Varonis Announces Fourth Quarter 2024 and Full-Year 2024 Financial Results
Varonis Systems (VRNS) reported strong financial results for Q4 and full-year 2024. Annual recurring revenues (ARR) grew 18% year-over-year, with SaaS ARR reaching approximately 53% of total ARR. The company generated significant improvements in cash flow, with year-to-date operating cash flow of $115.2 million and free cash flow of $108.5 million, nearly doubling from the previous year.
Q4 total revenues were $158.5 million, with SaaS revenues tripling to $72.2 million from $23.0 million year-over-year. For full-year 2024, total revenues reached $551.0 million, with SaaS revenues growing to $208.8 million. The company maintained a strong balance sheet with $1.2 billion in cash and equivalents.
Looking ahead to 2025, Varonis expects ARR growth of 15-16% to $737.0-745.0 million, revenues of $610.0-625.0 million, and free cash flow of $120.0-125.0 million.
Varonis Systems (VRNS) ha riportato risultati finanziari solidi per il Q4 e l'intero anno 2024. I ricavi annuali ricorrenti (ARR) sono cresciuti del 18% rispetto all'anno precedente, con l'ARR SaaS che ha raggiunto circa il 53% del totale ARR. L'azienda ha generato notevoli miglioramenti nel flusso di cassa, con un flusso di cassa operativo da inizio anno di 115,2 milioni di dollari e un flusso di cassa libero di 108,5 milioni di dollari, quasi raddoppiando rispetto all'anno precedente.
Nel Q4, i ricavi totali sono stati di 158,5 milioni di dollari, con i ricavi SaaS che sono triplicati a 72,2 milioni di dollari rispetto ai 23,0 milioni di dollari dell'anno precedente. Per l'intero anno 2024, i ricavi totali hanno raggiunto 551,0 milioni di dollari, con i ricavi SaaS che sono cresciuti a 208,8 milioni di dollari. L'azienda ha mantenuto un bilancio solido con 1,2 miliardi di dollari in contante e equivalenti.
Guardando al 2025, Varonis prevede una crescita dell'ARR del 15-16% a 737,0-745,0 milioni di dollari, ricavi di 610,0-625,0 milioni di dollari, e un flusso di cassa libero di 120,0-125,0 milioni di dollari.
Varonis Systems (VRNS) reportó sólidos resultados financieros para el cuarto trimestre y para el año completo 2024. Los ingresos anuales recurrentes (ARR) crecieron un 18% interanual, con el ARR SaaS alcanzando aproximadamente el 53% del ARR total. La empresa generó mejoras significativas en el flujo de caja, con un flujo de caja operativo acumulado de 115,2 millones de dólares y un flujo de caja libre de 108,5 millones de dólares, casi duplicándose con respecto al año anterior.
Los ingresos totales del cuarto trimestre fueron de 158,5 millones de dólares, con ingresos de SaaS que se triplicaron a 72,2 millones de dólares desde 23,0 millones de dólares interanual. Para el año completo 2024, los ingresos totales alcanzaron 551,0 millones de dólares, con ingresos de SaaS creciendo a 208,8 millones de dólares. La empresa mantuvo un balance sólido con 1,2 mil millones de dólares en efectivo y equivalentes.
De cara a 2025, Varonis espera un crecimiento del ARR del 15-16% a 737,0-745,0 millones de dólares, ingresos de 610,0-625,0 millones de dólares y un flujo de caja libre de 120,0-125,0 millones de dólares.
Varonis Systems (VRNS)는 2024년 4분기 및 연간 재무 실적을 강하게 보고했습니다. 연간 반복 수익(ARR)은 전년 대비 18% 성장했으며, SaaS ARR은 전체 ARR의 약 53%에 달했습니다. 회사는 현금 흐름에서 상당한 개선을 이루었으며, 연초부터 운영된 현금 흐름은 1억 1520만 달러, 자유 현금 흐름은 1억 850만 달러로, 전년 대비 거의 두 배 증가했습니다.
