What happened
Varonis Systems (VRNS 0.78%), a provider of enterprise data software, saw its shares jump as much as 11.6% on Tuesday. As of 11:40 a.m. ET, the tech stock was still up about 10%.
The stock's gain followed the small-cap company's second-quarter results, which featured revenue slightly ahead of analysts' consensus forecast for the key metric. Strong full-year guidance likely played a key role in the market's upbeat response to the report.
So what
Varonis said its fiscal second-quarter revenue increased 26% year over year to just over $111.4 million. Analysts, on average, were expecting revenue of about $111.3 million.
A highlight metric from the quarter was the company's 30% growth in the annualized value of its active term-based subscription license contracts and maintenance contracts related to perpetual licenses (management refers to this revenue as ARR).
"Highlighted by 30% ARR growth, our second quarter results again demonstrate the strength of the Varonis Data Security Platform and the durability of our business model, as we delivered both strong topline growth and operating leverage," CEO Yaki Faitelson said in a press release. "Given the uncertainty of the times, companies around the world continue to recognize the growing urgency to secure their sensitive data."
Now what
Looking ahead, Varonis expects more strong third-quarter growth. Specifically, management guided for third-quarter revenue to increase 23% to 25% year over year to between $123 million and $125.5 million. It expects full-year revenue to grow between 25% and 26% to between $484 million and $489 million. Full-year adjusted earnings per share is expected to be between $0.19 and $0.22, ahead of a consensus forecast for $0.17.
