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Varonis Q3 revenue rises 17%, beats analyst expectations

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$189.46 mln

$186.88 mln (23 Analysts)

Q3 Net Loss

$41.65 mln

Q3 Gross Profit

$142.57 mln

Q3 Operating Income

-$47.71 mln


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


Reuters Recommended Reads

  • Nov 2 - Israel's Check Point Software Q3 revenue slightly misses estimates

  • Nov 2 - Tempus AI Q3 revenue slightly beats estimates; raises guidance

  • Nov 2 - Anthropic's third-quarter net loss narrows, amended filing shows


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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