify Shadow Admin accounts in Microsoft Corp. Azure and Amazon Web Services Inc. cloud environments. Called CyberArk SkyArk, it’s meant to help organizations combat Shadow Admins by targeting and securing the most privileged entities in both Azure and AWS environments.

The company certainly had a lot of positive numbers to share. It reported subscription revenue of $27.1 million in the quarter, up 101% from a year ago. Meanwhile, its maintenance and professional services revenue came to $62.9million, up 10% from a year ago.

Officials also reported annual recurring revenue growth of 35% to $315 million. It said the subscription portion of its ARR came to $109.5million, up 128% and accounting for 35% of its total. The maintenance and professional services portion of ARR came to $205.7 million.

The company also said it added 185 new customers during the quarter.

“With our push to execute our subscription transition, we achieved a 65 percent subscription booking mix, which was significantly higher than our guidance framework,” Mokady said. “With the increased headwind from this mix acceleration, we were still able to generate $117.2 million in total revenue, above the mid-point of our guidance, which demonstrates that our bookings in the second quarter were well ahead of our expectations.”

Looking to the next quarter, CyberArk said it’s gunning for earnings of between break-even and a loss of 2 cents per share, with revenue in a range of $116 million to $124 million. Wall Street had earlier forecast third-quarter earnings of a penny per share on revenue of $117.9 million.

CyberArk’s stock rose almost 2% in after-hours trading.

Photo: CyberArk