Slide 1: Varonis Overview Q3 2025
NW varonis Q Varonis Overview Q3 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by Varonis Systems, Inc. (the “Company”) solely for informational purposes. It is not, and should not be assumed to be, complete. This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities. Th
Slide 3: Company Overview
Company Overview
Slide 4: Varonis at a Glance
Varonis at a Glance VRNS ~2,800 FOUNDED IN 2004 IPO IN 2014 EMPLOYEES WORLDWIDE The leader in data security, fighting a different battle $718.6MM $122.7MM than conventional ANNUAL RECURRING REVENUES YTD OPERATING CASH FLOW cybersecurity companies. 18% Y/Y GROWTH ~76% $111.6MM SaaS ARR AS % OF TOTAL
Slide 5: Proven Technology
Proven Technology DATA DOMAINS VARONIS USES A DIFFERENT APPROACH TO PROTECT DATA Real-time visibility On-prem & Cloud File Storage Sensitivity Automated remediation, labeling, SaaS Apps Permissions & data subject access requests & Email & Configurations Activity Cloud Infrastructure & Proactive, dat
Slide 6: Unified and Automated Data Security Platform
Unified and Automated Data Security Platform REAL TIME CONNECTIVITY
Slide 7: Proven Approach
Proven Approach Find Fix Alert overexposed sensitive data sensitive and stale data on unusual data exposure and by analyzing data, account automatically, to remediate automatically respond to keep activity, and user behavior. current exposure and prevent data safe. future exposures.
Slide 8: Secular Trends
Secular Trends Data Growth AI & Cloud Adoption Cyber Threats The amount of data created in the 90% of organizations will adopt a In 2024 the global average cost world is expected to grow at a hybrid cloud approach through of a data breach was $4.9 compound annual growth rate of 2027 and more than 80
Slide 9: Industry Changes
Industry Changes Board Adoption & Regulation Awareness Standardization Boards of Directors are now A data-centric approach to security is The confluence of notable attacks, required to address cyber risks becoming the standard as the digital media attention, and public outcry and demonstrate appropr
Slide 10: Our SaaS platform enables relentless innovation
Our SaaS platform enables relentless innovation More to come Varonis for Salesforce Varonis for Varonis for GCP Google Workspace Varonis Varonis for SaaS Databricks Varonis for Box Varonis for Automated ServiceNow Varonis Posture for GitHub Management AI classification Varonis Third-Party for Jira A
Slide 11: Innovation has meaningfully expanded our TAM
Innovation has meaningfully expanded our TAM + Coverage is now one of our biggest competitive SaaS / IaaS / PaaS / AI / $37B+ advantages Databases / Email + We are a leader in protecting large data stores in the cloud & on-prem + We expanded into new ~$27B+ markets like Varonis for IaaS, SaaS, PaaS,
Slide 12: Data Security Platform Use Cases
Data Security Platform Use Cases Data Discovery & Classification Identity protection Accurately discover, classify, and label sensitive data. Detect attacks on AD, Entra ID, and Okta. DSPM Data risk assessment Improve your data security posture automatically. Map data risk and build a path to remedi
Slide 13: First-Mover Advantage
First-Mover Advantage Complexity High-Frequency Iterations Data was stored in fewer places 20 years of battle-testing, refinement, and innovation 2005 Data Volume Discipline Data volumes were much smaller Sales process drove tens of thousands of production installs
Slide 14: Predictable Sales Motion
Predictable Sales Motion Leads Risk Assessment Closing Channel | Marketing Varonis Sales Channel | Varonis Sales • Channel resellers provide • Salesforce performs in-person or • Highly metrics-driven sales introductions to the right virtual risk assessment and builds process buyers and help with clo
Slide 15: Proven Management Team
Proven Management Team Yaki Faitelson Guy Melamed David Bass Jim O’Boyle CEO, President, CFO & COO Executive VP & CTO Vice Chairman – Sales Co-Founder & Chairman Varonis since 2011 Varonis since 2005 Varonis since 2006 Varonis since 2005 Dana Shahar Gilad Raz Shai Cohen-Golan Dov Gottlieb Chief Huma
Slide 16: Financial Results: Q3 2025 Highlights
Financial Results: Q3 2025 Highlights
Slide 17: Q3 2025 Highlights
Q3 2025 Highlights $718.6 $610.0 $718.6MM ARR at the end of Q3 grew 18% YoY $517.5 ~76% SaaS ARR as % of Total ARR 16.3% ARR Contribution Margin $111.6MM YTD Free Cash Flow Q3 2023 Q3 2024 Q3 2025 ANNUAL RECURRING REVENUES ($MM)
Slide 18: Annual Recurring Revenues
Annual Recurring Revenues Q3 2025 GROWTH YoY 18% $718.6 $693.2 $664.3 $641.9 $610.0 $584.2 $560.3 $543.0 $517.5 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 In millions
Slide 19: Q4 & FY 2025 Financial Guidance
Q4 & FY 2025 Financial Guidance Guidance Q4 2025 FY 2025 Annual Recurring Revenues (“ARR”) $730.0MM – $738.0MM YoY growth 14% – 15% Free Cash Flow $120.0MM – $125.0MM Total Revenues $165.0MM – $171.0MM $615.2MM – $621.2MM YoY growth 4% – 8% 12% – 13% Non-GAAP Operating Income (Loss) $0.0MM – $3.0MM
Slide 20: Our long-term goal is to build a billion-dollar business
Our long-term goal is to build a billion-dollar business that grows meaningfully with expanding profit and cash flow.
Slide 21: Thank you.
Thank you.
Slide 22: Appendix: Revenue Recognition Example #1
Appendix: Revenue Recognition Example #1 TERM-BASED ON-PREM SUBSCRIPTION SAAS $80k $25k $25k $25k $25k $5k $5k $5k $5k Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~80% Upfront / ~20% Ratable 100% Ratable ~85% of deal recognized in Q1 ~25% of deal recognized in Q1 100% of deal recognized in fiscal year 100% of deal reco
Slide 23: Appendix: Revenue Recognition Example #2
Appendix: Revenue Recognition Example #2 TERM-BASED ON-PREM SUBSCRIPTION SAAS $80k $25k $25k $5k $5k $0k Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~80% Upfront / ~20% Ratable 100% Ratable ~80% of deal recognized in Q2 <1% of deal recognized in Q2 ~90% of deal recognized in fiscal year ~50% of deal recognized in fisca
Slide 24: Appendix: Revenue Recognition Example #3
Appendix: Revenue Recognition Example #3 TERM-BASED ON-PREM SUBSCRIPTION SAAS $80k $0k Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~80% Upfront / ~20% Ratable 100% Ratable ~80% of deal recognized in Q4 <1% of deal recognized in Q4 ~80% of deal recognized in fiscal year <1% of deal recognized in fiscal year Both scenari
Slide 25: Appendix: Reconciliation of GAAP Measures to Non-GAAP
Appendix: Reconciliation of GAAP Measures to Non-GAAP Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Reconciliation to non-GAAP operating income (loss): GAAP operating loss ($35,934) ($23,640) ($116,252) ($100,099) Add back: Stock-based compensation expense 31,5
Slide 26: Appendix: Reconciliation of GAAP Measures to Non-GAAP
Appendix: Reconciliation of GAAP Measures to Non-GAAP Reconciliation to non-GAAP free cash flow: Nine Months Ended September 30, 2025 2024 Net cash provided by operating activities $122,747 $90,926 Purchases of property and equipment ($8,687) ($2,342) Capitalized internal-use software ($2,509) — Fre