Business
Varonis Announces Second Quarter 2023 Financial Results
Annual recurring revenues grew 17% year-over-year58% SaaS mix of new business and upsell ARR in the second quarterYear-to-date cash from operations generated
About this update from Varonis Systems, Inc.
[{"type":"text","content":"Annual recurring revenues grew 17% year-over-year58% SaaS mix of new business and upsell ARR in the second quarterYear-to-date cash from operations generated $42.6 million vs. $10.1 million last yearYear-to-date free cash flow generated $40.0 million vs. $3.9 million last year NEW YORK, July 31, 2023 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the second quarter ended June 30, 2023. Yaki Faitelson, Varonis CEO, said, \"Our second quarter results reflect the strong adoption of Varonis SaaS, and provide further validation that our transition to SaaS is well-received by our customers and sales force worldwide. The acceptance of SaaS is progressing at a rapid pace with approximately 10% of our total ARR coming from SaaS today, which is benefiting our ARR performance and cash flow generation, despite the company facing continued macro headwinds.” Guy Melamed, Varonis CFO & COO, added, “The momentum of Varonis SaaS, reflected by our second quarter SaaS mix of 58% versus our guidance of 35% as well as the significant increase in existing customer conversions, generated meaningful improvements to our three north stars during this transition, which are ARR, free cash flow and ARR contribution margin. That gives us the confidence to raise our guidance for full-year ARR, SaaS mix, and free cash flow.\" Financial Summary for the Second Quarter Ended June 30, 2023 Total revenues were $115.4 million, compared with $111.4 million in the second quarter of 2022.Subscription revenues were $91.1 million, compared with $84.4 million in the second quarter of 2022.Maintenance and services revenues were $24.3 million, compared with $27.1 million in the second quarter of 2022.GAAP operating loss was ($39.7) million, compared to GAAP operating loss of ($37.6) million in the second quarter of 2022.Non-GAAP operating income was $0.9 million, compared to non-GAAP operating income of $1.7 million in the second quarter of 2022. 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 six months ended June 30, 2023 and 2022. An explanation of these measures is included below under the heading \"Non-GAAP Financial Measures and Key...