Snowflake (SNOW) and Varonis Systems (VRNS) Partnership and Growth

Magpie.AI 2024-02-06 09:50:32

Keywords: Snowflake, Varonis Systems, cybersecurity, partnership, subscription-based model, artificial intelligence, revenue growth

Snowflake (SNOW) is a New York City-based cybersecurity company that has recently partnered with Varonis Systems (VRNS). Varonis Systems was recently upgraded to Outperform from Neutral by Wedbush Securities after reporting quarterly results that exceeded estimates. Varonis' transition to a subscription-based model appears to be working, with subscription-based revenue totaling 84% of the company's revenue during the fourth quarter. Additionally, the company's transition to a software-as-a-service provider is now expected by 2026, one year earlier than prior estimates. Varonis has also launched its own generative artificial intelligence, dubbed Athena AI, intended to protect customers and data from cyberattacks. The company has landed new partnerships with Microsoft Copilot, Salesforce Shield, and Snowflake. Looking ahead, Varonis expects first-quarter revenue to be between $111M and $115M, up between 3% and 7% year-over-year. Analysts are mostly positive on Varonis, with Seeking Alpha authors and Wall Street analysts both rating the company a BUY. However, Seeking Alpha's quant system rates it a HOLD.