Varonis Systems, Inc. (NASDAQ:VRNS) Q3 2021 Earnings Conference Call November 1, 2021 4:30 PM ET Company Participants James Arestia - VP, IR Yakov Faitelson - Co-Founder, Chairman, CEO & President Guy Melamed - CFO & COO Conference Call Participants Sterling Auty - JPMorgan Chase & Co. Matthew Hedberg - RBC Capital Markets Brent Thill - Jefferies Saket Kalia - Barclays Bank Robbie Owens - Piper Sandler & Co. Roger Boyd - UBS Andrew Nowinski - Wells Fargo Securities Michael Cikos - Needham & Company Hamza Fo ...

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, 2021 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 ...

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, 2021 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 specified ...

| --- | --- | --- | --- | |------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Varonis Overview | | | | | Q1 2021 | | | | 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 dist ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-K _____________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 for the Fiscal Year Ended December 31, 2020 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 specified in its charter) _____ ...

Financial Data and Key Metrics Changes - Total revenues grew 31% to $95.2 million in Q4 2020, with a subscription mix of 99% compared to 82% a year ago [31][39] - Non-GAAP operating margins reached 14.6%, a significant improvement from an operating loss of 2.4 million in Q4 2019 [34][39] - Net income for Q4 2020 was $12.3 million, or earnings of $0.34 per diluted share, compared to a net loss of $2.8 million in Q4 2019 [36] Business Line Data and Key Metrics Changes - Subscription revenues grew almost 100% year-over-year to $62.7 million, while maintenance and services revenues were $32.1 million [31][39] - ARR (Annual Recurring Revenue) reached $287.3 million, growing 37% year-over-year as of the end of Q4 [29] Market Data and Key Metrics Changes - North America revenues grew 35% to $66.7 million, representing 70% of total revenues, while EMEA revenues grew 33% to $25.9 million [32] - The dollar-based net retention rate (NRR) was 116% at the end of Q4, indicating strong customer retention and expansion [30] Company Strategy and Development Direction - The company is focused on capitalizing on the acceleration of digital transformation and aims to reach a $1 billion revenue target [25][39] - The acquisition of Polyrize is expected to enhance the company's ability to provide more licenses and address customer needs as they move sensitive data to cloud applications [24][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the growth experienced during the pandemic is sustainable due to ongoing digital transformation trends [47] - The company anticipates increased demand for data protection solutions as organizations face heightened risks from cybercrime and regulatory compliance [19][80] Other Important Information - The company announced a 3-for-1 stock split to make shares more accessible to employees and investors [42] - The company ended 2020 with $298.3 million in cash and cash equivalents, indicating strong liquidity [37] Q&A Session Summary Question: What gives confidence that growth will continue post-pandemic? - Management believes the acceleration of digital transformation and the increasing complexity of data protection needs will sustain growth [47] Question: Can you provide a total customer count update? - The focus is on the quality of customers rather than the total count, emphasizing larger enterprise customers [49] Question: How does the SolarWinds breach impact your business? - The breach has increased pipeline activity, highlighting the need for robust data protection solutions [55] Question: What are the expectations for sales and marketing investments in 2021? - The company plans to balance profitability with growth, focusing investments on sales and marketing and R&D [57] Question: How is the integration of Polyrize progressing? - Integration is on track, with expectations for revenue contributions in 2022 [74] Question: Are larger companies showing increased interest in the Varonis platform? - Yes, there is significant interest from larger enterprises, indicating a strong market opportunity [90] Question: What is the outlook for achieving the $1 billion revenue target? - Management believes the product portfolio is in place to support this goal, although no specific timeline was provided [94]

W VARONIS VARONIS OVERVIEW Q4 2020 Safe Harbor Statement This presentation has been presend by Varonis Systems, Inc. the "Company" solely for infrimalizmal purposes. It is not, and should not be assumed to be, completer. This pre solictiation of an offer to buy securities. This presentation is not directed at, or intended for distribution to or use by personor entity that is a citizen or resident o such déstribution, publication, availability or use would be capture to bay require any require any require an ...

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | 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 l ...

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 September 30, 2020 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 speci ...

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, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ 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 specified in ...