Financial Data and Key Metrics Changes - Varonis reported Q3 total revenues of $122.3 million, down 1% year-over-year, with a 12% headwind to year-over-year revenue growth due to increased SaaS sales in the booking mix [29][30] - ARR grew 16% year-over-year to $517.5 million, with free cash flow of $46 million year-to-date, up from $800,000 in the same period last year [9][26] - Gross profit for Q3 was $106.7 million, representing a gross margin of 87.3%, compared to 88.3% in Q3 2022 [30] Business Line Data and Key Metrics Changes - SaaS ARR now represents approximately 15% of total company ARR, with a SaaS mix of 59% in Q3, exceeding guidance of 45% [9][24] - Subscription revenues were $97.7 million, while maintenance and services revenues were $24.6 million, with renewal rates over 90% [29] Market Data and Key Metrics Changes - The macro environment continues to show deal scrutiny and longer sales cycles, impacting customer purchasing patterns [27] - The company has seen a significant amount of SaaS deals sold to new customers, with approximately $10 million in conversions of existing customers impacting Q3 revenue [25] Company Strategy and Development Direction - Varonis is focusing on leveraging AI to enhance data security, addressing the risks associated with increased data generation and usage [10][13] - The company aims to achieve a $1 billion ARR target, with the SaaS transition providing a tailwind to ARR and cash flow performance [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the transition to SaaS is progressing rapidly, with the expectation of continued headwinds on traditional income statement metrics due to accounting treatment [24][28] - The company anticipates that the macroeconomic environment will continue to present challenges, but remains optimistic about the demand for its SaaS solutions [27][36] Other Important Information - The company has executed business contingency plans in response to the war in Israel, which has historically represented less than 1% of its business [21] - Varonis announced two new generative AI capabilities in its SaaS Data Security Platform, enhancing customer experience and operational efficiency [14][16] Q&A Session Summary Question: What are you seeing on usage of the different modules for customers moving to SaaS? - Management observed a dramatic change in usage, with a significant increase in value delivered through the SaaS platform [42] Question: How are you addressing data security and governance concerns with generative AI? - Management indicated that organizations are beginning to understand the need for robust data protection measures to leverage AI safely [46] Question: What is the impact of elongated sales cycles on your pipeline? - Management noted that there is a growing understanding among organizations of the necessity for data protection, which is positively impacting the pipeline [52] Question: How is the channel responding to the move to SaaS? - Management reported that the channel response has been positive, as selling SaaS requires less professional services and is easier for customers [72] Question: What is the expected SaaS mix for Q4? - Management raised the full-year SaaS mix guidance to 55% and expects Q4's SaaS mix to be 60% [36][38]

VARONIS Varonis Overview Q3 2023 Safe Harbor Statement This presentation has been prepared by Varonis Systems, Inc. (the "Company") solely for informational purposes. It is not, and should not be assumed to be, complete. This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities. This presentation is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or oth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36324 ____________________ VARONIS SYSTEMS, INC. (Exact name of registrant as specifie ...

Varonis Systems, Inc. (NASDAQ:VRNS) Q2 2023 Earnings Conference Call July 31, 2023 4:30 PM ET Company Participants Tim Perz - Director of IR Yaki Faitelson - Chairman and CEO Guy Melamed - CFO and COO Conference Call Participants Matt Hedberg - RBC Capital Markets Joel Fishbein - Truist Securities Andrew Nowinski - Wells Fargo Shaul Eyal - TD Cowen Rob Owens - Piper Sandler Roger Boyd - UBS Jason Ader - William Blair Saket Kalia - Barclays Brian Essex - JPMorgan Rudy Kessinger - D.A. Davidson Joshua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36324 ____________________ VARONIS SYSTEMS, INC. (Exact name of registrant as specifi ...

