
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems has demonstrated a strong financial performance, with its Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR) reaching approximately $546 million, representing a substantial growth of 108% year-over-year and accounting for 76% of total ARR. The company's SaaS Net-New ARR also reflected positive momentum, increasing by 31% year-over-year to around $68 million, backed by strong demand driven by new client acquisitions. Furthermore, Varonis's strategic transition to a SaaS model is expected to enhance renewal rates and support durable growth in ARR, with management projecting an increase in SaaS ARR contribution to 82% by the end of fiscal 2025.
Bears say
Varonis Systems has exhibited a negative outlook primarily due to a significant decline in renewal rates within its on-premises segment, which adversely impacted its third-quarter earnings and led to a $17 million reduction in full-year annual recurring revenue (ARR) expectations. The company's non-GAAP gross margin also decreased to 79.4%, failing to meet analyst expectations and indicating potential challenges in maintaining profitability amidst the ongoing transition to cloud-based services. Additionally, the firm is facing broader risks related to anticipated ARR growth, as new customer acquisition may slow down due to heightened caution in spending amid an uncertain macroeconomic environment.
This aggregate rating is based on analysts' research of Varonis Systems and is not a guaranteed prediction by Public.com or investment advice.
Varonis Systems (VRNS) Analyst Forecast & Price Prediction
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