Please ensure Javascript is enabled for purposes of website accessibility

Why Varonis Stock Jumped Today

By Evan Niu, CFA - Feb 9, 2021 at 3:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cybersecurity specialist reported quarterly results and announced a stock split.

What happened

Shares of Varonis (VRNS 2.19%) jumped as much as 11% today after the company reported fourth-quarter earnings. The results topped Wall Street's expectations and Varonis announced a 3-for-1 stock split. As of 3:08 p.m. EST, shares were up 10%.

So what

Revenue in the fourth quarter was $95.2 million, ahead of the consensus estimate of $84.1 million. That resulted in adjusted net income of $12.3 million, or $0.34 per share. Analysts were looking for just $0.12 per share in adjusted profits. The cybersecurity technology company reported annual recurring revenue (ARR) of $287.3 million and recently closed its acquisition of Polyrize.

Blue and green candlestick stock chart fluctuating

Image source: Getty Images.

"Fueled by global digital transformation, secular trends impacting our customers are driving strong demand for our products, enabling Varonis to fulfill its mission of protecting data," CEO Yaki Faitelson said in a statement. "Customers increasingly describe our platform as a 'must have', and we are well positioned to execute on the long-term market opportunity ahead."

Now what

Outlook for the first quarter was mixed. Revenue is forecast in the range of $68 million to $69.5 million, which should translate into an adjusted net loss of $0.39 to $0.41 per share. Compare that guidance with the consensus estimates of $65.2 million in revenue and an adjusted net loss per share of $0.32.

The company's board of directors has approved a 3-for-1 split for shareholders of record as of March 12, with split-adjusted trading commencing on March 15. Investors are generally fond of stock splits even though they do not impact a company's fundamentals. The per-share metrics within guidance have not yet been adjusted for the forthcoming split.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Varonis Systems, Inc. Stock Quote
Varonis Systems, Inc.
VRNS
$31.26 (2.19%) $0.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.