
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems has demonstrated impressive growth in its Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR), reaching approximately $546 million, which marks a 108% year-over-year increase and accounts for 76% of total ARR, up from 69% in the previous quarter. The firm's strong demand trends are evident, with Net-New ARR achieving a 42% year-over-year growth to $71.1 million, and a healthy Net Revenue Retention (NRR) rate that indicates customer satisfaction and retention. Furthermore, management expects the SaaS ARR contribution to rise to 82% by the end of CY25, reflecting the ongoing successful transition to cloud-based products and positioning the company for sustained long-term growth.
Bears say
Varonis Systems has faced significant challenges with deteriorating renewal rates across its on-premises segment, leading to lowered FY25 guidance and a $17 million reduction in full-year ARR expectations. The company's gross margin decreased to 79.4%, falling short of both the previous year's figure and the market's expectations, highlighting operational weaknesses amidst the ongoing cloud transition. Furthermore, the uncertainty in new business growth, influenced by a cautious spending environment, raises concerns about the sustainability of Varonis's anticipated ARR growth and overall financial performance.
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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