Executive Summary & Business Highlights [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Varonis reported strong Q2 2025 financial performance, with Annual Recurring Revenue (ARR) growing **19% year-over-year**, SaaS ARR reaching approximately **69% of total**, and significant increases in year-to-date cash from operations and free cash flow | Metric | Q2 2025 | Q2 2024 | YoY Change | YTD 2025 | YTD 2024 | YTD Change | | :-------------------------------- | :---------- | :---------- | :--------- | :--------- | :--------- | :--------- | | Total Revenues | $152.2M | $130.3M | +16.8% | $288.6M | $244.4M | +18.1% | | SaaS Revenues | $105.9M | $44.8M | +136.4% | $194.5M | $78.8M | +146.8% | | Term License Subscription Revenues | $32.4M | $62.7M | -48.4% | $63.9M | $118.7M | -46.1% | | Maintenance and Services Revenues | $13.9M | $22.8M | -39.0% | $30.3M | $46.9M | -35.4% | | GAAP Operating Loss | ($36.6M) | ($28.8M) | -27.1% | ($80.3M) | ($76.5M) | -5.0% | | Non-GAAP Operating Loss (Income) | ($1.9M) | $2.1M | -190.5% | ($8.4M) | ($8.5M) | +1.2% | | Annual Recurring Revenues (ARR) | $693.2M | N/A | +19% | N/A | N/A | N/A | | SaaS ARR as % of Total ARR | ~69% | N/A | N/A | N/A | N/A | N/A | | YTD Cash from Operations | N/A | N/A | N/A | $89.3M | $68.4M | +30.6% | | YTD Free Cash Flow | N/A | N/A | N/A | $82.7M | $67.3M | +22.9% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong tailwinds from SaaS, MDDR, and AI adoption, emphasizing a successful SaaS transition with **69% of ARR** from SaaS and raised full-year ARR guidance - CEO Yaki Faitelson noted tailwinds from SaaS platform, MDDR, AI adoption, and data-centric cloud/SaaS security driving business momentum[2](index=2&type=chunk) - CFO Guy Melamed highlighted that **69% of ARR** now comes from SaaS, reflecting growing demand and accelerating the SaaS transition towards an **82% mix expectation** for the full year[2](index=2&type=chunk) - The company is confident in raising its full-year ARR guidance due to strong demand and underlying business drivers[2](index=2&type=chunk) [Key Business Achievements](index=1&type=section&id=Key%20Business%20Achievements) Varonis achieved several strategic milestones, including completing a share repurchase authorization, forming a key partnership with Microsoft for AI security, and securing important certifications and recognitions in data security - Repurchased **1.0 million shares** for **$38.7 million**, completing the share repurchase authorization[6](index=6&type=chunk) - Announced a strategic partnership with Microsoft to enhance AI workplace security through deeper engineering integration between **Varonis Data Security Platform** and Microsoft's security portfolio[6](index=6&type=chunk) - Achieved **FedRAMP Authorization**, confirming Varonis' unified SaaS platform meets U.S. federal agencies' rigorous cloud security requirements[13](index=13&type=chunk) - Announced protection for OpenAI's ChatGPT Enterprise to help customers identify sensitive data uploads, monitor prompts/responses, and prevent breaches[13](index=13&type=chunk) - Named a **Gartner Peer Insights Customers' Choice** for Data Security Posture Management (DSPM)[13](index=13&type=chunk) - Secured health data hosting certification **Hébergeur de Données de Santé (HDS)**, reinforcing commitment to health data protection in France[13](index=13&type=chunk) Financial Results (GAAP) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Varonis reported a Q2 2025 net loss of **($35.8) million**, an increase from Q2 2024, primarily due to higher operating expenses despite rising total revenues | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | SaaS Revenues | $105,895 | $44,785 | $194,455 | $78,770 | | Term license subscriptions | $32,374 | $62,729 | $63,862 | $118,709 | | Maintenance and services | $13,894 | $22,832 | $30,269 | $46,889 | | **Total revenues** | **$152,163** | **$130,346** | **$288,586** | **$244,368** | | Cost of revenues | $31,249 | $22,436 | $60,267 | $43,785 | | **Gross profit** | **$120,914** | **$107,910** | **$228,319** | **$200,583** | | Research and development | $56,247 | $44,933 | $110,457 | $92,760 | | Sales and marketing | $76,578 | $70,041 | $149,341 | $141,268 | | General and administrative | $24,641 | $21,762 | $48,839 | $43,014 | | **Total operating expenses** | **$157,466** | **$136,736** | **$308,637** | **$277,042** | | **Operating loss** | **($36,552)** | **($28,826)** | **($80,318)** | **($76,459)** | | Financial income, net | $4,967 | $8,249 | $16,918 | $16,794 | | Loss before income taxes | ($31,585) | ($20,577) | ($63,400) | ($59,665) | | Income taxes | ($4,239) | ($3,371) | ($8,207) | ($4,773) | | **Net loss** | **($35,824)** | **($23,948)** | **($71,607)** | **($64,438)** | | Net