NasdaqGS:VRNS

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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.


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

VRNSIndustryMarket
7 Day5.7%1.4%1.0%
30 Day24.5%9.8%5.4%
90 Day-1.6%8.0%-5.7%
1 Year21.1%21.1%29.9%28.9%6.5%4.1%
3 Year120.4%120.4%128.2%120.3%28.3%19.8%
5 Year300.8%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

Valuation

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

NamePositionTenureCompensationOwnership
Yakov Faitelson
Co-Founder16.33yrsUS$8.49m0.42% $10.7m
Ohad Korkus
Co-Founder & Director13.33yrsUS$220.01k0.091% $2.3m
Guy Melamed
CFO & COO3.08yrsUS$4.87m0.072% $1.8m
David Bass
Executive VP of Engineering & CTO2.17yrsUS$4.56m0.15% $3.8m
Gilad Raz
Chief Information Officer & VP of Technical Servicesno dataUS$1.73m0.096% $2.4m
James O'Boyle
Senior Vice President of Worldwide Sales14.33yrsUS$2.38m0.21% $5.2m
James Arestia
Director of Investor Relationsno datano datano data
Seth Gerson
VP & General Counselno datano datano data
David Gibson
Chief Marketing Officerno datano datano data
Dana Shahar-Gara
Chief Human Resources Officer2yrsno datano 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

NamePositionTenureCompensationOwnership
Yakov Faitelson
Co-Founder16.33yrsUS$8.49m0.42% $10.7m
Ohad Korkus
Co-Founder & Director13.33yrsUS$220.01k0.091% $2.3m
Rona Segev-Gal
Independent Director15.42yrsUS$228.51k0.032% $811.4k
Kevin Comolli
Independent Director15.42yrsUS$238.01k0.37% $9.3m
Fred Van Den Bosch
Independent Director7.33yrsUS$227.51k0.14% $3.6m
John Gavin
Lead Independent Director1.33yrsUS$248.26k0.14% $3.6m
Thomas Mendoza
Independent Director4.92yrsUS$220.01k0.081% $2.1m
Ofer Segev
Independent Director5.25yrsUS$227.51k0.076% $1.9m
Gili Iohan
Independent Director3.08yrsUS$220.01k0.056% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRNSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2014
VS2DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2014
0VOULSE (London Stock Exchange)YesCommon StockGBUSDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 03:51
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.