Varonis Systems, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $148.1 million for the three months ended September 30, 2024, marking a 21.1% increase from $122.3 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $392.4 million, a 14% increase compared to $345.1 million for the same period in 2023. This growth was driven primarily by a substantial rise in Software as a Service (SaaS) revenues, which surged 321.4% to $57.8 million for the third quarter and 537.1% to $136.6 million for the nine-month period.
Despite the revenue growth, Varonis reported operating losses of $23.6 million for the third quarter and $100.1 million for the nine months, although these figures represent improvements from losses of $29.1 million and $112.0 million, respectively, in the prior year. The net loss for the third quarter was $18.3 million, down from $23.0 million in 2023, while the nine-month net loss decreased to $82.8 million from $100.0 million.
The company’s transition to a predominantly SaaS delivery model is a key strategic focus, with SaaS revenues now accounting for approximately 39% of total revenues in Q3 2024, up from 11.2% in the same period last year. This shift is expected to continue, although it may lead to fluctuations in revenue recognition due to the accounting treatment of SaaS contracts.
On the balance sheet, Varonis reported total current assets of $1,074.4 million as of September 30, 2024, up from $767.2 million at the end of 2023. Cash and cash equivalents increased to $282.2 million, while marketable securities rose significantly to $562.6 million. However, total current liabilities also increased to $594.0 million, up from $306.8 million at the end of 2023, primarily due to an increase in convertible senior notes.
In terms of strategic developments, Varonis entered into an asset purchase agreement for $6.5 million in August 2024, primarily for in-process research and development. The company also reported a renewal rate exceeding 90% for its products, indicating strong customer retention.
Overall, Varonis continues to navigate its transition to a SaaS model while managing operational costs and seeking to enhance its market position in data security and compliance.
About VARONIS SYSTEMS INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.