Company Announcement - Varonis Systems, Inc. will report its second quarter 2025 financial results on July 29, 2025, after the U.S. financial markets close [1] - A conference call to discuss the financial results will be held on the same day at 4:30 p.m. ET [1] Conference Call Details - To access the call, domestic participants can dial 877-425-9470, while international participants can call 201-389-0878, using conference ID number 13754774 [2] - A replay of the conference call will be available until August 6, 2025, with specific numbers for domestic and international access [2] - A live webcast will be available on the company's Investor Relations page, and the replay will be archived for one year [2] Company Overview - Varonis is recognized as a leader in data security, focusing on a different approach compared to conventional cybersecurity firms [3] - The company offers a cloud-native Data Security Platform that continuously discovers and classifies critical data, removes exposures, and detects advanced threats using AI-powered automation [3] Customer Trust and Solutions - Thousands of organizations globally rely on Varonis to protect their data across various environments, including SaaS, IaaS, and hybrid cloud [4] - Varonis automates multiple security outcomes, such as data security posture management, data classification, data access governance, data detection and response, data loss prevention, AI security, identity protection, and insider risk management [4] - The company's strategy emphasizes protecting data first, rather than as a secondary measure [4]

Core Insights - AvePoint has introduced new features to its Elements Platform aimed at enhancing data security, streamlining IT management, and optimizing services for managed service providers (MSPs) [1][4] Industry Overview - Nearly one-third of small and midsized businesses (SMBs) are victims of cyberattacks, with 81% believing that AI increases the need for additional security controls, presenting a significant market opportunity for MSPs in Managed Security Services [2] - The AvePoint Elements Platform facilitates scaling deployments and standardizing support with a single vendor, a goal for nearly three-quarters of MSPs [2] Company Developments - The new features in the AvePoint Elements Platform are designed to help MSPs balance security measures with resource optimization and operational efficiency, thereby creating a competitive advantage [3] - AvePoint's strategic investments in 2025 include the acquisition of Ydentic and the launch of the next-generation Elements platform, enhancing security and management capabilities [4] New Features of AvePoint Elements Platform - **Marketplace Integration**: The platform integrates with major distributors, allowing MSPs to manage client licenses directly from the Elements dashboard, reducing administrative overhead and billing errors [5] - **Risk User Insight**: This feature continuously monitors user activities across various security domains, enabling MSPs to proactively detect suspicious behavior and enhance security monitoring services [5] - **License Optimization**: The platform analyzes license usage across client environments, allowing for the recovery of wasted costs and positioning MSPs as strategic advisors [5] - **Storage Optimization**: This solution helps MSPs manage archiving tasks across multiple customers, ensuring compliance and freeing up technical resources for higher-margin security services [5]

Core Insights - Varonis Systems, Inc. has launched the Varonis Model Context Protocol (MCP) Server, enabling customers to utilize AI tools like ChatGPT and Claude for enhanced data security insights and automation [1][2] - The MCP Server represents a significant advancement in data security, allowing users to transform simple prompts into automated security outcomes, thereby enhancing their data security posture [2] - Varonis continues to innovate with AI integration, providing real-time data security insights and automated remediation, which helps organizations prevent data breaches and streamline compliance efforts [2] Company Overview - Varonis is recognized as a leader in data security, focusing on a different approach compared to traditional cybersecurity firms by continuously discovering and classifying critical data while detecting advanced threats through AI-powered automation [4][5] - The company offers a cloud-native Data Security Platform that automates various security outcomes, including data security posture management, data classification, and insider risk management [5] Customer Engagement - Customers can now leverage the Varonis MCP Server to execute complex tasks such as retrieving high-severity alerts, managing stale guest accounts, and generating compliance reports for databases containing employee PII [6]

Summary of Varonis Systems (VRNS) FY Conference - June 04, 2025 Company Overview - **Company**: Varonis Systems - **Industry**: Data Security - **Business Model**: SaaS (Software as a Service) Core Points and Arguments 1. **Data Security Focus**: Varonis provides a data security platform that identifies, protects, and monitors sensitive data to prevent threats such as ransomware, insider threats, and AI abuse [3][4][5] 2. **Risk Assessment Approach**: The company conducts risk assessments to identify where sensitive data is at risk and how to mitigate those risks effectively [7][16][29] 3. **Blast Radius Concept**: The term "blast radius" refers to the amount of sensitive data accessible to a compromised user, emphasizing the importance of limiting access to reduce potential damage [9][10][11] 4. **Challenges in Data Protection**: Traditional data loss prevention (DLP) methods have been ineffective, leading to a focus on monitoring and automating data protection [13][15][16] 5. **Comprehensive Visibility**: Varonis offers unprecedented visibility into sensitive data, including its location, access permissions, and usage patterns, which is crucial for effective data protection [18][22][23] 6. **Automated Remediation**: The platform automates the process of fixing identified risks, such as excessive access permissions and misconfigurations, enhancing overall data security [19][25][26] 7. **AI and Data Security**: The rise of AI tools like Microsoft Copilot and ChatGPT has increased the urgency for organizations to secure sensitive data, as these tools can inadvertently expose information [27][48][49] Financial Transition and SaaS Model 1. **SaaS Transition**: Varonis is transitioning to a SaaS model, aiming for 80% of its Annual Recurring Revenue (ARR) to come from SaaS by the end of 2025, ahead of the original five-year plan [42][43] 2. **Financial Metrics**: The company reported a positive free cash flow guidance of $120 to $125 million for the year, indicating strong financial health during the transition [44] 3. **Customer Benefits**: The SaaS model simplifies customer engagement, reduces hardware costs, and improves renewal rates due to the stickiness of the Managed Data Detection Response (MDDR) service [51][52] 4. **Cost Efficiency**: Customers experience a total cost of ownership reduction despite a 25-30% uplift in license costs when switching from on-premises to SaaS [54] Competitive Landscape 1. **Increased Competition**: The competitive landscape has evolved with more players entering the data security and discovery space, particularly in cloud and SaaS applications [31][32][33] 2. **Differentiation**: Varonis differentiates itself through comprehensive coverage across data stores and the ability to automate risk remediation, which is not offered by many competitors [35][36] Additional Insights 1. **Real-Time Monitoring**: Varonis emphasizes the importance of real-time monitoring of data transactions to detect insider threats and other anomalies [26][28] 2. **Identity Layer Understanding**: The company is focusing on understanding the identity layer, which is crucial for identifying risky behaviors among users [22] 3. **Future Opportunities**: The company sees significant growth potential in the AI space, as organizations increasingly adopt AI tools that require robust data security measures [47][48] This summary encapsulates the key points discussed during the Varonis Systems FY Conference, highlighting the company's focus on data security, financial transition to a SaaS model, competitive landscape, and future opportunities in the AI domain.

