SUNNYVALE, California, July 30, 2020 (GLOBE NEWSWIRE) – Proofpoint, Inc. (NASDAQ: PFPT), a leading next-generation security and compliance company, announced monetary effects for the quarter ended June 30, 2020.
“The quarter was a compelling example of our team’s disciplined execution in a very challenging operating environment,” said Gary Steele, Proofpoint’s CEO. “We were pleased to exceed recommendations on all key indicators, which was driven by strong visitor interest in our people-centered compliance and cybersecurity services, our world-class effectiveness in identifying and blocking complex risks, and our strong focus on protecting our customers from an increasingly active risk landscape from the existing demands of domestic work.”
Financial highlights for the 2020 quarter
Financial perspectives
These monetary perspectives are based on data known as of July 30, 2020 and assumptions that we are moderate to date. We assume no legal responsibility to update such forward-looking statements as a result of new data or long-term events. Proofpoint’s policy is not to reiterate or adjust the monetary recommendation provided in this release, unless this is also done through some other public disclosure, such as an upcoming press release or filing on Form 8-K.
Proofpoint provides its forecast for the third quarter of 2020 as follows:
Proofpoint provides its forecast for 2020 as follows:
Proofpoint will make a call to the convention today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to see the Company’s monetary effects for the quarter ended June 30, 2020. To access this call, dial (800) 458-4121 for the U.S. Or Canada, or (929) 477- 0324 for foreign calls, with convention ID 698797. A live web stream and archived recording of the Convention call from the Investors segment of proofpoint’s online page can be obtained at investisseurs.proofpoint.com. You will also have an audio reproduction of this convention call until August 13, 2020, dialing (844) 512-2921 for the U.S. Or Canada or (412) 317-6671 for foreign calls, and entering code 698797.
About Proofpoint, Inc.
Proofpoint, Inc. (NASDAQ: PFPT) is a leading cybersecurity company that protects the largest assets and dangers of organizations: their employees. With a built-in set of cloud-based responses, Proofpoint is helping businesses around the world prevent specific threats, protect their knowledge, and make their users more resilient to cyberattacks. Large corporations of all sizes, which add more than a portion of Fortune 1000 corporations, rely on Proofpoint for security and compliance responses that focus on others that mitigate their peak critical dangers in email, cloud, social media, and the web. More data can be obtained in www.proofpoint.com.
Proofpoint is a trademark or registered trademark of Proofpoint, Inc. in the United States and other countries. All other content contained herein is the property of their respective owners.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding momentum in the company’s business, market position, win rates and renewal rates, future growth, and future financial results. 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: the potential direct and indirect impact of events beyond our control such as the current coronavirus (COVID-19) pandemic on our business, financial condition and operations, including on our customers’ spending and on our expenses, supply chain, and employees; failure to maintain or increase renewals from existing customers and failure to generate increased business through existing or new channel partner relationships; uncertainties related to continued success in sales growth and market share gains; failure to convert sales opportunities into definitive customer agreements; 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; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; the time it takes new sales personnel to become fully productive; unforeseen delays in developing new technologies and the uncertain market acceptance of new products or features; technological changes that make Proofpoint’s products and services less competitive; security breaches, which could affect our brand; the costs of litigation; the impact of changes in foreign currency exchange rates; the effect of general economic conditions, including as a result of specific economic risks in different geographies and among different industries; risks related to integrating the employees, customers and technologies of acquired businesses; assumption of unknown liabilities from acquisitions; ability to retain customers of acquired entities; and the other risk factors set forth from time to time in our filings with the SEC, including our Quarterly Report on Form 10-Q for the three months ended March 31, 2020, 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 on our investor relations website at https://investors.proofpoint.com/investors/financials-and-filings/quarterly-and-annual-reports/default.aspx. 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.
Earnings calculation tips consistent with consistent percentage estimates
Accounting principles require the EPS to be calculated on the weighted average of notable inventories (“basic” and also assuming the issuance of inventories that would possibly be issued (such as inventory option topics, convertible notes, etc.) if inventories are potentially issued decrease the EPS (“diluted”).
The number of consistent percentages similar to the similar features and tools included in diluted EPS is based on the “consistent percentage repurchase approach” prescribed in ASC Item 260 (FASB) of the Financial Accounting Standards Council, Earnings consistent with Shares (“Item 260 ASC FASB”) This approach reaches a theoretical repurchase of consistent percentages using training income from the respective inventory characteristics at a value equivalent to the average percentage value the issuer’s consistent gains and the earnings for the consistent period. Therefore, the number of consistent percentages that can be included in the diluted EPS calculation for inventory characteristics and similar tools is based on this consistent average percentage value and will accumulate as the consistent average value percentage.
