Slide 1: Varonis Overview Q1 2021
\\varonis Varonis Overview Q]1 2021
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 38% 120% FOUNDED IN 2005 TOTAL REVENUE GROWTH1 SUBSCRIPTION REVENUE GROWTH1 IPO IN 2014 ~1,800 $306.9MM $20.4MM EMPLOYEES WORLDWIDE2 ANNUAL RECURRING REVENUE3 OPERATING CASH FLOW4 39% growth (1) Percentage
Slide 5: Proven Technology
Proven Technology ENTERPRISE DATA STORES ANALYTICS & AUTOMATION USE CASES AND INFRASTRUCTURE DATA PROTECTION Users & Permissions Groups Windows Office 365 Exchange Content Access PRIVACY & COMPLIANCE Classification Activity Unix/Linux SharePoint NAS Perimeter AD Telemetry Telemetry THREAT DETECTION
Slide 6: Proven Approach: Detect, Prevent, Sustain
Proven Approach Detect Prevent Sustain threats by analyzing data, disaster by automatically locking down a secure state by automating account activity and user sensitive and stale data, reducing broad authorizations, migrations and behavior. access and simplifying permissions. disposition. 6
Slide 7: Secular Trends
Secular Trends Data Growth Hybrid Cloud Cyber Threats The amount of data created in Through 2020, more than 85% of By 2025, almost 90% of all data the world is expected to grow enterprises adopting a cloud-first is expected to require a from 45 Zettabytes in 2019 to strategy are expected to continue
Slide 8: Board Awareness, Standardization, Regulation
Industry Changes Board Adoption & Awareness Standardization Regulation 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. Almost every media attention, and public outcry and demonstrate appropri
Slide 9: Total Addressable Market $25BN+
$43.2 BN Security Software $30.9 BN IT Operations Management $19.8 BN $25BN+ Infrastructure Software Total Addressable $14.1 BN Market1 Storage Management $5.5 BN Data Integration $1.7 BN (1) Market size estimates from Gartner Research. Cloud Access/Workload Protection Software We estimate that our
Slide 10: 6 Product Families and More than 25 Licenses
6 Product Families and More than 25 Licenses Data Audit & Protection Alerting & User Behavioral Analytics Data Classification Monitor file activity and user behavior, prevent Detect suspicious activity and prevent data Discover where sensitive information is data breaches, and make permissions breac
Slide 11: Example: DatAdvantage Product Family
EXAMPLE: DATADVANTAGE PRODUCT FAMILY 10+ LICENSES ON-PREMISES DATA STORES CLOUD DATA STORES REMEDIATION 11
Slide 12: History of Innovation
History of Innovation 2005 2008 2010 2012 2006 2009 2011 2013 12
Slide 13: History of Innovation
History of Innovation 2014 2016 2018 2020 2015 2017 2019 13
Slide 14: First-Mover Advantage
First-Mover Advantage 2005 Complexity High-Frequency Data was stored in fewer places Iterations 15+ years of battle-testing, refinement, and innovation Data Volume Discipline Data volumes were Sales process drove tens of much smaller thousands of production installs 14
Slide 15: 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 Sales force performs in-person or virtual risk assessment and builds business case Channel resellers provide Installati
Slide 16: Varonis Risk Assessment
Varonis Risk Assessment USING THE VARONIS DATA SECURITY PLATFORM1 REDUCES EXPOSURE TO POTENTIAL THREATS BY 75% • Where does my sensitive data live? • What kind of sensitive data do I have? • How much is exposed internally? • How much is exposed externally? • Where are my biggest risks? 16 VARONIS SY
Slide 17: Proven Management Team
Proven Management Team Yaki Faitelson Guy Melamed David Bass CEO, President, CFO & COO Executive VP & CTO Co-Founder & Chairman Varonis since 2011 Varonis since 2005 Varonis since 2005 Dana Shahar Jim O’Boyle Gilad Raz Chief Human Sr. VP of Worldwide Sales CIO & VP of Technical Resources Officer Var
Slide 18: Financial Results: Q1 2021 Highlights
Financial Results: Q1 2021 Highlights 18
Slide 19: Q1 2021 Highlights
Q1 2021 Highlights $306.9 38% Total revenue growth YoY $306.9M ARR at the end of Q1 & grew 39% YoY $220.5 120% Subscription revenue growth YoY $138.7 39% & 38% North America & EMEA YoY growth $20.4M Operating Cash Flow ($3.9MM in Q1’20) Q1 2019 Q1 2020 Q1 2021 ANNUAL RECURRING REVENUES ($MM) 19
Slide 20: Annual Recurring Revenues (ARR)
Annual Recurring Revenues (ARR) Q1 2021 YoY GROWTH 39% $306.9 $287.3 $261.1 $235.7 $210.5 $220.5 $178.9 $155.2 $138.7 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 20
Slide 21: Greater Individual License Adoption
Greater Individual License Adoption 47% 129% 2019-2021 GROWTH 2019-2021 GROWTH 66% 55% 45% 32% 21% 14% Q1 2019 Q1 2020 Q1 2021 Q1 2019 Q1 2020 Q1 2021 4 OR MORE LICENSES 6 OR MORE LICENSES Percentages reflect customers with 500 employees or more. 21
Slide 22: Q2 & FY 2021 Financial Guidance
Q2 & FY 2021 Financial Guidance Guidance Q2 2021 FY 2021 Total Revenues $82.5MM – $84.0MM $365.0MM – $370.0MM YoY growth 24% – 26% 25% – 26% Non-GAAP Operating Income (Loss) ($2.5)MM – ($1.5)MM $4.5MM – $8.5MM Operating Margin (3.0%) – (1.8%) 1.2% – 2.3% Tax Provision $500K – $700K $2.2MM – $3.2MM I
Slide 23: Long-term goal: 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. 23
Slide 24: Thank You
Thank You \\ vaARONIS