Varonis Systems, Inc. (VRNS) has reported 33.71 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.52 million, or $0.12 a share in the quarter, compared with $2.63 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.03 million, or $0.24 a share compared with $4.72 million or $0.17 a share, a year ago.

Revenue during the quarter grew 24.12 percent to $54.41 million from $43.84 million in the previous year period. Gross margin for the quarter contracted 81 basis points over the previous year period to 91.71 percent. Total expenses were 91.53 percent of quarterly revenues, down from 91.88 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 8.47 percent.

Operating income for the quarter was $4.61 million, compared with $3.56 million in the previous year period.

However, the adjusted operating income for the quarter stood at $8.12 million compared to $5.65 million in the prior year period. At the same time, adjusted operating margin improved 204 basis points in the quarter to 14.93 percent from 12.88 percent in the last year period.

Yaki Faitelson, Varonis chief executive officer, said, "2016 was a great year for Varonis with total revenues increasing nearly 30%, driven by the increasing need for companies to protect their most critical and vulnerable assets, their data. We were successful in meeting our key objectives to increase awareness and adoption for our solutions, more effectively target companies with 1,000 or more employees who can spend more with Varonis, both in the initial land sale as well as the expand opportunity, and delivering innovation to expand the value we provide our customers as we create a data security platform."

For the first-quarter, Varonis Systems Inc projects revenue to be in the range of $37.20 million to $37.80 million. The company projects adjusted operating loss to be in the range of $7.90 million to $7.50 million for the first-quarter. On an adjusted basis, the company forecasts diluted loss per share to be in the range of $0.30 to $0.29.

For financial year 2017, Varonis Systems Inc projects revenue to be in the range of $197.30 million to $200.30 million for financial year 2017. The company forecasts diluted loss per share to be in the range of $0.13 to $0.06 on adjusted basis.

The company has spent $12.34 million cash to meet investing activities during the year as against cash outgo of $26.68 million in the last year. It has incurred net capital expenditure of $3.82 million on net basis during the year, down 15.64 percent or $0.71 million from year ago.

Cash flow from financing activities was $4.07 million for the year, up 98.15 percent or $2.02 million, when compared with the last year.

Cash and cash equivalents stood at $48.32 million as on Dec. 31, 2016, down 1.88 percent or $0.93 million from $49.24 million on Dec. 31, 2015.

Working capital decreases marginally
Varonis Systems, Inc. has witnessed a decline in the working capital over the last year. It stood at $83.07 million as at Dec. 31, 2016, down 2.36 percent or $2.01 million from $85.09 million on Dec. 31, 2015. Current ratio was at 1.94 as on Dec. 31, 2016, down from 2.19 on Dec. 31, 2015.

Days sales outstanding went down to 46 days for the quarter compared with 50 days for the same period last year.

At the same time, days payable outstanding went down to 13 days for the quarter from 37 for the same period last year.