
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems has demonstrated strong performance in its transition to a software-as-a-service (SaaS) model, with SaaS annual recurring revenue (ARR) reaching approximately $546 million, marking a 108% year-over-year growth and representing 76% of total ARR. The company has also reported a significant 42% year-over-year increase in SaaS net-new ARR, indicating robust demand trends, particularly from new customers. Furthermore, management's expectation of a continued shift towards SaaS, with projected contributions rising to 82% by the end of CY25, underscores the firm’s positive long-term growth trajectory.
Bears say
Overall, Varonis Systems has lowered its FY25 guidance due to mixed quarterly results, highlighting concerns over execution and potential continued variability in its on-premises segment, leading to lower renewal rates. The gross margin for the New Generation (NG) segment dropped to 79.4%, which is significantly lower than the previous year's 85.0% and below analyst expectations, reflecting pressures in profitability. Additionally, the company's anticipated Annual Recurring Revenue (ARR) growth is at risk as new customer spending declines in a challenging macroeconomic environment, exacerbated by weak renewal rates particularly within its federal on-premises subscription business.
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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