
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems is undergoing a successful transition to a software-as-a-service model, which has resulted in strong annual recurring revenue (ARR) growth of 16% year-over-year. The company's SaaS ARR currently represents 86% of its total ARR, and management is guiding for continued growth in this area. While there have been some challenges in the transition, such as a recent reduction in legacy subscription renewal rates, these issues are expected to be resolved and the company's projected ARR growth of 19% after excluding conversion customers is a positive indicator of future performance. Additionally, the company is taking steps to reduce its reliance on stock compensation and focus on increasing regular compensation, which should further benefit revenue growth and profitability.
Bears say
Varonis Systems is currently undergoing a challenging transition period as it shifts its focus from on-premises customers to a cloud-based software-as-a-service model. While the company has carved out a strong position in the data security market, it faces increased competition and the uncertain impact of changing regulatory and compliance requirements. Additionally, the company's recent earnings report showed a mixed outlook for revenue and earnings, leading to a reduction in its price target. With a lower market valuation and modest operating efficiencies expected, there may be limited upside potential for Varonis Systems in the near future.
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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