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MIAMI - Varonis Systems, Inc. (NASDAQ:VRNS), a data security company with a market capitalization of $5.2 billion and impressive gross profit margins of 82%, has announced that its Data Security Platform is the first of its kind to receive Federal Risk and Authorization Management Program (FedRAMP) Authorization. This achievement marks Varonis as a compliant provider for federal agencies seeking cloud-hosted security solutions. According to InvestingPro data, the company has demonstrated solid revenue growth of 13% over the last twelve months.
FedRAMP Authorization is considered a benchmark for cloud product security, involving a thorough third-party assessment process. Varonis’ platform met the standards for FedRAMP Moderate Authorization, which aligns with the company’s commitment to offering top-tier data security.
The AI-driven platform from Varonis is designed to help organizations manage and protect their data, providing tools for threat detection, data loss prevention, and compliance with various federal mandates. With the new FedRAMP Authorization, public-sector entities can now leverage Varonis’ platform for critical data management tasks, such as continuous data classification, access rights adjustments, and advanced threat detection with AI automation.
Varonis’ CEO, Yaki Faitelson, stated that the company’s platform is now the clear choice for organizations that prioritize stringent security standards. The platform is available for purchase by federal agencies, aiming to enhance their data security measures and prepare for AI implementations.
The company, which is already trusted by numerous organizations globally, emphasizes its role in defending data across different environments, including SaaS, IaaS, and hybrid cloud setups. While currently operating at a loss, InvestingPro analysis indicates analysts expect the company to turn profitable in 2025. Get deeper insights into Varonis’s financial health and growth prospects with InvestingPro’s comprehensive research report, available along with 10+ additional ProTips.
This development is expected to bolster Varonis’ position in the market as a provider of solutions for data security posture management, data classification, data access governance, and other security outcomes. Based on current market metrics from InvestingPro, the stock appears to be trading above its Fair Value, with relatively high revenue multiples reflecting market optimism about its growth prospects.
The information for this article is based on a press release statement from Varonis Systems, Inc.
In other recent news, Varonis Systems reported impressive first-quarter earnings that exceeded analyst expectations. The company achieved adjusted earnings of $0.00 per share, surpassing the anticipated -$0.02, and recorded revenue of $136.4 million, which was above the consensus estimate of $129.92 million. This performance marks a 19.6% increase in revenue year-over-year. Varonis’ SaaS revenues significantly increased to $88.6 million from $34.0 million in the same period last year, with annual recurring revenue (ARR) growing 19% year-over-year to $664.3 million. The company’s shift towards a SaaS-based model has been pivotal, with SaaS ARR now making up approximately 61% of the total ARR. In response to these strong results, Varonis has revised its full-year ARR guidance upwards, now expecting growth between 16% and 17% year-over-year. Cantor Fitzgerald reaffirmed its Overweight rating and maintained a $60 price target for Varonis, reflecting confidence in the company’s strategic direction. Looking ahead, Varonis forecasts second-quarter revenue between $145.0 million and $150.0 million, with adjusted EPS projected to be between $0.00 and $0.01.
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