Varonis Systems
Market Cap
US$2.5b
Last Updated
2020/05/26 03:51 UTC
Data Sources
Company Financials +
Executive Summary
Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Excellent balance sheet with concerning outlook.
Similar Companies
Share Price & News
How has Varonis Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VRNS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.7%
VRNS
1.4%
US Software
1.0%
US Market
1 Year Return
21.1%
VRNS
28.9%
US Software
4.1%
US Market
Return vs Industry: VRNS underperformed the US Software industry which returned 28.9% over the past year.
Return vs Market: VRNS exceeded the US Market which returned 4.1% over the past year.
Shareholder returns
| VRNS | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.7% | 1.4% | 1.0% |
| 30 Day | 24.5% | 9.8% | 5.4% |
| 90 Day | -1.6% | 8.0% | -5.7% |
| 1 Year | 21.1%21.1% | 29.9%28.9% | 6.5%4.1% |
| 3 Year | 120.4%120.4% | 128.2%120.3% | 28.3%19.8% |
| 5 Year | 300.8%300.8% | 204.0%185.5% | 52.2%35.0% |
Price Volatility Vs. Market
How volatile is Varonis Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Is Varonis Systems, Inc. (NASDAQ:VRNS) Trading At A 50% Discount?2 months ago | Simply Wall St
Does The Varonis Systems, Inc. (NASDAQ:VRNS) Share Price Tend To Follow The Market?3 months ago | Simply Wall St
We Think Varonis Systems (NASDAQ:VRNS) Can Easily Afford To Drive Business GrowthValuation
Is Varonis Systems undervalued compared to its fair value and its price relative to the market?
31.63x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: VRNS ($80.45) is trading above our estimate of fair value ($67.29)
Significantly Below Fair Value: VRNS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VRNS is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: VRNS is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VRNS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VRNS is overvalued based on its PB Ratio (31.6x) compared to the US Software industry average (5.5x).
Next Steps
Future Growth
How is Varonis Systems forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
16.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VRNS is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: VRNS is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: VRNS is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: VRNS's revenue (18.1% per year) is forecast to grow faster than the US market (8.9% per year).
High Growth Revenue: VRNS's revenue (18.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VRNS's Return on Equity is forecast to be low in 3 years time (7.5%).
Next Steps
Past Performance
How has Varonis Systems performed over the past 5 years?
-30.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VRNS is currently unprofitable.
Growing Profit Margin: VRNS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VRNS is unprofitable, and losses have increased over the past 5 years at a rate of -30.3% per year.
Accelerating Growth: Unable to compare VRNS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VRNS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (6.3%).
Return on Equity
High ROE: VRNS has a negative Return on Equity (-109.39%), as it is currently unprofitable.
Next Steps
Financial Health
How is Varonis Systems's financial position?
Financial Position Analysis
Short Term Liabilities: VRNS's short term assets ($177.3M) exceed its short term liabilities ($145.1M).
Long Term Liabilities: VRNS's short term assets ($177.3M) exceed its long term liabilities ($61.8M).
Debt to Equity History and Analysis
Debt Level: VRNS is debt free.
Reducing Debt: VRNS has not had any debt for past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: VRNS has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if VRNS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Varonis Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VRNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VRNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VRNS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VRNS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VRNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.7yrs
Average management tenure
CEO
Yaki Faitelson (44yo)
16.33yrs
Tenure
US$8,494,297
Compensation
Mr. Yakov Faitelson, also known as Yaki, Co-founded Varonis Systems, Inc. in 2004 and has been its Chairman, Chief Executive Officer and President since 2004. Mr. Faitelson is responsible for leading the m ...
CEO Compensation Analysis
Compensation vs Market: Yaki 's total compensation ($USD8.49M) is above average for companies of similar size in the US market ($USD6.00M).
Compensation vs Earnings: Yaki 's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 16.33yrs | US$8.49m | 0.42% $10.7m | |
| Co-Founder & Director | 13.33yrs | US$220.01k | 0.091% $2.3m | |
| CFO & COO | 3.08yrs | US$4.87m | 0.072% $1.8m | |
| Executive VP of Engineering & CTO | 2.17yrs | US$4.56m | 0.15% $3.8m | |
| Chief Information Officer & VP of Technical Services | no data | US$1.73m | 0.096% $2.4m | |
| Senior Vice President of Worldwide Sales | 14.33yrs | US$2.38m | 0.21% $5.2m | |
| Director of Investor Relations | no data | no data | no data | |
| VP & General Counsel | no data | no data | no data | |
| Chief Marketing Officer | no data | no data | no data | |
| Chief Human Resources Officer | 2yrs | no data | no data |
8.7yrs
Average Tenure
43yo
Average Age
Experienced Management: VRNS's management team is seasoned and experienced (8.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 16.33yrs | US$8.49m | 0.42% $10.7m | |
| Co-Founder & Director | 13.33yrs | US$220.01k | 0.091% $2.3m | |
| Independent Director | 15.42yrs | US$228.51k | 0.032% $811.4k | |
| Independent Director | 15.42yrs | US$238.01k | 0.37% $9.3m | |
| Independent Director | 7.33yrs | US$227.51k | 0.14% $3.6m | |
| Lead Independent Director | 1.33yrs | US$248.26k | 0.14% $3.6m | |
| Independent Director | 4.92yrs | US$220.01k | 0.081% $2.1m | |
| Independent Director | 5.25yrs | US$227.51k | 0.076% $1.9m | |
| Independent Director | 3.08yrs | US$220.01k | 0.056% $1.4m |
7.3yrs
Average Tenure
59yo
Average Age
Experienced Board: VRNS's board of directors are considered experienced (7.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VRNS insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.
Top Shareholders
Company Information
Varonis Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Varonis Systems, Inc.
- Ticker: VRNS
- Exchange: NasdaqGS
- Founded: 2004
- Industry: Systems Software
- Sector: Software
- Market Cap: US$2.532b
- Shares outstanding: 31.47m
- Website: https://www.varonis.com
Number of Employees
Location
- Varonis Systems, Inc.
- 1250 Broadway
- 29th Floor
- New York
- New York
- 10001
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VRNS | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 2014 |
| VS2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 2014 |
| 0VOU | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Feb 2014 |
Biography
Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees’ data; financial records; strategic and product plans; and other intellectual property. The company offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, and Intranet servers; and DatAlert that profiles users and their behaviors related to systems and data, detects and alerts on deviations to established baselines, and provides a Web-based dashboard and investigative interface. It also provides Data Classification Engine that identifies and tags data based on criteria set in various metadata dimensions, and provides business and information technology (IT) personnel with actionable intelligence about data; and DataPrivilege, which provides a self-service Web portal that allows users to request access to data necessary for their business functions, and owners to grant access without IT intervention. In addition, the company offers Data Transport Engine, which provides an execution engine that unifies the manipulation of data and metadata, translating business decisions, and instructions into technical commands, such as data migration or archiving; and DatAnswers that offers search functionality for enterprise data. It sells its products and services through a network of distributors and value added resellers. The company serves and IT and business personnel. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/26 03:51 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.