Varonis(US:VRNS)2025-05-07 20:23Revenue Growth - For the three months ended March 31, 2025, total revenues were $136.4 million, a 20% increase compared to $114.0 million for the same period in 2024[116] - SaaS revenues for the three months ended March 31, 2025, were $88.6 million, up from $34.0 million in the same period in 2024, indicating significant growth in SaaS deployments[116] - Total revenues for the three months ended March 31, 2025, increased by 19.6% to $136.4 million compared to $114.0 million in the same period of 2024[146] - SaaS revenues surged by 160.6% from $34.0 million in Q1 2024 to $88.6 million in Q1 2025, driven by new customer acquisitions and existing customer conversions[146] - Annual Recurring Revenue (ARR) rose by 19% to $664.3 million as of March 31, 2025, compared to $560.3 million in 2024[146] Customer Metrics - As of March 31, 2025, Annual Recurring Revenues (ARR) reached $664.3 million, representing a 19% increase from $560.3 million as of March 31, 2024[120] - SaaS as a percentage of total ARR was approximately 61% as of March 31, 2025, and is expected to continue increasing throughout the transition to a SaaS delivery model[122] - The renewal rate for the three months ended March 31, 2025, remained over 90%, indicating strong customer retention[128] - Approximately 70% of revenues for the three months ended March 31, 2025, were derived from the United States, with 21% from EMEA and 9% from the rest of the world[114] Financial Performance - Operating losses for the three months ended March 31, 2025, were $43.8 million, compared to $47.6 million for the same period in 2024[116] - Research and development expenses increased by 13.3% to $54.2 million in Q1 2025 from $47.8 million in Q1 2024[149] - Sales and marketing expenses grew by 2.2% to $72.8 million in Q1 2025, remaining the largest component of operating expenses[149] - General and administrative expenses rose by 13.9% to $24.2 million in Q1 2025 from $21.3 million in Q1 2024[151] - Financial income, net increased by 39.9% to $11.9 million in Q1 2025, primarily due to higher interest income and foreign currency gains[152] - Income taxes for Q1 2025 were $3.97 million, a 183% increase from $1.4 million in Q1 2024[153] Cash Flow and Liquidity - Net cash provided by operating activities was $68.0 million in Q1 2025, up from $56.7 million in Q1 2024[154] - As of March 31, 2025, the company held $609.2 million in cash and cash equivalents, sufficient to fund operations for at least the next 12 months[154] - For the three months ended March 31, 2025, cash inflows from operating activities were $68.0 million, compared to $56.7 million for the same period in 2024, reflecting a year-over-year increase of 24%[156][157] - The company experienced a $65.1 million decrease in accounts receivable for the three months ended March 31, 2025, contributing to cash inflows[156] - Net cash used in investing activities for the three months ended March 31, 2025, was $25.0 million, primarily due to $18.6 million paid for an acquisition[159] - Net cash used in financing activities for the three months ended March 31, 2025, was $75.5 million, mainly due to $61.3 million in stock repurchases[161] - The company authorized a share repurchase program of up to $100.0 million in February 2025, with $38.7 million remaining under the program as of March 31, 2025[166] Acquisitions and Obligations - The company completed the acquisition of Cyral, Inc. on March 17, 2025, enhancing its capabilities in database activity monitoring[124] - Remaining Performance Obligations (RPO) stood at $788.7 million as of March 31, 2025, with expectations for this figure to increase as the transition to a SaaS delivery model progresses[123] - The company has contractual minimum purchase commitments totaling $5.4 million due in the next 12 months and $21.0 million due thereafter[167] Currency and Sales Metrics - Approximately 25% of revenues for the three months ended March 31, 2025, were earned in non-U.S. dollar denominated currencies, primarily in Euro and Pound Sterling[175] - Days sales outstanding (DSO) for the three months ended March 31, 2025, was 79, slightly higher than 78 for the same period in 2024[156][157] Revenue Recognition - The transition to a SaaS delivery model may cause significant variations in reported revenues due to differences in revenue recognition accounting treatment[121]