Enterprises generate tremendous amounts of data and collecting, aggregating, interpreting, and securing it is a major set of challenges for IT departments. Varonis (NASDAQ:VRNS) is an interesting take on that reality, as well as the increasing realization that sometimes the greatest threats to a company's IT/data security come from within, as the company's platform of products is designed to collect, analyze, and help manage large amounts of user-generated unstructured data that exist within a corporate/enterprise IT environment.
Varonis shares are up about
50% over the past year, but still more than a third below their debut
price, as the company has had its challenges living up to initial
expectations regarding license growth and margin leverage.
Varonis's addressable market may well be quite large (multiple billions
of dollars), operating leverage is a tricky question and competition
from large established players like Symantec (NASDAQ:SYMC) and Dell,
not to mention small upstarts, is unlikely to lessen from here. Taken
in the context of growth software stories, Varonis isn't that expensive,
though, and the tight bunching of sell-side expectations leads me to
think that the shares could react strongly to surprises (good or bad).
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Varonis An Interesting Play On New Corporate IT Demands And Threats