
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems reported a 9% year-over-year revenue increase to $173.4 million, exceeding both internal guidance and consensus estimates, which highlights the company's strong performance during its transition to a cloud-based business model. The significant rise in software-as-a-service (SaaS) contributions to annual recurring revenue (ARR), which grew to 86% from 76% just a quarter prior, underscores the firm's successful shift toward a more sustainable, recurring revenue model. As Varonis moves towards 100% SaaS ARR by the end of calendar year 2026, the expectation of approximately 15-20% ARR growth alongside improved margins in 2027 reflects confidence in the company’s long-term financial trajectory.
Bears say
Varonis Systems is experiencing a decline in key financial metrics, including a gross margin of 80.0%, which is lower than both the previous year's 84.4% and the consensus expectation, indicating potential issues with profitability during its cloud transition. The company's operating loss significantly exceeded consensus estimates, projected at ($11.0) million to ($10.0) million, while guidance for operating margins remains negative, contrasting with sell-side forecasts. Additionally, the firm has lowered its ARR guidance for CY25 by $17 million, reflecting increased churn rates in its non-SaaS ARR and a concerning reduction in renewal rates, which raises doubts about future cash flow generation.
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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