Gartner estimates the worldwide enterprise security spending to grow 8% this year to $96.3 billion. As the US gets ready for midterm elections this year, there is growing concern regarding election interference as well. Government agencies and organizations are all gearing towards managing the growing threat of cyber attacks. Sunnyvale, California-based Proofpoint provides cloud-based email security solutions that help organizations secure their data.
Proofpoint’s Financials
Proofpoint (Nasdaq: PFPT) recently announced its second quarter financials that saw revenues grow 41% over the year to $171.9 million. The Street was expecting revenues of $169.8 million. Its non-GAAP earnings rose an impressive 53% to $0.26 per share, ahead of the Street’s forecast of $0.17 per share. Earlier coverage is available here and here.
During the quarter, billings grew 35% to $197.9 million. Renewal rates continued to be more than 90% during the quarter. By segment, subscription revenues grew 1.6% to $238.8 million. Hardware and services revenues fell 1.4% over the year to $2.9 million.
On the basis of offerings, revenues from Advanced Threat solutions that include the Targeted Attack Protection offering grew 45.7% to $129.2 million. Compliance revenues rose 26.4% to $42.7 million.
For the current fiscal, Proofpoint increased its revenue and non-GAAP earnings expectations. It now expects revenues of $705-$709 million, compared with $702-$704 million predicted earlier. Non-GAAP earnings per share are now expected to be between $1.12-$1.19, up from the previous guidance of $1.00-$1.09. For the current quarter, Proofpoint anticipates revenues of $180-182 million with non-GAAP earnings in the range of $0.25-$0.29 per share. The Street has forecast EPS of $0.28 and revenues of $181.35 million for the quarter. For the year, the Street expects the company to earn revenues of $707.95 million with an EPS of $1.17.
Proofpoint’s Expanding Offerings
