Varonis Systems beats Q1 estimates, shares rise on strong SaaS growth

Published 06/05/2025, 22:50
Varonis Systems beats Q1 estimates, shares rise on strong SaaS growth

Investing.com -- Varonis Systems , Inc. (NASDAQ:VRNS) reported better-than-expected first quarter results, driven by strong adoption of its SaaS platform. The data security company’s shares rose 2.8% following the announcement.

Varonis reported Q1 adjusted earnings of $0.00 per share, beating analyst estimates of -$0.02. Revenue for the quarter came in at $136.4 million, surpassing the consensus estimate of $129.92 million and representing a 19.6% increase YoY.

The company’s SaaS revenues surged to $88.6 million, up from $34.0 million in the same quarter last year. Annual recurring revenue (ARR) grew 19% YoY to $664.3 million, with SaaS ARR accounting for approximately 61% of total ARR.

"Our first quarter results reflect the momentum of our SaaS platform as well as the many tailwinds that are contributing to the growth in our business, including MDDR and Generative AI," said Yaki Faitelson, Varonis CEO.

For Q2 2025, Varonis expects revenue between $145.0 million and $150.0 million, compared to the consensus of $147.8 million. The company forecasts adjusted EPS of $0.00 to $0.01, slightly below the $0.03 analyst estimate.

Varonis raised its full-year 2025 ARR guidance to $742.0 million to $750.0 million, representing 16% to 17% YoY growth. The company projects full-year revenue of $610.0 million to $625.0 million and adjusted EPS of $0.14 to $0.17.

During the quarter, Varonis generated $68.0 million in cash from operations and $65.3 million in free cash flow, both showing significant improvements from the previous year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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