loss per share, basic and diluted | ($0.32) | ($0.21) | ($0.64) | ($0.58) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Varonis' total assets slightly decreased to **$1.615 billion** as of June 30, 2025, mainly due to reduced long-term marketable securities, partially offset by increased current marketable securities and cash | Metric (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------- | :-------------------------- | :------------------ | | **Assets** | | | | Cash and cash equivalents | $199,231 | $185,585 | | Marketable securities | $571,630 | $343,383 | | Short-term deposits | $36,587 | $39,450 | | Trade receivables, net | $149,703 | $192,832 | | Prepaid expenses and other short-term assets | $111,212 | $116,824 | | **Total current assets** | **$1,068,363** | **$878,074** | | Long-term marketable securities | $364,203 | $658,896 | | Operating lease right-of-use assets | $41,743 | $45,593 | | Property and equipment, net | $33,088 | $30,795 | | Intangible assets, net | $5,844 | — | | Goodwill | $39,750 | $23,135 | | Other assets | $62,021 | $27,782 | | **Total long-term assets** | **$546,649** | **$786,201** | | **Total assets** | **$1,615,012** | **$1,664,275** | | **Liabilities and stockholders' equity** | | | | Trade payables | $7,115 | $4,313 | | Accrued expenses and other short-term liabilities | $190,344 | $164,930 | | Convertible senior notes, net (current) | $251,148 | $250,529 | | Deferred revenues (current) | $322,791 | $290,113 | | **Total current liabilities** | **$771,398** | **$709,885** | | Convertible senior notes, net (long-term) | $451,247 | $450,243 | | Operating lease liabilities (long-term) | $39,865 | $42,789 | | Deferred revenues (long-term) | $108 | $2,211 | | Other liabilities (long-term) | $10,895 | $3,491 | | **Total long-term liabilities** | **$502,115** | **$498,734** | | **Total stockholders' equity** | **$341,499** | **$455,656** | | **Total liabilities and stockholders' equity** | **$1,615,012** | **$1,664,275** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Varonis generated **$89.3 million** in net cash from operating activities for the six months ended June 30, 2025, with investing activities shifting to a net inflow and financing activities showing a larger net outflow | Metric (in thousands) | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------------------- | :----------------------------- | | Net cash provided by operating activities | $89,349 | $68,447 | | Net cash provided by (used in) investing activities | $44,933 | ($116,968) | | Net cash used in financing activities | ($120,636) | ($26,816) | | Increase (decrease) in cash and cash equivalents | $13,646 | ($75,337) | | Cash and cash equivalents at end of period | $199,231 | $155,403 | Non-GAAP Financial Measures & Key Performance Indicators [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Varonis uses non-GAAP measures like operating income (loss) and net income (loss) to provide a clearer view of operational performance by excluding non-cash or non-recurring expenses, enhancing comparability and business trend visibility - **Non-GAAP operating income (loss)** excludes stock-based compensation, related payroll tax expense, amortization of acquired intangible assets, and acquisition-related expenses[11](index=11&type=chunk) - **Non-GAAP net income (loss)** further excludes foreign exchange gains (losses), amortization of debt issuance costs, and acquisition-related taxes from GAAP net income (loss)[12](index=12&type=chunk) - **Free cash flow** is defined as net cash provided by or used in operating activities less purchases of property and equipment and capitalized internal-use software, serving as a liquidity indicator for strategic initiatives[15](index=15&type=chunk) - The company believes these non-GAAP measures offer a more meaningful comparison of operational performance and greater visibility into underlying business trends, despite not being prepared in accordance with GAAP[13](index=13&type=chunk)[16](index=16&type=chunk) [Reconciliation of GAAP to Non-GAAP Operating Income (Loss)](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Operating%20Income%20(Loss)) The reconciliation adjusts Q2 2025 GAAP operating loss of **($36.6) million** to a non-GAAP operating loss of **($1.9) million**, primarily by adding back stock-based compensation expense | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP operating loss | ($36,552) | ($28,826) | ($80,318) | ($76,459) | | Add back: | | | | | | Stock-based compensation expense | 33,859 | 30,089 | 66,114 | 62,182 | | Payroll tax expenses related to stock-based compensation | 259 | 424 | 3,326 | 5,011 | | Amortization of acquired intangible assets and acquisition-related expenses | 