Slide 1: Varonis Overview Q4 2025
NW varonis Q Varonis Overview Q4 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 ~2,650 FOUNDED IN 2004 IPO IN 2014 EMPLOYEES WORLDWIDE The leader in data security, fighting a different battle $745.4MM $147.4MM than conventional ANNUAL RECURRING REVENUES 2025 OPERATING CASH FLOW cybersecurity companies. 16% YoY GROWTH ~86% $131.9MM 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 6
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. 7
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 Varonis for GCP acquires Google SlashNext Workspace Varonis Varonis for SaaS Databricks Varonis Varonis Next-Gen for Box Varonis for DAM Automated ServiceNow Varonis Posture Varonis for for GitHub
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 posture Accurately discover, classify, and label sensitive data. Detect and remediate risky or over-privileged accounts. DSPM Data risk assessment Improve your data security posture automatically. Map data risk and build a pat
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 13
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: Q4 & FY 2025 Highlights
Financial Results: Q4 & FY 2025 Highlights
Slide 17: Annual Recurring Revenues
Annual Recurring Revenues Q4 2025 GROWTH YoY 16%$745.4 $718.6 $693.2 $638.5 $664.3 $641.9 $546.1 $610.0 $478.3 $584.2 $560.3 $405.2 $543.0 $340.2 $262.3 $210.3 $165.5 $124.9 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 SaaS ARR Total ARR In millions 17
Slide 18: Q4 & Full-year 2025 Highlights
Q4 & Full-year 2025 Highlights 88% SaaS ARR YoY Growth $638.5 32% SaaS ARR ex. conversion YoY Growth ~86% SaaS ARR as % of Total ARR $340.2 15.9% ARR Contribution Margin $124.9 $131.9MM 2025 Free Cash Flow Q4 2023 Q4 2024 Q4 2025 SAAS ANNUAL RECURRING REVENUES ($MM) 18
Slide 19: Quarterly Net New SaaS ARR Breakdown
Quarterly Net New SaaS ARR Breakdown Q1 2026 FY 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Guidance at Guidance at Midpoint Midpoint Starting SaaS Annual Recurring Revenues (“ARR”) $340.2 $405.2 $478.3 $546.1 $340.2 $638.5 $638.5 (+) Net New SaaS ARR Excluding $25.5 $29.1 $26.9 $28.1 $109.5 $26.3
Slide 20: New 2026 KPI – SaaS ARR Growth Excluding Conversions
New 2026 KPI – SaaS ARR Growth Excluding Conversions + SaaS ARR is composed of new customers, the expansion of existing SaaS customers, and existing self-hosted customers that convert to our SaaS platform. + We expect our remaining self-hosted customers will distort both total ARR growth and SaaS AR
Slide 21: Q4 2025 SaaS ARR Increased 88% YoY
Q4 2025 SaaS ARR Increased 88% YoY Q4 2025 SaaS ARR Ex. Conversion Increased 32% YoY Growth Rate / Comments Q4 2024 SaaS ARR $340.2MM (+) TTM Net New SaaS ARR Excluding Conversions $109.5MM See slide 19 – Second row Q4 2025 SaaS ARR Excluding Conversions $449.7MM 32%* (+) TTM Conversion ARR $188.8MM
Slide 22: Q1 2026 Financial Guidance (SaaS ARR)
Q1 2026 Financial Guidance (SaaS ARR) Q1 2026 Guidance assumes Net New SaaS ARR Ex. Conversion of $24.8M to $27.8M and $0 conversion Growth Rate / Comments Q1 2025 SaaS ARR $405.2MM (+) TTM Net New SaaS ARR Excluding Conversions $108.8MM - $111.8MM See slide 19 – Second row Q1 2026 SaaS ARR Excludin
Slide 23: FY 2026 Financial Guidance (SaaS ARR)
FY 2026 Financial Guidance (SaaS ARR) FY 2026 Guidance assumes Net New SaaS ARR Excluding Conversion of $116.5M to $126.5M Growth Rate / Comments Q4 2025 SaaS ARR $638.5MM (+) FY 2026 Net New SaaS ARR Excluding Conversions $116.5MM - $126.5MM See slide 19 – Second row FY 2026 SaaS ARR Excluding Conv
Slide 24: Q1 & FY 2026 Financial Guidance (Additional Metrics)
Q1 & FY 2026 Financial Guidance (Additional Metrics) Guidance Q1 2026 FY 2026 Total Revenues $164.0MM – $166.0MM $722.0MM – $730.0MM YoY growth 20% – 22% 16% – 17% Non-GAAP Operating Income (Loss) ($11.0MM) – ($10.0MM) $0.0MM – $4.0MM Non-GAAP Operating Margin (6.7%) – (6.0%) 0.0% – 0.5% Basic and D
Slide 25: Our goal is to build a billion-dollar business
Our goal is to build a billion-dollar business that grows meaningfully with expanding profit and cash flow.
Slide 26: Thank you.
Thank you.
Slide 27: 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 28: 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 29: 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 30: Appendix: Reconciliation of GAAP Measures to Non-GAAP
Appendix: Reconciliation of GAAP Measures to Non-GAAP Three Months Ended Twelve Months Ended December 31, December 31, 2025 2024 2025 2024 Reconciliation to non-GAAP operating income (loss): GAAP operating loss ($30,262) ($17,552) ($146,514) ($117,651) Add back: Stock-based compensation expense 32,5
Slide 31: Appendix: Reconciliation of GAAP Measures to Non-GAAP
Appendix: Reconciliation of GAAP Measures to Non-GAAP Reconciliation to non-GAAP free cash flow: Twelve Months Ended December 31, 2025 2024 Net cash provided by operating activities $147,431 $115,200 Purchases of property and equipment ($12,628) ($6,694) Capitalized internal-use software ($2,893) —