NASDAQ$VRNS

Varonis Systems Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Varonis's second quarter results demonstrated robust adoption of their SaaS solutions, with significant improvements in ARR, free cash flow, and ARR contribution margin, driven by increased customer conversions and a strong SaaS mix.

Varonis reported strong second-quarter results, driven by the adoption of Varonis SaaS. The company's SaaS mix reached 58%, exceeding the guidance of 35%. This performance led to improvements in ARR, free cash flow, and ARR contribution margin. As a result, Varonis raised its full-year guidance for ARR, SaaS mix, and free cash flow.

  • Second quarter results reflected strong adoption of Varonis SaaS.
  • SaaS mix of new business and upsell ARR reached 58%.
  • Approximately 10% of total ARR comes from SaaS.
  • Company raised full-year guidance for ARR, SaaS mix, and free cash flow.

Headline financials

Total Revenue

$115M

Previous: $111M+3.6%
EPS (adj)

$0.01

Previous: -$0.33+103.0%
Annual Recurring Revenue

$0.00

Previous: $426M-100.0%
Capital Expenditures

-$2.6M

Previous: -$6.13M+57.6%
Free Cash Flow

-$41.3M

Previous: -$42.4M+2.6%
Net Income

-$38.7M

Previous: -$36.3M-6.6%
Operating Income

-$39.7M

Previous: -$37.6M-5.7%
Gross Profit

$98M

Previous: $93.6M+4.7%
Cash & Equivalents

$399M

Previous: $753M-47.0%
Total Assets

$1.04B

Previous: $1.05B-1.5%
Stock-Based Comp

$39.4M

Previous: $37.8M+4.3%

Revenue & EPS history

Varonis · Revenue · Quarterly

$115M

Q2 2023+3.6%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Varonis is increasing its expectation for its SaaS mix from 35% previously and now expects that SaaS will represent 50% of new business and upsell ARR for the full year ended 2023 and they expect the mix to be 45% in the third quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.4%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

60%

29 / 48 earnings

Positive

+19.0%

Q3 2014

Best reaction

-48.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+7.8%+34.3%
Q4 2025-10.8%-3.5%-8.1%
Q3 2025-48.7%-42.7%-47.5%
Q1 2025+2.3%+3.5%+14.4%
Q4 2024-7.4%-8.2%-13.0%
Q3 2024-8.5%-10.7%-13.6%
Q2 2024+14.7%+6.9%+16.8%
Q1 2024+2.8%+1.7%-2.1%
Q4 2023+7.0%+14.5%+9.6%
Q3 2023+6.8%+9.1%+31.6%
Q2 2023+13.8%+6.3%+13.7%
Q1 2023+0.4%-0.6%+13.5%
Q4 2022+8.0%+4.0%+1.9%
Q3 2022-36.0%-40.7%-21.3%
Q2 2022+9.5%+17.8%+7.6%
Q1 2022-11.2%-20.1%-24.8%
Q4 2021+4.3%+8.2%+11.0%
Q3 2021-3.6%-3.9%-22.5%
Q2 2021-3.6%-4.9%+13.4%
Q1 2021-4.4%-9.9%-9.3%
Q4 2020+6.2%+13.0%-10.9%
Q3 2020-1.4%-7.0%-4.0%
Q2 2020+7.4%+9.1%+13.9%
Q1 2020+11.4%+15.3%+33.9%
Q4 2019-1.0%+3.0%-23.3%
Q3 2019+14.0%+13.8%+24.5%
Q2 2019+0.1%-0.1%-6.8%
Q1 2019+4.7%+6.9%-6.6%
Q4 2018-12.0%-13.2%-3.7%
Q3 2018-5.7%-1.4%-7.2%
Q2 2018-21.2%-17.7%-4.9%
Q1 2018+4.7%+7.9%+20.1%
Q4 2017+3.3%+7.4%+11.0%
Q3 2017+13.1%+7.2%+21.6%
Q2 2017+3.0%-0.3%+3.5%
Q1 2017+10.1%+9.5%+13.9%
Q4 2016-7.4%-9.1%-11.6%
Q3 2016+2.0%+3.9%-3.7%
Q2 2016+6.3%+8.9%+17.0%
Q1 2016+8.9%
Q4 2015+16.4%
Q3 2015-0.9%
Q2 2015+11.0%
Q1 2015-26.9%
Q4 2014-18.6%
Q3 2014+19.0%
Q2 2014+7.8%
Q1 2014-10.5%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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