The latest wave of cyberattacks appears relentless, with the culprits getting more bold and brazen. A recent PwC global security survey showed a 48% increase in detected attacks so far this year; this figure doesn’t even include undetected and unreported attacks.

Employees, former employees and third parties with trusted access to networks and data are often behind many attacks, according to the PwC survey.

Organizations worldwide are increasingly realizing that their IT security budgets need to be bumped up, a big positive for providers of cybersecurity solutions.

An emerging vendor, Varonis Systems (VRNS), secures unstructured data (this is data that doesn’t neatly fit into rows and columns in a traditional database) within an organization. The company’s solutions determine who can access various types of data and visualize where data is being accessed across an enterprise.

Varonis is well positioned to benefit from a major secular tailwind: 90% of data created in the next decade will be of the unstructured variety, according to research firm IDC.

Varonis, which went public in February 2014 at $22 a share (the stock recently traded at $21.65, up from its post-IPO low of $17.50 reached in October), is added to the Next Wave Portfolio because of the company’s strong revenue growth rate (estimated at 35% for 2014), ramping product portfolio (now at six solutions, double the number from 2010) and a rapidly expanding customer base (223 accounts were added in Q3, up from 206 additions in Q2 and 158 in Q1).

Operating in a total addressable market (TAM) estimated at $8 billion, Varonis straddles several different tech segments, pulling from budgets for IT security, storage software, collaborative applications, identity & access management and data integration.

Varonis sells its solutions to all types of organization that use file servers and deploy access control. There are an estimated 120,000 enterprises with more than 1,000 employees each that could benefit from using one or more Varonis offerings; the company currently has around 3,000 customers.

The company’s solutions map, analyze, manage and migrate human-generated unstructured data (including documents, Word files, presentations, spreadsheets, emails and PDFs). While the company’s solutions are marketed as a positive ROI story and as a way to reduce operating costs, Varonis is primarily viewed as a security play, providing unstructured data governance.

It’s a simple fact that people having too much access to certain types of critical information are often behind data breaches within an enterprise. Varonis solutions—after determining who can access various types of files, images, emails and records—enable organizations to see where data is being accessed at all times.

Started in 2005, Varonis has seen its solutions used in a wide range of industries—including financial services, consumer packaged goods, retail, technology, media & entertainment, energy, healthcare and public sector.

The company deploys the land-and-expand strategy (starting out small at a new customer and building from there), with 36% of license and first-year maintenance revenue each quarter coming from existing customers. The average deal size is in the $60,000 to $63,000 range. About 40% of customers now deploy two or more Varonis products, up from 27% in 2010. The maintenance renewal rate is above 90%.

Varonis faces limited direct competition (Symantec has a product that lacks important features), so its sales task when going after new accounts mainly involves trying to convert customers over from manual processes, which don’t scale well when it comes to dealing with large data inflows.

In Q3, Varonis reported revenue of $25.6 million (a gain of 38% year over year), above the consensus estimate of $24.3 million and the high end of the guidance range of $23.9 million to $24.5 million. License revenue of $14.2 million advanced 39%, acceleration from Q2 growth of 37%. Gross margin remained high at 90.1%.

Revenue growth in the September quarter was strong across all geographies, with the Americas region (59% of total revenue) up 42% (acceleration from growth of 38% in Q2), the EMEA region (33% of total revenue) rising 33% and the Rest of World region (8% of total revenue) gaining 32% (acceleration from Q2 growth of 30%).

For 2014, Varonis looks for revenue to come in at $100.8 million to $101.5 million, representing growth of 35% to 36% year over year. For 2015, the consensus revenue estimate of $129.2 million indicates growth of 28% (the Street-high estimate of $130.6 million calls for growth of 29%).

Varonis has a solid balance sheet: cash & investments total $115.3 million (with no debt), representing 21.7% of the recent market cap of $530.6 million. Given the company’s solid top-line growth rate, Varonis shares, recently trading at 4.1 times the 2015 consensus revenue estimate, have the ability to trade at an expanded price-to-sales multiple of at least 6x, putting the fair-value price target at $31.65.

Varonis Systems is a ‘Buy’ in the Next Wave Portfolio up to $24.