“VRNS will be transitioning its business model to a subscription-driven from a perpetual license one in a move that caught the Street quite by surprise. Similar transitions, while longer term beneficial (better predictability and profitability), have taken their near-term tolls given heightened investments. The final outcome from a customer perspective is to sell a higher number of products (licenses) into VRNS’s growing install base, a move that is supported by the two-quarter pilot period recently completed by the company. If history is any guide, VRNS has proven its ability to put its money where its mouth is and deliver operationally. The transition will take place over the next six months and shares could be affected during this period.”
According to TipRanks.com, Eyal is a top 100 analyst with an average return of 15.8% and a 67.9% success rate. Eyal covers the Technology sector, focusing on stocks such as Nuance Communications, Verint Systems Inc, and Proofpoint Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Varonis Systems with a $68.40 average price target, which is a 6.9% upside from current levels. In a report issued on January 29, Craig-Hallum also upgraded the stock to Buy with a $68 price target.
Based on Varonis Systems’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $7.32 million. In comparison, last year the company had a net profit of $5.53 million.
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Varonis Systems, Inc. engages in the provision of data security and analytics. It operates through the following segments: United States, EMEA, and Rest of the World. Its products includes datadvantage, data classification engine, data transport engine, Varonis edge, datanswers, datalert, dataprivilege, automation engine, and GDPR patterns. The company was founded by Yaki Faitelson and Ohad Korkus on November 3, 2004 and is headquartered in New York, NY.