Overview
- Third‑quarter revenue came in at $161.6 million versus $166.1 million expected, while adjusted EPS of 6 cents matched consensus.
- Management guided fourth‑quarter adjusted EPS to $0.02–$0.04 on revenue of $165 million–$171 million, both below market estimates.
- The company reduced its full‑year view, now projecting revenue of $615.2 million–$621.2 million and ARR of $730 million–$738 million.
- CEO Yaki Faitelson cited late‑quarter renewal softness in U.S. federal accounts and in on‑prem subscriptions, while SaaS ARR reached 76% of $718.6 million total ARR.
- Shares fell roughly 45% to new lows as Varonis disclosed about $1.1 billion in cash and authorized a $150 million buyback, with several firms cutting price targets.