Journey from Early Finance Lessons to Corporate Expense Oddities

Guy Melamed, CFO & COO of Varonis, joins CJ to discuss the company’s two major transitions. In 2019, Varonis shifted from a perpetual model to an on-prem subscription model, completing the transformation in record time. They are currently in the process of transitioning from an on-prem subscription company to a SaaS company. Guy and CJ delve into the challenges of these transitions, the pressure of doing them in the public eye, and how to communicate these processes to your customers, investors, and sales reps. He highlights the key KPIs that Varonis tracks, the ones that are overrated, and the importance of clearly defined metrics. Guy also touches on the challenge of keeping your eye on short, medium, and long-term strategy, before reflecting on his career, the risks he has taken, and lessons learned from his time in sports and business.

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TIMESTAMPS:

(00:00) Preview and Intro

(02:11) Sponsor – Maxio | RemoFirst

(04:57) Varonis’s Two Major Company Transformations

(08:02) The Pressure of Undergoing a Transition in the Public Eye

(09:54) Communicating to Key Stakeholders in a Transition

(13:59) The Biggest Challenge to Varonis’s Transition

(15:36) Sponsor – Mercury | NetSuite | Operators Guild

(19:00) The Grading System That Varonis Introduced

(23:50) Advice to Finance Leaders Facing Business Model Transitions

(26:15) Varonis’s Three North Star Metrics

(30:00) A Common KPI or Metric That Is Overrated

(31:32) EBITDA Versus Free Cashflow When Communicating to Investors

(32:47) The Importance of Well-Defined KPIs

(40:21) How Guy Decides Where His Attention Is Most Needed

(41:36) Keeping Your Eye on Short, Medium, and Long-Term Strategy

(43:40) The Influence of Sports on How Guy Faces Business Challenges

(44:51) Long-Ass Lightning Round: What Gets CFOs in Trouble

(49:30) Guy’s Biggest Career Risk

(50:11) Unconventional Financial Advice

(52:12) Craziest Expense Story