- Wednesday, October 16, 2024
Shares of Varonis Systems, a designer and manufacturer of custom engineered solutions, surged on Tuesday following the company's announcement of higher revenue guidance for 2024 and a narrowing of losses in the latest quarter.
Positive Market Response
At 11:45 a.m. ET, shares of Varonis Systems were up 7.3% to $48.83, marking a significant increase of 72% over the past 12 months.
Strong Revenue Outlook
Varonis Systems provided guidance for full-year revenue of $536 million to $546 million, aligning with analysts' expectations of $542.1 million, according to FactSet.
In addition, the company anticipates first-quarter revenue of $111 million to $115 million, surpassing the reported revenue of $107.3 million in the prior year. Adjusted losses per share are expected to range from 9 cents to 10 cents.
Fourth Quarter Performance
During the fourth quarter, Varonis Systems reported a narrower loss of $898,000, or 1 cent per share, compared to a loss of $10.8 million, or 10 cents per share, in the previous year. FactSet analysts had predicted wider losses of 9 cents per share.
Furthermore, Varonis Systems achieved revenue growth of 8.1%, reaching $154.1 million, which exceeded analysts' expectations of $151.8 million.
Positive Software as a Service (SaaS) Performance
Finance Chief and Operating Chief Guy Melamed highlighted the strong demand for their software as a service (SaaS) platform. The fourth quarter SaaS mix accounted for 66% of the company's revenues, surpassing the projected 60% and showing better than expected existing customer conversions.
The positive market response, higher revenue guidance, and improved financial performance signal a promising outlook for Varonis Systems in the coming years.
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