VRNS - Earnings call transcript Q2 2022

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Operator

Greetings. Welcome to Varonis Systems, Inc.

Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to James Arestia, Vice President of Investor Relations. you. Thank

begin. may You

James Arestia

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

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

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

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

Yaki Faitelson

afternoon, for and us Jamie Thanks today. good joining Thanks, everyone.

Our our model, year-over-year highlighted strength of QX and of results XX% once again growth the demonstrated in our durability the ARR. business by platform

data, especially are The the contributed our more world are more to Varonis America we environment, protecting world in as sensitive customers companies to moves needs is growth. seeing are continue stored. discuss around our And significantly jump security uncertainty quarter this in Today, driven would I critical performance in. to the and working let's hybrid wherever the which with North given fuel of become We secure times, growing to has capitalize the innovation our to on the how data data. sensitive pleased them, trends of so And has and always the it urgency even the platform growth. recognize to we the positioned like

a automated Today, growth. rapid geographies, matched our today, protect. coverage the all provides. provide to And offering data. and covers we pace has this our in even protecting Looking we create increased data back, the far then, for we and companies, all the Since goal of understood the capacity it to the capacity has to founded protection it our acquiring innovation sizes, solution surface harder of Varonis sectors The customers it. for because data complexity sensitive attack dramatically relentless making protect and that exceeded share comprehensive

on. data during data protected rightly Their validated isn't It quickly secured creating every and the more fully assessment. on-prem are in important and continue that our speak the they new the deeply concerns with like grow, data risk goes that Most organizations to company simple complex you sensitive While and data are is escalated questions, and concerned sales the your is Would time. more any data utilize our start know if within nearly the cloud any questions reps right know or cloud. to we initial find people was environments, your whether dependent few cannot stolen organizations of answer that it? these access sensitive a yes stored? you have you Do to where being with this. encrypted? most do is only we at know What

well more data inevitably much For applications the Salesforce, down built as XXX is add Azure, to become security cloud. of is This Drive, any applications were have as a First, sensitive concern. of customer problem additional few their a where as worse in data, past over Why to it Google and less and share companies few. that? this true all cloud has name like cloud Microsoft only pushed easily the to data which tremendous more create engagement and as years we seen to AWS

that complex, record. surface CRM CSOs would damage us must risk are contain risk to our not DatAdvantage mission every in that offer application typically CCPA which With the to tell blast their is many fines security only cost organization. market proactively, the impossible. that in organizations Cloud Cloud, can biggest having or protected potential. early catastrophic. of with, selling the are data cloud in about risk and the we in QX sensitive with They that ARR accordance gain and conduct for like regulation Skype does cause are others have be each and and your to continue Losing significantly building conversations to DatAdvantage still the we half inside year application key time different is Think cross-cloud hard holds we CSOs Nevertheless, for the is pipeline each at take the Second, increases guided the the be provides Salesforce, of reduce but application millions for which DatAdvantage This critical would and because new of in always extremely on the mass. boxes. data can speak clearly pipeline data system, pace faster and cloud activity, the see. can sequentially customer stolen with and opportunity also $X expand without tracking reputation, GDPR, sales it licenses sensitive report permission models, of information pace suspicious Cloud visualize black be to expectations finding This the your million long-term business. and areas innings the pleased new investigations. year. are access, Varonis, the second and ways critical some a and it we capabilities improved our customer mapping beginning said it that as we of The beyond we existential and it

call Varonis to would like XXX in A the few fix a glass platform our which and data and employees time to thus purchased a doing manually take seven to wins in at turn demonstrated They the needed to Salesforce. how radios Guy, and access their growing more our the assessment of cost, with yearly. risk After issues Silver automatically much a data a they Bundle fraction expand Varonis Before so Microsoft to new shrink but line estimated, technology of lower in rates, customer with would the I critical deployment X,XXX in open contains intent QX. became customer licenses I company retention than highlight QX. from and

