VRNS Earnings Prediction
The chart below shows how VRNS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRNS sees a +0.03% change in stock price 10 days leading up to the earnings, and a +2.54% change 10 days following the report. On the earnings day itself, the stock moves by +0.73%. This data can give you a slight idea of what to expect for the next quarter's release.
VRNS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
158.51M
2.87%
7.05%
Gross Margin
83.56%
-4.45%
-0.27%
Operating Margin
-11.07%
225.59%
-30.68%
Net Margin
-8.20%
1313.79%
-33.76%
EPS
-0.12
-1100.00%
-25.00%
No Data Available
VRNS Earnings Analysis
Varonis Systems Inc Corporation (VRNS.O) Earnings Conference Call
Positive
SaaS ARR Growth: During 2024, Varonis added over $200 million of SaaS ARR, ending the year with approximately $340 million of SaaS ARR, which represents 53% of total company ARR.
ARR Growth Momentum: ARR grew 18% year-over-year to $641.9 million, with new customer momentum being the primary driver of these results.
Free Cash Flow Surge: In 2024, Varonis generated $108.5 million of free cash flow, a significant increase from $54.3 million in the previous year, marking a milestone for the company.
Subscription Customer Growth: The company ended the year with 5,600 subscription customers, reflecting a 13% year-over-year growth, and ARR per new customer grew approximately 20% year-over-year.
SaaS Model Transition Success: For the first time, SaaS ARR represented the majority of total company ARR, indicating a successful transition towards a SaaS model.
Negative
Gross Profit Decline: Gross profit for Q4 was $133.8 million, representing a gross margin of 84.4%, down from 88.5% in Q4 2023, indicating a significant decline in profitability.
Operating Income Decline: Operating income for Q4 was $15.3 million, or an operating margin of 9.7%, compared to $27.2 million and 17.7% in the same period last year, reflecting a substantial decrease in operational efficiency.
Operating Margin Decline: Full year operating margin was 2.9%, down from 5.8% in 2023, indicating a deterioration in overall profitability as the company transitions to a SaaS model.
Q4 Revenue Growth Slowdown: Total revenues for Q4 were $158.5 million, only a 3% increase year-over-year, suggesting a slowdown in revenue growth amidst the SaaS transition.
Net Retention Rate Insights: The dollar-based net retention rate for subscription customers was 105%, reflecting limited upsell and cross-sell activity as sales teams focused on converting self-hosted customers to SaaS, indicating potential challenges in revenue expansion.
VRNS FAQs
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VRNS Earning Call Sentiment
Earnings call transcript: Varonis Systems sees Q4 2024 revenue rise, stock dips
VRNS.O
-0.28%Positive
The earnings call shows mixed signals: strong SaaS ARR growth and free cash flow, but weak total revenue growth and declining margins. The Q&A reveals vague management responses, especially concerning AI contributions and conversion challenges, raising uncertainties. Although the SaaS transition is positive, the lack of clarity in guidance and financial results tempers enthusiasm. Considering the lack of market cap data, a neutral sentiment is appropriate, as positive and negative factors balance each other.
