Exhibit 99.1

CyberArk Announces Strong Third Quarter 2016 Results

Record total revenue of $55.0 million increases 37% year-over-year

Newton, Mass. and Petach Tikvah, Israel – November 3, 2016 – CyberArk, (NASDAQ: CYBR), the company that protects organizations from cyber attacks that have made their way inside the network perimeter, today announced record financial results for the third quarter ended September 30, 2016.

“CyberArk’s record revenues in the third quarter were driven by strong global demand across verticals as organizations continue to prioritize privileged account security,” said Udi Mokady, CyberArk Chairman and CEO. “Our results demonstrate that companies of all sizes are choosing CyberArk as a strategic partner to help protect their most valuable assets on premise and in the cloud.  Our investments in product innovation, expanding our sales and marketing engine and growing our partner ecosystem, are strengthening our position as the leader in privileged account security.”

Financial Highlights for the Third Quarter Ended September 30, 2016

Revenue:

· Total revenue was $55.0 million, up 37% compared with the third quarter of 2015.

· License revenue was $33.3 million, up 34% compared with the third quarter of 2015.

· Maintenance and Professional Services revenue was $21.7 million, up 42% from the third quarter of 2015.

Operating Income:

· GAAP operating income was $8.1 million for the quarter, compared to $8.3 million in the third quarter of 2015.

· Non-GAAP operating income was $14.3 million for the quarter, up from $11.1 million in the third quarter of 2015.

Net Income:

· GAAP net income was $7.1 million, or $0.20 per diluted share, compared to GAAP net income of $6.8 million, or $0.19 per diluted share, in the third quarter of 2015.

· Non-GAAP net income was $11.8 million, or $0.33 per diluted share, compared to $9.2 million, or $0.26 per diluted share, in the third quarter of 2015.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP operating income and net income for the three months and nine months ended September 30, 2016 and 2015. 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, 2016, CyberArk had $274.6 million in cash, cash equivalents, marketable securities and short-term deposits, compared to $238.3 million as of December 31, 2015.

· During the first nine months of 2016, the Company generated $36.2 million in cash flow from operations, compared to $40.3 million in the first nine months of 2015.

Business Outlook

Based on information available as of November 3, 2016, CyberArk is issuing guidance for the fourth quarter and full year 2016 as indicated below.

Fourth Quarter 2016:

· Total revenue is expected to be in the range of $62.0 million to $63.0 million which represents 20% to 22% year-over-year growth.

· Non-GAAP operating income is expected to be in the range of $14.7 million to $15.5 million.

· Non-GAAP net income per share is expected to be in the range of $0.31 to $0.33 per diluted share. This assumes 36.2 million weighted average diluted shares.

Full Year 2016:

· Total revenue is expected to be in the range of $214.3 million to $215.3 million which represents 33% to 34% year-over-year growth.

· Non-GAAP operating income is expected to be in the range of $53.3 million to $54.1 million.

· Non-GAAP net income per share is expected to be in the range of $1.16 to $1.18 per diluted share.  This assumes 35.9 million weighted average diluted shares.

Conference Call Information

CyberArk will host a conference call on today, Thursday, November 3, 2016 at 8:30 a.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 93447199. 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 93447199. 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 is the only security company focused on eliminating the most advanced cyber threats; those that use insider privileges to attack the heart of the enterprise. Dedicated to stopping attacks before they stop business, CyberArk proactively secures against cyber threats before attacks can escalate and do irreparable damage. The company is trusted by the world’s leading companies – including 45 percent of the Fortune 100 – to protect their highest value information assets, infrastructure and applications. A global company, CyberArk is headquartered in Petach Tikvah, Israel, with U.S. headquarters located in Newton, Mass. The company also has offices throughout EMEA and Asia Pacific and Japan. To learn more about CyberArk, visit www.cyberark.com, read the company blog, http://www.cyberark.com/blog/, follow on Twitter @CyberArk or Facebook at https://www.facebook.com/CyberArk

Copyright © 2016 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.

Non-GAAP Financial Measures

CyberArk believes that the use of 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.

