Varonis Systems Inc at Citi TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : Guy, I want to start (technical difficulty) and then internally, you've had several compounding layers of changes take effect for the business. So I'm wondering if we can set the stage with sort of what have you been experiencing in the macro, how the business has reacted? And then just from a micro perspective, some of the sales organizational and incentive (technical difficulty) would love to kind of start there and bifurcate the conversation between macro dynamics and micro dynamics.

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) thinking about the remainder of the year and naturally in the context of some of the things you talked about, right, SaaS and MDDR and the transition coming to its full fruition by the end of the year. So some of the more tactical elements and more memorable highlights (technical difficulty)

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) has been very hard at work and their time has been very occupied (technical difficulty) if you will, for transition, right? So can you give us a sense of sort of numerically and quantitatively as best you can, where we are on the entire installed base having moved and what might be some sort of the remaining hurdles?

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) in Q4, all the Ts have been crossed, all the Is have been dotted. Just from that standpoint, with the sales team having the reps on really evangelizing and educating the customer much, much earlier on, on the benefits of the transition. (technical difficulty) I'm wondering if REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 1:30PM, VRNS.OQ - Varonis Systems Inc at Citi TMT Conference you can shed a little bit of light on or comment on how new pipeline generation has trended over the course of this year after having learned what we learned last year that, hey, (technical difficulty) they don't have the bandwidth to go out to prospect. So just new deal, new logo, net new business pipeline generation activity.

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : And just as a point of clarification and even a reminder for us, MDDR has been deployed as a (technical difficulty) independently and individually monetizing MDDR. It is a powerhouse offering in and of itself, but it just makes the whole SaaS platform usage sing, right? Where is kind of the (technical difficulty) how should we think about the direct -- to ask it more simply, how should we think about the direct monetization of MDDR because it is such an important layer on top of the SaaS (technical difficulty)

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) clearly still a good chunk of the base needs to be moved over, but let's talk about the installed base that actually has graduated and migrated over to the promised land of SaaS, right? Can you talk about some of the buying behavior and more specifically, just to put some numbers and sort of model-related context around it, as we sit here (technical difficulty) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2025 / 1:30PM, VRNS.OQ - Varonis Systems Inc at Citi TMT Conference

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : Acquisitions. Yes, fantastic. That's actually -- great minds think alike. You'd historically been very selective on M&A. I think Polyrize was your first foray into doing M&A, and that was five years ago. And we've now seen two deals this year, right? (technical difficulty) And why come out guns blazing into e-mail security?

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : And just -- I know it's very early. The ink was just dry yesterday. But how should we conceptualize the monetization path for SlashNext? Is this something that's going (technical difficulty) or is this going to get just baked into the rest of the portfolio? I mean, what are kind of the initial ideas or thought processes that are, you know?

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) OpEx perspective. I think one of the things that stood out to me is the intention around reinvesting into the business (technical difficulty) stepped-up investments. Again, what you are seeing is a healthy environment. So I want to get a better sense of, in a priority sequence, what's given you the confidence to say, hey, yes, we don't want to sit on the sidelines. We want to step up to the plate here and reinvest, especially

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : (technical difficulty) devil's advocate side. So clearly, the market environment is hot. I like to say that you guys were thinking about (technical difficulty) validation for numerous reasons why this is such a pernicious problem. (technical difficulty) From the standpoint of what's happening in the competitive backdrop between someone like a Zscaler last (technical difficulty) make sure that your reinvestments in the business are protected and are not eroded away by some (technical difficulty)

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : Anything to add, Guy?

Question: Fatima Boolani - Citigroup Global Markets, Inc - Analyst : My last one for you, 20% plus ARR growth. when we think about weighting factors like the number of protected workloads, the upselling motion, the new logo adds, how would you sequence those in terms of the most consequential impact to the path in exceeding 20% growth and hitting and breaching the $1 billion ARR milestone?