VARONIS SYSTEMS INC (VRNS) saw its loss widen to $10.88 million, or $0.40 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.35 million, or $0.40 a share. On the other hand, adjusted net loss for the quarter narrowed to $6.07 million, or $0.23 a share from a loss of $7.63 million or $0.29 a share, a year ago. Revenue during the quarter surged 32.52 percent to $40.38 million from $30.47 million in the previous year period. Gross margin for the quarter contracted 10 basis points over the previous year period to 88.43 percent. Operating margin for the quarter stood at negative 27.30 percent as compared to a negative 35.41 percent for the previous year period.
Operating loss for the quarter was $11.02 million, compared with an operating loss of $10.79 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $6.22 million compared to operating loss of $8.07 million in prior year period.
Yaki Faitelson, Varonis chief executive officer, said, "I am pleased with our first quarter results. We saw solid contribution from both the US and Europe and strength across new and existing customers. With the Varonis Data Security Platform, we help companies take a more holistic and strategic approach to protecting the enterprise against insider threats, data breaches and cyberattacks by analyzing content, accessibility of data and the behavior of the people and machines that access data to alert on misbehavior, enforce a least privilege model and automate data management functions. The investments we have made across building awareness, driving adoption and innovation are working, and our focus on execution and consistently delivering against our stated goals is enabling us to deliver sustainable growth and drive leverage throughout the business."
For the second-quarter 2017, Varonis Systems Inc projects revenue to be in the range of $47 million to $47.80 million. The company projects adjusted operating loss to be in the range of $2 million to $1.60 million. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.09 to $0.08.
For financial year 2017, Varonis Systems Inc projects revenue to be in the range of $201 million to $204 million. The company projects adjusted operating income to be $1.50 million. The company forecasts diluted loss per share to be in the range of negative $0.03 to $0.01 on adjusted basis.
Operating cash flow improves significantly
Varonis Systems Inc has generated cash of $8.30 million from operating activities during the quarter, up 52.46 percent or $2.86 million, when compared with the last year period. The company has spent $6.42 million cash to meet investing activities during the quarter as against cash outgo of $0.99 million in the last year period.
Cash flow from financing activities was $0.88 million for the quarter, up 15.90 percent or $0.12 million, when compared with the last year period.
Cash and cash equivalents stood at $51.07 million as on Mar. 31, 2017, down 6.22 percent or $3.38 million from $54.46 million on Mar. 31, 2016.
Working capital remains almost stable
Working capital of Varonis Systems Inc remained almost stable for the quarter at $78.84 million, when compared with the previous year period. Current ratio was at 2.01 as on Mar. 31, 2017, down from 2.27 on Mar. 31, 2016.
Days sales outstanding went down to 83 days for the quarter compared with 107 days for the same period last year.
At the same time, days payable outstanding went down to 40 days for the quarter from 43 for the same period last year.
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