These Analysts Cut Their Forecasts On Varonis Systems Following Q3 Results

Core Viewpoint - Varonis Systems Inc reported disappointing third-quarter revenue and provided fourth-quarter guidance that fell below market expectations [1][2] Financial Performance - The company reported quarterly earnings of 6 cents per share, meeting analyst consensus estimates [1] - Quarterly sales were $161.577 million, missing the analyst consensus estimate of $166.149 million [1] Fourth-Quarter Guidance - Varonis expects adjusted EPS for the fourth quarter to be between 2 cents and 4 cents, compared to market estimates of 5 cents [2] - The company anticipates sales of $165.00 million to $171.00 million, versus projections of $170.129 million [2] Market Reaction - Following the earnings announcement, Varonis Systems shares fell by 45.2%, trading at $34.53 [3] Analyst Ratings and Price Targets - Needham analyst Mike Cikos maintained a Buy rating but lowered the price target from $70 to $55 [6] - Barclays analyst Saket Kalia maintained an Overweight rating and reduced the price target from $70 to $50 [6] - Piper Sandler analyst Rob Owens kept a Neutral rating and cut the price target from $50 to $45 [6] - Cantor Fitzgerald analyst Jonathan Ruykhaver maintained an Overweight rating and lowered the price target from $70 to $60 [6] - Susquehanna analyst Shyam Patil maintained a Positive rating and reduced the price target from $65 to $50 [6] - Truist Securities analyst Junaid Siddiqui reiterated a Buy rating and slashed the price target from $70 to $50 [6] - UBS analyst Roger Boyd maintained a Buy rating and lowered the price target from $70 to $60 [6] Business Insights - CEO Yaki Faitelson noted healthy demand for the company's SaaS platform, which now constitutes 76% of total company ARR [3] - The adoption of the SaaS platform is driven by automated outcomes and customer interest in AI initiatives and cloud data security [3] - However, the company experienced lower renewals in the Federal vertical and non-Federal on-prem subscription business towards the end of the quarter, leading to a revenue shortfall [3]