Shares of Varonis Systems (NASDAQ: VRNS) climbed as much as 10% early Tuesday, then settled to close up 6.9% after the security software company announced strong third-quarter 2023 earnings.

Varonis' quarterly revenue fell slightly from the same year-ago period, to $122.3 million -- slightly below consensus estimates for $125 million -- as a 1.7% increase in subscription revenue to $97.7 million was more than offset by a 9.9% decline in maintenance and services revenue, to $24.6 million. On the bottom line, however, that translated to adjusted (non-GAAP) net income of $10.4 million, or $0.08 per diluted share, far above estimates for adjusted earnings of $0.03 per share and up from $0.05 per share in the same year-ago period.

Annual recurring revenue (ARR) also climbed 16% year over year to $517.5 million at the end of the quarter. Around 15% of Varonis' total sales now come from software-as-a-service (SaaS) products.

Continue reading

Source Fool.com