Powered by AI capabilities from the SlashNext acquisition, Varonis Interceptor blocks advanced social engineering threats that other email security solutions miss Varonis Interceptor Varonis Interceptor blocks advanced social engineering threats. MIAMI, Oct. 08, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), the data security leader, today announced the availability of Varonis Interceptor, a new approach to email security that uses multi-layered AI to detect and block social-engineering a ...

Group 1 - Dan Ives, a prominent tech analyst, forecasts a surge in mergers and acquisitions (M&A) in the technology sector, particularly driven by artificial intelligence (AI) [1][2] - Ives identifies a lenient regulatory environment as a catalyst for easier deal closures, suggesting that both strategic and financial buyers are preparing for increased acquisition activity [2][4] - A comprehensive list of potential M&A targets includes companies like C3.ai Inc., SanDisk Corp., and Lyft Inc., among others [3][5] Group 2 - Major tech firms such as Apple Inc. and IBM are expected to be highly active acquirers in the upcoming M&A wave as they seek to enhance their AI capabilities [4][5] - Recent M&A activity in the industry includes CoreWeave's acquisition of Core Scientific's data centers and Palo Alto Networks' acquisition of CyberArk Software [5][6] - The Dan IVES Wedbush AI Revolution ETF has gained significant investor confidence, surpassing $750 million in assets under management shortly after its launch, reflecting a 30.18% increase since listing [6]

Core Viewpoint - J.P. Morgan identifies Zscaler, Varonis, and SailPoint as top cybersecurity stocks to consider for investment as the year concludes [2] Group 1: Company Insights - Zscaler (NASDAQ:ZS), Varonis (NASDAQ:VRNS), and SailPoint (NASDAQ:SAIL) are highlighted as key players in the cybersecurity sector [2] - The demand for Secure Access Service Edge (SASE) and Next Generation Security Information and Event Management (SIEM) remains high within the network security domain, indicating robust market conditions [2]

I recently covered the Amplify Cybersecurity ETF (NYSEARCA: HACK ), which I found deficient, but I saw several smaller companies with breakout growth that caught my attention, and I dived deeper into Varonis Systems, Inc. (Experience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experi ...

Macro Dynamics - The current year has been characterized by significant macroeconomic fluctuations, impacting the overall business environment [1] - The company is experiencing various internal changes that are compounding the effects of these macro dynamics [1] Micro Dynamics - The company is nearing the completion of its transition to a Software as a Service (SaaS) model, which is a critical aspect of its business strategy [2] - There have been developments in sales organization and incentive structures that are evolving alongside the SaaS transition [1]

Summary of Varonis Conference Call Company Overview - **Company**: Varonis - **Industry**: Data Security and SaaS Solutions Key Points Macro and Micro Dynamics - The macro environment has been steady, benefiting Varonis as SaaS sales cycles are shorter than on-prem subscription cycles [3][9] - The transition to SaaS is expected to be completed by the end of the year, two years ahead of schedule, indicating strong technology and market adaptation [3][9] SaaS Transition and Offerings - Varonis has increased its SaaS mix guidance to 82% by the end of the year, with significant customer interest in transitioning [13][14] - The Managed Data Detection and Response (MDDR) offering, powered by AI, automates 80% of alerts, enhancing customer risk management [4][10] - The MDDR offering has been rapidly adopted, significantly increasing Varonis's total addressable market (TAM) by 3X [20][22] Customer Engagement and Retention - Customer lifetime value is increasing, with net retention rates (NRR) for SaaS customers significantly higher than the reported 105% for 2024 [10][28] - Varonis is focusing on early engagement with customers up for renewal to facilitate smoother transitions to SaaS [13][17] Competitive Landscape - The data security market is becoming increasingly competitive, with many companies now offering data security solutions [45] - Varonis emphasizes its long-standing expertise in data protection and its ability to provide comprehensive solutions that help customers fix vulnerabilities [46][49] Acquisitions and Growth Strategy - Varonis has made strategic acquisitions, including SlashNext, to enhance its offerings in email security and phishing detection [33][34] - The company plans to monetize the SlashNext acquisition quickly, with initial sales expected in Q4 or early Q1 [38][39] Financial Performance and Projections - Varonis aims to achieve over 20% ARR growth, currently at 19%, with a strong focus on new customer acquisition and upselling to existing customers [29][50] - The company has maintained a healthy balance sheet and free cash flow, allowing for reinvestment in growth initiatives [42][43] Future Outlook - Varonis is optimistic about its growth trajectory, with plans to expand into new markets such as Australia, India, Japan, and Singapore [50] - The company is committed to enhancing its product offerings and customer engagement strategies to drive future growth [50] Additional Insights - The transition to SaaS is not just a technological shift but also a strategic move to enhance customer relationships and operational efficiency [19][23] - Varonis's focus on automated remediation and proactive customer engagement is seen as a key differentiator in the competitive landscape [46][49]

