Mark's questions to Varonis Systems Inc (VRNS) leadership • Q4 2024
Question
Mark, on behalf of Fatima Boolani at Citigroup, asked about the post-conversion behavior of customers, specifically the expansion cadence in year one versus year two, and how the accelerated transition timeline would affect the trajectory of Net Retention Rate (NRR) in 2025.
Answer
CFO and COO Guy Melamed noted that with the transition only being two years old, there isn't a full set of historical data on multi-year behavior. However, he shared that analysis of the existing data shows the NRR for converted SaaS customers in 2024 was 'nicely higher' than the 105% reported for the total base. This gives the company confidence that once the transition is complete, they can drive NRR higher by upselling additional platforms to the now-satisfied SaaS customer base.