Proofpoint, Inc., (NASDAQ:PFPT), a leading cybersecurity company,
today announced it has completed its acquisition of Wombat Security
Technologies, Inc., a leader for phishing simulation and security
awareness computer-based training. By collecting data from Wombat’s
PhishAlarm solution, Proofpoint will have access to data on
phishing campaigns as seen by non-Proofpoint customers, providing
broader visibility and insight to the Proofpoint Nexus platform.
“As cybercriminals continue to look for new ways to exploit
employees, companies need to be vigilant about changing end-user
behavior and reducing risk with cybersecurity education solutions,”
said Gary Steele, Proofpoint CEO. “The acquisition of Wombat gives
us greater ability to help protect our customers from today’s
people-centric, social engineering-driven cyberattacks, and we are
thrilled to welcome Wombat’s employees to the Proofpoint team.”
With the completion of the acquisition, organizations will be
able to leverage the industry’s first solution combining
market-leading phishing protection with market-leading awareness.
Uniquely with the combined solutions, organizations will be able
to:
- Use real detected phishing attacks for simulations, assessing
users based on the threats that are actually targeting them
- Both investigate and take action on user-reporting phishing,
leveraging orchestration and automation to find real attacks,
quarantine emails in users’ inboxes, and lock user accounts to
limit risk
- Train users in the moment immediately after they click for both
simulated and real phishing attacks
Financial Impact
Proofpoint expects the acquisition of Wombat Security to have
the following impact to its financial outlook for the first
quarter, and full year 2018, as previously provided on February 6,
2018:
For the full year 2018:
- Increase the billings range to $864 - $869 million as compared
to the previous range of $828 - $833 million
- Increase the revenue range to $691 - $696 million as compared
to the previous range of $660 - $665 million
- Reduce the non-GAAP net income range to $46 - $50 million as
compared to the previous range of $52 - $56 million
- Increase the free cash flow range to $140 - $142 million as
compared to the previous range of $138 - $140 million
For the first quarter of 2018:
- Increase the billings range to $182 - $184 million as compared
to the previous range of $180 - $182 million
- Increase the revenue range to $151 - $153 million as compared
to the previous range of $149 - $151 million
- Reduce the non-GAAP net income range to $7.5 - $8.5 million as
compared to the previous range of $8 - $9 million
- No material impact to the previous range of $22 - $24 million
of free cash flow
Additional commentary on Wombat’s contribution to Proofpoint’s
2018 financial outlook:
- For both billings and revenue, Proofpoint expects a modest ramp
over the three remaining quarters of fiscal year 2018
- For non-GAAP net income, Proofpoint expects the largest
negative impact to be realized during the second quarter, with
gradual moderation over the remainder of the year, and the business
achieving break-even in the first quarter of 2019
- For free cash flow, Proofpoint expects the favorable impact to
be realized during the fourth quarter of 2018
Note that all of these guidance assumptions are in accordance
with ASC 606, which Proofpoint adopted effective January 1, 2018,
as were its original guidance metrics provided on February 6,
2018.
For more information on Proofpoint Nexus, please visit
https://www.proofpoint.com/us/technology-platform.
About Proofpoint, Inc.Proofpoint Inc.
(NASDAQ:PFPT) is a leading next-generation security and compliance
company that provides cloud-based solutions to protect the way
people work today. Proofpoint solutions enable organizations to
protect their users from advanced attacks delivered via email,
social media and mobile apps, protect the information their users
create from advanced attacks and compliance risks, and respond
quickly when incidents occur. More information is available at
www.proofpoint.com.
Connect with Proofpoint: Twitter | LinkedIn | Facebook | YouTube
| Google+
Proofpoint is a registered trademark or tradename of Proofpoint,
Inc. in the U.S. and/or other countries. All other trademarks
contained herein are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These forward-looking
statements include statements regarding the future financial impact
of the acquisition, future financial results for Proofpoint and
benefits of the acquisition and integration of Wombat’s products.
It is possible that future circumstances might differ from the
assumptions on which such statements are based. Important factors
that could cause results to differ materially from the statements
herein include: risks related to integrating the employees,
customers and technologies of the acquired business; assumption of
unknown liabilities; ability to retain customers of Wombat; risks
associated with successful implementation of multiple integrated
software products and other product functionality; competition,
particularly from larger companies with more resources than
Proofpoint; risks related to new target markets, new product
introductions and innovation and market acceptance thereof; the
ability to attract and retain key personnel; potential changes in
strategy; unforeseen delays in developing new technologies and the
uncertain market acceptance of new products or features; global
economic conditions; and the other risk factors set forth from time
to time in our filings with the SEC, including our Annual Report on
Form 10-K for the twelve months ended December 31, 2017, and the
other reports we file with the SEC, copies of which are available
free of charge at the SEC's website at www.sec.gov or
upon request from our investor relations department. All
forward-looking statements herein reflect our opinions only as of
the date of this release, and Proofpoint undertakes no obligation,
and expressly disclaims any obligation, to update forward-looking
statements herein in light of new information or future events.
