VRNS - Earnings call transcript Q1 2022

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Operator

Greetings! And welcome to the Varonis Systems Incorporated, First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Investor your Relations. my Vice James now of President is to host, introduce Arestia, It Thank James. you,

You may begin.

James Arestia

session. XXXX a me Thank After of you, Yaki Chief to open Quarter Financial today will for Faitelson, preliminary joining Results. question-and- operator. Good and call Chief the afternoon! remarks review Thank Chief Executive Officer Varonis' we Guy today and the Varonis. call on you answer Officer, us Financial to are With Melamed, First Officer Operating

those and Commission. only other filed and reflect filings. views in statements Securities fully with of investors the are this make Forward-Looking business under forth projections our Exchange in are the factors During these These described important set may full encourage that read These our factors Due today the December reports we Statements,” all our to SEC XXXX. would for and federal of in statements. including as year forth We results our we related to more and date. a forward-looking to statements upon made of relied representing XX, and from factors such not set or number press results call any to to updates should statements revision captioned or today be release laws, second herein. Varonis any undertaking “Forward-Looking our under any views application as operating actual issued release be disclaims earnings Statements of quarter as subsequent ending section our that materially considered future expressly securities may publicly any differ risk

Investor GAAP our measures the section. this XXXX can conference press first most release, found in is discussed also financial non-GAAP directly A call. on the in www.varonis.com, Additionally, reconciliation at will quarter be which Relations earnings available be for financial comparable measures

turn like note section. Executive Faitelson. today's investor to our in that, Investor I'd the are Chief as that of Relations the an presentation, Officer, With our call, webcast please on call updated to over well a as available Yaki website Lastly, Yaki?

Yaki Faitelson

Thanks today. steps and a solid from war record the which for Guy detail. ARR a Jamie, off Varonis. good in we Thanks taken Even joining everyone. for to by XX% stemming year-over-year have start discuss XXXX with the Driven afternoon us will cash is in quarterly the flow, operating Ukraine, and growth more

impacted with are war, thoughts and customers, Our a employees, are resolution and by hoping we those partners soon. of all our peaceful for the

has by see landscape never Our continue data important to threat been as mission the a day. of dangerous more becomes protecting we sensitive more that

pipeline I demand healthy our a them. trends positioned is to well on the result, and environment these capitalize strong. and is we As will how discuss are

in. jump let’s So

premium environment As have platform. quarters, we detection as cases customers three the saying need Privacy view the you, our use that Varonis underscores remind addresses and many we are: our response; believe that interconnected. increasingly been Threat These for protection; current and compliance. To for Data and

to sensitive Between led to strategies. today and around protect only and headlines companies always the has and the Given threat activists cyber-attacks for groups, to detection profitability severity, their on to critical are increase sophistication state and the data, want world growth, continue the more sensitive to And the data. threat a landscape, sharpen in Data frequency, capabilities. continuing refine increased target in the becomes stolen basis, is threat and of data focus on commercial urgent. need cyber-attacks active constant dependence as their the current our I on data

isn’t perimeter continues our data-first is to resonate, and we validating strategy result, approach essential, that for both what enough. but years, many our a have saying the As been

any vector, biggest and data they bypassed, for once already, least open and if done to attackers assume system, one In can wide attackers all their maximize person and breach so and at to be stores account perimeter that takes critical the short, or assessments be to one. vector, straight risk insiders need potential data attack will haven't insiders, critical of are Our defenses show are go stores will profits. can all. Companies one, is it the attackers threat

makes Unfortunately, All vector Specifically, When is exploit one radius. the is the place, them accounts then is small to as controls to any compromised establish we the radius our these overcome data higher-level catch go you job A with attackers’ weakness find, steal them in detective resistance. they remote access, the they attacker possible. assess assume see attackers work control, radius step can after accounts use and steal Varonis data. unless company an rarely should is make gives and a of when first resistance that will why and they It’s blast that could if not cyber-security leader compromised. counter This they are we inside. question if, as assume chances to once breach, blast more any but as say every smaller or breach. employee stiffer to be harder, blast the and

