
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems has demonstrated significant growth in its Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR), reaching approximately $546 million, marking a year-over-year increase of 108% and now representing 76% of its total ARR, up from 69% in the previous quarter. The company has also reported strong net-new ARR, which grew 31% year-over-year to about $68 million, indicating sustained demand and the successful onboarding of new customers. Furthermore, management projects a continued increase in SaaS ARR contribution, expecting it to reach 82% by the end of the calendar year 2025, coupled with improving renewal rates that suggest a healthy customer retention trend.
Bears say
Varonis Systems is currently facing significant challenges, as evidenced by management's decision to lower fiscal year 2025 guidance due to ongoing execution issues and concerns regarding declining renewal rates in its on-premises segment. The company's non-GAAP gross margin has decreased to 79.4%, down from 85.0% a year prior, falling short of market expectations and indicating potential cost pressures amid the cloud transition. Additionally, the observed deceleration in annual recurring revenue (ARR) growth, particularly in the federal vertical and across its commercial operations, raises concerns about sustained customer demand in a volatile macroeconomic landscape.
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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