Varonis Systems Inc

VRNS: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$77.00	Pwc	Snbbxlx

Varonis Earnings: Strong Financials as Demand for Varonis’ Solutions Remains Robust

Malik Ahmed Khan

Jul 30, 2024

We are raising our fair value estimate for no-moat Varonis to $33 from $30 following a strong quarterly earnings report with results ahead of our above-consensus estimates. The firm’s model transition toward a cloud-based software-as-a-service offering also remains on track, with cloud-based SaaS now making up 36% of the firm’s overall annual recurring revenue. While near-term macro headwinds, including elongated sales cycles, are expected to continue, we expect Varonis’ ARR growth to remain in the late teens for the remainder of 2024.

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