Shares of cybersecurity software provider Varonis Systems (NASDAQ:VRNS) jumped on Friday after the company reported first-quarter results. Varonis beat analyst estimates for both revenue and earnings, sending the stock up 10.3% for the day.
Varonis reported first-quarter revenue of $40.4 million, up 33% year over year and about $3 million higher than the average analyst estimate. License revenue grew 38% year over year to $19.2 million, while maintenance and services revenue grew 28% year over year to $21.2 million. During the quarter, 53% of license and first-year maintenance revenue came from new customers.
Non-GAAP (generally accepted accounting principles) earnings per share came in at a loss of $0.23, up from a loss of $0.29 per share during the prior-year period and $0.07 better than analysts were expecting. Varonis generated $8.3 million in cash from operations despite the lack of profitability. At the end of the quarter, Varonis had $121.3 million of cash and cash equivalents on the balance sheet.
"I am pleased with our first quarter results," said Varonis CEO Yaki Faitelson in a press release. "We saw solid contribution from both the US and Europe and strength across new and existing customers."
Varonis expects to produce revenue between $47.0 million and $47.8 million during the second quarter, representing year-over-year growth of 22% to 24%. Non-GAAP EPS is expected to be a loss between $0.08 and $0.09. For the full year, revenue between $201 million and $204 million is expected, along with non-GAAP EPS between a loss of $0.03 and a profit of $0.01.
Faitelson summarized the company's strategy:
With the Varonis Data Security Platform, we help companies take a more holistic and strategic approach to protecting the enterprise against insider threats, data breaches and cyberattacks by analyzing content, accessibility of data and the behavior of the people and machines that access data to alert on misbehavior, enforce a least privilege model and automate data management functions.