Data protection and security software company Varonis (NASDAQ:VRNS) will be reporting results tomorrow after market close. Here's what you need to know.

Varonis beat analysts' revenue expectations by 1.6% last quarter, reporting revenues of $154.1 million, up 8.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.

Is Varonis a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Varonis's revenue to grow 6% year on year to $113.7 million, slowing from the 11.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Varonis has missed Wall Street's revenue estimates three times over the last two years.

Looking at Varonis's peers in the cybersecurity segment, only Tenable has reported results so far. It beat analysts' revenue estimates by 1.2%, delivering year-on-year sales growth of 14.4%. The stock traded up 0.4% on the results.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the cybersecurity stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. Varonis is down 9% during the same time and is heading into earnings with an average analyst price target of $51.1 (compared to the current share price of $43.24).

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