4분기 총 수익은 1억 5850만 달러였으며, SaaS 수익은 전년 대비 2300만 달러에서 7220만 달러로 세 배 증가했습니다. 2024년 전체 연간 수익은 5억 5100만 달러에 이르렀으며, SaaS 수익은 2억 880만 달러로 증가했습니다. 회사는 12억 달러의 현금 및 현금성 자산을 보유하여 강력한 재무 구조를 유지했습니다.
2025년을 바라보며, Varonis는 ARR이 15-16% 성장하여 7억 3700만-7억 4500만 달러에 이를 것으로 예상하고 있으며, 수익은 6억 1000만-6억 2500만 달러, 자유 현금 흐름은 1억 2000만-1억 2500만 달러에 이를 것으로 보고 있습니다.
Varonis Systems (VRNS) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année entière 2024. Les revenus annuels récurrents (ARR) ont augmenté de 18 % d'une année sur l'autre, avec un ARR SaaS atteignant environ 53 % du total de l'ARR. L'entreprise a réalisé d'importantes améliorations de son flux de trésorerie, avec un flux de trésorerie d'exploitation depuis le début de l'année de 115,2 millions de dollars et un flux de trésorerie libre de 108,5 millions de dollars, soit presque le double de l'année précédente.
Les revenus totaux du trimestre ont atteint 158,5 millions de dollars, les revenus SaaS ayant triplé pour atteindre 72,2 millions de dollars contre 23,0 millions de dollars d'une année sur l'autre. Pour l'année complète 2024, les revenus totaux ont atteint 551,0 millions de dollars, les revenus SaaS ayant atteint 208,8 millions de dollars. L'entreprise a maintenu un solide bilan avec 1,2 milliard de dollars en liquidités et équivalents.
En se projetant à 2025, Varonis s'attend à une croissance de l'ARR de 15 à 16 % pour atteindre 737,0 à 745,0 millions de dollars, des revenus de 610,0 à 625,0 millions de dollars et un flux de trésorerie libre de 120,0 à 125,0 millions de dollars.
Varonis Systems (VRNS) veröffentlichte starke Finanzergebnisse für das 4. Quartal und das Gesamtjahr 2024. Die jährlichen wiederkehrenden Einnahmen (ARR) stiegen im Jahresvergleich um 18%, wobei das SaaS ARR etwa 53% des gesamten ARR ausmacht. Das Unternehmen erzielte erhebliche Verbesserungen im Cashflow mit einem Betriebscashflow von 115,2 Millionen Dollar und einem freien Cashflow von 108,5 Millionen Dollar, was sich im Vergleich zum Vorjahr nahezu verdoppelte.
Die Gesamteinnahmen im 4. Quartal betrugen 158,5 Millionen Dollar, wobei die SaaS-Einnahmen von 23,0 Millionen Dollar im Vorjahresvergleich auf 72,2 Millionen Dollar verdreifacht wurden. Für das Gesamtjahr 2024 erreichten die Gesamteinnahmen 551,0 Millionen Dollar, wobei die SaaS-Einnahmen auf 208,8 Millionen Dollar stiegen. Das Unternehmen verfügte über eine solide Bilanz mit 1,2 Milliarden Dollar in liquiden Mitteln und Äquivalenten.
Für 2025 erwartet Varonis ein ARR-Wachstum von 15-16% auf 737,0-745,0 Millionen Dollar, Einnahmen von 610,0-625,0 Millionen Dollar und einen freien Cashflow von 120,0-125,0 Millionen Dollar.
- ARR grew 18% year-over-year to $641.9 million
- SaaS revenues increased significantly from $23.0M to $72.2M in Q4
- Cash from operations doubled to $115.2M from $59.4M
- Free cash flow doubled to $108.5M from $54.3M
- Strong cash position of $1.2B in cash and equivalents
- GAAP operating loss widened to ($17.6M) in Q4 vs ($5.2M) in Q4 2023
- Non-GAAP operating income decreased to $15.3M from $27.2M in Q4
- Full-year GAAP operating loss at ($117.7M)
- Term license subscription revenues declined to $66.8M from $106.2M in Q4
Insights
Varonis's Q4 2024 results mark a pivotal transformation in its business model, with several key developments warranting attention:
SaaS Transformation Acceleration: The achievement of 53% SaaS ARR represents a fundamental shift in revenue quality. The 3x year-over-year growth in SaaS revenues to
Financial Health Indicators: The doubling of free cash flow to
Strategic Ecosystem Expansion: New integrations with Google Cloud, Databricks and ServiceNow significantly expand the company's addressable market. These partnerships position Varonis to capitalize on the growing demand for data security across major cloud platforms and enterprise applications.
