Data security and analytics software firm Varonis Q2 revenue beats expectations

Varonis Systems

29/07/2025 21:20

Overview

Data security and analytics software firm Varonis Q2 revenue rises 17% yr/yr, beating analyst expectations, per LSEG data

SaaS revenue more than doubles, driving shift from term licenses and maintenance

GAAP operating loss widens to $36.6 mln from $28.8 mln last year

Outlook

Varonis expects Q3 revenue of $163 mln to $168 mln

Company sees full-year ARR of $748 mln to $754 mln

Varonis raises SaaS mix expectation to 82% from 80%

Company projects Q3 non-GAAP EPS of $0.07 to $0.08

Result Drivers

SAAS TRANSITION - Shift to SaaS platform drives revenue growth, with SaaS accounting for 69% of ARR

AI ADOPTION - Increased adoption of AI and demand for data-centric cloud security contribute to business momentum

CASH FLOW IMPROVEMENT - Year-to-date cash from operations rises to $89.3 mln from $68.4 mln last year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$152.16 mln
$148 mln (19 Analysts)
Q2 Net Income
-$35.82 mln
Q2 Gross Profit
$120.91 mln
Q2 Operating Income
-$36.55 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Varonis Systems Inc is $57.00, about 4.5% above its July 28 closing price of $54.41

The stock recently traded at 192 times the next 12-month earnings vs. a P/E of 186 three months ago

Press Release: ID:nGNX6ZSHj4

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)