Core Insights - AvePoint achieved total quarterly revenue exceeding $100 million for the first time, with second quarter total revenue reaching $102.0 million, reflecting a 31% year-over-year growth [1][5] - The company's second quarter SaaS revenue was $77.3 million, marking a 44% year-over-year increase [1][5] - AvePoint's total Annual Recurring Revenue (ARR) stood at $367.6 million, representing a 27% year-over-year growth [1][5] Financial Performance - Gross profit for the second quarter was $75.5 million, with a GAAP gross margin of 74.0%, slightly down from 75.7% in the same quarter of the previous year [5][26] - GAAP operating income was $7.1 million, compared to a loss of $(2.1) million in the second quarter of 2024, resulting in a GAAP operating margin of 7.0% [5][26] - Non-GAAP operating income for the second quarter was $18.8 million, with a non-GAAP operating margin of 18.4%, up from 11.2% in the prior year [5][26] Business Highlights - The AvePoint Confidence Platform was expanded with new features including Risk Posture, Optimization & ROI, and advanced AI security capabilities [5] - The company was recognized in Inc.'s Best Workplaces list for the second consecutive year, highlighting its commitment to creating exceptional workplace culture [5] - AvePoint aims to reach $1 billion in ARR by 2029, indicating strong growth potential and strategic focus [2][5] Financial Outlook - The company raised its full-year guidance for revenue and non-GAAP operating income, reflecting strong second quarter performance [6] - For the full year 2025, total revenue is expected to be between $406.6 million and $410.6 million, representing a year-over-year growth of 23% to 24% [11]

RT Bloomberg Live (@BloombergLive)ICYMI: “The spread of AI tools is a major source of new risk for data security and privacy,”@BBGIntelligence's Conrad Tan on the digital threats senior executives of companies receive due to the rapid spread of AI tools. #SustainableBizSummit⏯️ https://t.co/Ck9JVVIR8t https://t.co/Xa1mnyYGFj ...

Core Insights - Paperclip Inc. emphasizes that its encryption-in-use technology could have mitigated the impact of the recent Allianz Life Insurance data breach, which affected over 1.4 million U.S. customers [1][4]. Group 1: Allianz Breach Context - Allianz Life Insurance experienced a significant data breach on July 16, 2025, due to a social engineering attack targeting a third-party cloud-based CRM system, leading to the exposure of personally identifiable information (PII) [2]. - The breach involved the extraction of sensitive data such as names, addresses, dates of birth, Social Security numbers, and policy identifiers, increasing the risk of identity theft and fraud for millions [2]. - Although Allianz has not confirmed the specific CRM platform involved, sources suggest that Salesforce was likely targeted based on threat actor activity and technical evidence [3]. Group 2: Paperclip SAFE Technology - Paperclip SAFE® employs encryption-in-use technology, which secures data even while it is being processed or searched, unlike traditional encryption methods [4][5]. - The technology combines shredded data with strong encryption architecture, ensuring that sensitive information remains unintelligible throughout its lifecycle [4]. - Paperclip SAFE's Machine Learning surveillance could have halted data export after the first thousand records, potentially reducing the breach's impact [4]. Group 3: Industry Implications - Encryption-in-use is becoming a new standard for data protection, as in-use data is a primary target for cyber threats globally [5]. - Paperclip SAFE is designed to comply with various regulatory frameworks, including GDPR and NYDFS 500, and is rapidly being adopted by major life insurance providers in the U.S. [6][12]. - The technology's zero-trust design protects data across vendor ecosystems, ensuring that third-party environments cannot expose sensitive information [9].

Company Overview - Paperclip Inc. is a leading provider of innovative content management and data security solutions, focusing on the insurance and financial services industries [1][4][8] - The company has over 30 years of experience serving the insurance industry and aims to streamline operations, reduce costs, and ensure compliance for its clients [4][8] Event Participation - Paperclip will participate as a first-time sponsor at the National Index Forum (NIF) in Chicago on August 7 and 8, 2025 [1][3] - The NIF is a premier event for stakeholders in the indexed insurance and annuity space, providing insights into trends, carrier updates, and product innovations [2][6] Product Offerings - Paperclip's offerings include: - MOJO®: A patented technology for data transcription with a 99.9% accuracy rate [9] - SAFE®: A data-centric cybersecurity platform that protects data without disrupting workflows [9] - Virtual Client Folder (VCF): A document management system for scalable, paperless environments [9] - Internet eXpress: An electronic document delivery solution with real-time tracking [9] - C-mail: An email encryption technology that enhances security and affordability [9] Industry Impact - Paperclip continues to empower organizations in the insurance, financial services, and healthcare sectors to operate securely and efficiently in a digital landscape [5][8]