Forward Outlook Analysis: The 2025 guidance of 15-16% ARR growth and improved free cash flow of
Growth Catalysts: The
Annual recurring revenues grew
SaaS ARR as a percentage of total ARR was approximately
Year-to-date cash from operations generated
Year-to-date free cash flow generated
NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the fourth quarter and full-year ended December 31, 2024.
Yaki Faitelson, Varonis CEO, said, "We are excited by the approximately
Guy Melamed, Varonis CFO & COO, added, “For the first time in company history, SaaS represents a majority of ARR as we finished the fourth quarter with
Financial Summary for the Fourth Quarter Ended December 31, 2024
- Total revenues were
$158.5 million , compared with$154.1 million in the fourth quarter of 2023. - SaaS revenues were
$72.2 million , compared with$23.0 million in the fourth quarter of 2023. - Term license subscription revenues were
$66.8 million , compared with$106.2 million in the fourth quarter of 2023. - Maintenance and services revenues were
$19.5 million , compared with$24.9 million in the fourth quarter of 2023. - GAAP operating loss was (
$17.6) million , compared to GAAP operating loss of ($5.2) million in the fourth quarter of 2023. - Non-GAAP operating income was
$15.3 million , compared to non-GAAP operating income of$27.2 million in the fourth quarter of 2023.
Financial Summary for the Year Ended December 31, 2024
- Total revenues were
$551.0 million , compared with$499.2 million in 2023. - SaaS revenues were
$208.8 million , compared with$44.4 million in 2023. - Term license subscription revenues were
$254.2 million , compared with$356.5 million in 2023. - Maintenance and services revenues were
$87.9 million , compared with$98.3 million in 2023. - GAAP operating loss was (
$117.7) million , compared to GAAP operating loss of ($117.2) million in 2023. - Non-GAAP operating income was
$15.9 million , compared to non-GAAP operating income of$28.7 million in 2023.
The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and twelve months ended December 31, 2024 and 2023. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators."
Key Performance Indicators and Recent Business Highlights
- Annual recurring revenues, or ARR, was
$641.9 million as of the end of the fourth quarter, up18% year-over-year. - As of December 31, 2024, the Company had
$1.2 billion in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities. - During the twelve months ended December 31, 2024, the Company generated
$115.2 million of cash from operations, compared to$59.4 million generated in the prior year period. - During the twelve months ended December 31, 2024, the Company generated
$108.5 million of free cash flow, compared to$54.3 million generated in the prior year period. - Announced expansion of IaaS security coverage to Google Cloud, bringing the company's proven data-centric approach to Google Cloud storage and data warehouses.
- Expanded coverage to discover and classify critical data, remove exposures, and detect threats on the Databricks Data Intelligence Platform.
- Broadened coverage to continuously discover and classify data and resolve issues related to data risk and overexposure within ServiceNow.
An explanation of ARR is included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators." In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading "Non-GAAP Financial Measures and Key Performance Indicators."
Financial Outlook
For the first quarter of 2025, the Company expects:
- Revenues of
$130.0 million to$135.0 million , or year-over-year growth of14% to18% . - Non-GAAP operating loss of (
$14.0) million to ($11.0) million . - Non-GAAP net loss per diluted share in the range of (
$0.06) t o ($0.04) , based on 113.6 million diluted shares outstanding.
For full year 2025, the Company expects:
- ARR of
$737.0 million to$745.0 million , or year-over-year growth of15% to16% . - Net cash provided by operating activities of
$132.0 million to$139.0 million . - Free cash flow of
$120.0 million to$125.0 million . - Revenues of
$610.0 million to$625.0 million , or year-over-year growth of11% to13% . - Non-GAAP operating income of
$0.5 million to$10.5 million . - Non-GAAP net income per diluted share in the range of
$0.13 t o$0.17 , based on 137.5 million diluted shares outstanding.
