Slide 1: Varonis Overview Q1 2022
\\ varonis Varonis Overview Q1 2022
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 \\ varonis
Slide 4: Varonis at a Glance
Varonis at a Glance Fighting a different battle than conventional cybersecurity companies VRNS 29% 53% FOUNDED IN 2004 Q1 TOTAL Q1 SUBSCRIPTION IPO IN 2014 REVENUE GROWTH REVENUE GROWTH 2,100+ $404.5MM $24.5MM EMPLOYEES WORLDWIDE ANNUAL RECURRING REVENUES 1Q22 OPERATING CASH FLOW 32% Y/Y GROWTH
Slide 5: Proven Technology
Proven Technology DATA, APPS, INFRASTRUCTURE ANALYTICS & AUTOMATION USE CASES CLOUD Sensitivity Data Protection Threat Detection & Response Permissions ON-PREM Privacy & Compliance Activity
Slide 6: Proven Approach
Proven Approach Detect Prevent Sustain threats by analyzing data, account disaster by automatically locking down a secure state by automating activity and user behavior. sensitive and stale data, reducing broad authorizations, migrations and access and simplifying permissions. disposition.
Slide 7: Secular Trends
Secular Trends Data Growth Hybrid Cloud Cyber Threats The amount of data created in the More than 85% of enterprises adopting a By 2025, almost 90% of all data is world is expected to grow from 45 cloud-first strategy are expected to continue expected to require a meaningful Zettabytes in 2019 to 18
Slide 8: Industry Changes
Industry Changes Board Adoption & Awareness Standardization Regulation Boards of Directors are now A data-centric approach to security is The confluence of notable attacks, media required to address cyber risks and becoming the standard as the digital attention, and public outcry has led to demonstr
Slide 9: Total Addressable Market
$50.1 BN $15.5 BN Application Software Storage Management $37BN+ $49.7 BN $7.0 BN Security Software Total Addressable Market1 Content Services $33.9 BN $5.8 BN IT Operations Management Data Integration $23.3 BN $2.2 BN Infrastructure Software Cloud Access/Workload Protection Software (1) Market size
Slide 10: Data Security Platform Offers More Than 35 Licenses
Data Security Platform Offers More Than 35 Licenses DatAdvantage Data Classification DatAlert DatAdvantage Cloud Engine • DatAlert • Windows • Google Drive • Windows/SharePoint • Edge • Directory Services • Box • SharePoint Online • SharePoint • Salesforce • OneDrive z • UNIX/Linux • Slack • UNIX •
Slide 11: History of Innovation
History of Innovation • SharePoint • Directory Services 2006 2009 2011 2013 2005 2008 2010 2012 2014 • Unix/Linux • Exchange
Slide 12: History of Innovation
History of Innovation • Google Drive • Jira • Box • AWS • SalesForce • S3 • SharePoint Online • Analytics • Slack • Zoom • OneDrive • Windows • Policy Pack • GitHub • Okta • Unix 2015 • OneDrive 2017 2019 2021 • SharePoint Online • SharePoint 2016 2018 2020 • Google Drive • Box • OneDrive • Azure AD
Slide 13: First-Mover Advantage
First-Mover Advantage 2005 Complexity High-Frequency Data was stored in fewer Iterations places 15+ years of battle-testing, refinement, and innovation Data Volume Discipline Data volumes were much Sales process drove tens of smaller thousands of production installs
Slide 14: Predictable Sales Motion
Predictable Sales Motion NURTURING Closing CHANNEL VARONIS SALES Risk Assessment VARONIS SALES Highly metrics-driven Leads sales process CHANNEL MARKETING Usual Buyer: CISO/CIO/CTO Salesforce performs in-person or virtual risk assessment and builds business case Channel resellers provide Off-the-she
Slide 15: Proven Management Team
Proven Management Team Yaki Faitelson Guy Melamed David Bass CEO, President, Jim O’Boyle CFO & COO Executive VP & CTO SVP of Worldwide 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 Hum
Slide 16: Financial Results: Q1 2022 Highlights
Financial Results: Q1 2022 Highlights
Slide 17: Q1 2022 Highlights
Q1 2022 Highlights $404.5 $404.5MM ARR at the end of Q1 grew 32% YoY $306.9 29% Total revenue growth YoY $220.5 53% Subscription revenue growth YoY $24.5MM Operating Cash Flow ($20.4MM in 1Q21) Q1 2020 Q1 2021 Q1 2022 ANNUAL RECURRING REVENUES ($MM)
Slide 18: Annual Recurring Revenues
Annual Recurring Revenues Q1 2022 GROWTH YoY $387.1 32% $404.5 $354.2 $328.2 $306.9 $287.3 $261.1 $235.7 $220.5 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 19: Greater Individual License Adoption
Greater Individual License Adoption 2020-2022 GROWTH 2020-2022 GROWTH 55% 66% 74% 34% 42% 99% 32% 21% Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 4 OR MORE LICENSES 6 OR MORE LICENSES Percentages reflect customers with 500 employees or more.
Slide 20: Q2 & FY 2022 Financial Guidance
Q2 & FY 2022 Financial Guidance Guidance Q2 2022 FY 2022 Annual Recurring Revenues (“ARR”) - $484.0MM – $489.0MM YoY growth - 25% – 26% Total Revenues $110.5MM – $112.0MM $485.0MM – $490.0MM YoY growth 25% – 27% 24% – 26% Non-GAAP Operating Income* $0.0MM – $1.0MM $27.0MM – $30.0MM Operating Margin
Slide 21: Our long-term goal is to build a billion-dollar business
Our long-term goal is to build a billion-dollar business that grows revenues meaningfully with expanding profit and cash flow.
Slide 22: Thank you
Thank you \\ varRonis
Slide 23: Appendix: Reconciliation of GAAP Measures to Non-GAAP
Appendix: Reconciliation of GAAP Measures to Non-GAAP Three Months Ended March 31, 2022 2021 Reconciliation to non-GAAP operating loss: GAAP operating loss ($48,085) ($34,075) Add back: Stock-based compensation expense 35,998 21,379 Payroll tax expenses related to stock-based compensation 3,221 4,72