customers inventory radius, to to unparalleled detective and platform it to go-forward keep the access, in to ability have. put locked reduce to describe ensure a of people that our place and data, Our to have only sensitive as down must is take continue blast the corrective right why controls

our deals. the expansion team At is in A protect proving could data classify Microsoft number and it accurately at had that employees was key where call had time, and customer issues, discuss Varonis access information who some to to quarter closing we licenses of first AWS. and customers sensitive in clear, I new opportunity same and to purchased Microsoft already their conglomerate licenses QX. amounts get Guy, to They media critical the in XXX a for strong of Before they open in help became double-digit to way existing X significant customer I quarter. licenses, additional risk, we visibility to Varonis the it. their the XXX another and and understand with in remediate no was the it, on-prem see briefly multinational provide turn wins want discussing data XX,XXX are further massive using After

customers toy companies Varonis and their view a a One data risky alerting QX. acquisitions, automation in multiple discussing utilize state. tactical been examples just challenges, from perpetual how we mission the of protection and environments, Varonis data their data classification biggest more them more this and up two we offering on-prem help newer data secure our of the These world Today, customer our Varonis they across which we significantly Originally in protection, the to XXXX. are address maintain and broadened deployment and of stale they our risks are are with can XX in how Cloud a DA cloud largest has in needed AWS. than ability licenses since stemming solve helping clean from to founded

us, for enormous We are opportunity are on With Guy. Guy? capitalizing before strong execution and focused to we turn excited the market that, over on year. let me another continued and the call

Guy Melamed

us Thanks, everyone. you for joining Yaki. afternoon, today. Good Thank

quarter FX revenue by $XX.X versus dollars, first XX% growth Total XX% results guidance was margin highlighted quarterly first of on and last point our headwind were range, operating earnings cash our dollars. XXX we at ARR of million basis million Our year-over-year high the solid, year, discussed last growth improved call. in our of operating despite the end quarter flow record and to by $XXX.X

impact our war. I only quarter X% the by results, on Historically, discuss I want our to briefly Russia comment to first about performance the of has Before Russia/Ukraine represented business.

impacted by As of the countries, a ARR that business in sanctions imposed write-off approximately U.S. by QX of dollars. million the result the and other $X

the continue ARR examples consequently will are the For Highlighted Though $X the our year write-down assuming reality, we guidance region, the revenue expansion strong to Yaki discussed, adoption as current even eager strong who from both to be new as from revenue. the is zero ARR see customers, for environment, more original customers $X see are platform. full reaffirming we year, from a and we just we full and impact consume the Varonis healthy million are to trends the and the original existing demand and our well in therefore dollar to range. sanction of contribution by million expectations

lifetime few in that which higher growth. for Let future sustainable data me today, customer see we us you a positions give points value turn the support

purchased two up customers twice years XX% of As our with or employees even in customers more and licenses, XXX XX% a the And of purchased more or licenses, up and ago year powerful XXXX, four XX% of XX, ago. or QX is XXXX. March those more XX% ago, from year a XX% more of XX% from that six

are increase data And sensitive greater the licenses, Varonis more we clear double-digit value our world strategic toward both to the prem take to Our in value. expect increasingly customers an a around provide. see of new purchases, more to way the approach customer and as a and transition and the trending strategic their validation we securing continued lifetime in cloud, on companies leading

to in This renewal now year-over-year. XX% dollars, quarter XX% and our of revenues million Total rates subscription Turning revenues again over were $XX.X first dollars. grew which includes grew detail. $XX.X million more million $XX Maintenance to dollars, results revenues XX%. Services with

million $XX.X million business million or Rest or revenues. revenues XX% XX% revenues. of dollars World XX% the XX% revenues revenues. geographically, of to total to total of to $XX.X of dollars revenues XX% at In grew dollars North grew EMEA, Looking America grew total or $X.X X%

