Varonis Systems (NASDAQ:VRNS) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Varonis Systems reported a quarterly loss of ($0.27) earnings per share, significantly missing analysts' expectations by $0.28.
• The company's stock dipped by 0.3%, trading at $54.23, while holding a market capitalization of $6.07 billion and negative margins.
• Varonis Systems updated its fiscal year 2025 guidance, projecting EPS between 0.160-0.180, and for Q3 2025, between 0.070-0.080.

Varonis Systems (NASDAQ:VRNS - Get Free Report) posted its quarterly earnings results on Tuesday. The technology company reported $0.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.02, Briefing.com reports. Varonis Systems had a negative net margin of 15.88% and a negative return on equity of 20.01%. The company had revenue of $152.16 million during the quarter, compared to analyst estimates of $147.80 million. During the same period last year, the firm posted $0.05 EPS. Varonis Systems's revenue for the quarter was up 16.7% compared to the same quarter last year. Varonis Systems updated its FY 2025 guidance to 0.160-0.180 EPS and its Q3 2025 guidance to 0.070-0.080 EPS.

Varonis Systems Stock Performance

VRNS opened at $54.23 on Wednesday. The firm's fifty day simple moving average is $50.20 and its two-hundred day simple moving average is $45.29. Varonis Systems has a 52-week low of $36.53 and a 52-week high of $60.58. The company has a market cap of $6.07 billion, a price-to-earnings ratio of -66.95 and a beta of 0.76. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 1.23.

Insider Activity at Varonis Systems

In related news, Director Den Bosch Fred Van sold 6,000 shares of the firm's stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $50.00, for a total value of $300,000.00. Following the transaction, the director directly owned 131,666 shares of the company's stock, valued at approximately $6,583,300. This trade represents a 4.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Varonis Systems by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 619,257 shares of the technology company's stock worth $25,049,000 after buying an additional 64,636 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Varonis Systems during the 1st quarter valued at about $233,000. Finally, Caxton Associates LLP acquired a new stake in Varonis Systems in the 1st quarter valued at about $200,000. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently issued reports on VRNS shares. Morgan Stanley reduced their target price on shares of Varonis Systems from $54.00 to $46.00 and set an "overweight" rating for the company in a report on Wednesday, April 16th. Wall Street Zen upgraded Varonis Systems from a "sell" rating to a "hold" rating in a research note on Monday, April 28th. JPMorgan Chase & Co. decreased their price objective on Varonis Systems from $55.00 to $45.00 and set an "overweight" rating for the company in a report on Monday, April 28th. UBS Group upped their target price on Varonis Systems from $55.00 to $60.00 and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Finally, Wells Fargo & Company lifted their price target on Varonis Systems from $46.00 to $51.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Five analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Varonis Systems has a consensus rating of "Moderate Buy" and a consensus target price of $56.67.

Varonis Systems Company Profile

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.