Varonis Systems, Inc.

Greetings. Welcome to the Verona Systems, Inc. first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, James Restia, Director of Investor Relations. You may begin.

Thank you, Operator. Good afternoon. Thank you for joining us today to review Varonis' first quarter 2021 financial results. With me on the call today are Yaki Fidelson, Chief Executive Officer, and Guy Melamed, Chief Financial Officer and Chief Operating Officer of Varonis. After preliminary remarks, we will open the call to a question and answer session. During this call, we may make statements related to our business that would be considered forward-looking statements under federal securities laws, including projections of future operating results, for our second quarter and full year ending December 31st, 2021. Due to a number of factors, actual results may differ materially from those set forth in such statements. These factors are set forth in the earnings press release that we issued today under the section captioned forward-looking statements. And these and other important risk factors are described more fully in our reports filed with the Securities and Exchange Commission. We encourage all investors to read our SEC filings. These statements reflect our views only as of today and should not be relied upon as representing our views as of any subsequent date. Varonis expressly disclaims any application or undertaking to release publicly any updates or revisions to any forward-looking statements made herein. Additionally, non-GAAP financial measures will be discussed on this conference call. A reconciliation for the most directly comparable GAAP financial measures is also available in our first quarter 2021 earnings press release, which can be found at www.Veronis.com in the investor relations section. Also, please note that all common stock and per share data have been retroactively adjusted for the impact of the three-for-one stock split effective March 15th, 2021. Lastly, please note that an updated investor presentation, as well as a webcast of today's call, are available on our website in the investor relations section. With that, I'd like to turn the call over to our Chief Executive Officer, Yaki Feidelson.

Yaki? Thanks, Jamie, and good afternoon, everyone. Thank you for joining us to discuss our first quarter 2021 results. Our Q1 performance was strong, continuing the positive trajectory of 2020 and highlighting the ongoing critical need for companies around the globe to protect their sensitive data. You have heard me say many times before that our platform is relevant now more than ever. This quarter demonstrates that the momentum in our business is a result of a significant value we provide our customers. Our subscription offering allows us to deliver on their immediate requirements and long-term needs. And when taken together, the result is substantially higher customer lifetime value. Let me take a step back and talk about the trends we have been seeing. Over the last few years, and especially in 2020, several trends have accelerated and converged. putting the focus on complex data security challenges, which have been our mission to solve since inception. Whether companies are reacting to breaches, complying with regulation, or simply being responsible, our approach protecting sensitive data from the inside out resonates with new prospects and existing customers more than ever. As the digital transformation gains traction across almost all industries around the globe, It changes the way we live and work and impacts how data is stored, managed, and accessed. This transformation has fueled, and we expect will continue to fuel, the secular trends that drive demand for our products, including the shift to the cloud, which highlights the need for a zero-trust approach protecting sensitive data. Cybercrime, where hackers and insiders targeting sensitive data are more sophisticated than ever, and compliance with data-driven regulation, which is a serious challenge that creates enormous risk to companies all over the world. We have always believed that perimeter defense is not enough and limited. Recent breaches in the news yet again bypass the perimeter and endpoint protection by design. With attack surface larger and more open than ever before, We believe the way to address these risks and protect sensitive data is through the data-related insights and automation that our platform is uniquely positioned to provide. Our subscription model makes it easier for customers to see greater automated value by making larger initial purchases while leaving room for meaningful expansion over time. As a result, our customer lifetime value has increased significantly. Looking ahead, we expect that continued expansion with our customers as well as ongoing innovation will further extend our reach and increase our addressable market. Let me provide a few examples of some key customer wins from the first quarter. One example of a new customer is a large U.S. financial company Within hours of our risk assessment, we detected a brute force attack in progress and found sensitive data open to a large percentage of employees. After showing them how they were at risk both on-prem and in the cloud, they purchased data advantage, data classification engine licenses, data alert, automation engine, and more. While we've seen meaningful increases in adoption rates by new customers, our existing customer base continue to represent a substantial growth opportunity for the company. A prime example is a nationwide professional services company with over 5,000 users that first purchased two perpetual licenses in 2018. In 2019, they added subscriptions for data classification engine and support for SharePoint Online. In Q1 of this year, they again expanded their deployment with a focus on privacy and compliance, adding policy pack for GDPR and CCPA, automation engine to find and fix broken access controls, and data transport engine to enforce their data governance policies. In total, this customer now has nine licenses, and like many of our customers that go through similar route of purchasing over time, we are already discussing with this customer the additional Varonis licenses that will further strengthen their data protection and take them to the next level of the operational journey. These are just a few examples of how every day we are helping our customers solve some of the biggest data protection problems, which will only continue to become more urgent. In summary, we are extremely well positioned to continue our momentum and further expand our market leadership. And we believe we are just scratching the surface of a very large growing opportunity. With that, let me turn the call over to Guy. Guy.