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Mar 31, 2023

Varonis Q1 2023 Earnings Report

Varonis announced financial results for Q1 2023, with SaaS resonating with customers and sales force.

Key Takeaways

Varonis reported strong initial customer adoption, leading to a better-than-expected first quarter SaaS mix of 37% versus guidance of 15%. First quarter revenue came in near the top end of the guidance range. The company is raising its full-year SaaS mix and ARR guidance.

Annual recurring revenues grew 18% year-over-year.

SaaS mix of new business and upsell ARR was 37% in the first quarter.

Year-to-date cash from operations generated $36.8 million vs. $24.5 million last year.

Year-to-date free cash flow generated $35.7 million vs. $21.0 million last year.

Total Revenue
$107M
Previous year: $96.3M
+11.5%
EPS
-$0.33
Previous year: -$0.09
+266.7%
Gross Profit
$89.7M
Previous year: $78.5M
+14.3%
Cash and Equivalents
$249M
Previous year: $776M
-68.0%
Free Cash Flow
$35.7M
Previous year: $21M
+69.6%
Total Assets
$1.01B
Previous year: $1.05B
-3.8%

Varonis

Varonis

Forward Guidance

The company is increasing its expectation for its SaaS mix from 15% previously and now expects that SaaS will represent 35% of new business and upsell ARR for the second quarter and full year ended 2023.