Varonis announces fourth quarter and full-year 2022’s financial results

Varonis Systems, Inc. announced financial results for the fourth quarter and full year ended December 31, 2022.

Yaki Faitelson, Varonis CEO, said, “While it’s still early, the initial reception from our customers and our sales force to our new SaaS product was encouraging and gives us additional confidence in our ability to weather this current economic environment and emerge from this transition with healthy growth and profitability on our path to achieving $1 billion in ARR.”

Financial Summary for the Fourth Quarter Ended December 31, 2022

• Total revenues increased 13% to $142.6 million, compared with $126.6 million in the fourth quarter of 2021.

• Subscription revenues were $116.7 million, compared with $97.0 million in the fourth quarter of 2021.

• Maintenance and services revenues were $25.9 million, compared with $29.6 million in the fourth quarter of 2021.

• GAAP operating loss was ($10.0) million, compared to GAAP operating loss of ($17.8) million in the fourth quarter of 2021.

• Non-GAAP operating income was $26.0 million, compared to non-GAAP operating income of $22.4 million in the fourth quarter of 2021.

Financial Summary for the Year Ended December 31, 2022

• Total revenues increased 21% to $473.6 million, compared with $390.1 million in 2021.

• Subscription revenues were $366.1 million, compared with $270.8 million in 2021.

• Maintenance and services revenues were $107.5 million, compared with $119.3 million in 2021.

• GAAP operating loss was ($121.2) million, compared to GAAP operating loss of ($98.7) million in 2021.

• Non-GAAP operating income was $29.5 million, compared to non-GAAP operating income of $25.2 million in 2021.

The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and twelve months ended December 31, 2022 and 2021. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

Key Performance Indicators and Recent Business Highlights

• Annual recurring revenues, or ARR, were $465.1 million as of the end of the fourth quarter, up 20% year-over-year.

• As of December 31, 2022, 78% of customers with 500 employees or more purchased four or more licenses, up from 73% as of December 31, 2021, and 50% purchased six or more licenses, up from 41% as of December 31, 2021.

• As of December 31, 2022, the Company had $732.5 million in cash and cash equivalents, short term deposits and marketable securities.

• During the twelve months ended December 31, 2022, the Company generated $11.9 million of cash from operations, compared to $7.2 million generated in the prior year period.

• Company repurchased 2.9 million shares at an average price of $19.37 for a total of $56.4 million and has $43.6 million remaining on share repurchase program authorization.

An explanation of ARR is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”