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New York-based data security and analytics company Varonis Systems Inc. (VRNS - Get Report)   fell 13.6% to close at $55.23 on Tuesday after the company topped analysts' fourth-quarter expectations but 2019 guidance came in below 2018 totals.

The company expects to earn between 4 cents and 16 cents a share in fiscal 2019. It earned 32 cents a share in 2018.

Analysts weren't kind to the stock following the earnings release.

Analysts at Craig-Hallum, Benchmark and Stifel Nicolaus all downgraded the stock to hold from buy, while analysts at JMP Securities downgraded the stock to market perform from market outperform as the company prepares to transition from perpetual licenses to a subscription-based model.

"In 2019 we are transitioning from perpetual licenses to a subscription-based model. We believe this will provide a faster pathway for customers to realize more of the value of our broad platform and for Varonis to capture more of our total addressable market and increase customer lifetime value," said CEO Yaki Faitelson.

The company reported fourth-quarter earnings of 54 cents a share, easily topping analysts' expectations of 34 cents, on revenue of $87.5 million, which was just ahead of analysts' $87.4 million estimates. 

"2018 was another strong year for Varonis, as total revenues increased 25%. We saw more customers buying more of our licenses, validating that our robust portfolio and our innovation agenda is meeting a wider range of their data security needs," said Faitelson.