|By Marketwired .||
|May 5, 2014 04:05 PM EDT||
NEW YORK, NY -- (Marketwired) -- 05/05/14 -- Varonis Systems, Inc. (NASDAQ: VRNS), the leading provider of software solutions for unstructured, human-generated enterprise data, today announced results for the first quarter ended March 31, 2014.
Yaki Faitelson, Varonis CEO, said, "I am very pleased with the Company's strong first quarter financial performance. We continue to achieve meaningful growth across both new and existing customers, driven by the investments we have made to expand our sales teams as well as broaden our product offerings to address an ever-growing set of use cases. Organizations of all sizes are seeing rapid growth in the volume of human-generated data, which are typically the most valuable and sensitive files a company has. The growth of this data carries big opportunities as well as serious threats, and our solutions enable companies to realize value from their human-generated data, manage it efficiently and protect it effectively."
Financial Highlights for the First Quarter Ended March 31, 2014
- Total revenues were $17.5 million, up 39% compared with the first quarter of 2013.
- License revenues were $8.1 million, up 37% compared with the first quarter of 2013.
- Maintenance and services revenues were $9.4 million, up 40% compared with the year-ago period.
- GAAP operating loss was ($7.9) million for the quarter, compared to ($4.0) million in the first quarter of 2013.
- Non-GAAP operating loss was ($7.3) million for the quarter, compared to ($3.8) million in the first quarter of 2013.
- GAAP net loss was ($8.1) million, compared to a net loss of ($4.8) million in the first quarter of 2013.
- GAAP loss per share was ($0.73), compared to a loss per share of ($1.24) in the first quarter of 2013, based on 11.1 million and 3.9 million basic shares outstanding, respectively.
- Non-GAAP net loss was ($7.4) million, compared to a net loss of ($4.2) million in the first quarter of 2013.
- Non-GAAP loss per basic share was ($0.30), compared to a loss per share of ($0.23) in the first quarter of 2013, based on 24.4 million and 18.7 million basic shares outstanding, respectively.
In our non-GAAP Q1 2014 earnings per share, the Company calculated shares of common stock outstanding after accounting for the automatic conversion of Varonis' then outstanding shares of convertible preferred stock into 15.1 million shares of common stock and the issuance of 5.3 million shares of common stock in our initial public offering as though such events had occurred at the beginning of the period. In the same calculation for Q1 2013, the Company accounted for the automatic conversion of Varonis' then outstanding shares of convertible preferred stock into 14.9 million shares of common stock at the beginning of the period.
The tables at the end of this press release include a reconciliation of GAAP to non-GAAP loss from operations and net loss for the three months ended March 31, 2014 and 2013. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Balance Sheet and Cash Flow
- As of March 31, 2014, the Company had $125.9 million in cash and cash equivalents and short-term investments, inclusive of $108.4 million raised in the Company's initial public offering on February 28, 2014.
- During the three months ended March 31, 2014, the Company generated $4.3 million in cash flow from operations compared to $3.3 million generated during the first three months of 2013.
Recent Business Highlights
- Announced the closing of its initial public offering of 5.5 million shares of its common stock at a price to the public of $22.00 per share.
- Introduced Varonis DatAnswers, providing secure and efficient search functionality for human-generated content residing in files shares and SharePoint, leveraging Varonis DatAdvantage and the Varonis Metadata Framework.
- Named "the clear market leader" in unstructured data governance, according to the latest Market Update report from the analysts at Bloor Research, one of Europe's leading independent research firms. The report provides a snapshot of the current state of the market for data governance solutions.
- Added 158 new customers during the first quarter of 2014.
For the second quarter of 2014, Varonis expects revenues in the range of $22.9 million to $23.4 million. The Company anticipates second quarter 2014 non-GAAP operating loss in the range of $(4.1) million to ($3.8) million and non-GAAP loss per basic share in the range of ($0.18) to ($0.16), based on a tax provision of $0.2 million to $0.3 million and 24.5 million basic shares outstanding. Expectations of non-GAAP loss from operations and non-GAAP loss per basic share exclude stock-based compensation expense.
For the full-year 2014, Varonis expects revenues in the range of $96.5 to $98.0 million. The Company anticipates full year 2014 non-GAAP operating loss of ($14.3) million to ($13.3) million, and non-GAAP loss per basic share in the range of ($0.63) to ($0.57), based on a tax provision of $0.7 million to $1.0 million dollars and 24.4 million basic shares outstanding. Expectations of non-GAAP loss from operations and non-GAAP loss per basic share exclude stock-based compensation expense.
