Stock Track | Varonis Shares Plunge as SaaS Transition, AI Adoption Raise Near-Term Concerns

Stock Track10-30

Shares of Varonis Systems Inc. (NASDAQ: VRNS) plummeted nearly 6% in pre-market trading on Tuesday, despite the data security and analytics software provider reporting solid third-quarter results and raising its full-year guidance.

The company's stock seemed to be impacted by a mixed reaction to its outlook and potential concerns about the impact of generative AI on its business in the near term.

While Varonis reported a 21% year-over-year increase in revenue to $148.1 million and an 18% growth in Annual Recurring Revenue (ARR) to $610 million, driven by strong momentum in its SaaS offerings and MDDR (Metadata-Driven Data Risk) platform, there were some areas of concern.

The company's gross margin declined to 85% from 87.3% a year ago, due to a higher mix of SaaS sales and increased hosting costs. Additionally, Varonis' federal business underperformed expectations, prompting changes in its management team for that segment.

Although Varonis highlighted the potential benefits of generative AI for its business, the company remained cautious about its material impact on financial results in the near term, not baking in significant contributions from AI into its guidance.

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(NASDAQ: VRNS) plummeted nearly 6% in pre-market trading on Tuesday, despite the data security and analytics software provider reporting solid third-quarter results and raising its full-year guidance.</p>\n\n<p>The company's stock seemed to be impacted by a mixed reaction to its outlook and potential concerns about the impact of generative AI on its business in the near term.</p>\n\n<p>While Varonis reported a 21% year-over-year increase in revenue to $148.1 million and an 18% growth in Annual Recurring Revenue (ARR) to $610 million, driven by strong momentum in its SaaS offerings and MDDR (Metadata-Driven Data Risk) platform, there were some areas of concern.</p>\n\n<p>The company's gross margin declined to 85% from 87.3% a year ago, due to a higher mix of SaaS sales and increased hosting costs. 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(NASDAQ: VRNS) plummeted nearly 6% in pre-market trading on Tuesday, despite the data security and analytics software provider reporting solid third-quarter results and ...</p>\n\n<a href=\"\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VRNS","symbol_name":"Varonis Systems, Inc.","start_time":0,"source_url":"","article_id":"1103014093","we_media_id":"1086803395","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1103014093","pubTimestamp":1730295083,"sourceInfo":{"source_id":"ai_movement_en","name":"Stock Track"},"weMediaInfo":{"media_name":"Stock Track","introduction":"Track stock‘s movements and relevant news","home_visible":1,"id":"1086803395","head_image":"https://static.tigerbbs.com/a81accab1e7ee4144dc051f71903a390"},"summary":"Shares of Varonis Systems Inc.  plummeted nearly 6% in pre-market trading on Tuesday, despite the data security and analytics software provider reporting solid third-quarter results and raising its full-year guidance.The company's stock seemed to be impacted by a mixed reaction to its outlook and potential concerns about the impact of generative AI on its business in the near term.While Varonis reported a 21% year-over-year increase in revenue to $148.1 million and an 18% growth in Annual Recurr","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"VRNS":"Varonis Systems, Inc."},"translate_title":"随着SaaS转型和人工智能采用引发近期担忧，Varonis股价暴跌","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VRNS":1},"content_text":"Shares of Varonis Systems Inc. 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