What Happened?
Shares of data security company Varonis Systems (NASDAQ: VRNS) jumped 5.2% in the afternoon session after the company announced the launch of Varonis Interceptor, a new email security product that uses artificial intelligence to combat sophisticated cyber threats.
The product was designed to stop social-engineering breaches and phishing attacks at their earliest point—the email inbox. Powered by the company's September acquisition of SlashNext, Interceptor used multiple AI models, including natural-language processing and behavioral analysis, to identify and block attacks from trusted or compromised sources in real time. The launch came at a time when organizations faced increasingly sophisticated digital attacks, highlighting the market need for advanced security solutions. According to the company's CEO, Yaki Faitelson, the goal was to counter hackers who exploit trust rather than just computer systems.
After the initial pop the shares cooled down to $62.60, up 4.4% from previous close.
Is now the time to buy Varonis Systems? Access our full analysis report here.
What Is The Market Telling Us
Varonis Systems’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 5.2% on the news that the company posted strong second-quarter earnings that surpassed analyst expectations and raised its full-year guidance.
The data security firm reported earnings of $0.03 per share, which surpassed the consensus estimate of $0.01, while revenues of $152.16 million also topped forecasts. Management expressed confidence in its ongoing transition to a Software-as-a-Service (SaaS) model, a subscription-based delivery method for software. Varonis increased its Annual Recurring Revenue (ARR) growth target for 2025 to 17% and noted its SaaS mix was projected to reach 82% by year-end. The positive results prompted multiple analysts to raise their price targets, including Needham, RBC Capital, and Cantor Fitzgerald. The stock's move also occurred amid broader activity in the cybersecurity sector, which potentially increased investor focus on the industry.
Varonis Systems is up 41.2% since the beginning of the year, and at $62.60 per share, has set a new 52-week high. Investors who bought $1,000 worth of Varonis Systems’s shares 5 years ago would now be looking at an investment worth $1,528.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
