Data protection and security software company Varonis (NASDAQ: VRNS) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

Varonis missed analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $158.5 million, up 2.9% year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

Is Varonis a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Varonis’s revenue to grow 17% year on year to $133.4 million, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Varonis has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Varonis’s peers in the cybersecurity segment, only Tenable has reported results so far. It beat analysts’ revenue estimates by 2.4%, delivering year-on-year sales growth of 10.7%. The stock was down 9.3% on the results.

There has been positive sentiment among investors in the cybersecurity segment, with share prices up 15.5% on average over the last month. Varonis is up 13.1% during the same time and is heading into earnings with an average analyst price target of $51.21 (compared to the current share price of $43.01).

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