
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems demonstrated a solid financial performance with a 9% year-over-year revenue increase to $173.4 million, surpassing both company guidance and consensus estimates. The company's successful transition to a cloud-based software-as-a-service model is evident, with 86% of annual recurring revenue (ARR) now derived from SaaS, highlighting robust business health and a strong growth trajectory. Furthermore, the expectation for SaaS ARR to comprise 100% of total ARR by the end of calendar year 2026, coupled with a projected annual growth rate of approximately 15-20% and a margin rebound in 2027, enhances the optimistic outlook for Varonis's future financial performance.
Bears say
Varonis Systems is experiencing significant challenges as its gross margin has declined to 80.0%, falling short of both the previous year's 84.4% and the Street's expectations. The company reported a larger-than-anticipated operating loss, with guidance indicating negative operating margins between (6.7%)-(6.0%), substantially worse than the consensus forecast. Moreover, the firm has adjusted its guidance downward, now expecting a significant reduction in annual recurring revenue (ARR) and projecting a substantial headwind to future free cash flow due to increased churn from its legacy products.
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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