Overview
- Third‑quarter revenue came in at $161.6 million versus $166.1 million expected, while adjusted earnings of $0.06 matched consensus.
- Annual recurring revenue rose 18% year over year to $718.6 million, with SaaS now about 76% of total ARR.
- CEO Yaki Faitelson pointed to weaker renewals late in the quarter in the federal vertical and in on‑prem subscriptions as the shortfall’s primary cause.
- Guidance calls for Q4 sales of $165–$171 million and EPS of $0.02–$0.04, and full‑year EPS of $0.12–$0.13 on revenue of $615.2–$621.2 million.
- Shares fell roughly 45% to the mid‑$30s as multiple analysts cut price targets, even as Varonis highlighted $1.1 billion in cash, a $150 million buyback, wider GAAP losses, and minimal non‑GAAP operating income.