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VRNS

Varonis Systems NasdaqGS:VRNS Stock Report

Last Price

US$31.29

Market Cap

US$3.4b

7D

5.4%

1Y

-45.1%

Updated

16 Aug, 2022

Data

Company Financials +
VRNS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

VRNS Stock Overview

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally.

Varonis Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Varonis Systems
Historical stock prices
Current Share PriceUS$31.29
52 Week HighUS$73.46
52 Week LowUS$24.58
Beta1.16
1 Month Change13.00%
3 Month Change-0.51%
1 Year Change-45.13%
3 Year Change36.00%
5 Year Change147.03%
Change since IPO113.34%

Recent News & Updates

Aug 01

Varonis Non-GAAP EPS of $0.00 beats by $0.01, revenue of $111.45M beats by $0.19M, raises FY22 EPS guidance

Varonis press release (NASDAQ:VRNS): Q2 Non-GAAP EPS of $0.00 beats by $0.01. Revenue of $111.45M (+26.0% Y/Y) beats by $0.19M. Annual recurring revenues grew 30% year-over-year to $426.3 million As of June 30, 2022, 75% of customers with 500 employees or more purchased four or more licenses, up from 68% as of June 30, 2021, and 45% purchased six or more licenses, up from 35% as of June 30, 2021. For the third quarter of 2022, the Company expects: Revenues of $123.0 million to $125.5 million (vs. $124.35M consensus), or year-over-year growth of 23% to 25%. Non-GAAP operating income of $8.5 million to $10.0 million. Non-GAAP net income per diluted share in the range of $0.05 to $0.06 (vs. $0.06 consensus), based on 127.1 million diluted shares outstanding. For full year 2022, the Company expects: ARR of $484.0 million to $489.0 million, or year-over-year growth of 25% to 26%. Re-affirm revenues guidance of $485.0 million to $490.0 million vs. $487.81M consensus, or year-over-year growth of 24% to 26%. Non-GAAP operating income of $32.5 million to $36.5 million. Non-GAAP net income per diluted share in the range of $0.19 to $0.22 from prior outlook of $0.16 to $0.18 vs. $0.17 consensus, based on 126.9 million diluted shares outstanding.

Jul 25

Wolfe Research downgrades Varonis Systems ahead of Q2 earnings, cites slowing demand

Wolfe Research has downgraded Varonis Systems (NASDAQ:VRNS) from outperform to peerperform citing slowing demand for its on-premise and cloud solutions. The downgrade comes ahead of the firm's Q2 earnings report, scheduled for Aug 01, 2022. Analyst Joshua Tilton wrote, "Demand for VRNS' on-premise solutions slowed as organizations continue to migrate to the cloud. The expectation was the on-prem demand would be replaced with demand for VRNS' cloud focused modules (DatAdvantage for Onedrive, SharePoint & Exchange Online), however, we believe demand for these solutions slowed as well. Finally, while still early innings, excitement around DA Cloud decreased, and we believe VRNS does not benefit from the same favorable competitive dynamics, a key thesis point for the name in the past, as it does in the on-premise marketplace." VRNS shares are trading at $27.61 (-5%) today, well below its 52-week high of $73.46. Earlier this month, Barclays lowered its price target on the stock, while maintaining an equal weight rating. The software firm is rated hold by SA Quant system and buy by SA Authors. Take at look at Varonis' Q1 performance here

Jul 13
Is Varonis Systems (NASDAQ:VRNS) Weighed On By Its Debt Load?

Is Varonis Systems (NASDAQ:VRNS) Weighed On By Its Debt Load?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

VRNSUS SoftwareUS Market
7D5.4%3.0%3.6%
1Y-45.1%-14.7%-9.6%

Return vs Industry: VRNS underperformed the US Software industry which returned -14.7% over the past year.

Return vs Market: VRNS underperformed the US Market which returned -9.6% over the past year.

Price Volatility

Is VRNS's price volatile compared to industry and market?
VRNS volatility
VRNS Average Weekly Movement9.5%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: VRNS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: VRNS's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20042,065Yaki Faitelsonhttps://www.varonis.com

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, 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, Intranet servers, cloud applications, and data stores; and DatAlert that profiles users, devices, and their behaviors related to systems and data, detects and alerts on deviations that indicate compromise, and provides a Web-based dashboard and investigative interface.

Varonis Systems Fundamentals Summary

How do Varonis Systems's earnings and revenue compare to its market cap?
VRNS fundamental statistics
Market CapUS$3.44b
Earnings (TTM)-US$133.31m
Revenue (TTM)US$434.64m

7.9x

P/S Ratio

-25.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VRNS income statement (TTM)
RevenueUS$434.64m
Cost of RevenueUS$67.32m
Gross ProfitUS$367.32m
Other ExpensesUS$500.63m
Earnings-US$133.31m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.21
Gross Margin84.51%
Net Profit Margin-30.67%
Debt/Equity Ratio47.2%

How did VRNS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VRNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VRNS?

Other financial metrics that can be useful for relative valuation.

VRNS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.8x
Enterprise Value/EBITDA-26.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VRNS's PS Ratio compare to its peers?

VRNS PS Ratio vs Peers
The above table shows the PS ratio for VRNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.1x
APPN Appian
9.1x17.5%US$3.9b
RPD Rapid7
6.5x20.4%US$4.0b
TENB Tenable Holdings
8x18.0%US$4.9b
KNBE KnowBe4
12.6x21.9%US$3.7b
VRNS Varonis Systems
7.9x18.8%US$3.4b

Price-To-Sales vs Peers: VRNS is good value based on its Price-To-Sales Ratio (7.9x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does VRNS's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: VRNS is expensive based on its Price-To-Sales Ratio (7.9x) compared to the US Software industry average (5.3x)


Price to Sales Ratio vs Fair Ratio

What is VRNS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VRNS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.9x
Fair PS Ratio9.4x

Price-To-Sales vs Fair Ratio: VRNS is good value based on its Price-To-Sales Ratio (7.9x) compared to the estimated Fair Price-To-Sales Ratio (9.4x).


Share Price vs Fair Value

What is the Fair Price of VRNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VRNS ($31.29) is trading below our estimate of fair value ($57.7)

Significantly Below Fair Value: VRNS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Varonis Systems forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.3%

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 (18.8% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: VRNS's revenue (18.8% 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 (9.8%).


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Past Performance

How has Varonis Systems performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-38.5%

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 38.5% 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 (18.7%).


Return on Equity

High ROE: VRNS has a negative Return on Equity (-25.32%), as it is currently unprofitable.


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Financial Health

How is Varonis Systems's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VRNS's short term assets ($906.6M) exceed its short term liabilities ($208.9M).

Long Term Liabilities: VRNS's short term assets ($906.6M) exceed its long term liabilities ($316.9M).


Debt to Equity History and Analysis

Debt Level: VRNS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if VRNS's debt to equity ratio has reduced over the 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 3 years 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.


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Dividend

What is Varonis Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VRNS has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Yaki Faitelson (47 yo)

18.58yrs

Tenure

US$10,372,443

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 ($USD10.37M) is above average for companies of similar size in the US market ($USD6.57M).

Compensation vs Earnings: Yaki 's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VRNS's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: VRNS's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VRNS insiders have only sold shares 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 2.8%.


Top Shareholders

Company Information

Varonis Systems, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Varonis Systems, Inc.
  • Ticker: VRNS
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$3.438b
  • Shares outstanding: 109.89m
  • Website: https://www.varonis.com

Number of Employees


Location

  • Varonis Systems, Inc.
  • 1250 Broadway
  • 29th Floor
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.