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Varonis Q1 2025 Earnings Report
Varonis Systems, Inc. announced financial results for the first quarter ended March 31, 2025, reporting growth in total revenues, SaaS revenues, and annual recurring revenues, alongside improved operating loss and cash flow.
Key Takeaways
Varonis Systems, Inc. reported a strong first quarter for 2025, with total revenues increasing to $136.4 million and SaaS revenues significantly growing to $88.6 million. The company also saw a 19% year-over-year increase in Annual Recurring Revenue (ARR) and generated healthy cash flow from operations, leading to raised full-year ARR guidance.
Total revenues for Q1 2025 were $136.4 million, an increase from $114.0 million in Q1 2024.
SaaS revenues reached $88.6 million in Q1 2025, up from $34.0 million in Q1 2024, indicating strong platform adoption.
Annual Recurring Revenues (ARR) grew 19% year-over-year to $664.3 million by the end of the first quarter.
The company generated $68.0 million in cash from operations and $65.3 million in free cash flow during the quarter.
Varonis
Varonis
Varonis Revenue by Segment
Revenue by Segment
SaaS Revenue
CapyFin.comTerm License Subscriptions Revenue
CapyFin.comMaintenance and Services Revenue
CapyFin.com Forward Guidance
For the full year 2025, Varonis expects ARR to be between $742.0 million and $750.0 million, representing 16% to 17% year-over-year growth. Free cash flow is projected to be $120.0 million to $125.0 million, and total revenues are expected to be $610.0 million to $625.0 million, an 11% to 13% year-over-year increase. Non-GAAP operating income is anticipated to be $0.5 million to $10.5 million, with non-GAAP net income per diluted share in the range of $0.14 to $0.17.
Positive Outlook
- Projected ARR growth of 16% to 17% year-over-year.
- Anticipated free cash flow of $120.0 million to $125.0 million.
- Expected revenue growth of 11% to 13% year-over-year.
- Forecasted non-GAAP operating income of $0.5 million to $10.5 million.
- Positive non-GAAP net income per diluted share expected.
Challenges Ahead
- The company's financial outlook may differ materially due to various factors.
- Uncertain macro environment could impact results.
- Foreign currency exchange rate fluctuations may affect financial performance.
- Potential information technology, cybersecurity, or data security breaches pose risks.
- Competitive factors, including increased sales cycle time and pricing changes, could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income