Core Insights - Varonis Systems, Inc. reported disappointing financial results for Q3 2025, with revenue falling short of consensus estimates and a significant 63.9% year-over-year decline in term license subscription revenues [2] - The company has reduced its full-year Annual Recurring Revenue (ARR) guidance due to underperformance in its on-premises subscription business, which is identified as a drag on overall ARR growth [2] - Following the announcement of these results, Varonis' stock price plummeted by $30.66, or 48.67%, closing at $32.34 per share on October 29, 2025 [2] Company Performance - Varonis' on-premises subscription business faced challenges, including lower renewal rates attributed to sales process issues, contributing to the overall decline in revenue [2] - The company acknowledged that the underperformance in its on-prem subscription business negatively impacted its total ARR growth [2] Legal Investigation - Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws on behalf of Varonis investors following the poor financial results [1][3]

Core Viewpoint - Varonis Systems, Inc. reported disappointing financial results for Q3 2025, leading to a significant decline in stock price and prompting an investigation into potential violations of federal securities laws [2][1]. Financial Performance - Varonis reported a revenue miss against consensus estimates, with a notable 63.9% year-over-year decline in term license subscription revenues [2]. - The company reduced its full-year Annual Recurring Revenue (ARR) guidance due to underperformance in its on-premises subscription business, which was identified as a drag on overall ARR growth [2]. Stock Market Reaction - Following the announcement of poor financial results, Varonis' stock price plummeted by $30.66 per share, or 48.67%, closing at $32.34 per share on October 29, 2025 [2]. Investigation - Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws on behalf of Varonis investors [1].

Core Insights - Varonis Systems, Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results [1][2] Financial Performance - On October 28, 2025, Varonis reported third-quarter financial results that missed consensus estimates, including a significant 63.9% year-over-year decline in term license subscription revenues [2] - The company reduced its full-year Annual Recurring Revenue (ARR) guidance due to underperformance in its on-premises subscription business [2] - CEO Yakov Faitelson indicated that the on-premises subscription business is negatively impacting overall company ARR growth, citing lower renewal rates and sales process issues as contributing factors [2] Stock Market Reaction - Following the announcement of the financial results, Varonis's stock price dropped by $30.66 per share, or 48.67%, closing at $32.34 per share on October 29, 2025 [2]

Core Viewpoint - Varonis Systems, Inc. is under investigation for potential violations of federal securities laws following a significant decline in its financial performance, particularly in its on-premises subscription business [1][2]. Financial Performance - On October 28, 2025, Varonis reported third quarter 2025 financial results, revealing revenue that fell short of consensus estimates, with a notable 63.9% year-over-year decline in term license subscription revenues [2]. - The company has reduced its full-year Annual Recurring Revenue (ARR) guidance due to the underperformance of its on-premises subscription business [2]. Management Commentary - In an earnings call, CEO Yakov Faitelson described the on-premises subscription business as a "drag on total company ARR growth" and highlighted issues in the sales process as contributing factors to the lower renewal rates of on-prem subscriptions [2]. Market Reaction - Following the announcement of the disappointing financial results, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in significant losses for investors [2].

Core Insights - The integration of Varonis Systems, Inc. with Microsoft Purview enhances visibility into sensitive data across various platforms, including Salesforce and Microsoft 365, aiding organizations in data security management [1][3] - This integration is particularly timely as organizations increasingly adopt AI applications, which have led to significant data growth and potential security risks [2][3] Company Overview - Varonis is a leader in data security, focusing on discovering, classifying, and protecting critical data through its cloud-native Data Security Platform [4][5] - The company provides a range of security solutions, including data security posture management (DSPM), data classification, and data loss prevention (DLP), among others [5] Integration Benefits - The collaboration between Varonis and Microsoft Purview eliminates data blind spots, strengthens risk posture, and simplifies security operations, providing a unified experience for data security teams [3] - Customers can easily enable Varonis data signals in Purview to gain insights into data assets and associated risks, enhancing their overall data security strategy [3]

