Varonis System (NASDAQ: VRNS) A rise of greater than 12% throughout Tuesday morning buying and selling following second-quarter 2024 monetary outcomes that beat expectations throughout the board.
For the quarter ended June 30, the info safety software program vendor reported income of $130.35 million, in contrast with expectations of $124.85 million. It additionally points non-GAAP Earnings per share have been $0.05, in contrast with expectations for a lack of $0.02 per share.
“Our second quarter outcomes mirror the expansion momentum of our SaaS platform and the latest launch of our managed information detection and response product, which helps prospects simply and routinely stop information breaches,” mentioned Varonis CEO Yaki Faitelson.
Trying forward, Varonis expects earnings of $0.07 to $0.08 per share, in contrast with analyst consensus estimates of $0.02. Income was anticipated to be $140 million to $143 million, in contrast with estimates of $137 million.
Funding corporations appeared impressed with the efficiency and prospects.
Truist Securities maintained a purchase score on the inventory and raised its value goal to $60 from $55.
Truist analysts led by Joel mentioned: “The SaaS answer launched by VRNS has carried out higher than its inner expectations and now accounts for 36% of complete ARR, up from 30% within the first quarter of 2024, pushed by the brand new brand and Sturdy contribution from present buyer conversions.
RBC Capital Markets maintained an outperform score however raised its value goal to $65 from $58.
“The SaaS mannequin shortens the gross sales cycle, expands the preliminary landmass, and improves margins over time,” RBC’s Matthew Hedberg mentioned in a report.
TD Cowen additionally raised its value goal on the inventory to $65 from $54.
“Administration famous that Gen AI stays an necessary matter in buyer conversations and that whereas the pipeline is in good condition, Gen AI’s contribution will not be but materials,” TD Cowen’s Shaul Eyal mentioned in a word on Tuesday.
In search of Alpha and Wall Road analysts each give Varonis a purchase score. What’s extra, it additionally earns a Sturdy Purchase score from In search of Alpha’s quantitative system, which commonly outperforms the market.
