VARONIS SYSTEMS INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
VRNS$48.96+0.3%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Unaudited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenues: | ||||
| Term license subscriptions | $68,751 | $83,963 | $187,460 | $250,306 |
| SaaS | 57,805 | 13,716 | 136,575 | 21,437 |
| Maintenance and services | 21,512 | 24,629 | 68,401 | 73,318 |
| Total revenues | 148,068 | 122,308 | 392,436 | 345,061 |
| Cost of revenues | 24,007 | 17,381 | 67,792 | 52,404 |
| Gross profit | 124,061 | 104,927 | 324,644 | 292,657 |
| Operating expenses: | ||||
| Research and development | 53,459 | 44,818 | 146,219 | 135,694 |
| Sales and marketing | 71,378 | 68,610 | 212,646 | 207,324 |
| General and administrative | 22,864 | 20,646 | 65,878 | 61,618 |
| Total operating expenses | 147,701 | 134,074 | 424,743 | 404,636 |
| Operating loss | (23,640) | (29,147) | (100,099) | (111,979) |
| Financial income, net | 10,245 | 8,634 | 27,039 | 24,872 |
| Loss before income taxes | (13,395) | (20,513) | (73,060) | (87,107) |
| Income taxes | (4,938) | (2,504) | (9,711) | (12,911) |
| Net loss | $(18,333) | $(23,017) | $(82,771) | $(100,018) |
| Net loss per share of common stock, basic and diluted | $(0.16) | $(0.21) | $(0.74) | $(0.92) |
| Weighted average number of shares used in computing net loss per share of common stock, basic and diluted | 112,268,210 | 109,429,722 | 111,382,582 | 109,187,063 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net loss | $(18,333) | $(23,017) | $(82,771) | $(100,018) |
| Other comprehensive income (loss): | ||||
| Unrealized income (loss) on marketable securities, net | 2,664 | (66) | (136) | (562) |
| Income (loss) on marketable securities reclassified into earnings, net of tax | (134) | 6 | (146) | 11 |
| 2,530 | (60) | (282) | (551) | |
| Unrealized income (loss) on derivative instruments, net of tax | 4,736 | (1,495) | 11,960 | (3,516) |
| Loss on derivative instruments reclassified into earnings, net of tax | (1,022) | (3,546) | (7,410) | (9,496) |
| 3,714 | (5,041) | 4,550 | (13,012) | |
| Total other comprehensive income (loss) | 6,244 | (5,101) | 4,268 | (13,563) |
| Comprehensive loss | $(12,089) | $(28,118) | $(78,503) | $(113,581) |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands, except share data)
| Common stock · Additionalpaid-in capital · Accumulatedothercomprehensive income (loss) · Accumulated deficit · Totalstockholders’ equity | ||||||
|---|---|---|---|---|---|---|
| Number · Amount | ||||||
| Balance as of December 31, 2022 | 107,673,052 | $108 | $1,055,048 | $(9,557) | $(543,474) | $502,125 |
| Stock-based compensation expense | — | — | 35,811 | — | — | 35,811 |
| Common stock issued under employee stock plans | 2,218,811 | 2 | 5,851 | — | — | 5,853 |
| Taxes paid related to net share settlement of equity awards | — | — | (16,864) | — | — | (16,864) |
| Repurchase of common stock | (100,000) | — | (2,519) | — | — | (2,519) |
| Unrealized loss on derivative instruments, net of tax | — | — | — | (4,980) | — | (4,980) |
| Unrealized income on available for sale securities, net of tax | — | — | — | 156 | — | 156 |
| Net loss | — | — | — | — | (38,304) | (38,304) |
| Balance as of March 31, 2023 | 109,791,863 | $110 | $1,077,327 | $(14,381) | $(581,778) | $481,278 |
| Stock-based compensation expense | — | — | 39,385 | — | — | 39,385 |
| Common stock issued under employee stock plans | 233,974 | — | 36 | — | — | 36 |
| Taxes paid related to net share settlement of equity awards | — | — | (2,575) | — | — | (2,575) |
| Repurchase of common stock | (207,278) | — | (5,080) | — | — | (5,080) |
| Unrealized loss on derivative instruments, net of tax | — | — | — | (2,991) | — | (2,991) |
| Unrealized loss on available for sale securities, net of tax | — | — | — | (647) | — | (647) |
| Net loss | — | — | — | — | (38,697) | (38,697) |
| Balance as of June 30, 2023 | 109,818,559 | $110 | $1,109,093 | $(18,019) | $(620,475) | $470,709 |
| Stock-based compensation expense | — | — | 32,980 | — | — | 32,980 |
| Common stock issued under employee stock plans | 327,868 | — | 5,457 | — | — | 5,457 |
| Taxes paid related to net share settlement of equity awards | — | — | (532) | — | — | (532) |
| Repurchase of common stock | (1,193,369) | (1) | (35,922) | — | — | (35,923) |
| Unrealized loss on derivative instruments, net of tax | — | — | — | (5,041) | — | (5,041) |
| Unrealized loss on available for sale securities, net of tax | — | — | — | (60) | — | (60) |
| Net loss | — | — | — | — | (23,017) | (23,017) |
| Balance as of September 30, 2023 | 108,953,058 | $109 | $1,111,076 | $(23,120) | $(643,492) | $444,573 |
| Common stock · Additionalpaid-in capital · Accumulatedothercomprehensive income (loss) · Accumulated deficit · Totalstockholders’ equity | ||||||
|---|---|---|---|---|---|---|
| Number · Amount | ||||||