Gross forward. dollars, for I’ll first compared the income XX.X% first expenses profit million to the $XX.X in a quarter non-GAAP $XX.X of totaled quarter going to the results margin the XXXX. representing Operating in be back Turning first dollars. gross million was of XX.X%, statement, discussing quarter

first operating million X.X% an year. of we I loss last to compares our margin were of result, earlier. million X.X%. the The able that the $X.X operating as or headwind model of dollars with operating As year-over-year quarter FX was same of of itself loss even to an dollars This leverage, to negative XXX in period a basis points prove show strength mentioned $X.X negative continues operating or margin

convertible the During net diluted outstanding XXXX financial XXXX XXXX of share basic million This loss $X.XX quarter on or per $XXX,XXX, first of loss the and due million share, we dollars Net loss of XXX.X XXX.X shares primarily quarter, respectively. is of expense interest on million quarter of or basic our QX, compared basic loss notes. of and $X.X $XX.X and a dollars to for $X.XX based XXXX. diluted had approximately per to diluted a the QX, was for and for million expense and first

XXXX, equivalents March XX, million cash dollars as as X,XXX $XX.X XXXX approximately the for We same the to year. the we the March XX the three quarter of dollars dollars first And operations, company overall $XXX in XX, we of record continue ended last from ended of XXXX, of $XX.X of As generated invest a we generated net cash, from increase compared in period employees growth support and the marketable an with million months to to securities. cash had end new mentioned, the million I across employees, business.

our guidance. to Moving

midpoint As our our the points of guidance margin remind of reflects a mentioned, basis, In basis XXX-basis year impact on midpoint is we XXX are approximately program point approximately XXXX, for XXXX hedging our to to shows exposure revenues. and expansion reaffirming currency of shows ARR year-over-year. year-over-year. both constant I operating and related for the everyone also of our FX headwind the that currency XXX basis, quarter New want basis a constant full-year the expansion XXX-basis Israeli to the points a On point guidance guidance headwind, our second full Shekel. a

million revenues from quarter $XXX.X out of For diluted million operating non-GAAP XXXX, excludes Russia, point second to diluted income per XX% representing XX%. net assumes million expected; to million shares approximately Total $XXX.X XXX.X and growth and This share revenues of in range and we to this dollars; $X million, $X.XX. would of outstanding. previously of I we basic non-GAAP which the dollars of breakeven expect: $X the loss of $X.XX to basic

growth, of strong Thanks which enable outstanding. generation. to our non-GAAP the we leadership year to million we market $XXX to on million, environment and to revenues million diluted operating XX% of topline for cash our that, expand margin us the XXX.X diluted and execute on $XXX capitalize million of This Operator. growth to assumes XX%; $X.XX. $XXX $XX non-GAAP long-term we million, be share joining to of intend XX% year-over-year $X.XX shares as In of see, summary, would $XX For full XXXX, per today, to representing happy take further total growth $XXX XX%; expansion of will strategy ARR drive to with and million we us to questions. net we demand million flow in the income to dollars; expect income representing range

Operator

Hedberg Please with our RBC your Instructions]. Thank comes first question. Markets. question Thank Capital you, with you. from [Operator Matt proceed

Matt Hedberg

questions. Hi my guys! for Thanks taking

there excluding wanted squeeze then double maybe Russia Eastern Europe So I It like exposure thought appreciate just bit. I at click Europe just make follow-up. color sure risk. ask, sounds just strong. in, that to the is no on was wanted was on overall to Russia. sort little that just I quick to a other that also could if I just And you of just

didn’t are XQ. had Thanks on Curious talk some I DA positive guys. about if and You really any this there quarter that early in Cloud XQ traction uplift know results?