value Turning Veronis additional they their became licenses, was every it the license customers in target automated When first to more consume get on-prem. providers data is largest me the more level more. our have example turn North all double-digit were moving existing customers, that of great America protect leads you is for higher we in towards A this purchases, have which say XXXX heard of they in Veronis Varonis’ telecommunications customer. when of to one looking to customers

data the the to data blast automation engine additional subscriptions, Over sensitive we the radius. and reduce to identify years, purchased including classification proactively

the purchase expansion customers’ believe, data AWS. to help agreement next better employees to global never of surface, quarter, that Cloud discussing for SaaS protect Microsoft already organization During the ransomware we license recap, been XXX. our attack we threats data XX to can and licenses, the that enterprise them unplanned over protection DatAdvantage which needs address And an has data them the the of second Veronis access more. offering their protect strategic in are gives this purchased XXX,XXX in To with

Guy? to market target. opportunity enormous Varonis innovation, continue remain coupled to need all and We address against this us over ongoing With executing the drive stakeholders. value capability to in for me the with billion things: before let unmatched on ARR our focused Guy. $X Our turn closing call on two our that,

Guy Melamed

was moment, discussed by after And basis we've expense demonstrates growth accounting us of we and which afternoon, for Total revenue XX%. line discuss Good balancing And for in on margins margin growth Thank XX% quarter year-over-year that continued everyone. for Yaki. North was second at QX the points, line operating that in revenue joining will and leverage. in total top strong America, headwind our extremely XX% past, I growth on total pleased line length improved in a in FX the Highlighted today. strategy XXX top the with ARR side, are growth shekel-dollar revenue you our for and expansion. Thanks, XX%. growth performance operating Russia results by adjusting

down drill was in growth seeing the results, for we're into where describe the what we EMEA, QX quarter. Before full reported me XX% let

performance opportunity not are reflect ahead us. results of the a number do external factors of anyone's that there beyond Given control, true these our and

of EMEA we can headwinds, call, for on which we uncertainty half and the the U.S. which dynamics Russia second, us a XX-year and as investments we As position plan strengthened second full $X region. million trend the in factors we continue strategic $X in the the These with for believe the exiting growth low. business impacted quarter growth the we control see. know, the ARR dropping first generate include QX will negatively our against the revenue dollar near-term for was euro EMEA we vast revenue multiyear by XXXX, last adjusting capture opportunity million a the to accelerated year. sales which to After and Regardless, all the in a during in significantly XXXX XX%. continue And to reported pound, to well euro to these focus

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

revenues geographically. or business as North had revenue. million to another quarter XX% the of strong America total XX% at grew Looking $XX.X

$XX.X or XX% I XX% EMEA revenues. of mentioned, grew total As million revenues to

million World grew to $X.X X% of Rest Lastly, of revenues total revenue. XX% or

years two years June As of six four XX% and of customers XX% the and customers a or ago more XX, from ago. of our year XX% with At purchased from purchased two a XX% those employees or up licenses, ago more XXX same XX% or year more ago. XXXX, XX% up time, licenses,

received growth we bundled well newer and quarter progress existing also our goal FX growth reflected double-digit to toward These described are offerings another that the earlier, Russia and of Our was at customers ARR strong are of customers being ARR as both by in trends adjusting headwinds license. After for I Varonis year-over-year. XX% XX%. new getting

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

forefront the manage same the of dollar As always an operating accounting million the measured of X.X% compares was QX. shekel, through cost headwinds or This above margin $X.X last we our the income XXX that once the X.X%, been points. or how an related management operating end I a again high operating income mentioned expansion the basis result, of responsible of of points for in $X.X has earlier, quarter million expansion business, the year. operating After evidenced as Margin XXX second to to guidance. period was at margin of basis in

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

short-term equivalents, of securities. million XX, had approximately deposits As cash XXXX, $XXX cash, June we marketable and in

FX was half negatively we For of months the $XX.X our flow compared XXXX, XXXX, six XX, first headwinds new million in quarter. generated of last the responsibly investing overall period from year. impacted cash of net the the of continue X,XXX We plan million the $XX.X support ended from to approximately to the the generated increase employees, cash same June by In $X operations employees million. second quarter to first with We of XX ended business. growth an

