Varonis Systems, Inc. (NASDAQ:VRNS) Q3 2023 Earnings Call Transcript

Hugh Cunningham: Okay. And then, these conversions of existing customers, are these taking place at the end of their existing contracts? What I’m trying to figure out here is if when you quote a number, 10 million or 12 million, that number includes a sort of accelerated recognition or the initial period in that subscription. Is that right?

Guy Melamed: No, that relates only to the deals within the quarter.

Hugh Cunningham: Quarter, okay.

Operator: Our next question comes from the line of Brian Colley with Stephens. Please proceed with your question.

Brian Colley: Hi guys, thanks for taking my question here. Can you talk about how the SaaS platform has impacted the pipeline for new logos, as well as sales cycles for those new customers? I’m just curious if you’re seeing an acceleration in new logo ads or sales cycles?

Guy Melamed: So, I can tell you when we look at the new customer ads, we’ve definitely seen positive signs this quarter. And I think that as we look at our ability to sell SaaS to new customers, as I said in one of my previous answers before, it opens up opportunities that we didn’t have before with the on-prem subscription. So, I think overall, the signs that we’re seeing are healthy and positive, and it definitely gives us the ability to show value. I said before, we’re kind of past the challenging part of the transition where we have to “Clean” through the pipeline where some of the quotes were introduced to customers in the past as on-prem subscription. Now, we’re just starting with the SaaS as part of the quote, and it’s been very well received by customers because the value of our SaaS product is much greater than the on-prem subscription.

Operator: That’s the end of our Q&A session. I’d like to hand it back to management for closing remarks.

Yaki Faitelson: Thanks for your interest in Varonis. I look forward to meeting you all at our conferences this quarter.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.