Yaki Faitelson

and know engagement. a Overall see we prospect pipeline Hi you strong Matt! with strong customers Europe in

everything also that Very just the but but we it see it Yes, elevated term is to but play very to in general cyber-security good changes to there healthy our opportunity case for good any in the have we also predict all be opportunity know, hard can you out, going teams, big. very in generate just partners some we term is related believe a catalyst to can don't pipeline. We there Russia we uncertainty, the is long market and see and overall crimes. long how very

DA Regarding on version with that excited are what happy we extremely see very released and we just the Salesforce.com. we with primarily Cloud,

the Cloud of this you critical but It’s structure. very just connected and a all sales think So we that lot licenses have look applications if it. about the is just can all very think in magnitude you so that’s data the business, a and very, of force, that many be collaboration at this to DA successful, complex permission platform

a working XXX of have data DA the we relevant We for on-prem what is very using believe And plan. we that see cadence according just a new be and product Cloud a us us. to release. we important business with can over major So just there very done the the big, believe is time and

Operator

Thank you.

question. Our Jefferies. your next question from Gallo with Joseph with comes proceed Please

Joseph Gallo

question. quarter just just the in cloud? cloud. of you're and familiarity I in now to that your Hey competitive And sales force really channel the change guys! Has any appreciate and the you then, landscape, of selling sense been there discounting especially speak the any the then with can

Yaki Faitelson

time was marketplace. in Varonis everything the of which part you road acquisition with map is doing, platform. we the regarding datasets, the functionality, data are the like of know terms just DA the landscape sets – in and it’s competitive infrastructure same When the changed this proximity know the believe complete the the the folks you solution our our Yes, similar big that It’s talking the the that and very you – with really nothing so showed market Cloud, is of to our and to that – things really in other closer only about Polyrize. Varonis of is the to way we purchase

So business the that have has need in is is is and always a for platform SX Varonis you exploding functionality relatively teams need it support; big, similarity overall we Cloud to then – it’s is but Okta understand But are the big, lot same. that a Salesforce the like us. cadence. The we big, XXX. of the It’s

it. You learn know how to need sell to they

very bullish, excited but about are POC, doing We everything always opportunity. are are very we we a we the

Guy Melamed

have have have subscription. now. of of with when seven been that at move selling you one process selling is attempt regarding a holding XX the they our additional licenses been are number are licenses, very of license, the the that Gold And and XX of bundles discount licenses we've number and The been bundles significant. the to discount Silver, look basically our simplify especially Platinum kind are as introduced in recently of part amount we There and levels, additional offering item. line an and We licenses appear to we levels nicely, selling licenses,

I been simplicity now, firm. provide the we will discounts part them hope some the overall As and very recently in introduced they've holding of as failing we but at right look this process, we that said, as

Operator

Thank you.

Our question with Fatima Citi. Boolani comes with next Please question. your proceed from

Fatima Boolani

you Thank appreciate questions. there really wind this down Russia. could one’s for afternoon! taking on the But as business. hoping Good you my me I you Guy, impact quantification of help Hey! you I the for that with math. some was

talked you in quarter. headwind realized as $X So about but the million of was that first $X the top an $X to million million basically headwind aggregate on a line,

my So how the is, the as ARR, well about year year, I guess for full a revenue. both as remainder I you. think front-end linearity that write-down, question affected should why Thank basis for loaded being that, so guess on we total of for and

Guy Melamed

So the remarks, impact still KPIs. immaterial on in said it our Russia just like has prepared an but I has impact, an

X% about approximately ARR. and if in of million approximately when is simplistic to it way, So you $X think ARR, is revenue in said, to a ARR our you the we but Like that going contribution impact headwind $X are there $X I both zero region think assuming both revenue, to really million year headwind we the about expect for full from forward. XXXX, million as and

as majority happening of throughout you impact, kind QX, the compatible at impact well. QX So have the is in you'll when obviously QX, when numbers think in the about look you the but that of impact

Operator

Thank you.

