February 6, 2024

Varonis (VRNS) New Highs After Earnings, Move to Hold

Shares of Varonis (VRNS) have jumped to new highs this morning after the company reported Q4 results above consensus. Revenue was $154.1 million ($2.3 million ahead of expectations) while EPS was $0.27, $0.04 ahead of expectations. The main takeaway from the company’s earnings report is that the acceleration of the transition to the SaaS business model is tracking ahead of schedule (this is one of the main reasons I recommended the stock), now expected to be complete in 2026 versus 2027. The stock is looking good and with the jump to new highs, I’ll move to hold today to let things settle down. HOLD

Tyler Laundon

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.