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.
- 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.
- 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.
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| Name | Position | External Roles | Short 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. |
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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? ,
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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?
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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?
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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?
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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?
Research analysts who have asked questions during VARONIS SYSTEMS earnings calls.
Brian Essex
JPMorgan Chase & Co.
4 questions for VRNS
Jason Ader
William Blair & Company
4 questions for VRNS
Joseph Gallo
Jefferies & Company Inc.
4 questions for VRNS
Joshua Tilton
Wolfe Research
4 questions for VRNS
Roger Boyd
UBS
4 questions for VRNS
Rudy Kessinger
D.A. Davidson & Co.
4 questions for VRNS
Saket Kalia
Barclays Capital
4 questions for VRNS
Shrenik Kothari
Robert W. Baird & Co.
4 questions for VRNS
Andrew Nowinski
Wells Fargo
3 questions for VRNS
Joel Fishbein
Truist Securities
3 questions for VRNS
Shaul Eyal
TD Cowen
3 questions for VRNS
Hamza Fodderwala
Morgan Stanley
2 questions for VRNS
Matthew Hedberg
RBC Capital Markets
2 questions for VRNS
Ethan Drake Weeks
Piper Sandler
1 question for VRNS
Fatima Boolani
Citi
1 question for VRNS
Jonathan Ruykhaver
Cantor Fitzgerald
1 question for VRNS
Junaid Siddiqui
Truist Securities
1 question for VRNS
Keith Weiss
Morgan Stanley
1 question for VRNS
Mark Zhang
Citigroup
1 question for VRNS
Matt Dezort
William Blair & Company
1 question for VRNS
Matt Hedberg
RBC Capital Markets
1 question for VRNS
Mike Cikos
Needham & Company, LLC
1 question for VRNS
Mike Richards
RBC Capital Markets
1 question for VRNS
Robbie Owens
Piper Sandler
1 question for VRNS
Rob Owens
Piper Sandler Companies
1 question for VRNS
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
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. |
Recent press releases and 8-K filings for VRNS.
- Varonis is in the late stages of its SaaS transition, expecting to achieve an 82% SaaS mix by the end of 2025, two years ahead of initial plans.
- The company announced the acquisition of SlashNext, an email security firm, to enhance its ability to stop phishing attacks, which are a primary starting point for data breaches.
- Varonis's Managed Data Detection and Response (MDDR) offering has been its fastest-adopted platform, contributing to SaaS net retention rates significantly higher than the reported 105% for 2024.
- Varonis is focused on returning to 20%+ ARR growth from its current 19%, supported by increased investments in R&D, sales, and new international territories.
- Varonis Systems (VRNS) acquired SlashNext, an AI-native email security provider, for approximately $150 million to enhance its data breach prevention and threat detection capabilities.
- The acquisition is expected to expand Varonis’ total addressable market and contribute to projected revenue growth of 12% to 14% in fiscal 2025.
- This strategic move aims to combat rising AI-driven phishing attacks and capitalize on the email security market, which is projected to grow from $5.2 billion in 2025 to $10.7 billion by 2032.
- Varonis Systems, Inc. has announced a strategic partnership with Microsoft to enhance data security, governance, and compliance in AI-driven workplace environments.
- This collaboration will integrate Varonis' Data Security Platform with Microsoft's security tools, including Microsoft Purview, to prevent unauthorized data access by AI tools and large language models, such as Microsoft Copilot.
- The partnership is expected to expand Varonis' market reach and increase its customer base and revenue streams by leveraging Microsoft's extensive ecosystem.
- Varonis Systems detailed its comprehensive data security platform that protects sensitive data across on-premises, cloud, and SaaS environments with automated managed detection response (MDDR) capabilities.
- The company announced an accelerated SaaS transformation plan—reducing its transition period from five years to three—with a raised target of 80% SaaS ARR mix by year-end, positive free cash flow between $120–$125M, and a current ARR contribution margin of 17% on track for 20%.
- Varonis highlighted growing opportunities in GenAI security, noting that the SaaS model delivers a 25–30% pricing uplift versus on-prem solutions, shorter sales cycles, and renewal rates consistently over 90%.
- Data security remains critical as Varonis emphasizes the risks associated with AI tools such as Copilot, noting vulnerabilities in data access and the need for comprehensive protection.
- The company is rapidly transitioning from on-prem to SaaS, with expectations to achieve 80% ARR from SaaS by year-end, reflecting an accelerated transformation timeline.
- Varonis’ MDDR service is quickly gaining traction by providing 24/7 threat monitoring and helping simplify customer security management.
- Despite macroeconomic uncertainties, the firm raised its ARR guidance based on strong SaaS NRR and robust new customer acquisition, pointing to continued momentum.
- Varonis achieved 19% ARR growth to $664.3M in Q1 2025, with SaaS representing ~61% of total ARR and generating $65.3M in free cash flow
- Total revenues reached $136.4M, up 20% YoY, with SaaS revenues at $88.6M driving the shift toward a SaaS model
- Operating losses improved, with GAAP loss narrowing to ($43.8M) and non-GAAP loss at ($6.5M)
- Robust cash generation was noted with $68.0M from operations, highlighting strong cash flow dynamics
- Guidance update: Raised full-year outlook expecting enhanced ARR and a higher SaaS mix amid macro uncertainties; Q2 2025 guidance projects revenues between $145.0M-$150.0M with non-GAAP operating loss of ($5.0M)-($2.0M), while FY 2025 targets include ARR of $742MM-$750MM and free cash flow of $120MM-$125MM