· For the three and nine months ended September 30, 2016, non-GAAP operating income is calculated as operating income excluding share-based compensation expense and amortization of intangible assets related to acquisitions. For the three and nine months ended September 30, 2015, non-GAAP operating income is calculated as operating income excluding public offering, amortization of intangible assets and acquisition related expenses as well as share-based compensation expense.

· For the three and nine months ended September 30, 2016, non-GAAP net income is calculated as net income excluding share-based compensation expense, amortization of intangible assets related to acquisitions and the tax effects related to the non-GAAP adjustments. For the three and nine months ended September 30, 2015 non-GAAP net income is calculated as net income excluding public offering,  amortization of intangible assets and acquisition related expenses as well as share-based compensation expense and the tax effects related to the non-GAAP adjustments.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expense, the Company believes that providing non-GAAP financial measures that exclude share-based compensation, public offering and acquisition related expenses and amortization of intangible assets related to acquisitions 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. The Company believes that expenses related to its public offerings, acquisitions and amortization of intangible assets related to acquisitions 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 measures to evaluate its business.

Cautionary Language Concerning Forward-Looking Statements

This release may contain forward-looking statements, which express the current beliefs and expectations of management of CyberArk (the “Company”). 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

617-558-2132

ir@cyberark.com

Media Contact:

Christy Lynch

CyberArk

617-796-3210

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,
	2015			2016			2015			2016
Revenues:
License	$	24,820		$	33,257		$	67,076		$	90,736
Maintenance and professional services		15,236			21,707			42,270			61,519
Total revenues		40,056			54,964			109,346			152,255
Cost of revenues:
License		1,136			1,084			3,517			3,641
Maintenance and professional services		4,395			6,962			12,345			17,750
Total cost of revenues		5,531			8,046			15,862			21,391
Gross profit		34,525			46,918			93,484			130,864
Operating expenses:
Research and development		5,649			9,192			14,029			25,290
Sales and marketing		16,717			23,800			45,626			67,300
General and administrative		3,871			5,841			11,507			15,527
Total operating expenses		26,237			38,833			71,162			108,117
Operating income		8,288			8,085			22,322			22,747
Financial income (expenses), net		58			368			(1,246	)		341
Income before taxes on income		8,346			8,453			21,076			23,088
Taxes on income		(1,573	)		(1,341	)		(5,215	)		(5,203	)
Net income	$	6,773		$	7,112		$	15,861		$	17,885
Basic net income per ordinary share	$	0.20		$	0.21		$	0.50		$	0.53
Diluted net income per ordinary share	$	0.19		$	0.20		$	0.45		$	0.50
Shares used in computing net income
per ordinary shares, basic		33,122,067			33,886,461			31,747,872			33,601,280
Shares used in computing net income
per ordinary shares, diluted		35,761,096			35,983,790			35,186,664			35,798,352

Share-based Compensation Expense:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2016		2015		2016
Cost of revenues	$	139	$	423	$	286	$	949
Research and development		368		1,403		535		3,341
Sales and marketing		713		1,544		1,029		4,140
General and administrative		885		1,721		1,863		4,013
Total share-based compensation expense	$	2,105	$	5,091	$	3,713	$	12,443

 CYBERARK SOFTWARE LTD.

 Consolidated Balance Sheets

 U.S. dollars in thousands

(Unaudited)

	December 31,			September 30,
	2015			2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	234,539		$	145,192
Short-term bank deposits		3,713			92,138
Marketable securities		-			15,148
Trade receivables		20,410			26,731
Prepaid expenses and other current assets		3,293			4,421
Total current assets		261,955			283,630
LONG-TERM ASSETS:
Property and equipment, net		3,584			4,444
Intangible assets, net		18,558			15,156
Goodwill		35,145			35,145
Marketable securities		-			22,077
Severance pay fund		3,230			3,359
Prepaid expenses and other long-term assets		1,954			1,939
Deferred tax asset		9,998			11,262
Total long-term assets		72,469			93,382
TOTAL ASSETS	$	334,424		$	377,012
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables	$	2,530		$	2,112
Employees and payroll accruals		15,860			15,936
Deferred revenues		37,104			45,875
Accrued expenses and other current liabilities		9,366			6,552
Total current liabilities		64,860			70,475
LONG-TERM LIABILITIES:
Deferred revenues		17,285			20,920
Other long-term liabilities		188			232
Accrued severance pay		4,667			5,036
Deferred tax liabilities		754			436
Total long-term liabilities		22,894			26,624
TOTAL LIABILITIES		87,754			97,099
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value		86			88
Additional paid-in capital		200,107			215,115
Accumulated other comprehensive income (loss)		(93	)		255
Retained earnings		46,570			64,455
Total shareholders' equity		246,670			279,913
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	334,424		$	377,012