Moving guidance. to our

first currency. which and XXXX this ARR again And for half the in second full accelerated discussed. both following once we full given ARR the the as year price strengthening revenues pound year the expectation raising I renewals the guidance are This our and new of against is that trend local in our our euro and the quarter, such, as income while We reaffirming first, both despite relevant during headwinds: for revenue. meaningfully the dollar significant impacts U.S. and business already operating of

million. guidance discussed, exposure new Israeli and $X into have $X our partially factored ARR by will through is we our mitigated shekel Second, third for Russia XXXX which is the year the and exit of approximately previously which as our to revenue impact program And million our hedging already guidance. to full our business

With full For impact, quarter basis both year-over-year now the operating basis the year. is expansion XXX our of midpoint approximately the XXXX basis be QX for income points. XXXX, of that for year-over-year XXX shows this of full and expected guidance expansion headwind points points year and to approximately XXX of third

$XX For third the share to million million and This non-GAAP diluted quarter expect: XXXX, total $XXX.X per of shares to income range XXX.X of operating representing net diluted million, growth non-GAAP we XX% of $XXX $X.XX. $X.XX income the million to outstanding. in of to XX%; $X.X of assumes revenues million;

XX%; strong $XXX assumes durable to range operating and ARR million value $XX.X stakeholders. and million the $X.XX we revenues million; growth quarter to of representing are year representing in with expansion, XX% our For expect: margin share we non-GAAP $XXX to of to $X.XX. top non-GAAP the diluted summary, total driving growth million $XXX year-over-year another ability XX%; per shares XXXX, to of to for income In million full $XX.X diluted This continue of XXX.X Varonis creation outstanding. in $XXX all confident of net of to of million, million, growth income XX% line

the Looking questions. that, enormous ahead, before And we are positioned well today. would to Thanks take against Operator? opportunity to with happy market us joining we deliver for us. be

Operator

Markets. from with Matt RBC [Operator first Instructions] is Our question Hedberg Capital

Matt Hedberg

One question.

it incremental see. incorporated macro maybe year in I half Okay. revenue uncertainty Guy, does same? kind you in assume your maintained us philosophy which sort other more it your there. headwinds stay conditions kind was guidance? bit thought full a how you to guess little really help second Does despite thought In of ARR of of on Just the can great guide the you words, worse? FX with or about

Guy Melamed

Absolutely.

together, execute part baking good very was And what approach good we what that in we year. a about we And in when So the Obviously, guidance to can very very overall, second will part pipeline, do responsible uncertainties we our a in in we take But we talked what the the a we the our second factor us. ability It QX Europe very we look results kind strong everything that, we the control. at in ability in and of our assume of the QX. of was with at in good that of when of for terms in well, in we feel guidance. to bit the continue look and terms year. saw feel see quarter

Operator

Our with next Jefferies. is Joseph Gallo question from

Joseph Gallo

more. humbly you and but Guy, greatly maybe that I think a or numbers a ask just for XXX clarification few I gave I about appreciate

And headwinds, and time if what total ARR of Regarding FX? that gave sense the was revenue so, to headwind And for the year-over-year year headwind related since last and to headwinds incremental XQ? revenue? was revenue the any guidance incremental you was ARR revenue the then what for in

Guy Melamed

out there. a there's of lot you as mentioned, Joe, numbers So

very understands we and out everyone confusing So I that of concise want that kind don't make everyone start there's to lot there. a be of and sure numbers

that, guidance. we and when to there. the the to U.S. and and of $XX that having you accelerated headwind million numbers impact you Russia reaffirming gave ability impact to Obviously, -- to when in talked have on our XXXX, that compared out important million. about try million million of our feel between the $X not So the with strengthened that everyone when and guidance to over that it's initial top there When then those and about look compared $XX line know February when actual you on are was headwind compare you currency two straight I'll million guidance very and of initial the execute. take dollar the our gave against keep very FX side. an But decline. FX the at together, $XX all we we The set you roughly And to of $X of confusing actually top QX, start when headwind bake we headwind have we to obviously guidance the on gave numbers about good the there, still kind is we're because

