
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems experienced a revenue increase of 9% year-over-year, reaching $173.4 million, which surpassed both company guidance and market expectations, indicating strong operational performance. The transition to a software-as-a-service (SaaS) model is proving successful, with the SaaS business now accounting for 86% of annual recurring revenue (ARR), up from 76% the previous quarter, and an expectation of reaching 100% by the end of calendar year 2026. Additionally, the company has reported impressive SaaS ARR growth of 32% year-over-year, excluding conversions, and a robust growth rate of approximately 19% when considering the overall transition, suggesting a solid foundation for future earnings amid ongoing shifts in its revenue model.
Bears say
Varonis Systems reported a decline in gross margin from 84.4% to 80.0%, falling short of street expectations and reflecting challenges in its ongoing cloud transition. The company also faced an operating loss more significant than consensus estimates, alongside a notable reduction in annual recurring revenue (ARR) guidance by $17 million due to unexpectedly low renewal rates. Additionally, the rapid decline of non-SaaS ARR and increased churn expectations are anticipated to adversely affect future free cash flow, indicating further operational and financial challenges ahead.
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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