Financial Performance - Total revenue for Q1 2025 was $1664 million, an 11% increase compared to Q1 2024[10] - Cloud subscriptions revenue reached $998 million in Q1 2025, a 15% growth from Q1 2024[10] - Subscriptions revenue totaled $1344 million in Q1 2025, reflecting a 14% increase year-over-year[10] - Adjusted EBITDA for Q1 2025 was $168 million[7] Margins - Subscriptions gross margin was 89%[10] - Professional services gross margin was 30%[10] - Overall gross margin stood at 78%[10] Customer Retention - Cloud subscriptions revenue retention rate was 112% as of March 31, 2025[8] - Cloud Gross Renewal Rate was 99% in Q1 2025[17] Guidance for Q2 and Full Year 2025 - Q2 2025 cloud subscriptions revenue is projected to be between $1010 million and $1030 million, representing a 14%-16% year-over-year growth[39] - Full year 2025 cloud subscriptions revenue is expected to range from $4190 million to $4230 million, a 14%-15% increase[39] - Full year 2025 total revenue is forecasted to be between $6800 million and $6880 million, indicating a 10%-12% growth[39]

Financial Performance - Varonis Systems reported $136.42 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 19.7% [1] - The EPS for the same period was $0.00, compared to -$0.03 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $133.22 million by +2.41% [1] - The EPS surprise was +100.00%, as the consensus EPS estimate was -$0.05 [1] Key Metrics - Annual Recurring Revenues reached $664.30 million, surpassing the $657.21 million average estimate based on six analysts [4] - Maintenance and Services revenues were $16.38 million, which is -31.9% year-over-year and below the $20.06 million average estimate [4] - Term license subscriptions generated $31.49 million, compared to the $35.14 million estimated by three analysts [4] - SaaS revenues were $88.56 million, exceeding the three-analyst average estimate of $78.28 million [4] Stock Performance - Varonis shares have returned +15.3% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]