| Balance as of December 31, 2023 | 109,103,721 | $109 | $1,142,578 | $(8,649) | $(644,390) | $489,648 |
| Stock-based compensation expense | — | — | 32,093 | — | — | 32,093 |
| Common stock issued under employee stock plans | 2,485,389 | 3 | 6,411 | — | — | 6,414 |
| Taxes paid related to net share settlement of equity awards | — | — | (34,860) | — | — | (34,860) |
| Unrealized income on derivative instruments, net of tax | — | — | — | 1,797 | — | 1,797 |
| Unrealized loss on available for sale securities, net of tax | — | — | — | (2,253) | — | (2,253) |
| Net loss | — | — | — | — | (40,490) | (40,490) |
| Balance as of March 31, 2024 | 111,589,110 | $112 | $1,146,222 | $(9,105) | $(684,880) | $452,349 |
| Stock-based compensation expense | — | — | 30,089 | — | — | 30,089 |
| Common stock issued under employee stock plans | 590,312 | — | 3,378 | — | — | 3,378 |
| Taxes paid related to net share settlement of equity awards | — | — | (1,748) | — | — | (1,748) |
| Unrealized loss on derivative instruments, net of tax | — | — | — | (961) | — | (961) |
| Unrealized loss on available for sale securities, net of tax | — | — | — | (559) | — | (559) |
| Common stock issued for debt conversion | 195 | — | 6 | — | — | 6 |
| Net loss | — | — | — | — | (23,948) | (23,948) |
| Balance as of June 30, 2024 | 112,179,617 | $112 | $1,177,947 | $(10,625) | $(708,828) | $458,606 |
| Stock-based compensation expense | — | — | 31,931 | — | — | 31,931 |
| Common stock issued under employee stock plans | 242,454 | — | 6,290 | — | — | 6,290 |
| Taxes paid related to net share settlement of equity awards | — | — | (656) | — | — | (656) |
| Unrealized income on derivative instruments, net of tax | — | — | — | 3,714 | — | 3,714 |
| Unrealized income on available for sale securities, net of tax | — | — | — | 2,530 | — | 2,530 |
| Purchase of capped calls related to Convertible senior notes | — | — | (55,522) | — | — | (55,522) |
| Net loss | — | — | — | — | (18,333) | (18,333) |
| Balance as of September 30, 2024 | 112,422,071 | $112 | $1,159,990 | $(4,381) | $(727,161) | $428,560 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Nine Months EndedSeptember 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash flows from operating activities: | ||
| Net loss | $(82,771) | $(100,018) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Depreciation and amortization | 8,543 | 8,736 |
| Stock-based compensation | 94,113 | 108,176 |
| Amortization of deferred commissions | 19,906 | 17,547 |
| Non-cash operating lease costs | 7,050 | 7,087 |
| Amortization of debt issuance costs | 1,264 | 1,133 |
| Amortization of premium and accretion of discount on marketable securities | (11,288) | (5,557) |
| Acquired in-process research and development | 6,653 | — |
| Changes in assets and liabilities: | ||
| Trade receivables | 49,913 | 24,895 |
| Prepaid expenses and other short-term assets | (10,889) | (11,118) |
| Deferred commissions | (23,846) | (18,338) |
| Other long-term assets | (129) | (963) |
| Trade payables | 817 | (1,634) |
| Accrued expenses and other short-term liabilities | (5,882) | (17,652) |
| Deferred revenues | 37,200 | 33,555 |
| Other long-term liabilities | 272 | 3,120 |
| Net cash provided by operating activities | 90,926 | 48,969 |
| Cash flows from investing activities: | ||
| Proceeds from maturities of marketable securities | 157,100 | 28,850 |
| Investment in marketable securities | (576,753) | (331,651) |
| Proceeds from short-term and long-term deposits | 25,038 | 170,925 |
| Investment in short-term and long-term deposits | (9,233) | (118,605) |
| Purchase of in-process research and development | (6,653) | — |
| Purchases of property and equipment | (2,342) | (2,945) |
| Net cash used in investing activities | (412,843) | (253,426) |
| Cash flows from financing activities: | ||
| Proceeds from issuance of convertible senior notes, net of issuance costs | 450,099 | — |
| Purchases of capped calls | (55,522) | — |
| Proceeds from employee stock plans | 16,082 | 11,346 |
| Taxes paid related to net share settlement of equity awards | (37,264) | (19,971) |
| Repurchase of common stock | — | (43,522) |
| Net cash provided by (used in) financing activities | 373,395 | (52,147) |
| Increase (decrease) in cash and cash equivalents | 51,478 | (256,604) |
| Cash and cash equivalents at beginning of period | 230,740 | 367,800 |
| Cash and cash equivalents at end of period | $282,218 | $111,196 |
| Supplemental disclosure of cash flow information: | ||
|---|---|---|
| Cash paid for income taxes | $10,115 | $6,231 |
| Cash paid for interest | $3,184 | $3,195 |
| Supplemental disclosure of non-cash activities: | ||
| Lease liabilities arising from obtaining right-of-use assets | $573 | $1,945 |
| Issuance of common stock for debt conversion | $6 | $— |
| Issuance costs included in accrued expenses and other short-term liabilities | $450 | $— |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.