Varonis Q3 revenue rises 17%, beats analyst expectations

Overview

• Data and AI security firm's Q3 revenue rose, beating analyst expectations

• Non-GAAP operating income improved to $7.6 mln from $0.2 mln last year

• Shift to SaaS platform drove revenue growth, offsetting declines in term license and maintenance

Outlook

• Varonis will not provide forward-looking guidance due to pending acquisition by Proofpoint

Result Drivers

• SAAS CONVERSIONS - Co said growth in SaaS revenues and annual recurring revenue was driven by customers converting to its SaaS platform

• SAAS ARR GROWTH - SaaS annual recurring revenue rose 42% year-over-year, reflecting increased adoption of the SaaS platform

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 19 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Varonis Systems, Inc. is $49.75, about 2.1% above its November 2 closing price of $48.75

• The stock recently traded at 134 times the next 12-month earnings vs. a P/E of 132 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)