Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Varonis Systems (NASDAQ:VRNS) fell nearly 13% Tuesday, despite the company's stronger-than-expected first-quarter results.

So what: Quarterly revenue rose 39% year over year to $17.5 million, which translated to an adjusted net loss of $0.30 per share. Analysts, on average, were looking for an adjusted loss of $0.44 per share on sales of $16.18 million.

What's more, Varonis expects full-year revenue in the range of $96.5 million and $98.0 million, which should result in an adjusted loss per share of $0.63 to $0.57. By contrast, analysts were modeling a wider 2014 loss of $0.68 per share on sales of $95.26 million.

Now what: Still, Varonis doesn't exactly look cheap, trading around 9 times last year's sales, and the company arguably still has work to do in convincing investors of the viability of its market for organizing human-generated enterprise data -- think things like spreadsheets, word processing documents, text messages, and emails. In the end, I'm still not convinced I should dive in as a long-term investor, and I prefer instead to simply keep tabs on Varonis Systems' progress over the next couple of quarters.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.