New York-based software company, Varonis Systems (NASDAQ:VRNS), develops software that protects what it calls “unstructured data.” This refers to emails, spreadsheets, memos—anything that could be left floating around an important business computer. Interestingly, as data becomes an increasingly valuable asset, VRNS stock has come into its own.
Shares are currently selling for $62.79 USD, up 1.80% on the day. The company hit its all-time high, $79.80, last June.
VRNS Stock and Varonis Systems
Looking at Varonis’s stock chart, it’s clear to see that the company has grown in tandem with data becoming an integral part of business life.
Because data has grown (and continues to do so) at an exponential rate, the need for protection has never been more apparent. Data equals value, and companies, whether great or small, cannot afford to leak any of it—not even one email.
Herein lies the importance of Varonis’s software; it protects “unstructured data” from unwanted entry and also organizes it for corporate managers.
As companies realize the importance of this type of data, Varonis is seeing its revenue climb higher. And now, according to InvestorPlace, the company’s 2018 top-line growth is “expected to come in at about 20%.”
Generating Sales Will Bolster VRNS Stock
For companies that have already experienced a data breach, what Varonis offers is a no-brainer. However, the opposite can be said for those lucky enough to have never experienced a breach. Convincing companies of the need for its software is a difficult undertaking when a company thinks itself infallible or has the “it’ll never happen to us” mindset.
As such, “sales cycles remain relatively long and intensive, as in many cases Varonis still has to prove the usefulness of the software.”
However, “as awareness increases and those cycles shorten, both revenue growth and operating margins will benefit.”
Analysts are expecting VRNS stock to report a profit for 2019. Further, as sales grow, and investors see the potential returns, VRNS should continue to climb further. The company currently has a market cap of $1.9 billion.
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