Varonis Systems Reports $550.9M Revenue for Fiscal Year 2024, SaaS Revenue Up 370%

Varonis Systems, Inc. reported a total revenue of $550.9 million for the fiscal year ending December 31, 2024, marking a 10.4% increase from $499.2 million in 2023. The company's SaaS revenue surged by 370% to $208.8 million, driven by new customer acquisitions and existing customer conversions to its SaaS platform. However, term license subscription revenues fell by 28.7% to $254.2 million, reflecting the ongoing transition to a SaaS delivery model. Despite the revenue growth, Varonis continued to experience operating losses, reporting a net loss of $95.8 million for 2024, slightly improved from a loss of $100.9 million in the previous year.

The company has been strategically transitioning to a SaaS model, which it expects to complete by the end of 2025. This shift is anticipated to enhance deployment efficiency and reduce infrastructure costs for customers. As of December 31, 2024, Varonis reported an annual recurring revenue (ARR) of $641.9 million, an 18% increase from the previous year. The company’s renewal rate remained strong at over 90%, indicating robust customer retention despite the challenges posed by the transition.

Operationally, Varonis expanded its workforce to support its growth, ending 2024 with 2,406 employees, up from 2,200 in 2023. The company also launched Athena AI, a new generative AI layer within its Data Security Platform, aimed at enhancing its cybersecurity capabilities. Geographically, approximately 73% of revenues were generated from the United States, with 21% from Europe, the Middle East, and Africa (EMEA), and 6% from the rest of the world. The company continues to focus on international expansion as a key growth strategy.

In terms of financial health, Varonis reported cash and cash equivalents of $185.6 million as of December 31, 2024, alongside long-term marketable securities totaling $658.9 million. The company’s total liabilities included $711.5 million in convertible senior notes, reflecting its ongoing investment in growth and product development. Varonis anticipates that its transition to a SaaS model will lead to increased revenue stability and growth in the coming years, despite the short-term fluctuations in revenue recognition associated with this shift.

Looking ahead, Varonis remains committed to enhancing its product offerings and expanding its market presence. The company plans to continue investing in research and development to address evolving cybersecurity challenges and capitalize on the growing demand for data protection solutions. With a focus on automation and comprehensive data coverage, Varonis aims to solidify its position as a leader in the data security market.