Shares of Varonis (NASDAQ:VRNS) jumped as much as 11% today after the company reported fourth-quarter earnings. The results topped Wall Street’s expectations and Varonis announced a 3-for-1 stock split. As of 3:08 p.m. EST, shares were up 10%.
Revenue in the fourth quarter was $95.2 million, ahead of the consensus estimate of $84.1 million. That resulted in adjusted net income of $12.3 million, or $0.34 per share. Analysts were looking for just $0.12 per share in adjusted profits. The cybersecurity technology company reported annual recurring revenue (ARR) of $287.3 million and recently closed its acquisition of Polyrize.
“Fueled by global digital transformation, secular trends impacting our customers are driving strong demand for our products, enabling Varonis to fulfill its mission of protecting data,” CEO Yaki Faitelson said in a statement. “Customers increasingly describe our platform as a ‘must have’, and we are well positioned to execute on the long-term market opportunity ahead.”
Outlook for the first quarter was mixed. Revenue is forecast in the range of $68 million to $69.5 million, which should translate into an adjusted net loss of $0.39 to $0.41 per share. Compare that guidance with the consensus estimates of $65.2 million in revenue and an adjusted net loss per share of $0.32.
The company’s board of directors has approved a 3-for-1 split for shareholders of record as of March 12, with split-adjusted trading commencing on March 15. Investors are generally fond of stock splits even though they do not impact a company’s fundamentals. The per-share metrics within guidance have not yet been adjusted for the forthcoming split.
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