Our comes question. your Please Fishbein next question Joel with from with Truist. proceed

Joel Fishbein

comment plans the what most But remainder those into Guy it will Thanks. Hi! Thank are hiring looks resources of going Can allocated? hear were going the to you. QX of love where you I on in ’XX? plan. into just be and on you year know plans the

Guy Melamed

done plans additional of increase last and department both the in we've are the R&D sales the coming year, balanced in our footprints and department; our what engineers both hires to there marketing very to capacity. sales our very So of and similar majority

We and are the very far line focused so to pace, on we profitability, want executing top at we focused according so to plan. both, very are it and managing growth right do on

Operator

Thank you.

Our your with next with from question Fargo. question. comes Wells Andrew Please proceed Nowinski

Andrew Nowinski

had to really relates I the Alright, as a thank you. logo question just it on, new growth.

about that was your logo's ARR in if terms look I like in it looks new down of in million flat. growth So QX, if and basically it talk add QX and the wondering back new you what at in you just net then year-over-year $X if could year-over-year was it saw was

if net it relates on provide just logos new as So to the well. new I’m you more wondering ARR color can as Thanks.

Guy Melamed

kind ARR When the question. $X has terms me I’ll to start Russia, from consideration, what just So, that of you of the that picture second new of and first contribution and that with question? taken headwind was that can net million factor be you in in really the coming changes into remind

Andrew Nowinski

customers I'm are are you wondering on lot a so I just – could more logo provide wondering how I'm growth existing adding if growth. new faired licenses, of QX. color new your in any your know customers adding logo

Guy Melamed

Absolutely! revenue the our fact that right of So the from still the majority base. in you're comes

have contribution, had look and bringing to those positive base the at four you when more or it’s terms more we in can growth that of lot the sell. that size both, the of the we in. customers a we even of have you to are importantly, customers. more and or definitely But we new of that new the But see logo licenses, a licenses to have We more licenses sell lot six and number the

We are enterprises. larger the on focusing

to higher We we generate value. have well continue customers significantly on done on focusing that lifetime can those very customer on and focus

Yaki Faitelson

are the complete This this development, the and understand, most evolution it’s to a It’s business. a of big and of also play. platform just just platform It's important all the is of real customers, the over product and expand customers are the and you lend – buying, this a is key this rolls. is thankfully with cases time is they and just it buying how more and when more

Operator

you. Thank

with with question. question Matt proceed Our Morgan Stanley. next your from comes Saltzman Please

Matt Saltzman

Saltzman Hey subbing from I’m Fodderwala is Hamza Morgan Stanley. guys! Matt in This tonight. for

question. the for taking thanks So

mentioned, this pursuing is margin for a a As you year difficult year expansion.

competitive Yet is FX, going number You you're whether wage operating inflation, got you guide environment, be really external factors, income up. name it. it hiring a of

So seeing adds. profitability operating the that about I'm thinking just the DA you're from just customer leverage you're how curious, online that with Thanks. growth on kind net new opportunities and of and balancing Cloud side inflection that's

Guy Melamed

So, absolutely you're right.

on on many way run In we terms line and it growing We're the of top the line. conscious we our growth, changed that very the last to the business but profitability are focused some focused bringing of focus hasn’t over years. bottom very really on comparative, and

the through If that existing in the shows are base you on basis deal to currency inflation things at manage we’ve can of look But more licenses, and to with. factors our keeping the QX And part at on levels manage very know discount our in especially we're look constant other points model, with moving and and expand firm margin business kind with lot can there's think and basically the bottom way XXX to and improvement, to-date we the look and you at we ended we I expansions. way. you we more when to through from a at basis, customer top those leverage transition that you you the with fact continue within that we managed to line the to of able of and control the we a are expansion to exiting our the of the that that subscription, when margin expansion the what the our ability that fact the sell need is the the past, fact wage focusing plan perpetual a continue that way line business,

Operator

Thank you.

your with is question. next Bennett Craig-Hallum. Please with from Our question proceed Chad

