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Varonis Systems Inc. (VRNS-0.35%) has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filing.
The report details Varonis' transition to a Software-as-a-Service (SaaS) delivery model, which has become the primary driver of the company's revenues. SaaS revenues increased by 370% to $208.8 million in 2024, while term license subscription revenues decreased by 28.7% to $254.2 million.
Varonis' annual recurring revenues (ARR) increased by 18% to $641.9 million as of December 31, 2024. The company expects the transition to a SaaS delivery model to be complete by the end of 2025.
The company's total revenues for 2024 were $551.0 million, a 10.4% increase from the previous year, despite variations due to accounting treatment differences related to SaaS sales.
Varonis reported a net loss of $95.8 million for the year ended December 31, 2024, compared to a net loss of $100.9 million in 2023. Operating expenses increased by 5.5% to $574.8 million.
The report highlights Varonis' focus on expanding its customer base and increasing sales to existing customers, with a renewal rate of over 90% for the year.
Varonis continues to invest in its growth, with research and development expenses increasing by 7.0% to $196.8 million in 2024.
The company completed an asset acquisition in 2024, incurring $6.7 million in in-process research and development costs.
Varonis' cash and cash equivalents, short-term marketable securities, and short-term deposits totaled $568.4 million as of December 31, 2024, with long-term marketable securities of $658.9 million.
The report discusses the impact of the ongoing war in Israel on the company's operations, noting that a portion of employees have been called to active reserve duty.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Varonis Systems Inc. annual 10-K report dated February 6, 2025. To report an error, please email earnings@qz.com.