Conference Call and Webcast
Varonis will host a conference call today, May 5, 2014, at 5:00 p.m., Eastern time, to discuss the Company's first quarter 2014 financial results, current financial guidance and other corporate developments. To access this call, dial 888-427-9411 (domestic) or 719-325-2315 (international). The passcode is 7657585. A replay of this conference call will be available through May 13, 2014 at 877-870-5176 (domestic) or 858-384-5517 (international). The replay passcode is 7657585. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's website (www.varonis.com), and a replay will be archived on the website as well.
Non-GAAP Financial Measures
Varonis believes that the use of non-GAAP operating loss and non-GAAP net loss is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.
For the three months ended March 31, 2014 and 2013, non-GAAP operating loss is calculated as operating loss excluding stock-based compensation expense.
For the three months ended March 31, 2014 and 2013, non-GAAP net loss is calculated as net loss excluding (i) stock-based compensation expense and (ii) financial expenses resulting from the revaluation of warrants to purchase convertible preferred stock.
Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash expense, the Company believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for more meaningful comparisons between our operating results from period to period. In addition, the Company believes that excluding financial expenses with respect to revaluation of warrants to purchase convertible preferred stock allows for more meaningful comparison between our net loss from period to period, especially since upon the closing of the IPO, the warrants automatically converted into warrants to purchase our common stock, and as a result, are no longer evaluated at each balance sheet date. Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial data are not measures of our financial performance under U.S. GAAP and should not be considered as alternatives to operating loss or net loss or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.
This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company's growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Varonis' addressable market; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including engineers and sales personnel; Varonis' ability to build and expand its direct sales efforts and reseller distribution channels; general economic and industry conditions, including expenditure trends for data governance and data security software; new product introductions and Varonis' ability to develop and deliver innovative products; risks associated with international operations; Varonis' ability to provide high-quality service and support offerings; and macroeconomic conditions. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Varonis' final prospectus from its initial public offering and other reports and filings with the Securities and Exchange Commission, and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.
To find out more about Varonis, visit www.varonis.com
Varonis is the leading provider of software solutions for unstructured, human-generated enterprise data. Varonis provides an innovative software platform that allows enterprises to map, analyze, manage and migrate their unstructured data. Varonis specializes in human-generated data, a type of unstructured data that includes an enterprise's spreadsheets, word processing documents, presentations, audio files, video files, emails, text messages and any other data created by employees. This data often contains an enterprise's financial information, product plans, strategic initiatives, intellectual property and numerous other forms of vital information. IT and business personnel deploy Varonis software for a variety of use cases, including data governance, data security, archiving, file synchronization, enhanced mobile data accessibility and information collaboration. As of March 31, 2014, Varonis had approximately 2,550 customers, spanning leading firms in the financial services, public, healthcare, industrial, energy & utilities, technology, consumer and retail, education and media & entertainment sectors.
Varonis Systems Inc. Consolidated Statements of Operations (in thousands, except for share and per share data) Three Months Ended March 31, 2014 2013 ------------- ------------- Unaudited Revenues: Licenses $ 8,053 $ 5,879 Maintenance and services 9,402 6,701 ------------- ------------- Total revenues 17,455 12,580 ------------- ------------- Cost of revenues 2,042 1,349 ------------- ------------- Gross profit 15,413 11,231 Operating costs and expenses: Research and development 6,439 4,519 Sales and marketing 14,241 9,208 General and administrative 2,665 1,539 ------------- ------------- Total operating expenses 23,345 15,266 ------------- ------------- Operating loss (7,932) (4,035) ------------- ------------- Financial expenses and other, net (38) (679) ------------- ------------- Loss before income taxes (7,970) (4,714) ------------- ------------- Income taxes (104) (77) ------------- ------------- Net loss $ (8,074) $ (4,791) ============= ============= Net loss per share of common stock, basic and diluted $ (0.73) $ (1.24) Weighted average number of shares used in computing net loss per share of common stock, basic and diluted 11,082,770 3,851,574
Stock-based compensation expense for the three months ended March 31, 2014 and 2013 is included in the Unaudited Consolidated Statements of Operations as follows (in thousands):