532 | 381 | 2,518 | 762 | | **Non-GAAP operating income (loss)** | **($1,902)** | **$2,068** | **($8,360)** | **($8,504)** | [Reconciliation of GAAP to Non-GAAP Net Income (Loss)](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income%20(Loss)) Varonis' Q2 2025 GAAP net loss of **($35.8) million** was reconciled to a non-GAAP net income of **$3.8 million** through adjustments including stock-based compensation and foreign exchange differences | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net loss | ($35,824) | ($23,948) | ($71,607) | ($64,438) | | Add back: | | | | | | Stock-based compensation expense | 33,859 | 30,089 | 66,114 | 62,182 | | Payroll tax expenses related to stock-based compensation | 259 | 424 | 3,326 | 5,011 | | Amortization of acquired intangible assets and acquisition-related expenses | 532 | 381 | 2,518 | 762 | | Foreign exchange rate differences, net | 4,116 | (569) | 1,981 | (1,250) | | Amortization of debt issuance costs | 887 | 385 | 1,774 | 768 | | Acquisition-related taxes | — | — | 391 | — | | **Non-GAAP net income** | **$3,829** | **$6,762** | **$4,497** | **$3,035** | | Non-GAAP net income per share - diluted | $0.03 | $0.05 | $0.03 | $0.02 | [Reconciliation of GAAP to Non-GAAP Free Cash Flow](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Free%20Cash%20Flow) For the six months ended June 30, 2025, Varonis' net cash provided by operating activities of **$89.3 million** was adjusted to a free cash flow of **$82.7 million** after deducting purchases of property and equipment and capitalized internal-use software | Metric (in thousands) | Six Months Ended June 30, 2025 (Unaudited) | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------------------- | :----------------------------- | | Net cash provided by operating activities | $89,349 | $68,447 | | Purchases of property and equipment | ($5,716) | ($1,116) | | Capitalized internal-use software | ($975) | — | | **Free cash flow** | **$82,658** | **$67,331** | [Definition of Key Performance Indicators (KPIs)](index=3&type=section&id=Definition%20of%20Key%20Performance%20Indicators%20(KPIs)) **Annual Recurring Revenue (ARR)** is defined as the annualized value of active SaaS, term-based subscription, and maintenance contracts, calculated by annualizing total contract value, and is not a future revenue forecast - **ARR** is defined as the annualized value of active SaaS contracts, term-based subscription license contracts, and maintenance contracts in effect at the end of a period[19](index=19&type=chunk) - The annualized value of contracts is determined by dividing the total contract value by the number of days in the term and multiplying by 365[19](index=19&type=chunk) - **ARR** is not a forecast of future revenues, which can be influenced by contract start/end dates and renewal rates[21](index=21&type=chunk) Financial Outlook [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) Varonis projects Q3 2025 revenues between **$163.0 million** and **$168.0 million** (10-13% YoY growth), with non-GAAP operating income of **$4.0 million** to **$7.0 million** and non-GAAP net income per diluted share of **$0.07** to **$0.08** | Metric | Q3 2025 Guidance | | :-------------------------------- | :------------------- | | Revenues | $163.0M to $168.0M | | YoY Growth | 10% to 13% | | Non-GAAP Operating Income | $4.0M to $7.0M | | Non-GAAP Net Income per Diluted Share | $0.07 to $0.08 | | Diluted Shares Outstanding | 134.0M | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Varonis raised full-year 2025 guidance, expecting ARR between **$748.0 million** and **$754.0 million** (17% YoY growth), revenues of **$616.0 million** to **$628.0 million**, and free cash flow of **$120.0 million** to **$125.0 million** | Metric | Full Year 2025 Guidance | | :-------------------------------- | :---------------------- | | ARR | $748.0M to $754.0M | | ARR YoY Growth | 17% | | Free Cash Flow | $120.0M to $125.0M | | Revenues | $616.0M to $628.0M | | Revenues YoY Growth | 12% to 14% | | Non-GAAP Operating Income | $0.0M to $6.0M | | Non-GAAP Net Income per Diluted Share | $0.16 to $0.18 | | Diluted Shares Outstanding | 134.7M | Additional Information [Conference Call and Webcast](index=2&type=section&id=Conference%20Call%20and%20Webcast) Varonis hosted a conference call on July 29, 2025, to discuss Q2 2025 financial results, with a replay available through August 6, 2025, via dial-in and the investor relations website - Conference call held on Tuesday, July 29, 2025, at 4:30 p.m. Eastern Time[9](index=9&type=chunk) - Replay available through August 6, 2025, via domestic (844-512-2921) or international (412-317-6671) dial-in, passcode 13754774[9](index=9&type=chunk) - Live webcast and archived replay