How Varonis Systems' (VRNS) Updated Guidance and SlashNext Acquisition Expenses Could Shape Investor Expectations

• Varonis Systems recently updated its earnings guidance for the third quarter and full year 2025, anticipating revenues between US$163.0 million and US$168.0 million for the quarter and between US$616.0 million and US$628.0 million for the year, incorporating additional expenses from its acquisition of SlashNext.
• This update reflects both the company’s expected growth trajectory and the real-time impact of acquisition-related costs on its operating outlook.
• We'll explore how Varonis's revised guidance, which factors in acquisition expenses, could update its investment narrative and growth outlook.

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Varonis Systems Investment Narrative Recap

To be a shareholder in Varonis Systems, you need to believe that demand for robust, AI-driven data protection will continue to grow as enterprises manage more sensitive data and compliance challenges. The company’s updated guidance, reflecting revenue growth of 10% to 14% year-over-year and accounting for costs tied to the SlashNext acquisition, does not materially alter near-term investor catalysts or address the largest risk: persistent earnings pressure from the ongoing SaaS transition and compressed gross margins.

Among Varonis’ recent announcements, the launch of its next-gen Database Activity Monitoring solution stands out as tightly linked to its revenue outlook. As the company broadens its cybersecurity platform, timely innovations like this can help reinforce ARR growth and sustain its position as businesses consolidate spend on integrated, AI-powered security offerings.

Yet, while the technology and growth story remain compelling, investors should also be mindful of the dilution risk from rising share counts as Varonis invests in expansion and product development...

Read the full narrative on Varonis Systems (it's free!)

Varonis Systems' narrative projects $911.4 million revenue and $119.3 million earnings by 2028. This requires 15.3% yearly revenue growth and an increase of $222.2 million in earnings from the current loss of $102.9 million.

Uncover how Varonis Systems' forecasts yield a $62.43 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community valued Varonis between US$62.43 and US$70. With growth now forecast at 13.3 percent per year and higher expenses from the SlashNext acquisition, you may want to see how these fair value opinions compare across different operating scenarios.

Explore 3 other fair value estimates on Varonis Systems - why the stock might be worth as much as 22% more than the current price!

Build Your Own Varonis Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Varonis Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Varonis Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Varonis Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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