Varonis Announces First Quarter 2025 Financial Results

Core Insights - Varonis Systems, Inc. reported a 19% year-over-year growth in annual recurring revenues (ARR), reaching $664.3 million as of March 31, 2025 [6][5][2] - The company's SaaS ARR constituted approximately 61% of total ARR, indicating strong adoption of its SaaS platform [2][5] - Year-to-date cash from operations was $68.0 million, up from $56.7 million in the previous year, while free cash flow increased to $65.3 million from $56.4 million [6][5] Financial Performance - Total revenues for the first quarter were $136.4 million, compared to $114.0 million in the same quarter of 2024, reflecting a significant increase [5][24] - SaaS revenues surged to $88.6 million from $34.0 million year-over-year, while term license subscription revenues decreased to $31.5 million from $56.0 million, primarily due to customer transitions to the SaaS model [5][24] - Maintenance and services revenues also declined to $16.4 million from $24.1 million, again attributed to the shift towards SaaS [5][24] Operational Highlights - The company repurchased 1.5 million shares at an average price of $41.49, totaling $61.3 million [6] - Varonis acquired Cyral, enhancing its Data Security Platform with next-generation Database Activity Monitoring capabilities [6] - The launch of Varonis for Agentforce provides critical visibility into the AI layer of the Salesforce platform, facilitating safe AI rollouts [6] Cash Flow and Liquidity - As of March 31, 2025, Varonis had $1.2 billion in cash and cash equivalents, short-term deposits, and marketable securities [6] - The company generated $68.0 million in cash from operations during the first quarter, marking an increase from the previous year's $56.7 million [6][30] - Free cash flow for the quarter was $65.3 million, up from $56.4 million in the prior year [6][30] Future Outlook - Varonis anticipates raising its full-year ARR guidance due to strong SaaS adoption and underlying business drivers, despite a challenging macroeconomic environment [2][5] - The company expects revenues for the full year 2025 to be between $610.0 million and $625.0 million, reflecting year-over-year growth of 11% to 13% [12]