Core Insights - Varonis Systems, Inc. has been recognized as a 2025 Customers' Choice in the Gartner Peer Insights for Data Security Posture Management, marking the second consecutive year for this distinction [1] - The company achieved a high customer satisfaction score of 4.9 out of 5 stars from 149 reviews, with 99% of customers indicating they would recommend Varonis [2] Company Overview - Varonis is a leader in data security, focusing on a different approach compared to conventional cybersecurity firms, utilizing a cloud-native Data Security Platform [4] - The platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats through AI-powered automation [4] - Varonis offers a range of security solutions including data security posture management, data classification, data access governance, data detection and response, data loss prevention, AI security, identity protection, and insider risk management [5]

Core Insights - Varonis Systems, Inc. has been recognized as a 2025 Customers' Choice in the Gartner Peer Insights for Data Security Posture Management (DSPM) for the second consecutive year, achieving a rating of 4.9 out of 5 stars from 149 reviews [1][2] - 99% of customers indicated they would recommend Varonis, highlighting strong customer satisfaction and support experience rated at 4.9 out of 5 stars [2] Company Overview - Varonis is a leader in data security, focusing on a cloud-native Data Security Platform that continuously discovers and classifies critical data, removes exposures, and detects advanced threats using AI-powered automation [4][7] - The company provides a range of security solutions including DSPM, data classification, data access governance, data detection and response, data loss prevention, AI security, identity protection, and insider risk management [5][7] Customer Feedback - Customers have praised Varonis for its exceptional customer support and effectiveness in data governance and security, with testimonials highlighting its transformative impact on data security practices [5] - Notable quotes from customers include statements about Varonis being a "game changer" and providing "absolute supremacy in the DSPM market" [5]

Core Insights - The report reveals that 99% of organizations have sensitive data exposed to AI tools, highlighting significant data security risks in the age of AI [1][9][11] - Varonis emphasizes the need for a data-centric approach to security to prevent AI-related data breaches, as organizations face pressure to adopt AI rapidly [2][9] Data Security Findings - 90% of sensitive cloud data, including AI training data, is open and accessible to AI tools [9] - 98% of organizations have unverified applications, including shadow AI, within their environments [9] - 1 in 7 organizations do not enforce multi-factor authentication (MFA) across SaaS and multi-cloud environments [9] - 88% of organizations have ghost users present in their environments, indicating potential security vulnerabilities [9] Varonis Overview - Varonis is a leader in data security, focusing on protecting data through continuous discovery, classification, and threat detection using AI-powered automation [4][5] - The company provides a range of security solutions, including data security posture management, data classification, and insider risk management [5]

Group 1 - AvePoint, a leader in data security, governance, and resilience, will present at the William Blair 45th Annual Growth Stock Conference on June 4, 2025, at 8:00 am CT [1] - The company will also participate in several other investor conferences, including the Baird 2025 Global Consumer, Technology & Services Conference on June 3, and the D.A. Davidson 2025 Consumer & Technology Conference on June 10 [4] - A live and archived audio webcast of the William Blair presentation will be available on AvePoint's Investor Relations website [1] Group 2 - AvePoint serves over 25,000 customers globally, providing solutions that prepare, secure, and optimize critical data across platforms like Microsoft, Google, and Salesforce [2] - The company has a global channel partner program with approximately 5,000 managed service providers, value-added resellers, and systems integrators, making its solutions available in over 100 cloud marketplaces [2]

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]

Core Insights - AvePoint is a global leader in data security, governance, and resilience, providing solutions that enable organizations to collaborate confidently [2] - The company has over 25,000 customers worldwide utilizing the AvePoint Confidence Platform across various collaboration environments [2] - AvePoint's global channel partner program includes approximately 5,000 managed service providers, value-added resellers, and systems integrators [2] Upcoming Events - AvePoint will present at several investor conferences, including the TD Cowen 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, and the Jefferies Public Technology Conference on the same day [5] - The company will also participate in the 20th Annual Needham Technology, Media & Consumer 1x1 Conference virtually on May 12, 2025 [5] - Additional participation includes the Evercore ISI Software 1x1 Day and the Morgan Stanley Virtual ASEAN Conference, both on May 29, 2025 [5] Investor Relations - A live and archived audio webcast of all presentations will be available on the AvePoint Investor Relations website [1] - The company uses its website for disclosing material non-public information and for compliance with disclosure obligations under Regulation FD [4]