Three Months Ended March 31, 2014 2013 -------------- -------------- Unaudited Unaudited Cost of revenues $ 20 $ 6 Research and development 199 59 Sales and marketing 340 66 General and administrative 87 63 -------------- -------------- $ 646 $ 194 -------------- -------------- Varonis Systems Inc. Consolidated Balance Sheets (in thousands) March 31, December 31, 2014 2013 ----------- ------------ Unaudited Audited Assets Current Assets: Cash and cash equivalents $ 125,496 $ 9,633 Short-term deposits 357 4,344 Restricted cash 199 171 Trade receivables, net 14,254 28,268 Prepaid expenses and other current assets 1,610 1,357 ----------- ------------ Total current assets 141,916 43,773 Long-term assets: Other assets 380 1,625 Property and equipment, net 2,210 1,856 ----------- ------------ Total long-term assets 2,590 3,481 Total assets $ 144,506 $ 47,254 =========== ============ Liabilities, convertible preferred stock and stockholders' equity (deficiency) Current liabilities: Trade payables $ 2,089 $ 2,163 Accrued expenses and other liabilities 11,442 11,643 Deferred revenues 25,189 26,591 ----------- ------------ Total current liabilities 38,720 40,397 Long-term liabilities: Deferred revenues 2,087 2,109 Warrants to purchase convertible preferred stock - 2,866 Severance pay 1,415 1,101 Other liabilities 17 14 ----------- ------------ Total long-term liabilities 3,519 6,090 Convertible preferred stock - 43,775 Stockholders' equity (deficiency): Common stock 24 4 Accumulated other comprehensive loss (22) - Additional paid-in-capital 158,092 4,741 Accumulated deficit (55,827) (47,753) ----------- ------------ Total stockholders' equity (deficiency) 102,267 (43,008) ----------- ------------ Total liabilities, convertible preferred stock and stockholders' equity (deficiency) $ 144,506 $ 47,254 ----------- ------------ Varonis Systems Inc. Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, 2014 2013 --------- --------- Unaudited Unaudited Cash flows from operating activities: Net loss $ (8,074) $ (4,791) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 254 162 Stock-based compensation 646 194 Amortization of deferred charges related to long- term loan 31 58 Revaluation of fair value of warrants to purchase convertible preferred stock - 368 Changes in assets and liabilities: Trade receivables 14,014 10,171 Prepaid expenses and other current assets (284) - Trade payables (74) (356) Accrued expenses and other liabilities (1,069) (1,458) Increase in severance pay, net 314 5 Deferred revenues (1,424) (1,072) Other long term liabilities 3 26 --------- --------- Net cash provided by operating activities 4,337 3,307 Cash flows from investing activities: Decrease in short-term deposits 3,987 - Decrease (increase) in long-term deposits 37 (33) Increase in restricted cash (15) (51) Purchase of property and equipment (608) (230) --------- --------- Net cash provided by (used in) investing activities 3,401 (314) Cash flows from financing activities: Exercise of employee stock options 13 11 Payment of deferred equity offering costs (335) - Net proceeds from initial public offering 108,447 - --------- --------- Net cash provided by financing activities 108,125 11 Increase in cash and cash equivalents 115,863 3,004 Cash and cash equivalents at beginning of period 9,633 14,470 --------- --------- Cash and cash equivalents at end of period $ 125,496 $ 17,474 --------- --------- Varonis Systems Inc. Reconciliation of GAAP Measures to non-GAAP (in thousands, except share and per share data) Three Months Ended March 31, 2014 2013 ----------- ----------- Unaudited Reconciliation to non-GAAP loss from operations: GAAP operating loss $ (7,932) $ (4,035) Add back: Stock-based compensation expense 646 194 ----------- ----------- Non-GAAP operating loss $ (7,286) $ (3,841) ----------- ----------- Reconciliation to non-GAAP net loss: GAAP net loss $ (8,074) $ (4,791) Add back: Stock-based compensation expense 646 194 Financial expenses resulting from the revaluation of warrants to purchase convertible preferred stock - 368 ----------- ----------- Non-GAAP net loss $ (7,428) $ (4,229) =========== =========== GAAP Weighted average number of common shares outstanding - basic and diluted 11,082,770 3,851,574 Add: Additional weighted average shares giving effect to initial public offering and conversion of preferred stock at the beginning of the period 13,283,027 14,856,481 Non-GAAP weighted average number of common shares outstanding - basic and diluted 24,365,797 18,708,055 Non-GAAP net loss per common share - basic and diluted $ (0.30) $ (0.23) =========== =========== GAAP net loss per common share - basic and diluted $ (0.73) $ (1.24) ----------- -----------
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 30, 2016 08:15 PM EDT Reads: 2,487
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 30, 2016 08:00 PM EDT Reads: 2,031
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Aug. 30, 2016 08:00 PM EDT Reads: 1,927
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Aug. 30, 2016 07:15 PM EDT Reads: 339
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 30, 2016 07:00 PM EDT Reads: 932
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Aug. 30, 2016 06:15 PM EDT Reads: 366
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 30, 2016 05:45 PM EDT Reads: 3,594
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 30, 2016 05:00 PM EDT Reads: 899
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 30, 2016 04:15 PM EDT Reads: 975
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 30, 2016 03:30 PM EDT Reads: 3,781
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Aug. 30, 2016 03:00 PM EDT Reads: 869
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Aug. 30, 2016 02:30 PM EDT Reads: 963
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 30, 2016 02:30 PM EDT Reads: 1,051
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Aug. 30, 2016 02:00 PM EDT Reads: 3,813
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Aug. 30, 2016 01:45 PM EDT Reads: 695