
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems demonstrated robust growth in its Software-as-a-Service (SaaS) business, achieving an annual recurring revenue (ARR) of approximately $546 million, which marks a 108% increase year-over-year and represents 76% of total ARR. The company experienced a notable increase in net-new ARR, reaching about $71.1 million and growing 42% compared to the previous year, driven by strong demand and new customer acquisitions. Furthermore, Varonis is expected to continue its positive trajectory, with management projecting SaaS ARR contributions to increase to 82% by the end of calendar year 2025, highlighting the firm’s effective transition to a cloud-based model and overall strong renewal rates.
Bears say
Varonis Systems has experienced a notable decline in its financial outlook due to weaker-than-anticipated renewal rates in its on-premises business, resulting in a significant downward revision of its fiscal year 2025 guidance. The company's gross margin has also decreased, falling to 79.4%, down from 85.0% the previous year and below analyst expectations, signaling potential challenges in maintaining profitability during its ongoing transition to a cloud-based model. Furthermore, anticipated annual recurring revenue growth may be hindered by a deceleration in new customer acquisitions amid an uncertain macroeconomic environment, compounding the risks to Varonis's 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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