Data protection and security software company Varonis (NASDAQ:VRNS) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

Varonis beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $130.3 million, up 12.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings and EBITDA estimates.

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 15.7% year on year to $141.5 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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.

With Varonis being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for cybersecurity stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.2% on average over the last month. Varonis’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $57.38 (compared to the current share price of $56.86).

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