Actual results may differ materially from the Company’s Financial Outlook as a result of, among other things, the factors described below under “Forward-Looking Statements”.
Conference Call and Webcast
Varonis will host a conference call today, Tuesday, February 4, 2025, at 4:30 p.m. Eastern Time, to discuss the Company's fourth quarter 2024 and full-year 2024 financial results. To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The passcode is 13750890. A replay of this conference call will be available through February 11, 2025 at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13750890. A live webcast of this conference call will be available on the "Investors" page of the Company's website (www.varonis.com), and a replay will be archived on the website as well.
Non-GAAP Financial Measures and Key Performance Indicators
Varonis believes that the use of non-GAAP operating income (loss) and non-GAAP net income (loss) is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.
Non-GAAP operating income (loss) is calculated as operating income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, and (iii) amortization of acquired intangible assets and acquisition-related expenses.
Non-GAAP net income (loss) is calculated as net income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, (iii) amortization of acquired intangible assets and acquisition-related expenses, (iv) foreign exchange gains (losses) which include exchange rate differences on lease contracts as a result of the implementation of ASC 842 and (v) amortization of debt issuance costs.
The Company believes that the exclusion of these expenses provides a more meaningful comparison of our operational performance from period to period and offers investors and management greater visibility to the underlying performance of our business. Specifically:
- Stock-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company's non-cash expenses;
- Payroll taxes are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, factors which may vary from period to period;
- Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition, and acquisition-related expenses are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;
- The Company incurs foreign exchange gains or losses from the revaluation of its significant operating lease liabilities in foreign currencies as well as other assets and liabilities denominated in non-U.S. dollars, which may vary from period to period; and
- Amortization of debt issuance costs, which relate to the Company’s convertible senior notes issued in 2020 and 2024, are a non-cash item.
Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment, can be used for strategic initiatives.
Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income (loss) or net income (loss) or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense and payroll tax expense related to stock-based compensation have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. Also, the amortization of intangible assets are expected recurring expenses over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Additionally, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies. Finally, the amortization of debt issuance costs are expected recurring expenses until the maturity of the senior notes in 2029.
The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.
A reconciliation for non-GAAP operating income (loss) and non-GAAP net income (loss) referred to in our “Financial Outlook” is not provided because, as forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results. The Company believes the information provided is useful to investors because it can be considered in the context of the Company’s historical disclosures of this measure.
ARR is a key performance indicator defined as the annualized value of active SaaS contracts, term-based subscription license contracts, and maintenance contracts in effect at the end of that period. SaaS contracts, term-based subscription license contracts, and maintenance contracts are annualized by dividing the total contract value by the number of days in the term and multiplying the result by 365. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenues, deferred revenues or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.
Forward-Looking Statements
This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company's growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis’ addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis’ ability to predict the timing and rate of subscription renewals and their impact on the Company’s future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of our clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis’ ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis’ ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis’ ability to develop and deliver innovative products; Varonis’ ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with our convertible notes and capped-call transactions. These and other important risk factors are described more fully in Varonis’ reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.
About Varonis
Varonis (Nasdaq: VRNS) is a leader in data security, fighting a different battle than conventional cybersecurity companies. Our cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.
Thousands of organizations worldwide trust Varonis to defend their data wherever it lives — across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), and insider risk management.
Varonis protects data first, not last. Learn more at www.varonis.com.
Investor Relations Contact:
Tim Perz
Varonis Systems, Inc.
646-640-2112
investors@varonis.com
News Media Contact:
Rachel Hunt
Varonis Systems, Inc.