available on the 'Investors' page of www.varonis.com[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements, subject to safe harbor provisions, based on management's expectations and assumptions that are inherently subject to risks and uncertainties which could cause actual results to differ materially - Statements regarding future performance, revenues, operating income/loss, or earnings/loss per share are forward-looking[22](index=22&type=chunk) - Important factors that could cause actual results to differ include cybersecurity breaches, market growth risks, economic conditions, subscription renewal rates, international operations, global conflicts, competitive factors, employee retention, sales efforts, large transaction closures, new product introductions, service quality, cloud expansion, and risks associated with convertible notes[22](index=22&type=chunk) - Varonis undertakes no duty to update or revise this information, except as required by law[22](index=22&type=chunk) [About Varonis](index=4&type=section&id=About%20Varonis) Varonis Systems, Inc. (Nasdaq: VRNS) is a leader in data security, offering a cloud-native Data Security Platform that continuously discovers, classifies, and protects critical data, removes exposures, and detects advanced threats using AI-powered automation across SaaS, IaaS, and hybrid cloud environments - Varonis is a leader in data security, focusing on protecting data rather than conventional cybersecurity[23](index=23&type=chunk)[25](index=25&type=chunk) - Its cloud-native **Data Security Platform** discovers and classifies critical data, removes exposures, and detects threats with AI-powered automation[23](index=23&type=chunk) - Customers use Varonis for data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), database activity monitoring (DAM), identity protection, and AI security across various cloud environments[24](index=24&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) Contact information for Varonis' Investor Relations and News Media departments is provided for inquiries - Investor Relations Contact: Tim Perz, 646-640-2112, investors@varonis.com[26](index=26&type=chunk) - News Media Contact: Rachel Hunt, 877-292-8767 (ext. 1598), pr@varonis.com[26](index=26&type=chunk)

Core Insights - Varonis Systems, Inc. reported a 19% year-over-year growth in annual recurring revenues (ARR), reaching $693.2 million as of June 30, 2025 [6][5] - The company’s SaaS ARR constituted approximately 69% of total ARR, indicating a significant shift towards SaaS offerings [2][5] - Year-to-date cash from operations increased to $89.3 million from $68.4 million in the previous year, while free cash flow rose to $82.7 million from $67.3 million [6][5] Financial Performance - Total revenues for the second quarter of 2025 were $152.2 million, up from $130.3 million in the same quarter of 2024 [5][6] - SaaS revenues surged to $105.9 million compared to $44.8 million in the second quarter of 2024, reflecting strong demand for the SaaS platform [5][6] - Term license subscription revenues decreased to $32.4 million from $62.7 million, primarily due to customer transitions to the SaaS platform [5][6] - Maintenance and services revenues also fell to $13.9 million from $22.8 million, again attributed to the shift towards SaaS [5][6] Operational Highlights - The company repurchased 1.0 million shares at an average price of $38.59, totaling $38.7 million, completing its share repurchase authorization [6] - Varonis announced a strategic partnership with Microsoft to enhance security for workplace AI, integrating its Data Security Platform with Microsoft's security offerings [6] - The company achieved FedRAMP Authorization, confirming that its unified SaaS platform meets stringent U.S. federal cloud security requirements [6] - Varonis introduced protection for OpenAI's ChatGPT Enterprise, enabling customers to monitor sensitive data uploads and prevent compliance violations [6] Future Outlook - Varonis raised its full-year ARR guidance and increased its expectation for the SaaS mix to 82% from 80% [2] - The company anticipates continued growth driven by the adoption of AI and increasing awareness of data-centric cloud and SaaS security [2]

Atlanta, GA, July 29, 2025 (GLOBE NEWSWIRE) -- imPAC Labs, the cloud control plane for security and compliance, today launched a strategic integration with Varonis, the leader in data security, to deliver real-time protection, governance, and audit readiness across the full cloud-data stack. This joint solution combines Varonis' robust data classification and threat detection with imPAC's cloud configuration policy engine, enabling enterprises to enforce context-aware security controls to protect sensitive ...

