Group 1 - Varonis Systems reported revenue of $158.51 million for the quarter ended December 2024, reflecting a year-over-year increase of 2.9% [1] - The earnings per share (EPS) for the quarter was $0.18, down from $0.27 in the same quarter last year, indicating a decline [1] - The reported revenue was below the Zacks Consensus Estimate of $165.14 million by 4.01%, while the EPS exceeded the consensus estimate of $0.14 by 28.57% [1] Group 2 - Annual Recurring Revenues (ARR) reached $641.90 million, surpassing the average estimate of $637.75 million from six analysts [4] - Maintenance and Services revenues were reported at $19.53 million, which was below the average estimate of $20.68 million, representing a year-over-year decline of 21.7% [4] - Term license subscriptions generated $66.78 million, falling short of the average estimate of $76.75 million, while SaaS revenues were $72.21 million, exceeding the estimate of $68.98 million [4] Group 3 - Varonis shares have returned +1.7% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Varonis Systems (VRNS) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this data-management software company would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%.Over the last fo ...

Financial Data and Key Metrics Changes - In Q4 2024, ARR grew 18% to $641.9 million, with SaaS ARR representing 53% of total company ARR for the first time [9][23][28] - Free cash flow reached $108.5 million, up from $54.3 million the previous year, marking a significant milestone for the company [10][28] - Total revenues for Q4 were $158.5 million, a 3% increase year-over-year, while full-year revenues grew to $551 million, reflecting a 10% increase compared to 2023 [29][32] Business Line Data and Key Metrics Changes - The company added over $200 million in SaaS ARR during 2024, ending the year with approximately $340 million in SaaS ARR [7][9] - New customer momentum was the primary driver of growth, with a 50% increase in ARR from new customers [20][28] - The dollar-based net retention rate for subscription customers was 105% at the end of 2024, indicating steady gross retention despite limited upsell activity [28] Market Data and Key Metrics Changes - The company is experiencing strong demand for its SaaS offerings, particularly in the context of increasing data security needs driven by AI initiatives [12][18] - The transition to SaaS is expected to enhance the company's ability to penetrate its total addressable market (TAM) and expand into new data stores [23][26] Company Strategy and Development Direction - The company plans to accelerate its transition to a fully SaaS model, now expecting to complete it by the end of 2025, which is a year earlier than previously anticipated [9][26] - The focus on automation and AI in data security is seen as a key differentiator, with the company positioning itself to capitalize on the growing need for data protection [11][12][14] - The introduction of MDDR (Managed Detection and Response) has been a significant driver of new business and existing customer conversions [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth post-transition, citing the simplicity and effectiveness of the SaaS platform [23][26] - The management highlighted the importance of data security in the current environment, emphasizing that organizations are increasingly aware of the risks associated with data breaches [12][13] - The company anticipates continued strong demand for its solutions, particularly as customers seek to deploy AI technologies securely [18][19] Other Important Information - The company ended 2024 with 5,600 subscription customers, a 13% year-over-year increase, and ARR per new customer grew approximately 20% year-over-year [28] - The gross margin for Q4 was 84.4%, down from 88.5% in the same quarter of the previous year, primarily due to the increased mix of SaaS sales [29][30] Q&A Session Summary Question: Can you discuss the potential upside to flat net new ARR growth? - Management indicated that customer demand for data security and the benefits of the SaaS platform are driving natural expansion, which could lead to upside in ARR growth [35][36] Question: Are you pulling forward renewal deals to facilitate conversions to SaaS? - Management clarified that they are starting renewal conversations earlier to streamline the conversion process, which is primarily a documentation challenge rather than a technological one [42][44] Question: How do you plan to sustain mid-teens growth post-transition? - Management believes that the growth will come from new customer momentum, improved net retention rates, and the introduction of new products like MDDR [43][51] Question: What is the current health of your pipeline and backlog? - Management reported a healthy pipeline with ongoing conversations about SaaS conversions, indicating confidence in both new customer acquisition and existing customer transitions [66][68] Question: Can you provide insights on traction with various data stores? - Management noted strong demand across multiple data repositories, emphasizing the acute need for data security solutions in the current landscape [71][75]

EXHIBIT 99.1 Varonis Announces Fourth Quarter 2024 and Full-Year 2024 Financial Results Annual recurring revenues grew 18% year-over-year SaaS ARR as a percentage of total ARR was approximately 53% Year-to-date cash from operations generated $115.2 million vs. $59.4 million last year Year-to-date free cash flow generated $108.5 million vs. $54.3 million last year NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for ...

Annual recurring revenues grew 18% year-over-yearSaaS ARR as a percentage of total ARR was approximately 53%Year-to-date cash from operations generated $115.2 million vs. $59.4 million last yearYear-to-date free cash flow generated $108.5 million vs. $54.3 million last year NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the fourth quarter and full-year ended December 31, 2024. Yaki Faitelson, Varonis CEO, sai ...

Core Insights - Varonis Systems, Inc. has been recognized as a Leader and Outperformer in the GigaOm Radar Report for Data Security Platforms, highlighting its strong position in the data security industry [1][2]. Company Performance - Varonis was classified as a Leader and Outperformer in the Maturity/Platform Play quadrant due to its ongoing leadership and innovation in the data security space [2]. - The company received five-star ratings in key criteria such as behavior analytics, security stack integrations, and service integrations, indicating high performance across multiple dimensions [2]. Innovation and Development - The report emphasizes Varonis' commitment to innovation, particularly in AI, which aims to enhance threat identification and operational efficiency through the development of tools like Athena Copilot [3]. - Varonis is noted for its extensive platform capabilities, providing broad coverage of protected repositories for both structured and unstructured datasets across on-premises and cloud environments [4]. Market Position - GigaOm highlighted Varonis' comprehensive Data Security Platform, which is designed for broad deployment and integrates well with existing technologies, including EDR platforms [4]. - The recognition from GigaOm reinforces Varonis' status as an established and innovative leader in the data security sector, confirming its commitment to securing critical data in the cloud with advanced automation [4].

Varonis earns recognition as the only Outperformer in the Maturity/Platform Play quadrantNEW YORK, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced it was named a Leader and Outperformer in the GigaOm Radar Report for Data Security Platforms. Varonis was classified as a Leader and Outperformer in the Maturity/Platform Play quadrant “given its continued leadership in the space,” according to the report. Varonis also received exceptional five-s ...

NEW YORK, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, announced that it will report its fourth quarter 2024 financial results following the close of the U.S. financial markets Tuesday, February 4, 2025. In conjunction with this announcement, Varonis will host a conference call Tuesday, February 4, 2025, at 4:30 p.m. ET to discuss the company's financial results. To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The confe ...

Investors might want to bet on Varonis Systems (VRNS) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing ...

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