877-292-8767 (ext. 1598)
pr@varonis.com
| Varonis Systems, Inc. | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except for share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Unaudited | Unaudited | ||||||||||||||
| Revenues: | |||||||||||||||
| Term license subscriptions | $ | 66,781 | $ | 106,184 | $ | 254,241 | $ | 356,490 | |||||||
| SaaS | 72,206 | 22,980 | 208,781 | 44,417 | |||||||||||
| Maintenance and services | 19,527 | 24,935 | 87,928 | 98,253 | |||||||||||
| Total revenues | 158,514 | 154,099 | 550,950 | 499,160 | |||||||||||
| Cost of revenues | 26,055 | 19,347 | 93,847 | 71,751 | |||||||||||
| Gross profit | 132,459 | 134,752 | 457,103 | 427,409 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 50,546 | 48,144 | 196,765 | 183,838 | |||||||||||
| Sales and marketing | 76,123 | 70,569 | 288,769 | 277,893 | |||||||||||
| General and administrative | 23,342 | 21,283 | 89,220 | 82,901 | |||||||||||
| Total operating expenses | 150,011 | 139,996 | 574,754 | 544,632 | |||||||||||
| Operating loss | (17,552 | ) | (5,244 | ) | (117,651 | ) | (117,223 | ) | |||||||
| Financial income, net | 7,605 | 5,433 | 34,644 | 30,305 | |||||||||||
| Income (loss) before income taxes | (9,947 | ) | 189 | (83,007 | ) | (86,918 | ) | ||||||||
| Income taxes | (3,047 | ) | (1,087 | ) | (12,758 | ) | (13,998 | ) | |||||||
| Net loss | $ | (12,994 | ) | $ | (898 | ) | $ | (95,765 | ) | $ | (100,916 | ) | |||
| Net loss per share of common stock, basic and diluted | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.86 | ) | $ | (0.92 | ) | |||
| Weighted average number of shares used in computing net loss per share of common stock, basic and diluted | 112,488,376 | 109,007,859 | 111,660,541 | 109,141,894 | |||||||||||
| Stock-based compensation expense for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Unaudited | Unaudited | ||||||||||
| Cost of revenues | $ | 1,175 | $ | 1,275 | $ | 5,192 | $ | 7,221 | |||
| Research and development | 10,709 | 11,199 | 41,766 | 48,679 | |||||||
| Sales and marketing | 10,509 | 10,186 | 41,494 | 48,047 | |||||||
| General and administrative | 10,176 | 8,983 | 38,230 | 35,872 | |||||||
| $ | 32,569 | $ | 31,643 | $ | 126,682 | $ | 139,819 | ||||
| Payroll tax expense related to stock-based compensation for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Unaudited | Unaudited | ||||||||||
| Cost of revenues | $ | 6 | $ | 20 | $ | 637 | $ | 405 | |||
| Research and development | 38 | 133 | 604 | 365 | |||||||
| Sales and marketing | 146 | 152 | 3,196 | 1,972 | |||||||
| General and administrative | 16 | 32 | 1,181 | 518 | |||||||
| $ | 206 | $ | 337 | $ | 5,618 | $ | 3,260 | ||||
| Amortization of acquired intangibles and acquisition-related expenses for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands): | |||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Unaudited | Unaudited | ||||||||||
| Cost of revenues | $ | 119 | $ | 381 | $ | 1,263 | $ | 1,525 | |||
| Research and development | — | 128 | — | 1,363 | |||||||
| Sales and marketing | — | — | — | — | |||||||
| General and administrative | — | — | — | — | |||||||
| $ | 119 | $ | 509 | $ | 1,263 | $ | 2,888 | ||||
| Varonis Systems, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Unaudited | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 185,585 | $ | 230,740 | |||
| Marketable securities | 343,383 | 253,175 | |||||
| Short-term deposits | 39,450 | 49,800 | |||||
| Trade receivables, net | 192,832 | 169,116 | |||||
| Prepaid expenses and other short-term assets | 116,824 | 64,326 | |||||
| Total current assets | 878,074 | 767,157 | |||||
| Long-term assets: | |||||||
| Long-term marketable securities | 658,896 | 211,063 | |||||
