Overview

* Data security and analytics software firm Varonis ( VRNS ) 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 ( VRNS ) expects Q3 revenue of $163 mln to $168 mln

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

* Varonis ( VRNS ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $152.16 $148 mln

Revenue mln (19

Analysts

)

Q2 Net -$35.82

Income mln

Q2 Gross $120.91

Profit mln

Q2 -$36.55

Operatin mln

g Income

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 ( VRNS ) 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:

(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.)