Varonis Systems(NASDAQ) VRNS

Varonis Systems, Inc. helps large organizations keep their digital files safe. It stops hackers from stealing private information and business secrets. The software also protects data from new artificial intelligence risks.

Guarding the Digital Vault

• SaaS Revenues: Cloud-based subscription platform including Managed Data Detection and Response (MDDR); accounted for 95.4% of revenue in the three-month period ended June 30, 2026.
• Term License Subscriptions: Software installed on a customer's own hardware; represented 2.3% of revenue in the three-month period ended June 30, 2026.
• Maintenance and Services: Customer support and software upgrades for older installed products; made up 2.3% of revenue in the three-month period ended June 30, 2026.

Recent Moves into Artificial Intelligence

• Acquired Cyral to integrate database activity monitoring into the data security platform.
• Purchased SlashNext to protect users from threats sent through email and collaboration tools.
• Acquired AllTrue.ai on Feb. 6, 2026, to provide real-time control over artificial intelligence models and agents.
• Set a completion date of Dec. 31, 2026, to transition all customers away from older self-hosted software.

How Varonis Finds Hidden Risks

Varonis performs rapid risk assessments that identify data exposure for companies within days of installation. It reaches large organizations through a global sales network of distributors and resellers.

Tracking the Subscription Shift

• SaaS annual recurring revenue was $726.0 million as of June 30, 2026, up 52% year over year.
• Total revenue was $353.1 million for the six-month period ended June 30, 2026, up 22.4% year over year.
• The SaaS renewal rate for customers was over 90% for the six-month period ended June 30, 2026.
• Remaining performance obligations, which represent future contracted revenue, reached $1.1 billion as of June 30, 2026.

Bottom Line

Varonis is completing a full transition from installed software to cloud-based subscriptions. This evolution focuses on protecting data from the risks of rapid artificial intelligence adoption.