Data security company Varonis Systems has agreed to acquire SlashNext, an AI-based email security provider, for as much as $150 million including performance-based retention awards https://t.co/h8XRGXlpmr ...

Data security leader acquires AI-native email security company to extend data breach prevention to your inbox and beyondMIAMI, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), the data security leader, today announced the acquisition of SlashNext, an AI-native email security provider with the industry’s best detection rate for advanced phishing and social engineering attacks. SlashNext was founded by Atif Mushtaq, one of the main architects of FireEye’s core malware sandbox technolog ...

Core Viewpoint - Varonis Systems reported better-than-expected Q2 2025 earnings and revenues, driven by strong performance in its SaaS offerings, despite a decline in earnings year-over-year due to the transition to a SaaS model [3][4][5]. Financial Performance - Varonis Systems achieved non-GAAP earnings per share of 3 cents, exceeding the Zacks Consensus Estimate of 1 cent, but down 50% from 6 cents in the same quarter last year [3][4]. - Q2 2025 revenues reached $152.2 million, surpassing the Zacks Consensus Estimate of $148 million, and reflecting a year-over-year increase of 16.8% [5]. - SaaS revenues accounted for 69.6% of total revenues, increasing 136.4% year-over-year to $105.9 million, while term license subscriptions and maintenance services saw significant declines [6]. Geographic Performance - The United States contributed 71.4% of total revenues, growing 18.2% year-over-year to $108.7 million, while EMEA revenues increased 9.2% to $31.8 million [7]. Margins and Losses - Non-GAAP gross margin contracted by 350 basis points to 80.6%, and the company reported a non-GAAP operating loss of $1.9 million, compared to an operating income of $2.1 million in the previous year [8]. Balance Sheet and Cash Flow - As of June 30, 2025, Varonis had $807.4 million in cash and equivalents, up from $609.2 million at the end of Q1 2025, with operating cash flow of $89.3 million and free cash flow of $82.7 million for the first half of 2025 [9]. Guidance and Projections - Varonis raised its FY25 guidance for annual recurring revenues to between $748 million and $754 million, and total revenues to between $616 million and $628 million [10]. - The company expects full-year 2025 earnings per share in the range of 16-18 cents, and projects Q3 2025 revenues between $163 million and $168 million, indicating year-over-year growth of 10% to 13% [11][12]. Market Sentiment - Recent estimates for Varonis have trended upward, with a 5.3% shift in consensus estimates, and the stock currently holds a Zacks Rank 3 (Hold), suggesting an in-line return in the coming months [13][15].

Core Viewpoint - Varonis Systems (NASDAQ: VRNS) has been previously rated as a buy due to sound fundamentals despite market focus on near-term weaknesses [1] Group 1: Company Analysis - The reported growth and margins of Varonis Systems appear messy, indicating potential challenges in financial performance [1] - The company is positioned within a spectrum of investment strategies, including fundamental, technical, and momentum investing, suggesting a multifaceted approach to its market evaluation [1] Group 2: Investor Perspective - The individual investor managing their own capital emphasizes the importance of connecting with like-minded investors and tracking investment ideas through platforms like Seeking Alpha [1]