Operator

from Fatima next Our Boolani is Citigroup. with question

Fatima Boolani

guidance of Guy, control? slower can’t tangible you what control anything us be that business, now, control, EMEA clear observations whether And climate, signs in observing the front sales that can EMEA b, of think pipeline really around signs your is just things the what build, on you’re and a more of can you little were a, commentary baked some be give bit may examples helpful. elongation, of into that would things on, be cycle I about some can’t. versus your the you explicit very things Maybe more to you you you

Guy Melamed

Absolutely.

the some by you And reported but we doesn't renewals. look When there's and control, business start both And truly everyone, new we the of FX performance. obviously, of numbers. reflect number giving we headwinds. I'll about kind grew XX% underlying our for when can't EMEA, the at business the that price the in we talk to Europe, remind what in local just So currency

the that’s Russia the you that, quarter. on was talked FX the length impact in of we impacted. So last And that in have top why

So what growth at was the EMEA with when control, adjusted in the number look we actually XX%. you can

Yaki Faitelson

it's other thing The -- execution. Yaki, hi, primarily is

the about super our despite focused are we most the economic to we organization is almost basically intensely data that We protect And at data believe are the the now critical. way center a is After covered. customer event COVID, with information. stationary is is concentrated success. practical And just reorganization the the in your the and SaaS in one the data every trend DA Cloud -- applications center, challenges,

doing. going the We run want IT to successful very results. are APT insider sale digital Organization to to security customers make our that dissect you’re sure is this efforts any to and [indiscernible]. with we protect are what assets If

so are far, is this to And do something effectively. able we that

Operator

with Our next Securities. Fishbein question from Truist is Joel

Joel Fishbein

ask And rest you’ve to obviously, or are a bit your would to the -- hire? cut back deeper little forward. where initial hiring year? your hiring what plan, just the about expenses, Versus changes the plans to going like you’re your throughout of Guy, to I’d continuing love plans down any on dig into some

Guy Melamed

definitely opportunity. our capitalize we making longer-term we're the truly hiring So sure continuing can on and that

back time, we the happy this that’s line many, margin it the time, line to in for and not in you and and years, but that at we’re it's on couple if at you continue our of many some the about top look we do way even I’m the bottom when been last just growth to at very leverage. and same do to and environment. And we've much philosophy hire But want bringing think quarters. a thinking to very of the I this showing operating in But focused prudent that same way responsible continue it. look

Yaki Faitelson

the really inside opportunity. of not overall are We

data in market really all protection, privacy can is us. and repositories coming and that very we’re the use series our of long for them. to response, We cloud in There opportunities the we are many detection case the So need is the term that but three that at scale. we it and to many at look a compliance data effective understand do present for we And which tremendous business are how cover always here is doing way. a acting history, responsible

make We’re the or to plans right that well balance investments we just doing innovation very growth and sure profitability.

Operator

Our is Sandler. from next Rob with Owens Piper question

Rob Owens

Fatima’s on North it on usual, is was kind I incremental deal address wondering look market? of are seeing especially American in sign-offs transactions, other building as larger sizes. guys like the business if you question, that vendors Or market? you could, maybe as you at And

Yaki Faitelson

was it In C-level we signing business thankfully America, more as Europe, see orders. they North but usual. are scrutiny on

at more very least benefit worked for your you with we The digital are when provide to do we now customers other we want security information, when we and from believe, products, thoughtful the thing as that I much it protect doing around to are it. said well much us way historically, more we usually purchasing coverage, practical process is have And DA most automation. before, Cloud,

sales that. more, So that, more are customers doing the with to the value able as we PSC campaign are see, to we be deliver in cater they our can and way right you when the

Operator

is question Company. & with next Eyal Cowen from Our Shaul

Shaul Eyal

guys going guidance light in you definitely on. congrats performance think deserve I and of quarterly on everything

have concerns to might you think results of rest and many this with guidance. I set put

on currency, If the just trends add would have want guidance your July written-off back I about to actually far. it sure so for that second linearity maybe a make the gone So just And just constant word a final the adjust contribution, I we for thus second correctly. trends higher. during quarter, word Russian maybe get revenue half

