Varonis Systems Inc at JPMorgan Global Technology, Media and Communications Conference (Virtual) Transcript

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

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : All right, great. The -- we can talk first, I think, about maybe any context that you guys saw from the pandemic and what you're seeing in terms of security spending coming out of that environment, independent maybe of some of the headline breaches that we'll get into a little later.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Understood. Yaki, I don't know if it's just on my end, but I think that we're having a little bit of some audio issues. If you could just maybe move a little closer to the microphone or if there's some sort of adjustment you can make with -- anything we can try would be great. Just quickly on data protection, though. I mean, how did maybe some of the use cases and demand environment differ once everybody started to do this, right, work from home and work from places outside of kind of the head office network?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : And Yaki, you said stationary. And so I guess we'll bring in Guy here. I mean, what kind of financial sustainability do you think this tailwind can create, not just here as we come out of 2020 and into 2021, but maybe the next couple of years?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : A couple of other trends or kind of macro trends that I want to touch on before digging a little deeper into the subscription transition, Guy. First is Office 365. Can you discuss that as kind of a growth driver that you've seen over the recent years? And then what's left? I mean, how much of that opportunity still remains outstanding? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2021 / 1:30PM, VRNS.OQ - Varonis Systems Inc at JPMorgan Global Technology, Media and Communications Conference (Virtual)

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Right. Great. How about -- speaking also of early innings, how about the DatAdvantage cloud product that you announced, I think, just last week? So where does that fit into your Jira architecture? And then the more that people adopt cloud use cases and workloads, how should that impact your business?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : How about the recent -- the more high-profile data breaches that are all over the news, probably the most prevalent or most sited to be SUNBURST. But I mean, how do these headline breaches impact your business, whether it's just the general demand environment or something that Varonis specifically does as it pertains to some of these particular breaches?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : So I should have mentioned this off the top, but for those in the audience, make sure you'd like to ask a question, hit your button. We've got a hard stop at 10:00 a.m. Eastern. So I want to make sure that people get their questions in before we make it to the end and maybe don't get to them. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2021 / 1:30PM, VRNS.OQ - Varonis Systems Inc at JPMorgan Global Technology, Media and Communications Conference (Virtual) But 2 lines of question and obviously, a very popular topic area is the subscription transition. Guy, you mentioned it earlier. In the company's mind or in your mind, where are you? Is it -- are you complete? What inning, if you wanted to give it a baseball reference? Where are we now?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Where do we stand now in terms of average license per customer? If you said the path to double digits is clear, where are we now?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : No. I mean, it sounds like once you get to a certain point, the customer does the selling for you, right? Is that where getting the primary operating leverage here that we've seen? Is there something else going on? Or is it just simply that once it comes and the customer reaches a critical mass, the number of licenses just kind of falls out of the sky?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Can we touch a little bit on competition? Who do you see as your primary core competition? And then as you continue to expand, you expand into new areas, new products, are you bumping into other competitors that maybe you weren't just a couple of years ago?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. The Biden administration signed an executive order talking about with specific guidance around cybersecurity. Curious to hear how Varonis may or may not be impacted by that? And then secondarily, getting into the federal -- the U.S. federal business, how big of an opportunity could that be for Varonis?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. Look, I know we're almost up against that 10:00 a.m. stop. But just quickly, any expectations for maybe change in investments or spending as people come back to the office, remote selling turns into in-person selling again from your side, Guy? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2021 / 1:30PM, VRNS.OQ - Varonis Systems Inc at JPMorgan Global Technology, Media and Communications Conference (Virtual)

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. Understood. Great. Well, Yaki, Guy, thank you very much. Really appreciate the time this morning. This was great. And we will be talking to you again soon. Enjoy the rest of the day.