New Stocks — Varonis (VRNS)
IPO Return: 81.2%
Varonis (VRNS) has a sophisticated software platform that helps enterprises to map, analyze, manage and migrate their data. The focus is mostly on unstructured data, such as spreadsheets, word processing documents, presentations, audio files, video files, emails, text messages and any other data created by employees.
As a result, Varonis can provide benefits like improved data governance, data security, archiving, file synchronization, enhanced mobile data accessibility and information collaboration. Let’s face it, enterprises are drowning in data. According to a report from IDC, the amount of digital information is expected grow at a compound annual growth rate of 39% from 2012 to 2020.
Thus, growth has been solid. Varonis has attracted 2,400 customers, and revenues grew $39.8 million to $74.6 million from 2011 to 2013. Although, the company has been losing money. Last year, the net loss was $7.5 million.
But in today’s IPO market, investors are really interested in top-line growth, not the bottom line — at least for now. That’s good news for new stocks like VRNS.