Non-GAAP Financial Measures
We have provided in this release financial information that has
not been prepared in accordance with GAAP. We use these non-GAAP
financial measures internally in analyzing our financial results
and believe they are useful to investors, as a supplement to GAAP
measures, in evaluating our ongoing operational performance. We
believe that the use of these non-GAAP financial measures provides
an additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing our financial results
with other companies in our industry, many of which present similar
non-GAAP financial measures to investors.
We do not provide a reconciliation of the non-GAAP financial
measures for the quarter ending March 31, 2018, and the full year
2018 herein to our comparable GAAP financial measures because we
could not do so without unreasonable effort due to unavailability
of information needed to calculate reconciling items and due to
variability, complexity and limited visibility of the adjusting
items that would be excluded from the non-GAAP financial measures
for those periods.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures as
previously provided in the financial statement tables included in
our press release dated February 6, 2018, and available on our
investor relations website.Non-GAAP net loss. We define non-GAAP
net loss as net loss, adjusted to exclude stock-based compensation
expense, amortization of intangibles, costs associated with
acquisitions and litigation, non-cash interest expense related to
the convertible debt discount and issuance costs for the
convertible debt offering and tax effects associated with these
items. We consider this non-GAAP financial measure to be a useful
metric for management and investors for the same reasons that we
use non-GAAP operating loss. However, in order to provide a
complete picture of our recurring core business operating results,
we also exclude from non-GAAP net loss the tax effects associated
with stock-based compensation and the amortization of intangibles
and costs associated with acquisitions and litigation, and non-cash
interest expense related to the convertible debt discount and
issuance costs for the convertible debt offering.
In order to provide a complete picture of our recurring core
business operating results, we also compute the tax effect of the
adjustments used in determining our non-GAAP results by calculating
an adjusted tax provision which considers the current and deferred
tax impact of the adjustments. The adjusted tax provision
reflects all of the relevant impacts of the adjustments, inclusive
of those items that have an impact to the effective tax rate,
current provision and deferred provision. As a result of the
varying impacts of each item, the effective tax rate for the
adjusted tax provision will vary period over period as compared to
the GAAP tax provision. The adjusted tax provision is then compared
to the GAAP tax provision, and the difference is reflected as
"income tax benefit (expense)" in the reconciliation between GAAP
net loss/income and Non-GAAP net loss/income.
Billings. We define billings as revenue recognized plus the
change in deferred revenue from the beginning to the end of the
period, but excluding additions to deferred revenue from
acquisitions. We consider billings to be a useful metric for
management and investors because billings drive deferred revenue,
which is an important indicator of the health and visibility of our
business, and has historically represented a majority of the
quarterly revenue that we recognize. There are a number of
limitations related to the use of billings versus revenue
calculated in accordance with GAAP. Billings include amounts that
have not yet been recognized as revenue, but exclude additions to
deferred revenue from acquisitions. We may also calculate billings
in a manner that is different from other companies that report
similar financial measures. Management compensates for these
limitations by providing specific information regarding GAAP
revenue and evaluating billings together with revenues calculated
in accordance with GAAP.
Free cash flow. We define free cash flow as net cash provided by
operating activities minus capital expenditures. We consider free
cash flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business that, after the acquisition of property
and equipment, can be used for strategic opportunities, including
investing in our business, making strategic acquisitions, and
strengthening the balance sheet. Analysis of free cash flow
facilitates management's comparisons of our operating results to
competitors' operating results. A limitation of using free cash
flow versus the GAAP measure of net cash provided by operating
activities as a means for evaluating our company is that free cash
flow does not represent the total increase or decrease in the cash
balance from operations for the period because it excludes cash
used for capital expenditures during the period. Management
compensates for this limitation by providing information about our
capital expenditures on the face of the cash flow statement and in
the "Management's Discussion and Analysis of Financial Condition
and Results of Operations - Liquidity and Capital Resources"
section of our quarterly and annual reports filed with the
SEC.
MEDIA CONTACT: KRISTY CAMPBELL PROOFPOINT, INC.
408-517-4710 KCAMPBELL@PROOFPOINT.COM
INVESTOR CONTACT:JASON STARRPROOFPOINT,
INC.408-585-4351JSTARR@PROOFPOINT.COM
INVESTOR CONTACT:SETH POTTERICR FOR PROOFPOINT,
INC.646-277-1230SETH.POTTER@ICRINC.COM
Proofpoint (NASDAQ:PFPT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Proofpoint (NASDAQ:PFPT)
Historical Stock Chart
From Sep 2023 to Sep 2024