Guiding Stakeholders Through Business Model Transitions with Varonis CFO & COO Guy Melamed

10 snips

Dec 5, 2024

Guy Melamed, CFO & COO of Varonis, shares insights from his leadership in major business model transformations. He discusses the challenges of shifting from a perpetual to a subscription model and now to SaaS, emphasizing effective communication with stakeholders. Melamed highlights the need for collaboration across departments and adapting sales incentives to align with corporate goals. He also reflects on balancing growth with financial prudence, personal career risks, and the importance of financial education for future generations.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ANECDOTE

Varonis's Two Transitions

Varonis transitioned twice, first from perpetual to on-prem subscription, then to SaaS.
The first transition, in 2019, took only five quarters, much faster than the typical 4-6 years.

ADVICE

Communicating Transitions

Communicate transitions to customers, investors, and employees, but at different times.
Over-communicate and ensure everyone understands the "why" behind the change.

ANECDOTE

IT's Role in Transitions

The IT department often holds transitions hostage because systems must support any change.
Varonis's IT team significantly increased headcount during their first transition to automate key processes.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

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.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

RemoFirst is a full-service Employer of Record solution that handles all your global employment needs. RemoFirst can help you navigate the maze of regulations and logistical challenges to onboard employees and contractors from anywhere in the world and streamline payroll, taxes, and compliances. Get two months free on EOR fees for your first hire in any country by visiting RemoFirst.com/metrics.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

—

@cjgustafson222 (CJ)

—

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

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe