Varonis Earnings: What To Look For From VRNS

Radek Strnad /
2023/05/01 2:57 am EDT

Data protection and security software company Varonis (NASDAQ:VRNS) will be reporting results today after market hours. Here's what to expect.

Last quarter Varonis reported revenues of $142.6 million, up 12.7% year on year, beating analyst revenue expectations by 1.33%. It was a weaker quarter for the company, with underwhelming guidance for the next year and slow revenue growth.

Is Varonis buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Varonis's revenue to grow 11.1% year on year to $106.9 million, slowing down from the 28.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.

Varonis Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.73%.

Looking at Varonis's peers in the cybersecurity segment, only Tenable has so far reported results, delivering top-line growth of 18.5% year on year, and beating analyst estimates by 0.91%. The stock was down 13.5% on the results. Read our full analysis of Tenable's earnings results here. 

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022, and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.81% over the last month. Varonis is down 8.82% during the same time, and is heading into the earnings with analyst price target of $30.7, compared to share price of $23.16.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.