SmartStateIndia
Reports

Varonis Announces First Quarter 2023 Financial Results

cybersecurity

Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the first quarter ended March 31, 2023.

Yaki Faitelson, Varonis CEO, said, “It is clear that the simplicity and the automated protection of Varonis SaaS is resonating with our customers and our sales force, which leaves me optimistic about our SaaS transition, in spite of the economic slowdown that is impacting our customers.”

Guy Melamed, Varonis CFO & COO, added, “Strong initial adoption from our customers, led to a better-than-expected first quarter SaaS mix of 37% vs. guidance of 15%. Despite this higher mix revenue headwind, first quarter revenue came in near the top end of our guidance range, which highlights the solid start to the year and gives us the confidence to raise our full-year SaaS mix and ARR guidance.”

Financial Summary for the First Quarter Ended March 31, 2023

  • Total revenues increased 12% to $107.3 million, compared with $96.3 million in the first quarter of 2022.
  • Subscription revenues were $83.0 million, compared with $69.0 million in the first quarter of 2022.
  • Maintenance and services revenues were $24.4 million, compared with $27.3 million in the first quarter of 2022.
  • GAAP operating loss was ($43.1) million, compared to GAAP operating loss of ($48.1) million in the first quarter of 2022.
  • Non-GAAP operating loss was ($4.3) million, compared to non-GAAP operating loss of ($7.9) million in the first quarter of 2022.

The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three months ended March 31, 2023 and 2022. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

Key Performance Indicators and Recent Business Highlights

  • Annual recurring revenues, or ARR, were $478.1 million as of the end of the first quarter, up 18% year-over-year.
  • As of March 31, 2023, the Company had $756.3 million in cash and cash equivalents, short term deposits and marketable securities.
  • During the three months ended March 31, 2023, the Company generated $36.8 million of cash from operations, compared to $24.5 million generated in the prior year period.
  • During the three months ended March 31, 2023, the Company generated $35.7 million of free cash flow, compared to $21.0 million generated in the prior year period.
  • Named a Leader in The Forrester Wave for Data Security Platforms
  • Announced Proactive Incident Response for SaaS Customers
  • Released automated posture management and least privilege automation for Microsoft 365, Google Drive, and Box to help customers effortlessly remediate security and compliance gaps

An explanation of ARR is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.” In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

Financial Outlook

Within our outlook, we are increasing our expectation for our SaaS mix from 15% previously and now expect that SaaS will represent 35% of new business and upsell ARR for the second quarter and full year ended 2023.

For the second quarter of 2023, the Company expects:

  • Revenues of $118.0 million to $120.0 million, or year-over-year growth of 6% to 8%.
  • Non-GAAP operating income of $0.5 million to $1.5 million.
  • Non-GAAP net income per diluted share in the range of $0.01 to $0.02, based on 127.2 million diluted shares outstanding.

For full year 2023, the Company now expects:

  • ARR of $520.0 million to $528.0 million, or year-over-year growth of 12% to 14%.
  • Free cash flow of $20.0 million to $25.0 million.
  • Revenues of $510.0 million to $520.0 million, or year-over-year growth of 8% to 10%.
  • Non-GAAP operating income of $29.0 million to $34.0 million.
  • Non-GAAP net income per diluted share in the range of $0.30 to $0.34, based on 126.8 million diluted shares outstanding.

Actual results may differ materially from the Company’s Financial Outlook as a result of, among other things, the factors described below under “Forward-Looking Statements”.

Related posts

Share of account takeover incidents increased by 20 percent compared to 2019 :Kaspersky

SSI Bureau

F5 Helps Customers Defend Against Sophisticated Bot Attacks on AWS

SSI Bureau

o9 Solutions Ranks No. 728 on the 2021 Inc. 5000.

SSI Bureau

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More