Varonis Systems, Inc. (VRNS) stock plunged by nearly 6% in after-hours trading on Tuesday following the release of its fourth-quarter 2024 financial results and guidance for the full year 2025.
The key reasons behind the after-hours plunge were Varonis' disappointing financial performance in Q4 2024 and its underwhelming guidance for the full year 2025. The company reported revenue of $158.5 million for Q4 2024, missing analyst estimates of $165.6 million. Additionally, Varonis' adjusted earnings per share (EPS) of $0.18 for the quarter, although beating estimates of $0.14, fell significantly short of the prior-year period's EPS of $0.27.
Furthermore, Varonis provided lacklustre guidance for the full year 2025, projecting annual recurring revenue (ARR) growth of 15-16% and revenue growth of 11-13%, both falling short of analyst expectations. The company's non-GAAP EPS guidance for 2025 also missed estimates, with a range of $0.13 to $0.17 compared to the consensus estimate of $0.32.