Core Insights - Varonis Systems, Inc. has launched a new cloud-native Database Activity Monitoring (DAM) solution designed to enhance database security and compliance in the AI era [1][3] - The new DAM offering addresses the limitations of legacy solutions, which are often slow to deploy and require significant resources [3][4] Company Overview - Varonis is recognized as a leader in data security, focusing on protecting data across various environments including SaaS, IaaS, and hybrid cloud [7][8] - The company emphasizes a unified approach to data security, moving away from fragmented products to a single platform that secures data at rest and in motion [4][8] Product Features - The Next-Gen DAM is integrated into the Varonis Data Security Platform and supports major databases such as Databricks, Microsoft SQL Server, Amazon RDS, Postgres, Oracle, and Snowflake [5] - Key capabilities include automated detection of suspicious activity, data discovery and classification, database access control, and automated remediation of security policies [8][10] Market Context - The DAM market has faced challenges due to a lack of competition and innovation, but Varonis aims to disrupt this trend with its modern, cloud-based solution [2][3] - Legacy DAM solutions are criticized for being outdated and providing minimal security beyond compliance [3]

Core Insights - Varonis Systems, Inc. has achieved Hébergeur de Données de Santé (HDS) certification, which is essential for organizations hosting health data in France, ensuring compliance with stringent legal requirements for safeguarding personal medical information [1][2] Company Overview - Varonis is recognized as a leader in data security, focusing on protecting critical data through its cloud-native Data Security Platform, which utilizes AI-powered automation for various security outcomes [5][6] Certification Impact - The HDS certification allows Varonis to serve French healthcare customers who must use HDS-certified providers, thereby expanding its presence in EU healthcare markets and reinforcing trust in its data handling practices [2] Commitment to Standards - Varonis emphasizes its dedication to upholding high international standards for data security, as highlighted by the achievement of the HDS certification, which aligns with local regulatory requirements [2]

Core Insights - Varonis Systems, Inc. is participating in Black Hat USA 2025 as a Platinum Plus Sponsor, showcasing its cloud-native Data Security Platform to help organizations mitigate data risks in the AI era [2][7] - The company will present expert sessions and workshops focusing on data security challenges, including identity authentication failures and vulnerabilities in cloud databases [3][4][5] Company Highlights - Varonis will be at booth 2751, sharing insights from its Threat Labs team and demonstrating how to secure data across multi-cloud environments [1][2] - The company emphasizes its unique Managed Data Detection and Response service, which is dedicated to preventing data attacks [2][8] - Varonis' platform automates various security outcomes, including data classification, access governance, and insider risk management [8] Event Details - Expert sessions include "Navigating the Identity Crisis" and "Rusty Pearls: Postgres RCE on Cloud Databases," focusing on authentication issues and critical vulnerabilities [3][4][5] - An interactive workshop titled "SnowGoat" will address hidden security risks in Snowflake environments [5] - The events will take place at various locations within the Las Vegas Convention Center during the Black Hat and DEF CON conferences [4][5]

Core Insights - Varonis Systems, Inc. has launched Varonis for AWS in the AI Agents and Tools category of AWS Marketplace, enabling customers to easily discover, purchase, and deploy AI agent solutions [1][3] - The Varonis platform is designed to protect data in the AI era by discovering and classifying sensitive data, fixing misconfigurations, right-sizing data access, and identifying suspicious activities [2][6] - The availability of Varonis in AWS Marketplace streamlines the procurement process for customers, allowing for faster access to agent solutions and improved visibility and control over licensing and payments [3][4] Company Overview - Varonis is a leader in data security, focusing on protecting critical data through a cloud-native Data Security Platform that utilizes AI-powered automation [6][7] - The company provides a comprehensive range of security outcomes, including data security posture management, data classification, data access governance, data detection and response, data loss prevention, AI security, identity protection, and insider risk management [7]

