Varonis (VRNS) Opens Its First Local Data Center in Canada
Varonis Systems VRNS recently announced the establishment of its first data center in Toronto, Canada. This marks the opening of the third international data center this year, following those in Australia and the U.K. These new data centers will enhance the company's capacity to support customers transitioning to their new software-as-a-service (SaaS) offerings and its existing customer base.
VRNS' decision to establish a new data center in Canada will enable it to comply with national and provincial data privacy laws, including Quebec's Law 25 and the Personal Information Protection and Electronic Documents Act. This move will also streamline its operations for SaaS customers in the finance and healthcare sectors.
Varonis SaaS users benefit from Proactive Incident Response, automated posture management and least privilege automation applications. The additional support from the new local data centers, which comply with data residency requirements, will enable clients to mitigate security risks and compliance issues across their systems using a single cloud-hosted platform.
Varonis Systems, Inc. Price and Consensus
Varonis Systems, Inc. price-consensus-chart | Varonis Systems, Inc. Quote
The company has been enhancing its SaaS offerings and leading its customers to shift from on-premises subscriptions to SaaS. However, this transition has negatively impacted VRNS' reported revenues because SaaS revenues are recognized more evenly over the subscription period, in contrast to the immediate revenue recognition associated with on-premises subscriptions.
Although the shift of the customers to SaaS model is a near-term headwind, this Zacks Rank #4 (Sell) company is also facing headwinds from ongoing macroeconomic uncertainties, which is impacting customer purchasing patterns with a high level of deal scrutiny and longer sales cycles.
Stocks to Consider
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The Zacks Consensus Estimate for SPLK's third-quarter fiscal 2024 earnings has been revised upward by a penny to $1.12 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 2 cents to $3.78 per share in the past 30 days.
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