Non-GAAP financial measures
In this release, we provide monetary data that was not ready according to GAGA. We use these non-GAGA monetary measures internally to analyze our monetary effects and are useful to investors, in addition to GACCP measures, to assess our ongoing operating performance. We consider that the use of these non-GAGA monetary measures is an additional tool that investors can use to assess existing operational effects and trends and compare our monetary effects with those of other corporations in our sector, many of which have similar GACCP not investment monetary measures
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 below. As previously mentioned, a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Gross margin and non-GAAP gross margin. We describe non-GAAP gross earnings as GAAP gross earnings, adjusted to exclude inventory-based repayment expenses and amortization of relevant intangible assets with acquisitions. We describe non-GAAP gross margin as non-GAAP gross profit divided by GAAP revenue. We consider these non-GAGA monetary measures to be useful measures for control and investors, as they exclude the effect of non-monetary rates that would possibly vary for Proofpoint, depending on the timing of inventory allocations and the size, timing and distribution of the acquisition. value of acquisitions. so that our control and investors can compare the recurring operating effects of our core business over several periods. There are several limitations similar to the use of non-GAAP gross margin and non-GAAP gross margin in relation to gross margin and gross margin, in each case, calculated in accordance with GAAP. For example, inventory-based reimbursement has been and will continue to be a significant recurring expense on our business for the foreseeable future. Share-based payment is a vital component of our employees’ pay and influences their performance. In addition, the charge factors we exclude in our calculation of non-GAAP gross profit and non-GAAP gross margin would possibly differ from the factors that our comparable corporations exclude when posting their non-GAAP effects. Management compensates for these limitations by providing express data related to GAAP amounts excluded from non-GAAP gross margin and non-GAAP gross margin and by assessing non-GAAP gross profit and non-GAAP gross margin and gross profit and gross margin calculated in accordance with GAAP.
Non-GAAP net income source. We describe the net source of non-GAAP revenue as a net loss, adjusted to exclude share-based repayment expenses, amortization of intangible assets, acquisition prices, litigation, facility exit prices similar to the relocation of our head office, interest-free cash receivables similar to the convertible debt discount, and convertible debt issuance prices are offered and tax effects. We consider this non-GAAP monetary measure to be a useful measure for control and investors for the same reasons that we use the non-GAAP source of operating income.
Our current and deferred tax expenditure is proportional to the non-GAAP rate of return that employs a non-GAAP tax rate of 17% for the 3 and six months ended June 30, 2020 and 2019. We use a projected annual tax rate in a non-GAAP tax provision calculation, and exclude having an effect on equity-based compensation, intangible repayment expenses, acquisition prices, litigation, facility exit prices similar to the relocation of our primary workplace, and debt-like non-monetary interest expenses Discounts and convertible note rates. The projected rate takes into account other points, such as our existing operating structure, existing tax positions in various jurisdictions, and key law in the main jurisdictions where we operate.
Billing. We describe invoices as reported earnings plus variation in deferred source of earnings and visitor fees minus variation in un billed receivables from the beginning to the end of the period, but deferred additions of earnings and initial invoices from purchase visitors. The customer’s initial invoices constitute the amounts charged for which the contract may be terminated and the visitor has a refund fee. Un invoiced visitor accounts constitute amounts for which the company has posted profits, in accordance with its earnings popularity policy, for subscription software already delivered and professional installations already rescued, but billed at the end of the year and for which the company believes it has an unconditional condition. payment entitlement We consider billing to be a useful measure for control and investors because turnover generates deferred profits, which is a vital indicator of the suitability and visibility of our business, and has traditionally accounted for the majority of the quarterly profits we represent. There are several similar limitations to billing usage in relation to GAAP earnings. Invoices come with amounts that have not yet been recorded as earnings, but exclude additions to deferred earnings from acquisitions. We can also calculate billing in a different way than other corporations that report similar monetary measures. Management compensates for these limitations by providing express data on GAAP earnings and comparing billing and profits calculated in accordance with GAAP.
Free movement of capital. We describe the flow of loose money as net money provided through operating activities minus capital expenditures. We see the flow of loose money as a measure of liquidity that provides useful data to control and investors on the amount of money generated through the company that, after obtaining tangible assets, can be used for strategic opportunities, in addition to making an investment in our business, making acquisition strategies and strengthening the balance sheet. Free money flow research facilitates control comparisons of our operational effects with the operational effects of our competitors. A limitation on the use of the flow of loose money in relation to the GAAP measure of net money provided through operating activities as a means of evaluating our company is that the flow of loose money does not constitute the accumulation or overall minimization of the money balance similar to the operations for the period, since it excludes the money used for period capital expenditures. Management compensates for this limitation by providing data on our capital expenditures in the Cash Flow Table and in the “Analysis and Financial Position and Operational Results Analysis” segment of our quarterly and annual reports filed with quarterly and annual statements.
Kristy CampbellProofpoint, Inc. [email protected]
Investor contact
Jason StarrProofpoint, Inc. [email protected]