NASDAQ$VRNS

Varonis Systems Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Varonis's Q3 2023 financial results reflected continued healthy adoption of Varonis SaaS.

Varonis Systems, Inc. announced financial results for the third quarter ended September 30, 2023. The company saw continued healthy adoption of Varonis SaaS, with approximately 15% of total company ARR now coming from SaaS. The company is progressing towards achieving its $1 billion ARR target.

  • Annual recurring revenues grew 16% year-over-year.
  • SaaS mix of new business and upsell ARR was 59% in the third quarter.
  • Year-to-date cash from operations generated $49.0 million vs. $8.4 million last year.
  • Year-to-date free cash flow generated $46.0 million vs. $0.8 million last year.

Headline financials

Total Revenue

$122M

Previous: $123M-0.8%
EPS (adj)

$0.08

Previous: $0.05+60.0%
Annual Recurring Revenue

$0.00

Previous: $0.00
Capital Expenditures

-$2.95M

Previous: -$7.63M+61.4%
Free Cash Flow

-$26M

Previous: -$36.4M+28.6%
Net Income

-$23M

Previous: -$28.7M+19.8%
Operating Income

-$29.1M

Previous: -$25.6M-13.9%
Gross Profit

$105M

Previous: $106M-1.1%
Cash & Equivalents

$111M

Previous: $754M-85.3%
Total Assets

$1.02B

Previous: $1.06B-3.6%
Stock-Based Comp

$33M

Previous: $34.3M-3.8%

Revenue & EPS history

Varonis · Revenue · Quarterly

$122M

Q3 2023-0.8%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company is increasing its expectation for its SaaS mix from 50% previously and now expects that SaaS will represent 55% of new business and upsell ARR for the full year ended 2023 and expects the mix to be 60% in the fourth 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 Q3 2023

Historical avgQ3 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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