Chad Bennett

question. my taking for Thanks Great!

provide, headwind a look can So the provide $X in million from to from million the in that of estimate we rough were standpoint, a at Russia exposure know revenue Guy, $X you subscription? to versus if could you you ARR, maintenance

Guy Melamed

half. about So maintenance is

Chad Bennett

know Russia math mean deceleration. I EMEA circling impact just growth on decent the business back the my question and and obviously by you your I a there, pretty you then know though before, understand showed EMEA but And

I think in the growth was it probably quarter five. weakest

want So know some I growth and bookings if to see into it's standpoint acceleration here Europe, detail to billing from that your I Europe, expectation quarter EMEA and know business more Eastern don't going a the you throughout Western you in that that guess in care confidence performed year. little level the from a you're – I

Guy Melamed

Chad, clarity you're the absolutely right. EMEA part basis at we points EMEA just is year. When and XX% and grew of but impact for at last you you purposes, those at XXX EMEA in QX, Russia look numbers, headwind when of look to of close Russia on currency versus had top

good look together, And when our business. at the the we both and when So when you all we to and of and the different this look when look we very conversations European the kind continue grow picture. the to ability at the put pipeline activity, very feel we a it headwinds, Russia at of paints about currency

Operator

you. Thank

William Jason Blair. proceed Our with next your question. from with Ader Please comes question

Billy Fitzsimmons

in you This Fitzsimmons your from features first. the for given guys! Billy Cloud any anecdotes from for feedback feedback A or on the on Any Hey customers out is you also Ader. effectiveness customers Jason for Yaki, know roll assessment? you then ask, – announced as of the I’d of then the kind salesforce also quarter. free risk any the I'd And you sorry,

Yaki Faitelson

a for we just salesforce, of of same in lot are a definitely a just lot – see pipeline the new as thing functions getting and customer the same lot features, of now with platform, it’s but the the of release the the value. momentum the It’s

the You know platform more it’s just much than themselves.

are this sanctioned have adoption that is COVID very stationary the is you points after the and applications, think really not information like the organization digital so one endpoints that data of the of where I SaaS trends access anywhere. the data amend is and because this for positive, going that is more to on-prem

is between some just the you know collaborations. build towards like application and much of the applications SaaS It’s the salesforce. are So and data the so on-prem the data just norms, in critical very strong combination SaaS

a it’s and massive this visibility biggest give for and you massive, when [inaudible], oriented the value most just blind So organizations. is spot data

the – about even revenues installed the security is can can this, think it there business, be take of base a the a this massive think and know salesforce, of Just you size fraction issue a and that this business. and be

we misconfiguration each and and vast to every opened repositories drive the massively, in D-Tab Okta really state we most world, open are and and and on that the open just using much so all just XXX. So the [ph] the all do from is that of SaaS this Box ahead whole this of prem the bone, customer meat of which and innovation is set, based everything is for lot much us on just platform, we so base done platform to that there on SaaS clarity that of and whole can be feature G data have a in increased it’s believe term the

massive right we the a are direction. it's believe and we So in opportunity just that

Operator

you. Thank

Barclays. Kalia Our with next Saket Please your question comes from question. with proceed

Saket Kalia

Thanks a Hey for that taking love Awesome! Guy, about more. you little to talked guys! here. bundles I'd my dig into the question bit

of couple on a parts just question, maybe bundles. to all So this

most products products are just were silver differentiated is of made think number those of when remind then what on that and particularly those. differentiate you to then, interesting. that's bundles, know you when first You to the us gave And you of that are on compelling available. more Anything gold any maybe just the generally because can bundles compare the you pricing, gold compare I’m platinum, what the know you some products. is, a curious one kind right,

