Varonis Systems Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Varonis Systems Inc. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

VARONIS SYSTEMS INC (VRNS) filed a Annual Report (10-K) with the SEC on February 6, 2024. Varonis Systems Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is in the Services - Prepackaged Software industry (SIC 7372). Varonis Systems Inc. is incorporated in Delaware. The company's business address is 1250 Broadway, 31st Floor, New York, NY 10001.

Why It Matters

For investors and stakeholders tracking VARONIS SYSTEMS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Varonis Systems Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors and stakeholders to assess the company's current standing and future prospects. As a cybersecurity company focused on data security, the details within this filing are important for understanding Varonis's market position, competitive landscape, and potential risks and opportunities in the evolving threat environment.

Risk Assessment

Risk Level: medium — VARONIS SYSTEMS INC shows moderate risk based on this filing. The company operates in the highly competitive cybersecurity market, which requires continuous innovation and significant investment to maintain market share and fend off evolving threats.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Varonis's performance and strategic positioning in the cybersecurity sector.

Key Numbers

• 109,103,721 — Shares Outstanding (As of 2023-12-31)
• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-06 — Filing Date (Date of submission)

Key Players & Entities

• VARONIS SYSTEMS INC (company) — Filer name
• 10-K (document) — Filing type
• 20231231 (date) — Fiscal year end
• 20240206 (date) — Filing date
• 0001361113 (company) — Central Index Key
• DE (jurisdiction) — State of incorporation
• 1250 BROADWAY, 31ST FLOOR (address) — Business address
• NEW YORK (location) — Business address city

Forward-Looking Statements

• The updated share count will be used by analysts to refine their EPS estimates for VARONIS SYSTEMS INC. (VARONIS SYSTEMS INC) — high confidence, target: Q1 2024 earnings report

FAQ

Industry Context

Varonis Systems Inc. operates in the cybersecurity industry, specifically focusing on data security solutions. This sector is characterized by rapid technological advancements and a constant need to address evolving cyber threats.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K to understand revenue streams, profitability, and cash flow.
2. Review the 'Risk Factors' section to identify potential challenges and threats to Varonis's business operations and financial performance.
3. Compare the 2023 results with previous years to identify trends and assess the company's growth trajectory.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-06: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share VRNS The NASDAQ Stock Market

Filing Documents

• vrns-20231231.htm (10-K) — 1941KB
• vrnsq4202341.htm (EX-4.1) — 24KB
• vrnsq420231010.htm (EX-10.10) — 117KB
• vrnsq420231011.htm (EX-10.11) — 134KB
• vrnsq42023211.htm (EX-21.1) — 10KB
• vrnsq42023231.htm (EX-23.1) — 3KB
• vrnsq42023311.htm (EX-31.1) — 12KB
• vrnsq42023312.htm (EX-31.2) — 12KB
• vrnsq42023321.htm (EX-32.1) — 8KB
• vrnsq42023322.htm (EX-32.2) — 8KB
• vrnsq4202397.htm (EX-97) — 37KB
• vrns-20231231_g1.jpg (GRAPHIC) — 119KB
• vrns-20231231_g2.jpg (GRAPHIC) — 5KB
• 0001628280-24-003498.txt (&nbsp;) — 10308KB
• vrns-20231231.xsd (EX-101.SCH) — 54KB
• vrns-20231231_cal.xml (EX-101.CAL) — 107KB
• vrns-20231231_def.xml (EX-101.DEF) — 314KB
• vrns-20231231_lab.xml (EX-101.LAB) — 760KB
• vrns-20231231_pre.xml (EX-101.PRE) — 503KB
• vrns-20231231_htm.xml (XML) — 1513KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 12 Item 1B Unresolved Staff Comments 35 Item 1C Cybersecurity 35 Item 2

Properties

Properties 37 Item 3

Legal Proceedings

Legal Proceedings 37 Item 4 Mine Safety Disclosures 37 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6 Reserved 40 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A

Controls and Procedures

Controls and Procedures 93 Item 9B Other Information 93 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 93 PART III Item 10 Directors, Executive Officers and Corporate Governance 94 Item 11

Executive Compensation

Executive Compensation 94 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 94 Item 13 Certain Relationships and Related Transactions, and Director Independence 94 Item 14 Principal Accounting Fees and Services 94 PART IV Item 15 Exhibits and Financial Statement Schedules 95 Item 16 Form 10-K Summary 95 ii PART I

Business

Item 1. Business We were incorporated under the laws of the State of Delaware on November 3, 2004 and commenced operations on January 1, 2005. Our principal executive offices are located at 1250 Broadway, 28th Floor, New York, NY 10001. For convenience in this report, the terms "Company," "Varonis," "we" and "us" may be used to refer to Varonis Systems, Inc. and/or its subsidiaries, except where indicated otherwise. Our telephone number is (877) 292-8767. Overview Varonis is a leader in data security as, since we started operations in 2005, we recognized that an enterprise's capacity to create and share data far exceeded its capacity to protect it. We believed that rapid data growth combined with increasing information dependence would change the global economy and the risk profiles of corporations and governments. Our focus has been on using innovation to address the cyber-implications of these trends, creating software that provides new ways to track, alert and protect data wherever it is stored. Data continues to grow in new and existing data stores both in the cloud and on-premises, a trend we have seen accelerate as companies worldwide undergo a wave of digital transformation initiatives that have significantly impacted how they must approach data security. While the significant increase of software-as-service ("SaaS") and infrastructure-as-service ("IaaS") usage has accelerated workforce collaboration and IT operations, it has also created unprecedented data sprawl and complexity that have contributed to a growing number of catastrophic data breaches. We believe the adoption of generative artificial intelligence ("Gen AI") tools in the enterprise will dramatically compound data growth and introduce new data security challenges that can only be addressed with automation. Gen AI-powered productivity features, commonly called "copilots," are now embedded within applications such as Microsoft 365, Salesforce, Google Workspace, and Box. These tools typica

View Full Filing

View this 10-K filing on SEC EDGAR