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    Varonis Systems Inc (VRNS)

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    Business Description

    Varonis Systems, Inc. is a software company specializing in data security and analytics. It helps organizations manage and protect their data by providing insights into data usage, identifying sensitive information, and detecting potential security threats. The company generates revenue primarily through the sale of licenses for its data security platform and related services.

    1. Subscription Revenues - Includes subscription licenses for on-premises solutions and SaaS offerings such as the Data Security Platform, DatAdvantage Cloud, and Data Classification Cloud. Focuses on delivering data security and analytics through a predominantly SaaS delivery model.
    2. Maintenance and Services Revenues - Comprises revenues from maintenance agreements for perpetual license sales and professional services, which are generally provided on a time and materials basis.

    Key Metrics

    View all financials →
    Revenue by Segment - in Millions of USDQ1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Term License Subscriptions-----55.9862.72968.751
    SaaS-----33.9944.78557.805
    Maintenance and Services24.424.324.6324.9298.2524.0622.83221.512
    Subscriptions83.091.197.68129.13400.91---
    Perpetual Licenses--------
    Total Revenue107.3115.4122.31154.15499.16114.02130.346148.068
    Revenue by Geography - in Millions of USDQ1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    North America81.2584.51494.66113.38373.886.1695.57115.224
    - United States--------
    EMEA22.9227.22724.0235.43109.624.1529.0727.991
    - France--------
    - UK--------
    Rest of World3.173.6773.625.3315.83.715.714.853
    Total Revenue107.34115.418122.31154.13499.2114.02130.35148.068
    KPIs - Metric (Unit, Scale)Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Annual Recurring Revenues (USD millions)478.1497.0517.5-543.0560.3584.2610.0
    SaaS as a Percentage of Total ARR (percentage)-1015-23303643
    Remaining Performance Obligations (USD millions)-195.8259.6-378.2426.2514.7581.4

    Leadership

    NamePositionExternal RolesShort Bio

    Yakov Faitelson

    ExecutiveBoard

    CEO, President, Co-founder, Chairman

    None

    Co-founded VRNS in 2004; developed the MetaData Framework technology; leads strategy and execution.

    		View Report →

    David Bass

    Executive

    EVP of Engineering and CTO

    None

    Joined VRNS in 2005; leads product development and quality assurance; previously SVP of Engineering.

    Dov Gottlieb

    Executive

    VP, General Counsel, and Corporate Secretary

    None

    Joined VRNS in 2021; oversees legal and corporate governance; previously an equity partner at a global law firm.

    Guy Melamed

    Executive

    CFO and COO

    None

    Joined VRNS in 2011; became CFO in 2017 and COO in 2018; oversees global operations, finance, and strategy.

    Avrohom J. Kess

    Board

    Director

    Vice Chairman and Chief Legal Officer at The Travelers Companies, Inc.

    Director since 2022; significant expertise in law, corporate governance, and ESG matters; previously a partner at Simpson Thacher & Bartlett LLP.

    Carlos Aued

    Board

    Director

    None

    Director since 2022; retired from Cisco in 2021 after 25+ years in leadership roles; extensive experience in technology and sales across various verticals.

    Fred Van Den Bosch

    Board

    Director

    Advisor to Tabnine Ltd., OSNexus, Inc., and Thehintbox!, Inc.; Director at multiple private companies

    Director since 2013; former CEO of Librato and PANTA Systems; extensive experience in enterprise software, storage management, and high-performance computing.

    Gili Iohan

    Board

    Director

    Partner at Ion Crossover Partners; Director at Fiverr (FVRR) and Monday.com (MNDY)

    Former CFO of VRNS (2005–2017); director since 2017; extensive financial and operational expertise.

    John J. Gavin, Jr.

    Board

    Lead Director

    None

    Director since 2013; extensive financial and operational management experience; previously CFO at BladeLogic and other companies.

    Kevin Comolli

    Board

    Director

    None

    Partner at Accel since 2000; serves as a director at VRNS since 2004; extensive experience in software and technology investments.

    Ofer Segev

    Board

    Director

    CFO and Director at Windward Ltd. (LON: WNWD)

    Director since 2015; extensive financial expertise; currently CFO and Director at Windward Ltd.

    Ohad Korkus

    Board

    Director and Co-founder

    None

    Co-founded VRNS in 2004; previously CTO (2007–2018); co-developed the MetaData Framework technology; holds several patents related to data analysis and permissions visualization.

    Rachel Prishkolnik

    Board

    Director

    None

    Director since 2021; no additional details provided in the documents.

    Thomas F. Mendoza

    Board

    Director

    None

    Director since 2015; former Vice Chairman and President of NetApp; extensive sales and marketing experience in the technology industry.

    Questions to Ask Management

    1. Your federal business underperformed expectations by several million dollars this quarter; can you elaborate on whether this was due to execution issues or external factors, and what specific steps are you taking to address this underperformance? ,

    2. Given that net new ARR guidance for Q4 is relatively similar to Q3 despite Q4 typically being a larger quarter, is there something in the overall business environment or demand trends that is causing you to be cautious in your outlook?

    3. With the increasing competition in the data security market, particularly as AI adoption becomes more mainstream, how do you plan to maintain your competitive positioning and differentiate your offerings in this crowded space?

    4. As you continue to convert existing customers to your SaaS platform, can you provide more detail on the gross retention trends and whether the rate of conversions may impact your ARR growth going forward?

    5. The SaaS transition has impacted your operating margins this year; can you provide clarity on how the transition will affect revenue growth and operating margins in 2025, and when you expect margins to stabilize or improve?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateOctober 2022
    End Date/DurationOctober 31, 2023
    Total Additional Amount$100 million
    Remaining Authorization$0 (Program completed)
    DetailsRepurchased and retired 4,415,093 shares for a total of $99.967 million

    Recent Mergers & Acquisitions

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Polyrize Security Ltd.

    2020

    Varonis Systems, Inc. acquired the entire share capital of Polyrize Security Ltd. via a Share Purchase Agreement, which also involved assuming Polyrize's 2019 Share Incentive Plan (covering 13,887 shares). The acquisition, consummated on October 29, 2020, was strategically aimed at enhancing Varonis's Data Security Platform with software that maps and analyzes user-data relationships across cloud applications, with initial side-by-side sales followed by planned full integration.

    Latest news

    Recent developments and announcements about VRNS.

    Earnings

    • New Earnings (Q4 2024)

      ·
      7 days ago

      Varonis missed Q4 revenue guidance by $11M (7%) due to a faster SaaS shift (53% of ARR vs 49% guided), but new customer ARR soared 50%. The accelerated transition aims to complete by 2025, unlocking upsell potential and sustaining 20%+ ARR growth with AI tailwinds.

      View full earnings summary →