Varonis Announces Third Quarter 2016 Financial Results

Total revenues of $40.9 million, up 31% year-over-yearLicense revenues of $22.6 million, up 34% year-over-year

NEW YORK, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq:VRNS), a leading provider of software solutions that protect data from insider threats and cyberattacks, today announced results for the third quarter ended September 30, 2016.

Yaki Faitelson, Varonis CEO, said, "We delivered a strong third quarter.  For the fourth quarter in a row, both license and total revenues grew by more than 30% year over year.  We exceeded our guidance on both the top and bottom lines, and our efforts to reach enterprises with 1,000 or more employees and a larger total customer lifetime value are also paying off. Demand for our solutions increased, and we are encouraged by the positive momentum we see in the business driven by growing awareness of the insider threat and Varonis' role in protecting data. Customers are recognizing that our software provides better protections around data and enables better control of access so companies can discover where their information assets are, track and profile those who use them, spot who may be abusing them, and identify those who are responsible for them."  

Financial Highlights for the Third Quarter Ended September 30, 2016

Revenues:
  • Total revenues were $40.9 million, up 31% compared with the third quarter of 2015.
  • License revenues were $22.6 million, up 34% compared with the third quarter of 2015.
  • Maintenance and services revenues were $18.3 million, up 28% compared with the year-ago period.

Operating Loss:
  • GAAP operating loss was ($3.9) million for the quarter, compared to ($4.5) million in the third quarter of 2015.
  • Non-GAAP operating loss was ($0.4) million for the quarter, compared to ($2.2) million in the third quarter of 2015. 

Net Loss:
  • GAAP net loss was ($4.4) million, compared to GAAP net loss of ($4.9) million in the third quarter of 2015.
  • GAAP net loss per basic and diluted share was ($0.17), compared to GAAP net loss per basic and diluted share of ($0.19) in the third quarter of 2015, based on 26.5 million and 25.4 million basic and diluted common shares outstanding, respectively.
  • Non-GAAP net loss was ($0.9) million, compared to ($2.5) million in the third quarter of 2015.
  • Non-GAAP net loss per basic and diluted share was ($0.03), compared to ($0.10) in the third quarter of 2015, based on 26.5 million and 25.4 million basic and diluted common shares outstanding, respectively.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP loss from operations and net loss for the three and nine months ended September 30, 2016 and 2015. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

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