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

	Nine Months Ended
	September 30,
	2015			2016
Cash flows from operating activities:
Net income	$	15,861		$	17,885
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization		1,036			4,744
Amortization of premium and accretion of discount
on marketable securities		-			165
Share-based compensation expenses		3,713			12,443
Tax benefit related to share-based compensation		(2,321	)		(889	)
Deferred income taxes, net		(1,420	)		(1,616	)
Increase in trade receivables		(3,887	)		(6,321	)
Increase in prepaid expenses and other
current and long-term assets		(1,559	)		(606	)
Increase (decrease) in trade payables		35			(174	)
Increase in short term and long term deferred revenues		24,335			12,406
Increase (decrease) in employees and payroll accruals		(471	)		76
Increase (decrease) in accrued expenses and other
current and long-term liabilities		4,621			(2,109	)
Increase in accrued severance pay, net		369			240
Net cash provided by operating activities		40,312			36,244
Cash flows from investing activities:
Proceeds from short and long term deposits		42,309			-
Investment in short and long term deposits		(614	)		(88,361	)
Investment in marketable securities		-			(37,351	)
Purchase of property and equipment		(1,751	)		(2,446	)
Payments for business acquisitions, net of cash acquired		(23,149	)		-
Net cash provided by (used in) investing activities		16,795			(128,158	)
Cash flows from financing activities:
Issuance of shares, net		52,614			-
Withholding proceeds related to exercise of options		1,011			-
Tax benefit related to share-based compensation		2,321			889
Proceeds from exercise of options		1,693			1,678
Net cash provided by financing activities		57,639			2,567
Increase (decrease) in cash and cash equivalents		114,746			(89,347	)
Cash and cash equivalents at the beginning of the period		124,184			234,539
Cash and cash equivalents at the end of the period	$	238,930		$	145,192

 CYBERARK SOFTWARE LTD.

 Reconciliation of GAAP Measures to Non-GAAP Measures

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

(Unaudited)

Reconciliation of Operating Income to Non-GAAP Operating Income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2016		2015		2016
Operating income	$	8,288	$	8,085	$	22,322	$	22,747
Public offering related expenses		-		-		1,568		-
Share-based compensation		2,105		5,091		3,713		12,443
Amortization of intangible assets - Cost of revenues		19		355		19		1,065
Amortization of intangible assets - Research and development		271		478		271		1,434
Amortization of intangible assets -  Sales and marketing		-		301		-		903
Acquisition related expenses		429		-		517		-
Non-GAAP operating income	$	11,112	$	14,310	$	28,410	$	38,592

Reconciliation of Net Income to Non-GAAP Net Income:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2016			2015			2016
Net income	$	6,773		$	7,112		$	15,861		$	17,885
Public offering related expenses		-			-			1,568			-
Share-based compensation		2,105			5,091			3,713			12,443
Amortization of intangible assets - Cost of revenues		19			355			19			1,065
Amortization of intangible assets - Research and development		271			478			271			1,434
Amortization of intangible assets -  Sales and marketing		-			301			-			903
Acquisition related expenses		429			-			517			-
Taxes on income related to non-GAAP adjustments		(382	)		(1,576	)		(496	)		(3,155	)
Non-GAAP net income	$	9,215		$	11,761		$	21,453		$	30,575
Non-GAAP net income per share
Basic	$	0.28		$	0.35		$	0.68		$	0.91
Diluted	$	0.26		$	0.33		$	0.61		$	0.85
Weighted average number of shares
Basic		33,122,067			33,886,461			31,747,872			33,601,280
Diluted		35,761,096			35,983,790			35,186,664			35,798,352