Core Insights - Greenvale Capital increased its stake in Varonis by purchasing 1.28 million shares, raising its total holding to 1.73 million shares valued at $99.14 million as of September 30 [2][3] - Varonis represents 7.8% of Greenvale Capital's reportable Assets Under Management (AUM) [3] - Varonis' stock price is currently $33.34, reflecting a 26% decline over the past year, underperforming the S&P 500, which is up about 16% in the same period [3] Company Overview - Varonis specializes in data security and analytics, focusing on enterprise-scale solutions to protect sensitive information and manage data access [6] - The company reported a total revenue of $608.68 million and a net income loss of $114.54 million, with a market capitalization of $3.93 billion [4] Financial Performance - Varonis achieved an 18% year-over-year growth in annual recurring revenue (ARR), reaching $718.6 million in the third quarter, with SaaS accounting for approximately 76% of total ARR [10] - The company generated $122.7 million in operating cash flow year-to-date, an increase from $90.9 million the previous year, and reported $111.6 million in free cash flow [11] - Varonis has authorized a $150 million share repurchase program, indicating confidence in its financial position [11] Market Position and Strategy - The company is transitioning to a SaaS model, which has led to wider operating losses but improved cash generation [10] - Varonis is positioned at the intersection of enterprise security, cloud migration, and AI-driven data governance, suggesting a different risk profile compared to traditional investments [11] - The decline in stock price may reflect investor impatience with short-term margins and legacy on-premises segment renewals, but the long-term outlook remains positive due to its recurring revenue model and strong liquidity [12]