Data Security & Privacy Concerns - Social security numbers are likely compromised, indicating a high risk of identity theft [1] - Facebook accounts face potential hacking threats, highlighting vulnerability in social media platforms [1] - Social media transforms privacy into a performance, data into currency, and identity into a target [1] Social Media Impact - Social media platforms turn user data into a form of currency [1] - Social media platforms turn user identity into a target [1]

Core Insights - The integration of artificial intelligence (AI) and cloud computing is becoming a crucial choice for developing and applying AI technologies, with data security being a foundational element for the stable operation of AI cloud services [1][2] Industry Overview - The Chinese cloud computing market is projected to reach 828.8 billion RMB in 2024, reflecting a year-on-year growth of 34.4%, with an expected growth rate of over 20% during the 14th Five-Year Plan period [1] - The explosive demand for intelligent computing services is identified as the core driver of this growth [1] Data Security Importance - Data is considered the core resource for training large AI models, and any lack of data security could dilute data value and impact the quality of AI cloud services [1] - Poor data quality control can lead to degraded model performance, with false and low-value content becoming sources of pollution in model training [1] - External attacks can also contaminate model prompts, resulting in the output of false information [1] Regulatory Framework - The Chinese government has introduced regulations such as the "Network Data Security Management Regulations" to clarify data security standards and promote healthy industry development [1] Future Outlook - The future of AI cloud is expected to be driven by a dual engine of technological breakthroughs and ecological collaboration over the next 3 to 5 years, with data security becoming increasingly critical [2] - Recommendations include strengthening the AI cloud data security standard system, establishing a shared responsibility framework among stakeholders, and creating a vertical industry-specific AI cloud data security service ecosystem [2]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported an ARR growth of 19% to $693.2 million, with SaaS ARR now representing about 69% of total ARR [9][26] - Free cash flow for the year to date reached $82.7 million, up from $67.3 million in the same period last year [9][28] - Revenue for Q2 was $152.2 million, reflecting a 17% year-over-year increase, despite a 7% headwind due to increased SaaS sales recognized ratably [28] Business Line Data and Key Metrics Changes - SaaS revenues were $105.9 million, term license subscription revenues were $32.4 million, and maintenance and services revenues were $13.9 million, with renewal rates over 90% [28] - The second quarter ARR contribution margin improved to 16.5%, up from 14.9% year-over-year, indicating strong incremental margins while transitioning to SaaS [30] Market Data and Key Metrics Changes - The demand for the SaaS platform from both new and existing customers is strong, particularly for cloud environment protection [10][21] - The data security market is rapidly expanding due to factors such as AI usage and increasing compliance needs, creating more budgeted line items and opportunities [10] Company Strategy and Development Direction - The company is focused on completing its SaaS transition and capturing a growing market opportunity, with a strategic emphasis on automated data security solutions [9][25] - The partnership with Microsoft is being deepened to enhance security for AI tools and drive secure AI adoption [21][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook despite a challenging macro environment, citing strong underlying business drivers [26][58] - The company anticipates continued strong demand for its solutions, particularly as customers recognize the need for comprehensive data security [34][60] Other Important Information - The company achieved federal authorization to offer its entire SaaS platform to the federal sector, marking a significant milestone [9][76] - The company repurchased 1 million shares at an average price of $38.59 during the quarter, totaling $38.7 million [32] Q&A Session Summary Question: How does the company compete against Cyera? - Management noted that competitors like Cyera expand the total available market and raise awareness about the need for data protection, but they do not provide comprehensive outcomes like Varonis does [37][39] Question: Can you size the opportunity from the Microsoft partnership? - Management highlighted that AI security is fundamentally a data security issue, and the partnership is focused on addressing security challenges associated with AI tools [44][46] Question: What metrics instill confidence in achieving over 20% ARR growth? - Management indicated that strong new customer acquisition and healthy NRR trends support the confidence in achieving this growth target [50][52] Question: How is the macro environment trending compared to last quarter? - Management stated that the macro environment remains similar to the previous quarter, with ongoing deal scrutiny but strong demand for data security solutions [58][59] Question: How does the company view competition from backup vendors entering the DSPM market? - Management emphasized that traditional backup vendors rarely compete in POCs and that Varonis remains focused on deploying solutions at scale [62][64] Question: Can you elaborate on the trend of customers consolidating their data security budgets? - Management noted that customers are increasingly consolidating their budgets around Varonis due to the comprehensive nature of its solutions [67][70] Question: What is the significance of the FedRAMP authorization? - Management expressed excitement about the FedRAMP authorization, which allows the company to offer its SaaS platform to federal customers, representing a significant growth opportunity [76][78] Question: How many subscription services would a large healthcare customer utilize? - Management indicated that large customers often utilize multiple services, including databases and compliance tools, reflecting a comprehensive approach to data security [82][84] Question: What is the outlook for new logo acquisition? - Management reported an acceleration in new logo acquisition, with larger initial land sizes and a strong value proposition driving customer interest [85][87]

