
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems has demonstrated strong growth in its Subscription as a Service (SaaS) Annual Recurring Revenue (ARR), achieving approximately $546 million, reflecting a year-over-year increase of 108% and contributing to 76% of total ARR. The company has also reported impressive Net-New ARR growth of 31% year-over-year and a healthy renewal rate, suggesting sustained demand for its products, particularly from new customers. Additionally, management's positive outlook on the transition to SaaS, with an expected increase in its contribution to 82% of total ARR by the end of calendar year 2025, underscores the potential for robust, ongoing revenue growth.
Bears say
Varonis Systems is experiencing negative financial trends, as evidenced by a significant reduction in FY25 guidance due to lower renewal rates in its on-premises segment and mixed results from its recent financial performance. The company's Next-Generation (NG) gross margin has deteriorated to 79.4%, significantly down from 85.0% the previous year and below the anticipated levels, indicating potential challenges in maintaining profitability during the ongoing transition to cloud services. Furthermore, a deceleration in anticipated Annual Recurring Revenue (ARR) growth raises concerns about new business generation and overall revenue stability amid a challenging macroeconomic environment.
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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