Guy Melamed

Absolutely.

you Russia. adjusted -- QX at the XX% like full growth at the is and growth And rates, the today's the adjusted midpoint. impact on So from revenue is the revenue And when XX% ARR based year that mentioned, midpoint. includes

Shaul Eyal

about second it. linearity Maybe on Got What far? anything quarter, unusual? thus during July trends

Guy Melamed

part feel we with strong the year. started very July second confident and of the So

Operator

Kalia with Barclays. is question next from Saket Our

Saket Kalia

question wondering the That Guy, to little last if a was bit. it up earnest you I a mix little bundling in pricing that been still talk just a understanding little bundles? customers early but seen from those started it’s about just just reception just Maybe the any is, early adopt just team? bundled the any reads early you’ve really from could sales what’s bit the And quarter. maybe bit, right? reads, in that

Guy Melamed

We see with Absolutely. of it bundles second sales in force good very We quarter. from our really pleased the adoption reception well. were kind adopted the The customers.

Just to remind XX you, because X to between though, on all the deal. bundles already months that up we cycles the in deals sold are X sales and this months quarter motion were our to larger

So overall, quarter. with the we're very pleased this adoption of the bundle

Operator

from Our Wells Andrew with Nowinski question next Fargo. is

Andrew Nowinski

go back I to ARR. just want to

think I in factoring Russia which points lower than the XX% ‘XX that year. is for FX FY about growth is it and ARR just was adjusted last you said now five

all last wouldn’t and the XX% I from you bundles now over DA given a now. So new expected with guess launched traction the Cloud, licenses which quarter And five year. last have have the think you deceleration new you’re I point I

in are So we any guidance be? mind to keep ARR maybe as that assess that actually try other how conservative there might we should headwinds

Guy Melamed

a of all, it's larger number. much First on

we at a midpoint ARR XX% with growth the the I Russia is factoring and very with. the at that number think good very looking when in comfortable the feel headwinds at look you and feel numbers

at they customers look and with. six you number four our platform. licenses the very something happy the platform we're When licenses indicate more of I business think the that of and on more more overall, of are or we're licenses, consuming or and licenses how the the selling that adoption trends is the and

results grow pleased our overall, and the continue the to in years to ahead. ability So with with we're

Operator

Chad from is question next Capital Craig-Hallum with Our Group. Bennett

Chad Bennett

call their weakness, Microsoft's SMB-related quarter, and on bit were Office guess last just I there was on-prem on-prem guess But kind importantly, in little especially they it's going about server-based week, you more products office, and commercial conservative around expectations little especially their how a products. Microsoft a all about server-based define of of So more I are forward, they products, talking their and the the it. on

guys Just kind bit the know just I that Microsoft the of think insight any think you as applications but there how and outlook not pretty that? base penetrated you’re it’s and little on would vast into on oranges nearly apples anybody do a I you’re just -- as there. know as levered about to decently

Yaki Faitelson

even is them. with We market penetration capabilities, our and are are customers to that a concern. to not the we our customer Office base under and and going within penetrating help main need XXX the And execute overall detection our try

So nature is concern. not overall, penetration like and market single-piece a

Chad Bennett

come Got on the Guy, see on kind is to it on constant maybe there's the I -- nature, leverage a just it. looked a good follow-up Then mean, or and operating of like currency expect more out or back forward. operating messaging seems to significant leverage going

should Russia the a subscription looking and deceleration appreciate FX as the there’s been pretty marketing whatnot. on of to should think standpoint. to annual And how just of you business a the just revenue don’t want I term from at basis -- percentage you we side rate just But mean, generally on has and barely operating growth I headwinds long and and in short want about how but sales pledged, right? we Just or -- about And -- leverage think going a think forward? an term, significant so think

