Proofpoint Steadily Building Through Acquisitions

According to a Markets and Markets research report, the global cyber security market is expected to grow at a CAGR of 10.2% from $152.71 billion in 2018 to $248.26 billion by 2023. The growth is expected to be driven by the growing need for cloud-based solutions among SMBs. Sunnyvale-based Proofpoint (Nasdaq: PFPT) is a cloud-based enterprise email security, e-discovery, and compliance service provider that continues to see strong revenue growth.

Proofpoint’s Financials
For the recently announced fourth-quarter results, Proofpoint saw revenues grow 35% over the year to $198.5 million, significantly ahead of the market’s forecast of $193 million. Non-GAAP earnings of $0.51 per share were also significantly ahead of the Street’s forecast of $0.35 and the previous year’s performance of $0.37 per share.

During the quarter, billings under review grew 43% over the year to $269.9 million. Renewal rates were beyond 90% during the reported quarter.

By segment, subscription revenues grew 35% over the year to $195.1 million. Hardware and services revenues increased by 17% to $3.4 million.

On the basis of solutions, revenues from Advanced Threat which includes Targeted Attack Protection, grew 34% to $147.4 million, and Compliance revenues grew 38% to $51.1 million.

Proofpoint ended fiscal 2018 with revenues growing 38% to $717 million and non-GAAP earnings of $1.47 per share, compared with $1.10 a year ago. Subscription revenues for the year grew 39% to $704.4 million. Hardware and services revenues fell 6% to $12.6 million.

For the current quarter, Proofpoint forecast revenues of $198-$200 million and billings of $211.5-$213.5 million. Non-GAAP EPS is expected to come in at $0.31-$0.35. For fiscal 2019, it expects revenues of $870-$874 million, billings of $1.058-$1.062 billion and non-GAAP EOS of $1.60-$1.67. The Street was looking for revenues of $198.1 million for the quarter with an EPS of $0.31 and revenues of $875.4 million for the year with an EPS of $1.65.

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