Core Insights - Varonis Systems, Inc. has announced the integration of its Data Security Platform Management (DSPM) with Microsoft Purview, enhancing visibility into sensitive data across various platforms [1][2] - The integration aims to support organizations in safely adopting AI applications by providing increased visibility into sensitive data accessed by these tools, addressing the challenges posed by data growth and sprawl [2][3] - This collaboration is designed to eliminate blind spots, strengthen risk posture, and simplify security operations, allowing customers to manage data risks more effectively [3] Company Overview - Varonis is recognized as a leader in data security, focusing on discovering and classifying critical data, removing exposures, and detecting advanced threats through AI-powered automation [4] - The company provides a range of security solutions, including data security posture management (DSPM), data classification, data access governance (DAG), and more, catering to various environments such as SaaS, IaaS, and hybrid cloud [5] - Varonis emphasizes a proactive approach to data protection, prioritizing data security in its operations [6]

Core Insights - Varonis Systems, Inc. has been named a finalist in the Marketplace Category for the 2025 Microsoft Partner of the Year Award, highlighting its excellence in innovation and customer solutions based on Microsoft technology [1][2][3] Company Recognition - The recognition reflects Varonis' successful collaboration in delivering automated data security across the Microsoft ecosystem and beyond, distinguishing it from thousands of other companies [2][4] - The Microsoft Partner of the Year Awards received over 4,600 nominations from more than 100 countries, showcasing the competitive nature of the awards [2][4] Industry Context - The awards celebrate partners that have developed outstanding Microsoft Cloud applications, services, devices, and AI innovations over the past year, emphasizing the transformative power of Microsoft's Cloud and AI platforms [4] - Varonis was specifically recognized for its outstanding solutions and services in the Marketplace Category, indicating its strong position in the data security industry [3][4] Company Overview - Varonis is a leader in data security, focusing on discovering and classifying critical data, removing exposures, and detecting advanced threats using AI-powered automation [6][7] - The company provides a wide range of security outcomes, including data security posture management, data classification, data access governance, and more, across various environments such as SaaS, IaaS, and hybrid cloud [7]

Company Overview - Varonis Systems, Inc. is a data security firm that specializes in protecting and managing sensitive data across both on-premises and cloud environments through threat detection, access control, and compliance automation [3]. Allegations and Financial Performance - On October 28, 2025, Varonis Systems reported Q3 results that fell short of expectations, with term license subscriptions, which account for 15.4% of total revenues, decreasing by 63.9% to $24.8 million [4]. - Maintenance and services, representing 9.1% of total revenues, declined by 49.1% to $10.9 million [4]. - The company revised its annual recurring revenue (ARR) forecast downward, attributing this to weak on-premises subscriptions and sales issues [4]. - Following the announcement of these results, Varonis stock experienced a significant drop of 48.67%, closing at $32.34 per share on October 29, 2025 [4]. Legal Investigation - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Varonis Systems, stemming from allegations of providing misleading business information to the investing public [1][4].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Varonis Systems, Inc. following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - On October 28, 2025, Varonis reported third-quarter financial results that missed consensus estimates, with a notable 63.9% year-over-year decline in term license subscription revenues [3]. - The company reduced its full-year Annual Recurring Revenue (ARR) guidance due to underperformance in its on-premises subscription business, which management identified as a drag on overall ARR growth [3]. - Following the announcement, Varonis's stock price plummeted by $30.66 per share, or 48.67%, closing at $32.34 on October 29, 2025 [3]. Management Commentary - Yakov Faitelson, Co-Founder and CEO, acknowledged that the on-premises subscription business is negatively impacting total company ARR growth and cited sales process issues as contributing factors to a lower renewal rate for on-prem subscriptions [3].

Core Insights - Varonis Systems, Inc. is under investigation for possible violations of federal securities laws following disappointing financial results and strategic changes [1][2] - The company reported third quarter fiscal 2025 revenue that fell below estimates, attributed to weaker renewals in both federal and non-federal on-prem subscription businesses [2] - Varonis announced the discontinuation of its self-hosted solution by December 31, 2026, leading to a reduction in growth guidance and a planned 5% headcount reduction to manage costs [2] Financial Performance - Varonis' third quarter fiscal 2025 revenue was below market expectations, indicating challenges in its subscription renewal rates [2] - Following the announcement of its financial results, Varonis' stock price dropped significantly, falling by $23.36 to open at $39.64 per share [3] Strategic Changes - The decision to end the self-hosted solution is a significant strategic shift for Varonis, impacting its future growth prospects [2] - The company is implementing a 5% reduction in workforce as part of its cost-cutting measures in response to the current financial challenges [2]