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MIAMI - Varonis Systems, Inc. (NASDAQ:VRNS), a $5.5 billion market cap data security company with impressive gross profit margins of 82%, announced Tuesday it has extended its Data Security Platform to integrate with OpenAI’s ChatGPT Enterprise Compliance API, providing tools to identify sensitive data uploads and monitor AI interactions. According to InvestingPro data, the company has maintained strong revenue growth of ~13% over the past year.
The integration aims to help organizations detect potential data security risks while using ChatGPT Enterprise, which currently serves more than 3 million enterprise users. According to the company, the solution automatically identifies sensitive information, monitors prompts and responses, and helps prevent potential data breaches or compliance violations. While the company isn’t currently profitable, InvestingPro analysts forecast profitability by the end of 2025.
"ChatGPT is becoming a critical part of how modern teams work. With Varonis, security teams can embrace this shift without losing visibility or control over their sensitive data," said David Bass, Varonis EVP of Engineering and Chief Technology Officer, in a press release statement.
The platform’s key capabilities include automated data classification, continuous session monitoring, and behavior-based threat detection that alerts on unusual activities such as mass file uploads to ChatGPT.
The company stated the integration complements OpenAI’s existing security and privacy features by adding continuous monitoring and data security controls. Varonis for ChatGPT Enterprise will initially be available to customers in private preview.
Varonis Systems specializes in data security solutions that discover, classify and protect sensitive information across various cloud environments. The company’s approach focuses on securing data across SaaS, IaaS, and hybrid cloud environments. With an 11.3% year-to-date return and operating with moderate debt levels, the company shows promising momentum. For detailed financial analysis and additional insights, including 8 more exclusive ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Varonis Systems has reported impressive first-quarter earnings, surpassing FactSet consensus estimates in revenue, operating income, annual recurring revenue (ARR), and free cash flow. This performance has prompted the company to revise its full-year ARR outlook upwards, anticipating a 16.2% growth for FY25. Cantor Fitzgerald has maintained its Overweight rating and a $60.00 price target for Varonis, reflecting confidence in the company’s strategic direction and growth potential. Similarly, TD Cowen has reiterated a Buy rating with a $59.00 price target, emphasizing Varonis’s strong position in data security amid a challenging threat environment.
Additionally, Varonis Systems has achieved FedRAMP Authorization for its Data Security Platform, marking it as a compliant provider for federal agencies seeking cloud-hosted security solutions. This authorization is expected to enhance Varonis’ market position, particularly in the public sector. Meanwhile, the company’s 2025 Annual Meeting of Stockholders saw the approval of several key proposals, including the 2025 Employee Stock Purchase Plan and an increase in shares for the 2023 Omnibus Equity Incentive Plan. These developments underscore Varonis’ resilience and strategic advancements in the data security sector.
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