Shares of Varonis Systems (NASDAQ:VRNS) jumped over 7% on Monday's market pre-open after the software maker posted better-than-anticipated Q4 earnings and revenue.
Earnings per share (EPS) stood at $0.27 in the fourth quarter, exceeding the consensus estimates of $0.23. Revenue came in at $154.1 million, while analysts were expecting $151.83 million.
For the fiscal Q1 2024, Varonis expects a loss per share of $0.10 to $0.09, compared to the loss per share of $0.01 expected by analysts. Revenue is anticipated to land between $111 million and $115 million in that quarter, while analysts guided for $116.4 million.
For the full-year, the software company estimates EPS of $0.11 to $0.13 on revenue of $536 million to $546 million. This compares to EPS of $0.35 and revenue of $544 million projected by analysts.
In the report’s aftermath, TD Cowen analysts hiked the target price on the stock to $54 from $50 and maintained the Outperform rating.
"We are raising our PT on VRNS to $54 from $50 following strong 4Q23 results, headlined by ARR of $543M (vs. St's $537M, up 17% y/y, and powered by robust SaaS adoption,” they said.
“SaaS generated 66% of new business/up-sell and now represents 23% of total ARR. VRNS accelerated its transition timeline by a year. Free cash flow grew sharply y/y to $54M from $0.5M. Reiterate Outperform."
Similarly, Morgan Stanley analysts reiterated the Overweight rating on the stock and hiked the 12-month target price to $60 from $55.
“VRNS reported a solid Q4 with ARR accelerating to +17% YoY and FY24 ARR outlook was ahead of consensus. With growing SaaS momentum and burgeoning GenAI tailwinds, we see room for material upward revisions throughout the year,” they wrote.