Varonis(VRNS) - 2025 Q3 - Quarterly Results

Revenue Growth - Annual recurring revenues (ARR) increased by 18% year-over-year, reaching $718.6 million[6] - Total revenues for Q3 2025 were $161.6 million, up from $148.1 million in Q3 2024[5] - SaaS revenues surged to $125.8 million, compared to $57.8 million in the same quarter last year[5] - Total revenues for the three months ended September 30, 2025, were $161,577,000, an increase from $148,068,000 in the same period of 2024, representing a 9.4% growth[28] - SaaS revenues reached $125,824,000 for the three months ended September 30, 2025, compared to $57,805,000 in 2024, indicating a significant increase of 117%[28] Cash Flow and Operations - Year-to-date cash from operations was $122.7 million, compared to $90.9 million in the prior year[6] - Year-to-date free cash flow reached $111.6 million, up from $88.6 million last year[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $122,747,000, compared to $90,926,000 in 2024, representing a 35% increase[35] - Free cash flow for the nine months ended September 30, 2025, was $111,551,000, an increase of approximately 26% from $88,584,000 in the same period of 2024[41] Losses and Expenses - The net loss for the nine months ended September 30, 2025, was $101,549,000, compared to a net loss of $82,771,000 for the same period in 2024, reflecting a 22.6% increase in losses[28] - Operating expenses for the three months ended September 30, 2025, totaled $162,362,000, up from $147,701,000 in 2024, marking a 9.9% increase[28] - GAAP net loss for the latest quarter was $29,942,000, compared to a loss of $18,333,000 in the same quarter last year, indicating a year-over-year increase in losses of about 63%[39] - GAAP net loss per share (basic and diluted) was $(0.26) for the latest quarter, compared to $(0.16) in the previous year, indicating a worsening of approximately 63%[39] Shareholder Actions - The company announced a $150.0 million share repurchase authorization[1] Guidance and Expectations - The company expects to reduce its full-year ARR guidance due to lower renewals in the Federal vertical and on-prem subscription business[7] Product Development and Acquisitions - New product launches include Varonis Interceptor and Next-Gen Database Activity Monitoring, enhancing email and database security[6] - The company acquired SlashNext, an AI-native email security provider, to bolster its security offerings[6] Assets and Liabilities - Cash and cash equivalents at the end of the period were $157,354,000, down from $185,585,000 at the end of 2024[32] - Total current assets increased to $961,386,000 as of September 30, 2025, compared to $878,074,000 at the end of 2024, showing a growth of 9.5%[32] - The company had total liabilities of $1,060,171,000 as of September 30, 2025, compared to $1,208,619,000 at the end of 2024, indicating a decrease of 12.3%[32] Stock-Based Compensation - The company reported stock-based compensation expenses of $31,550,000 for the three months ended September 30, 2025, compared to $31,931,000 in 2024[30] - Stock-based compensation expense for the latest quarter was $31,550,000, compared to $31,931,000 in the previous year, showing a slight decrease of about 1%[39] - Payroll tax expenses related to stock-based compensation were $478,000 for the latest quarter, compared to $401,000 in the previous year, reflecting an increase of approximately 19%[39] - Amortization of acquired intangible assets and acquisition-related expenses totaled $4,067,000 for the latest quarter, compared to $381,000 in the previous year, indicating a significant increase[39] Non-GAAP Metrics - Non-GAAP net income for the latest quarter was $8,419,000, compared to $13,824,000 in the previous year, reflecting a decrease of approximately 39%[39] - Non-GAAP net income per share (diluted) was $0.06, down from $0.10 in the previous year, representing a decline of 40%[39] - The weighted average number of shares used in computing non-GAAP net loss per share was 114,974,455 for the three months ended September 30, 2025[28] - The weighted average number of shares used in computing GAAP net loss per share (diluted) was 134,106,706, compared to 134,713,048 in the previous year[39]