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Varonis Systems (VRNS)
NASDAQ:VRNS
Earnings Data
Report Date
May 05, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
-0.05Last Year’s EPS
-0.03Same Quarter Last Year
Moderate Buy
Based on 15 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 04, 2025
|% Change Since: -7.02%
|Next Earnings Date:May 05, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted strong progress in Varonis' SaaS transition and new customer growth, alongside significant milestones in free cash flow and ARR contribution margin improvements. However, these positive developments were tempered by headwinds in revenue growth and operating margins due to the SaaS transition, as well as pressures on the net retention rate.Company Guidance
During the Varonis Systems, Inc. fourth-quarter 2024 earnings call, the company provided guidance indicating a strong focus on accelerating their transition to a SaaS model. The CEO, Yaki Faitelson, highlighted the substantial progress made in 2024, with SaaS ARR growing by over $200 million and reaching approximately $340 million, representing 53% of total ARR. The company plans to complete this transition by the end of 2025, a year ahead of their previous outlook, expecting SaaS ARR to reach about $580 million, which would be approximately 78% of total ARR. For 2025, Varonis projected ARR growth of 15% to 16%, targeting $737 million to $745 million. Total revenues for the year are expected to grow by 11% to 13%, reaching $610 million to $625 million, with free cash flow anticipated to increase to $120 million to $125 million. The company emphasized the benefits of this transition in driving better retention rates, sales productivity, and upsell opportunities, aiming for a long-term ARR growth target of over 20%.Significant SaaS Transition Progress
In 2024, Varonis added over $200 million of SaaS ARR, ending the year with approximately $340 million of SaaS ARR or 53% of total company ARR. This progress is ahead of schedule, with the transition expected to complete by the end of 2025, a year earlier than previously anticipated.
Strong New Customer Growth
ARR per new customer grew approximately 20% year-over-year, and new business ACV grew by 50%. This growth was driven by the simplicity of the SaaS platform, MDDR, and demand for GenAI-related solutions.
Free Cash Flow Milestone
Varonis generated $108.5 million of free cash flow in 2024, doubling from $54.3 million in the previous year, crossing a significant $100 million milestone.
Record-Breaking ARR Contribution Margin
ARR contribution margin improved to 16.6% in 2024, up from 13.4% last year, indicating significant leverage improvement.
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VRNS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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VRNS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 04, 2025 | $46.84 | $43.37 | -7.41% |
| Oct 29, 2024 | $58.78 | $52.48 | -10.72% |
| Jul 29, 2024 | $48.49 | $55.59 | +14.64% |
| May 06, 2024 | $44.59 | $45.00 | +0.92% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Varonis Systems (VRNS) report earnings?
Varonis Systems (VRNS) is schdueled to report earning on May 05, 2025, TBA Not Confirmed.
What is Varonis Systems (VRNS) earnings time?
Varonis Systems (VRNS) earnings time is at May 05, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is VRNS EPS forecast?
VRNS EPS forecast for the fiscal quarter 2025 (Q1) is -0.05.
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