
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems is demonstrating strong growth in its software-as-a-service (SaaS) segment, with annual recurring revenue (ARR) of approximately $546 million, reflecting a remarkable year-over-year increase of 108% and accounting for 76% of total ARR. The net-new ARR for SaaS grew by 42% year-over-year to $71.1 million, showcasing robust demand, particularly from new customers, while the overall ARR increased by 19% year-over-year to $693.2 million. Management's commitment to transitioning towards a SaaS model is further supported by improving renewal rates and an anticipated increase in SaaS ARR contribution to 82% by the end of CY25, suggesting a sustainable growth trajectory and solid market positioning.
Bears say
Varonis Systems's stock outlook is negatively impacted by revised guidance for FY25, reflecting management's concerns over execution and declining renewal rates in its On-Premises segment, which have affected annual recurring revenue (ARR) expectations significantly. The company's gross margin decreased to 79.4%, falling short of analyst expectations and declining from 85.0% the previous year, indicating potential pressure on profitability during its transition to cloud offerings. Additionally, the current macroeconomic environment has resulted in reduced spending from new customers, exacerbating anticipated challenges in securing sustainable ARR growth amid weaker renewal performance in both federal and commercial sectors.
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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