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Shares of cybersecurity software provider Varonis Systems (NASDAQ: VRNS) jumped on Friday after the company reported first-quarter results. Varonis beat analyst estimates for both revenue and earnings, sending the stock up 10.3% for the day.
Varonis reported first-quarter revenue of $40.4 million, up 33% year over year and about $3 million higher than the average analyst estimate. License revenue grew 38% year over year to $19.2 million, while maintenance and services revenue grew 28% year over year to $21.2 million. During the quarter, 53% of license and first-year maintenance revenue came from new customers.
Image source: Varonis.
Non-GAAP (generally accepted accounting principles) earnings per share came in at a loss of $0.23, up from a loss of $0.29 per share during the prior-year period and $0.07 better than analysts were expecting. Varonis generated $8.3 million in cash from operations despite the lack of profitability. At the end of the quarter, Varonis had $121.3 million of cash and cash equivalents on the balance sheet.
"I am pleased with our first quarter results," said Varonis CEO Yaki Faitelson in a press release. "We saw solid contribution from both the US and Europe and strength across new and existing customers."
Varonis expects to produce revenue between $47.0 million and $47.8 million during the second quarter, representing year-over-year growth of 22% to 24%. Non-GAAP EPS is expected to be a loss between $0.08 and $0.09. For the full year, revenue between $201 million and $204 million is expected, along with non-GAAP EPS between a loss of $0.03 and a profit of $0.01.
Faitelson summarized the company's strategy:
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