Guy Melamed

just when kind you U.S. [indiscernible] a operating over that is when look margin, doing I for operating showing the it of dollar at X% shekel at the about midpoint us, think and ability I headwind a you of at think leverage, with the being Well, just headwind another do a but at margin right it lot points basis pace. we're think of for there's XXX us -- expand to

operating that and way. don’t not hanging the You margin opportunity investing want leaves show in to right the

balancing So top growth if look between and margin back in improvements. you line our operating

performance job want pleased responsible good with noise way it’s and is you a I but continue of QX lot investments. necessary underlying results, right done a and the think to in there kind do of and it headwinds with and QX. a when we’ve pretty better than we’re at the to clearly the And look

the for to very in continue quarter good that part year. momentum So this of we want and second the us

Operator

is from next question Stanley. Our Hamza with Morgan Fodderwala

Hamza Fodderwala

you me. clarifying you or for earlier, quick did in to question more Two on that new Rob’s no? say questions follow Europe Yaki, deals up were currently seeing

Yaki Faitelson

Yes. Europe, yes.

Hamza Fodderwala

start? that did When

Yaki Faitelson

QX. It started in

scrutiny saw just there see are you scrutiny So but customers QX, we buying. definitely, but no C-level thankfully, the is also, But during scrutiny. more

Hamza Fodderwala

for that your you you When the the you over then XXXX. gave if to full FX your Guy, headwind assuming were back you go guide -- guidance for FX million was then -- Okay. in the back May, recall? And back what you in $XX for year year headwind said full for

Guy Melamed

million is million Russia to of with you versus And get guidance February the $XX over that headwind. impact, $XX the we The provided. approximately

Hamza Fodderwala

reported Right. when May, headwind just FX the year for QX asking, were assuming full for outlook? in what I’m you you

Guy Melamed

the additional approximately number compared FX quarter's reported to So headwinds. million is additional last $X.X of

Operator

Seyrafi from is Securities. question next Our FBN with Shebly

Shebly Seyrafi

So in large the we’re is And mid-single current stronger how currently us in the prospects the quarter. federal past, like update it federal or are Can your it And think in what give you now? I seasonally an insignificant. was for digits on quarter?

Yaki Faitelson

well. customers existing should quarter pipeline very the this we and good continuing There perform is and with a it's believe very it entering

Shebly Seyrafi

QX – you in want additional adjusted spending? seeing have just of in stating seeing they’re other you're And because for not softening the just to softening to U.S. clear your incremental made North strong be enterprise a Russia, segmentation, companies your you’re And some QX scrutiny be clear looking comment basically XX%. – kind stayed that to seeing Okay. I America deal in Europe Are about reported at Europe. geo XX% want here, at in that I just enterprise. any in from growth just your decelerated FX you growth XX% the but some

Yaki Faitelson

At this no. point,

Shebly Seyrafi

I’m sorry?

Yaki Faitelson

No.

Operator

from Research. Tilton And Joshua is question our next Wolfe with

Joshua Tilton

Just a as clarification for well. me

I an quarter. purchased to you does your think license mentioned agreement enterprise duration in that ELA the compared of licenses? traditional the How

Guy Melamed

good cycles sales model, us positive seen -- at very have perpetual kind sold we significantly the very you actually And of stayed with the the under ELA, actually for the we've very is of same we So us. the number the just higher and stay licenses it's sales not and which is licenses under model licenses look that that if for you sell same. subscription what's cycles positive since additional

cycles licenses, seeing more way actually we're sales have same. existing both So and and stayed customers the new consuming

Joshua Tilton

what traditional Just to ELA actual aside, the duration longer contract of And on the sales Is duration cycles putting versus your the up that. follow a contract. frame? about time

Guy Melamed

We duration same -- see contracts. the on as the those

Operator

have James reached like would I session. to comments. over of end the question-and-answer for our conference We back to closing turn the

James Arestia

we speaking you, the joining and you throughout quarter. forward good for thank evening. Have everyone, So a tonight with look to

Operator

conference. today's you. does Thank conclude This

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

Varonis Systems (VRNS) 2 Aug 222022 Q2 Earnings call transcript