| Operating lease right-of-use assets | 45,593 | 51,838 | |||||
| Property and equipment, net | 30,795 | 33,964 | |||||
| Intangible assets, net | — | 1,263 | |||||
| Goodwill | 23,135 | 23,135 | |||||
| Other assets | 27,782 | 15,490 | |||||
| Total long-term assets | 786,201 | 336,753 | |||||
| Total assets | $ | 1,664,275 | $ | 1,103,910 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Trade payables | $ | 4,313 | $ | 672 | |||
| Accrued expenses and other short-term liabilities | 164,930 | 125,057 | |||||
| Convertible senior notes, net | 250,529 | — | |||||
| Deferred revenues | 290,113 | 181,049 | |||||
| Total current liabilities | 709,885 | 306,778 | |||||
| Long-term liabilities: | |||||||
| Convertible senior notes, net | 450,243 | 250,477 | |||||
| Operating lease liabilities | 42,789 | 51,313 | |||||
| Deferred revenues | 2,211 | 886 | |||||
| Other liabilities | 3,491 | 4,808 | |||||
| Total long-term liabilities | 498,734 | 307,484 | |||||
| Stockholders’ equity: | |||||||
| Share capital | |||||||
| Common stock | 113 | 109 | |||||
| Accumulated other comprehensive income (loss) | 2,676 | (8,649 | ) | ||||
| Additional paid-in capital | 1,193,022 | 1,142,578 | |||||
| Accumulated deficit | (740,155 | ) | (644,390 | ) | |||
| Total stockholders’ equity | 455,656 | 489,648 | |||||
| Total liabilities and stockholders’ equity | $ | 1,664,275 | $ | 1,103,910 | |||
| Varonis Systems, Inc. | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| Twelve Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Unaudited | |||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (95,765 | ) | $ | (100,916 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 11,126 | 11,703 | |||||
| Stock-based compensation | 126,682 | 139,819 | |||||
| Amortization of deferred commissions | 54,392 | 53,072 | |||||
| Non-cash operating lease costs | 9,526 | 9,468 | |||||
| Amortization of debt issuance costs | 2,144 | 1,514 | |||||
| Amortization of premium and accretion of discount on marketable securities, net | (12,690 | ) | (9,354 | ) | |||
| Acquired in-process research and development | 6,653 | — | |||||
| Changes in assets and liabilities: | |||||||
| Trade receivables | (23,716 | ) | (33,137 | ) | |||
| Prepaid expenses and other short-term assets | (35,332 | ) | (21,459 | ) | |||
| Deferred commissions | (59,820 | ) | (53,505 | ) | |||
| Other long-term assets | 347 | (577 | ) | ||||
| Trade payables | 3,641 | (2,290 | ) | ||||
| Accrued expenses and other short-term liabilities | 17,317 | (5,278 | ) | ||||
| Deferred revenues | 110,389 | 69,882 | |||||
| Other long-term liabilities | 306 | 474 | |||||
| Net cash provided by operating activities | 115,200 | 59,416 | |||||
| Cash flows from investing activities: | |||||||
| Proceeds from maturities of marketable securities | 308,840 | 301,350 | |||||
| Proceeds from sales of marketable securities | 111,552 | — | |||||
| Investment in marketable securities | (949,841 | ) | (517,948 | ) | |||
| Proceeds from short-term and long-term deposits | 34,795 | 214,444 | |||||
| Investment in short-term and long-term deposits | (24,254 | ) | (135,823 | ) | |||
| Purchase of in-process research and development | (6,653 | ) | — | ||||
| Purchases of property and equipment | (6,694 | ) | (5,099 | ) | |||
| Net cash used in investing activities | (532,255 | ) | (143,076 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from issuance of convertible senior notes, net of issuance costs | 449,635 | — | |||||
| Purchases of capped calls | (55,522 | ) | — | ||||
| Proceeds from employee stock plans | 16,082 | 11,537 | |||||
| Taxes paid related to net share settlement of equity awards | (38,295 | ) | (21,415 | ) | |||
| Repurchase of common stock | — | (43,522 | ) | ||||
