
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, surpassing both management guidance and consensus estimates, which reflects strong operational execution and market demand. The firm’s SaaS business now constitutes 86% of its Annual Recurring Revenue (ARR), marking a significant transition from its legacy products, and management is optimistic about further ARR growth to 100% by the end of calendar year 2026. With impressive SaaS ARR growth of 32% year-over-year excluding conversions, combined with the expectation of a healthy 19% growth rate, Varonis is positioned for robust expansion amid its ongoing shift to a cloud-centric revenue model.
Bears say
Varonis Systems has experienced a decline in gross margin, dropping from 84.4% the previous year to 80.0%, which is slightly below analysts' expectations. The company reported a net operating loss greater than anticipated and has lowered its guidance for annual recurring revenue (ARR) by $17 million, reflecting challenges in retaining on-premises subscriptions, which fell sharply as the company prepares for a complete transition to its cloud products. Additionally, the transition away from its legacy solutions is leading to increased churn in non-software-as-a-service ARR, creating further headwinds for future cash flow projections.
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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