Financial Data and Key Metrics Changes - In Q1 2023, the company reported revenues of $107.3 million, representing a 12% year-over-year increase [38] - Annual Recurring Revenue (ARR) grew 18% year-over-year to $478.1 million [10][35] - Free cash flow for the quarter was $35.7 million, up from $21 million in the same period last year [35][43] - The gross margin improved to 86.5% compared to 85.6% in Q1 2022 [40] - The net loss for Q1 2023 was $0.1 million, a significant improvement from a net loss of $10.2 million in Q1 2022 [42] Business Line Data and Key Metrics Changes - The SaaS mix for the quarter was 37%, significantly higher than the guidance of 15% [10][29] - Subscription revenues were $83 million, while maintenance and services revenues were $24.4 million, with renewal rates exceeding 90% [39] - The ARR contribution margin increased to 5.6%, up from 4.1% last year [41] Market Data and Key Metrics Changes - In North America, revenues grew 18% to $81.2 million, accounting for 76% of total revenues [39] - EMEA revenues declined 5% to $22.9 million, impacted by a 7% currency headwind [39][102] - Revenues from the Rest of the World grew 9% to $3.2 million [39] Company Strategy and Development Direction - The company is focused on transitioning to a SaaS model, which is expected to provide faster time to value and lower total cost of ownership for customers [11][34] - The management is optimistic about the ongoing SaaS journey and the positive reception from customers [9][25] - The company is raising its SaaS mix and ARR guidance based on strong initial adoption and pipeline expectations [26][45] Management's Comments on Operating Environment and Future Outlook - The management noted that the economic slowdown is impacting customer purchasing patterns, leading to longer sales cycles and increased deal scrutiny [36][49] - Despite the macro challenges, the company believes that data security remains a secular trend, and the SaaS offering is well-positioned to meet customer needs [61] - The management expressed confidence in the transition to SaaS and its potential to drive future growth [48] Other Important Information - The company ended Q1 2023 with $756.3 million in cash and equivalents [43] - The company repurchased 100,000 shares at an average price of $25.19, with $41 million remaining on its share repurchase authorization [44] Q&A Session Summary Question: What is the standard uplift seen when customers convert to SaaS? - The CEO indicated that a 25% to 30% uplift is typical when customers convert to SaaS, with expectations for customers to purchase more bundles [55] Question: Did the macro environment worsen in Q1 compared to Q4? - The CEO stated that the macro environment remained challenging but consistent with previous quarters, with customers focusing on ROI for data protection [58] Question: What is the early feedback regarding feature parity between SaaS and on-prem products? - The CEO mentioned that new customers find the SaaS offering superior, while existing customers are seeing rapid improvements to narrow any gaps [64] Question: What is the renewal rate and conversion outlook for Q2? - The CFO confirmed a renewal rate over 90% and noted increased renewal conversions in the pipeline for Q2, with over $1 million baked into the guidance [68] Question: How is the shift to SaaS impacting the sales pipeline? - The CEO noted that the SaaS model resonates better with customers, eliminating hardware concerns and reducing the need for extensive personnel [84][85] Question: What factors influenced customers' decisions to convert to SaaS? - The CEO explained that customers recognize the benefits of SaaS features, leading to voluntary conversions, while timing and feature availability remain considerations [80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-K _____________________ for the transition period from to Commission file number: 001-36324 ________________________ VARONIS SYSTEMS, INC. (Exact name of registrant as specified in its charter) _____________________________ (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ For the transition period from to Commission File Number: 001-36324 ____________________ VARONIS SYSTEMS, INC. (Exact name of registrant as specified in its charter) ____________________ Delaware 57-1222280 (State or other jurisdiction of incorporation or organization) FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly ...

Call Start: 16:30 January 1, 0000 5:12 PM ET Varonis Systems, Inc. (NASDAQ:VRNS) Q2 2022 Earnings Conference Call August 1, 2022 16:30 ET Company Participants James Arestia - Vice President of Investor Relations Yaki Faitelson - Co-Founder, President & Chief Executive Officer Guy Melamed - Chief Financial Officer & Chief Operating Officer Conference Call Participants Matt Hedberg - RBC Capital Markets Joseph Gallo - Jefferies Fatima Boolani - Citigroup Joel Fishbein - Truist Securities Rob Owens - Piper San ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36324 ____________________ VARONIS SYSTEMS, INC. (Exact name of registrant as specifi ...