Varonis Systems, Inc. (NASDAQ:VRNS) shares are trading lower Wednesday after the company reported third-quarter revenue below estimates and provided soft fourth-quarter guidance.

VRNS stock is testing lower boundaries. Check the market position here.

What To Know: Varonis reported adjusted earnings per share of 6 cents, in line with the consensus estimate. In addition, the company reported sales of $161.57 million, missing the consensus estimate of $166.14 million.

Annual recurring revenues (ARR) rose 18 % year-over-year to $718.6 million, and SaaS ARR now accounts for approximately 76 % of total ARR. The company also said it has generated $122.7 million in cash from operations year-to-date, up from $90.9 million last year, and free cash flow of $111.6 million versus $88.6 million.

Term license subscription revenues dropped to $24.8 million from $68.8 million a year earlier, and maintenance and services revenues fell to $10.9 million from $21.5 million, both largely driven by customers converting to ...