| Net cash provided by (used in) financing activities | 371,900 | (53,400 | ) | ||||
| Decrease in cash and cash equivalents | (45,155 | ) | (137,060 | ) | |||
| Cash and cash equivalents at beginning of period | 230,740 | 367,800 | |||||
| Cash and cash equivalents at end of period | $ | 185,585 | $ | 230,740 | |||
| Varonis Systems, Inc. | |||||||||||||||
| Reconciliation of GAAP Measures to non-GAAP | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Unaudited | Unaudited | ||||||||||||||
| Reconciliation to non-GAAP operating income: | |||||||||||||||
| GAAP operating loss | $ | (17,552 | ) | $ | (5,244 | ) | $ | (117,651 | ) | $ | (117,223 | ) | |||
| Add back: | |||||||||||||||
| Stock-based compensation expense | 32,569 | 31,643 | 126,682 | 139,819 | |||||||||||
| Payroll tax expenses related to stock-based compensation | 206 | 337 | 5,618 | 3,260 | |||||||||||
| Amortization of acquired intangible assets and acquisition-related expenses | 119 | 509 | 1,263 | 2,888 | |||||||||||
| Non-GAAP operating income | $ | 15,342 | $ | 27,245 | $ | 15,912 | $ | 28,744 | |||||||
| Reconciliation to non-GAAP net income: | |||||||||||||||
| GAAP net loss | $ | (12,994 | ) | $ | (898 | ) | $ | (95,765 | ) | $ | (100,916 | ) | |||
| Add back: | |||||||||||||||
| Stock-based compensation expense | 32,569 | 31,643 | 126,682 | 139,819 | |||||||||||
| Payroll tax expenses related to stock-based compensation | 206 | 337 | 5,618 | 3,260 | |||||||||||
| Amortization of acquired intangible assets and acquisition-related expenses | 119 | 509 | 1,263 | 2,888 | |||||||||||
| Foreign exchange rate differences, net | 3,129 | 2,290 | 827 | (916 | ) | ||||||||||
| Amortization of debt issuance costs | 880 | 381 | 2,144 | 1,514 | |||||||||||
| Non-GAAP net income | $ | 23,909 | $ | 34,262 | $ | 40,769 | $ | 45,649 | |||||||
| GAAP weighted average number of shares used in computing net loss per share of common stock - basic and diluted | 112,488,376 | 109,007,859 | 111,660,541 | 109,141,894 | |||||||||||
| Non-GAAP weighted average number of shares used in computing net income per share of common stock - basic | 112,488,376 | 109,007,859 | 111,660,541 | 109,141,894 | |||||||||||
| Non-GAAP weighted average number of shares used in computing net income per share of common stock - diluted | 135,097,388 | 126,061,869 | 130,278,825 | 126,585,777 | |||||||||||
| GAAP net loss per share of common stock - basic and diluted | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.86 | ) | $ | (0.92 | ) | |||
| Non-GAAP net income per share of common stock - basic | $ | 0.21 | $ | 0.31 | $ | 0.37 | $ | 0.42 | |||||||
| Non-GAAP net income per share of common stock - diluted | $ | 0.18 | $ | 0.27 | $ | 0.31 | $ | 0.36 | |||||||
| Varonis Systems, Inc. | |||||||
| Reconciliation of GAAP Measures to non-GAAP | |||||||
| (in millions) | |||||||
| Twelve Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Unaudited | |||||||
| Reconciliation to non-GAAP free cash flow: | |||||||
| Net cash provided by operating activities | $ | 115.2 | $ | 59.4 | |||
| Purchases of property and equipment | (6.7 | ) | (5.1 | ) | |||
| Free cash flow | $ | 108.5 | $ | 54.3 | |||
| Varonis Systems, Inc. | |||||||
| Reconciliation of GAAP Measures to non-GAAP | |||||||
| (in millions) | |||||||
| Twelve Months Ended December 31, 2025 | |||||||
| Low | High | ||||||
| Reconciliation to non-GAAP free cash flow: | |||||||
| Net cash provided by operating activities | $ | 132.0 | $ | 139.0 | |||
| Purchases of property and equipment | (12.0 | ) | (14.0 | ) | |||
| Free cash flow | $ | 120.0 | $ | 125.0 | |||
FAQ
What was Varonis (VRNS) ARR growth in Q4 2024?
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