Varonis Reports Q4 2024 Results, Expects Continued Growth

Varonis Systems Inc. reported its financial results for Q4 and full-year 2024, revealing total revenues of $158.5 million for the quarter, which fell short of analyst expectations. The company experienced a significant year-over-year increase in annual recurring revenue (ARR), growing 18%, with SaaS revenues now accounting for 53% of total ARR, marking a pivotal transition in its business model. However, Varonis faced challenges with a GAAP operating loss of $17.6 million in Q4, up from a $5.2 million loss in the same quarter last year. Despite these losses, the firm highlighted strong cash flow improvements, generating $115.2 million from operations. CEO Yaki Faitelson expressed optimism about the company's growth driven by new customer acquisition and interest in generative AI solutions. Looking ahead, Varonis aims to complete its transition to a SaaS model by 2025, positioning itself for future growth in the data security market.