“we believe our sales efficiency and ability to drive growth from our base will actually accelerate post-transition once our reps are able to focus on upsell and cross-sell rather than converting self-hosted customers.”

In context

“h we can reaccelerate our upsell motion. This is a key reason why we plan to accelerate our transition time. And now we expect to complete it by the end of 2025, a year earlier than our previous outlook and two years earlier than our initial expectations. Turning to our fourth quarter results, ARR grew 18% to $641.9 million and for the first time, SaaS ARR represent the majority of our ARR base. New customer momentum was the single biggest driver of these results, and this is due to the simplicity of our SaaS platform and our MDDR offering as well as customer interest in deploying GenAI, which requires them to fortify their data security strategy. While our existing customer convergence continue in a healthy way during the fourth quarter, this convergence, our time and resource-intensive, we believe our sales efficiency and ability to drive growth from our base will actually accelerate post-transition once our reps are able to focus on upsell and cross-sell rather than converting self-hosted customers. In 2024, we continued to balance strong top-line growth with improved cash flow generation and we generated $108.5 million of free cash flow versus $54.3 million last year. Crossing the $100 million of free cash flow is an important milestone for our company and we plan to continue to generate meaningful free cash flow going forward. Guy will review our results and initial guidance in more detail shortly. Now, I would like to take a step back and discuss the growing need for data security and why we are best positioned to win in this market. Our world runs on data and because of its importance, everyone knows that they need to secure it. When we created Varonis SaaS, we had the benefit of more than a decade of experience securing large complex environments. We used those learnings and our”