VRNS
Varonis Systems, Inc.33.16
+0.16+0.49%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A spotlights SaaS ex-conversion growth
Q&A hammered home the new SaaS ARR ex-conversions metric as the true forward indicator, guiding 18%-20% growth or $120 million net new versus $109.5 million last year, with reps now freed from conversion distractions to chase new logos and expansions. Management expects $50-$75 million of the remaining $105 million non-SaaS ARR to convert in 2026, baking zero uplift and assuming federal holdouts won't budge. The $30-$50 million headwind to FCF and ARR contribution stems mainly from lower non-SaaS renewals. Reps can't retire quota on conversions anymore. AI tailwinds via Altu and platform expansions drew upbeat nods, countering disruption fears. Investors will eye SaaS NRR trending above 110% and execution sans on-prem drag.
Key Stats
Market Cap
3.91BP/E (TTM)
-Basic EPS (TTM)
-1.02Dividend Yield
0%Recent Filings
10-K
FY2025 results
Varonis delivered FY2025 revenue of $623.5M, up 13% y/y despite SaaS ramp-up causing revenue recognition headwinds from ratable SaaS vs. upfront term licenses; SaaS exploded 122% to $462.6M (74% of total) as ARR hit $745M (+16% y/y) with SaaS ARR at $639M. Q4 accelerated the shift, with SaaS now 86% of ARR and renewals over 90%, while term subscriptions cratered 57% and maintenance fell 42%. Margins compressed to 79% gross on hosting costs, operating loss widened to $147M on R&D/sales investments and $124M M&A spend (Cyral/SlashNext for DAM/email security), yet FCF derived from $147M operating cash less $16M capex stayed positive. $460M 2029 Notes fund liquidity ($921M cash/secs), $135M remains in latest buyback; no annual guidance disclosed. Quarterly revenue swings persist from self-hosted end-of-life by 2026.
8-K
SaaS ARR hits 86%
Varonis reported Q4 2025 revenues of $173.4M, up from $158.5M, driven by SaaS revenues surging to $142.3M while term licenses plunged to $21.0M on customer conversions. Full-year ARR hit $745.4M, up 16%, with SaaS ARR at $638.5M or 86% of total—boosted 32% excluding conversions. Cash flow soared. SaaS dominates.
10-Q
Q3 FY2025 results
Varonis revenue climbed 9.1% y/y to $161.6M in Q3 FY2025 ended September 30, powered by SaaS jumping 117.7% y/y to $125.8M while term licenses dropped 63.9% y/y, yet gross margin held at 78.2% despite SaaS hosting ramp. Operating loss widened to $35.9M from $23.6M y/y on R&D and acquisition costs, with net loss at $29.9M or $(0.26) diluted EPS matching 114.97M shares. Cash from operations hit $122.7M YTD; closed SlashNext in August 2025 for $105.9M cash (recognizing $95.4M goodwill, $8.4M developed technology over 7 years) and Cyral in March; $451.8M 2029 Notes due 2029 at 1%; $157.4M cash. SaaS now dominates. Term license end-of-life looms.
8-K
Q3 revenues up, ARR +18%
Varonis reported Q3 revenues of $161.6 million, up from $148.1 million, with ARR hitting $718.6 million, up 18% year-over-year as SaaS surged to 76% of total. SaaS revenues rocketed to $125.8 million while term licenses crashed 64% from conversions; Federal and on-prem renewals faltered late. Cash flow strengthened YTD to $122.7 million. Company authorizes $150 million buyback, cuts FY ARR guide to $730-738 million.
8-K
Varonis acquires SlashNext for AI email security
Varonis Systems announced its acquisition of AI-native email security provider SlashNext on September 2, 2025, to bolster defenses against phishing and social engineering attacks across email and collaboration tools. This move extends Varonis's data breach prevention into inboxes, connecting email, identity, and data for consolidated threat detection. The acquisition expands the total addressable market. Updated Q3 2025 guidance projects revenues of $163.0 million to $168.0 million, up 10% to 13% year-over-year, while reiterating full-year free cash flow of $120.0 million to $125.0 million. Integration risks could impact performance.
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