“The headcount reduction and other cost saving initiatives that Yaki mentioned should result in approximately $7 million of savings during the fourth quarter, as reflected in our updated guidance.”

In context

“ted to the impact of the macro environment and the additional headwinds from currency which reduce our total ARR and revenue guidance by $25 million and $16 million, respectively. The $9 million difference between the reduction in our ARR and revenue guidance can be attributed to the timing of FX headwinds as well as the maintenance component of deals that we previously expected to close in 2022, which were included in our previous 2022 ARR guidance, but would not have been recognized as revenue until 2023. As a reminder, FX rates used to translate ARR and revenue sold in foreign currencies into U.S. dollars are booked as of the date a deal is closed. The deferred revenue and ARR balance associated with each deal are not revalued at subsequent quarters during the duration of the contract. The headcount reduction and other cost saving initiatives that Yaki mentioned should result in approximately $7 million of savings during the fourth quarter, as reflected in our updated guidance. While this was not an easy decision to make, we felt it was the right thing to do given our updated outlook and our strategic philosophy to balance top-line growth, operating leverage and cash flow generation. For many years, you’ve heard us talk about our goal to get to $1 billion in ARR and today is the right time to take the next strategic step toward that target by offering our flagship Data Security Platform as a service. SaaS has a number of compelling operational and financial benefits. First, we expect it will improve the customer time-to-value, allow us to better protect our customers and in turn shorten our sales cycles and benefit renewal rates. It also will allow us to service customers who only want to consume Varonis as a SaaS, which broadens our market opportunity. We know”