Company Announcement - Varonis Systems, Inc. will report its second quarter 2025 financial results on July 29, 2025, after the U.S. financial markets close [1] - A conference call to discuss the financial results will be held on the same day at 4:30 p.m. ET [1] Conference Call Details - To access the call, domestic participants can dial 877-425-9470, while international participants can call 201-389-0878, using conference ID number 13754774 [2] - A replay of the conference call will be available until August 6, 2025, with specific numbers for domestic and international access [2] - A live webcast will be available on the company's Investor Relations page, and the replay will be archived for one year [2] Company Overview - Varonis is recognized as a leader in data security, focusing on a different approach compared to conventional cybersecurity firms [3] - The company offers a cloud-native Data Security Platform that continuously discovers and classifies critical data, removes exposures, and detects advanced threats using AI-powered automation [3] Customer Trust and Solutions - Thousands of organizations globally rely on Varonis to protect their data across various environments, including SaaS, IaaS, and hybrid cloud [4] - Varonis automates multiple security outcomes, such as data security posture management, data classification, data access governance, data detection and response, data loss prevention, AI security, identity protection, and insider risk management [4] - The company's strategy emphasizes protecting data first, rather than as a secondary measure [4]

Core Insights - Varonis Systems, Inc. has announced a strategic partnership with Microsoft to enhance data security and compliance in the AI era [1][2] - The collaboration aims to integrate Varonis' Data Security Platform with Microsoft's security portfolio, including Microsoft Purview, to automate protection for sensitive data [2][3] Group 1: Partnership Details - The partnership will focus on securing the adoption of Microsoft Copilot and will deepen the integration between Varonis and Microsoft's security offerings [2] - An engineering-led plan is established to prevent unauthorized access to data by AI tools and agents [3] - Varonis' SaaS architecture on Microsoft Azure is designed to protect data and facilitate secure AI adoption [3] Group 2: Integration and Features - The integration with Microsoft Purview will provide unified data classification, permissions enforcement, and policy management across Microsoft 365, Azure, and other leading SaaS platforms [3] - This collaboration aims to help organizations reduce risk and simplify compliance as AI applications expand [3] Group 3: Company Overview - Varonis is recognized as a leader in data security, focusing on continuous discovery and classification of critical data, threat detection, and exposure removal [5][6] - The company offers a cloud-native Data Security Platform that automates various security outcomes, including data loss prevention and insider risk management [6]

Core Insights - Varonis Systems has integrated its Data Security Platform with OpenAI's ChatGPT Enterprise Compliance API to enhance data security and compliance for enterprise users [1][5] - The integration aims to help organizations automatically identify sensitive data uploads, monitor interactions, and prevent data breaches and compliance violations [1][3] Group 1: Integration and Features - The integration provides an additional layer of defense against compromised accounts, insider threats, and potential data breaches [3] - Key features include automated data classification, continuous session monitoring, and behavior-based threat detection to ensure sensitive data is protected [9] Group 2: Market Impact and Adoption - ChatGPT Enterprise is currently boosting workforce productivity for over 3 million enterprise users, indicating a significant market presence [2] - Varonis offers a free Data Risk Assessment for customers to evaluate their AI readiness and try the integration [5] Group 3: Company Overview - Varonis is recognized as a leader in data security, focusing on discovering and classifying critical data while detecting advanced threats using AI-powered automation [7][8] - The company emphasizes a proactive approach to data protection, ensuring that security measures are in place before data is compromised [11]