Company Overview - Varonis is a leader in data security, differentiating itself from conventional cybersecurity companies[7] - The company's Annual Recurring Revenue (ARR) reached $6932 million, demonstrating a year-over-year growth of 19%[8] - SaaS ARR constitutes approximately 69% of the total ARR[8] Financial Performance - The company's YTD Free Cash Flow is $827 million[8] - The company experienced a ~7% headwind to year-over-year revenue growth due to increased SaaS sales[49, 51] - The company experienced a ~6% headwind to operating margin due to increased SaaS sales[54] Market Trends and Opportunities - The amount of data created is expected to grow at a compound annual growth rate of 24% by 2028, with unstructured data accounting for over 90% of the total data generated[18] - The company's Total Addressable Market (TAM) has more than tripled due to expansion into new markets like IaaS, SaaS, PaaS, AI, and Databases, exceeding $32 billion[28] Future Outlook - The company projects ARR between $748 million and $754 million for the full year 2025, representing a 17% year-over-year growth[55] - The company anticipates Free Cash Flow between $120 million and $125 million for the full year 2025[55] - The company's long-term goal is to build a billion-dollar business with expanding profit and cash flow[56]

Core Insights - Varonis Systems, Inc. reported a 19% year-over-year growth in annual recurring revenues (ARR), reaching $693.2 million as of June 30, 2025 [6][5] - The company’s SaaS ARR constituted approximately 69% of total ARR, indicating a significant shift towards SaaS offerings [2][5] - Year-to-date cash from operations increased to $89.3 million from $68.4 million in the previous year, while free cash flow rose to $82.7 million from $67.3 million [6][5] Financial Performance - Total revenues for the second quarter of 2025 were $152.2 million, up from $130.3 million in the same quarter of 2024 [5][6] - SaaS revenues surged to $105.9 million compared to $44.8 million in the second quarter of 2024, reflecting strong demand for the SaaS platform [5][6] - Term license subscription revenues decreased to $32.4 million from $62.7 million, primarily due to customer transitions to the SaaS platform [5][6] - Maintenance and services revenues also fell to $13.9 million from $22.8 million, again attributed to the shift towards SaaS [5][6] Operational Highlights - The company repurchased 1.0 million shares at an average price of $38.59, totaling $38.7 million, completing its share repurchase authorization [6] - Varonis announced a strategic partnership with Microsoft to enhance security for workplace AI, integrating its Data Security Platform with Microsoft's security offerings [6] - The company achieved FedRAMP Authorization, confirming that its unified SaaS platform meets stringent U.S. federal cloud security requirements [6] - Varonis introduced protection for OpenAI's ChatGPT Enterprise, enabling customers to monitor sensitive data uploads and prevent compliance violations [6] Future Outlook - Varonis raised its full-year ARR guidance and increased its expectation for the SaaS mix to 82% from 80% [2] - The company anticipates continued growth driven by the adoption of AI and increasing awareness of data-centric cloud and SaaS security [2]

[Music] All right. Uh, thank you everyone. We're excited for to be here and thank you for uh, coming to our talk.Uh, my name is Chong. I'm the CEO and co-founder of LANCB. I've been making data tools for machine learning and data science for about 20 years.I was one of the co-authors of pandas library and I'm working on LANCB today for all of that data that doesn't fit neatly into those pandas data frames. And I'm Calvin. I lead one of the teams at Harvey Aai working on rag um tough rag problems across mass ...