Guy Melamed

upfront, we're the customers, customers came the of and throughout when thought fact all, seeing wanting about that much the it we've of from offer to platform first to really So, we the our bundles, we seen purchase that more to transition. have so

go depends engine, the licenses and it with advantage, That And the of towards have sale. there's kind kind and really their to that automation many platform. the that automation, and so more to that want back realized sell used data the more to perpetual, security on data we customers XXX engine. just So consume fact when licenses selling classification we geared office we our the of was you

that think So And want different XXX the has them can uses introduced would couple fully for within have first that – the just making it, know licenses that protect about date There's offer. who available fully started sort about fit we they we to like you those ago, includes sure last are include that we when they more are of when them reps exact they a you available. think customer quarter needs, quarter how the quarters if they I having automation the bundles, it engine. customer that can in and you that of that it, process Office they we but sure and really tell real the only platforms, that it were of the some was and making

So recently that. pushing started we only

think for not terms platform our customers benefit of I functionality within the selling in process selling and simplify can additional the and selling also it's of the platform. the

Operator

you. Thank

with Our and next Company. Please Shaul question Eyal your comes Cowen with from proceed question.

Shaul Eyal

I the supply this Thank asked about quarter. it afternoon last Yaki, how I’ve and chain potential business quarter or well was constraints that see before you. I Good standard model. guys! done think quarter you've

in with or know response, this I last similar I in no you more appliance Russia. But encouraging was the before a just of all-in-all name. I and is quarter the color want to get some is given want as last. a of out quarter the revisit light topic guys an question, But even that software based and are absolutely guidance the or like the not it maybe hot to case definitive think again, I for year specifically land tech

lines? So what's the these thinking along

Yaki Faitelson

machines impact, hi can virtual you because Shaul! can or direct or AWS, see our you on-prem, install it it Yeah, in install Google. if be Azure to We want don’t

customers machines our to so see related DA our we So don't Could point. direct are to these everything and that’s a at is available sub-solution, this impact

Operator

you. Thank

next question Please with Securities. proceed Our Seyrafi from with question. your comes Shebly FBN

Shebly Seyrafi

thank so Yeah, much. you very

three – you points little factors decline that quarters by on talk year. basis gross drove stabilize? the margin to want or I sequentially, to question which which last in to is the So, year-to-year metric And this gross decline and line. of to XXX expect, bit margin last just steeper a It whether the year to declined is my the than

Guy Melamed

on all my we about that you of seasonality look see leverage basically the I model, one the within at and of a we leverage of when previous there I kind in flat First operating lot we answers, margins in a the regular and in When are have model basis, year-over-year. of non-GAAP talked think look is the the year. obviously

year non-GAAP in So a the of the been year where expenses about look you been of are you but have has perspective margin operating that quarter our topline, is when Therefore QX quarter and has you historically of from year-over-year, relatively flat. the basis, historically terms when on relatively QX highest a the QX, the revenue lowest flat. think sequential seasonality

Operator

you. Thank

question. Research. with proceed from Our is Please Tilton Joshua question Wolfe with next your

Joshua Tilton

Yeah, question. hi guys! Thanks for my taking

Your flat new were subscription essentially a dollars on basis. year-over-year

dollars we the the to anything expect So of year? wondering And from new outside of the remainder the sort how there subscription do highlighting for a is bookings perspective just I'm of quarter. trend in worth Russia

Guy Melamed

is, you when strong. feel business. and item, look it in. to feel line the of the pipeline that point that one We when added subscription year. subscription it's item grow, you at our the ability to and there out we about overall line because to our So numbers, overall perpetual new the at good has the need is added about factor look part good immaterial you thing as subscription that just The this the We and been very year-over-year very

Operator

no Thank closing floor to to any questions comments. over like James further back are turn you. for There I the would Arestia this time. at

James Arestia

everyone Thanks don't to out can please We if joining. and be have we good to quarter night! hesitate with thank forward So reach and helpful. you a look for speaking this you

Operator

concludes This conference. today's

You may disconnect your Thank your this lines participation. time. for at you

Varonis Systems (VRNS) 3 May 222022 Q1 Earnings call transcript