VRNS (Update)

Varonis Systems Inc

TMT


Presented:10/01/2020
Price:$40.05
Cap:$3.79B
Current Price:$59.98
Cap:$6.73B

Presented

Date10/01/2020
Price$40.05
Market Cap$3.79B
Ent Value$2.74B
P/E RatioN/A
Book Value$0.83
Div Yield0%
Shares O/S94.65M
Ave Daily Vol1,030,773
Short Int7.97%

Current

Price$59.98
Market Cap$6.73B
Varonis Systems, Inc. engages in providing data security and analytics. It operates through the following segments: United States, EMEA, and Rest of the World. Its products includes datadvantage, data classification engine, data transport engine, Varonis edge, datanswers, datalert, dataprivilege, automation engine, and GDPR patterns. The company was founded by Yaki Faitelson and Ohad Korkus on November 3, 2004 and is headquartered in New York, NY.

Please note, this is an update to Varonis Systems Inc (VRNS) - Long, which was first published on 7/19/2020.
As well, this stock split on 05/12/2021 at a ratio of 3/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $121.16.

Publicly traded companies mentioned herein: Adobe Inc (ADBE), Autodesk Inc (ADSK), Varonis Systems Inc (VRNS)

Highlights

The presenter is long shares of Varonis Systems Inc (VRNS), a security software company that currently trades at ~$118 per share. In his opinion, the Street’s revenue estimates for 2020 and beyond are too low given current demand tailwinds and an ongoing revenue model transition. He is ~10% above the consensus topline for 2020 (i.e., he estimates $300MM vs. Street estimate of $271MM) and ~20% above consensus for 2021 and 2022. Over the next 4 – 5 years, he anticipates 30% annual revenue growth from ~$300MM to ~$1B. As VRNS executes on this growth opportunity, he believes that the stock will rerate higher than the current ~10x forward revenue multiple and that the share price will reach ~$200 over the next 2 – 3 years.

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Idea Discussion

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