`
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`
`Jan 28, 2016
`Proofpoint Announces Fourth Quarter and Full
`Year 2015 Financial Results
`
`Fourth Quarter Highlights
`
`Total revenue of $74.9 million, up 33% yearoveryear
`Billings of $97.5 million, up 30% yearoveryear
`Generated positive adjusted EBITDA of $0.6 million
`Generated free cash flow of $0.4 million
`Increasing FY16 revenue and billings guidance
`
`SUNNYVALE, Calif., Jan. 28, 2016 (GLOBE NEWSWIRE) Proofpoint, Inc.
`(NASDAQ:PFPT), a leading nextgeneration security and compliance company,
`today announced financial results for the fourth quarter and full year ended
`December 31, 2015 .
`
`"We were very pleased with the company's execution during the fourth quarter,
`which resulted in a strong finish to a record year," stated Gary Steele, chief executive
`officer of Proofpoint. "The ongoing demand for our advanced threat solutions, high
`competitive win rates, traction with new products along with robust addon and
`renewal activity drove the betterthanexpected results during the quarter. Looking
`forward, Proofpoint is well positioned to maintain the momentum and grow market
`share due to our bestofbreed cloudbased platform, superior gotomarket strategy
`and commitment to innovation."
`
`Fourth Quarter 2015 Financial Highlights
`
`Revenue: Total revenue for the fourth quarter of 2015 was $74.9 million, an
`increase of 33% compared to $56.2 million in the prioryear period.
`
`Billings: Total billings were $97.5 million for the fourth quarter of 2015, an
`increase of 30% compared to $74.9 million in the fourth quarter of 2014.
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`1/16
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`
`Gross Profit: GAAP gross profit for the fourth quarter of 2015 was $51.0
`million compared to $36.8 million for the fourth quarter of 2014. NonGAAP
`gross profit for the quarter was $54.9 million compared to $38.9 million in the
`year ago period. GAAP gross margin for the fourth quarter of 2015 was 68%
`compared to 65% for the fourth quarter of 2014. NonGAAP gross margin was
`73% for the fourth quarter of 2015, compared to 69% for the same period last
`year.
`
`Operating Loss: GAAP operating loss for the fourth quarter of 2015 was
`$25.0 million compared to a loss of $14.4 million during the fourth quarter last
`year. NonGAAP operating loss for the fourth quarter of 2015 was $3.0 million
`compared to a loss of $2.0 million for the same period last year.
`
`Net Loss: GAAP net loss for the fourth quarter of 2015 was $31.4 million or
`$0.77 per share based on 40.5 million weighted average shares outstanding.
`This compares to a GAAP net loss of $17.4 million or $0.45 per share based on
`38.3 million weighted average shares outstanding in the prioryear period.
`
`NonGAAP net loss for the fourth quarter of 2015 was $4.4 million or $0.11 per
`share based on 40.5 million weighted average shares outstanding. This
`compares to a nonGAAP net loss of $3.6 million or $0.09 per share based on
`38.3 million weighted average shares outstanding during the same period last
`year.
`
`Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2015 was $0.6
`million compared to $0.5 million for the fourth quarter of 2014.
`
`Cash and Cash Flow: As of December 31, 2015, Proofpoint had cash, cash
`equivalents and short term investments of $406.2 million, a decrease of $10.2
`million from the end of the prior quarter primarily due to the cash used for an
`acquisition.
`
`The company generated $8.1 million in net cash from operations for the fourth
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`2/16
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`quarter of 2015 compared to $15.5 million during the fourth quarter of 2014.
`The company generated $0.4 million in free cash flow for the quarter compared
`to $10.9 million during the same period last year.
`
`"We were very pleased with our results for the fourth quarter, capping off another
`great year for the company," stated Paul Auvil, chief financial officer of Proofpoint.
`"During 2015, we delivered full year billings and revenue growth of 39% and 36%,
`respectively, and we more than tripled free cash flow over the prior year."
`
`Full Year 2015 Financial Highlights
`
`Revenue: Total revenue for the full year of 2015 was $265.4 million, an
`increase of 36%, compared to $195.6 million in 2014.
`
`Billings: Total billings were $324.3 million for the full year of 2015, an
`increase of 39% compared to 2014.
`
`Gross Profit: GAAP gross profit for the full year of 2015 was $181.3 million
`compared to $129.9 million for 2014. NonGAAP gross profit for the full year of
`2015 was $194.5 million compared to $137.1 million for 2014. GAAP gross
`margin for the full year of 2015 was 68% compared to 66% for 2014. NonGAAP
`gross margin was 73% for the full year of 2015, compared to 70% for 2014.
`
`Operating Loss: GAAP operating loss for the full year of 2015 was $85.9
`million compared to a loss of $51.1 million during 2014. NonGAAP operating
`loss for the full year of 2015 was $8.1 million, compared to a loss of $9.5 million
`during 2014.
`
`Net Loss: GAAP net loss for the full year of 2015 was $106.5 million or $2.68
`per share based on 39.8 million weighted average shares outstanding. This
`compares to a GAAP net loss of $64.2 million or $1.72 per share based on 37.4
`million weighted average shares outstanding in 2014.
`
`NonGAAP net loss for the full year of 2015 was $13.9 million or $0.35 per
`share based on 39.8 million weighted average shares outstanding. This
`compares to a loss of $15.0 million or $0.40 per share based on 37.4 million
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`3/16
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`weighted average shares outstanding for 2014.
`
`Adjusted EBITDA: Adjusted EBITDA for the full year of 2015 was $4.6
`million compared to negative $0.5 million for 2014.
`
`Cash Flow: The company generated $45.5 million in net cash from operations
`for the full year of 2015 compared to generating $21.3 million during 2014. The
`company generated $19.7 million in free cash flow for the full year of 2015
`compared to $6.3 million during 2014.
`
`A reconciliation of GAAP to nonGAAP financial measures has been provided in the
`financial tables included in this press release. An explanation of these measures and
`how they are calculated are also included below under the heading "NonGAAP
`Financial Measures."
`
`Fourth Quarter and Recent Business Highlights:
`
`We ended 2015 with over 1,100 active, paying TAP customers, almost doubling
`since the first quarter of 2015.
`
`Announced a partnership with Palo Alto Networks whereby the companies have
`collaborated to provide customers with extended protection from and
`intelligence into the sophisticated attacks targeting users, data, and content via
`email and social media.
`
`Chosen as the exclusive partner for Intel Security customers as they endoflife
`their email security product line.
`
`Launched the industry's first Instagram security solution which automatically
`identifies Instagram security threats, compliance violations and inappropriate
`content for removal.
`
`Positioned in the Leaders quadrant of Gartner's 2015 Magic Quadrant for
`Enterprise Information Archiving for the fourth consecutive year.
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`4/16
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`
`Acquired Socialware, a leading provider of social media compliance solutions.
`
`Financial Outlook
`
`As of January 28, 2016 Proofpoint is providing guidance for its first quarter and full
`year 2016 as follows:
`
`First Quarter 2016 Guidance: Total revenue is expected to be in the range
`of $75.5 million to $76.5 million. Billings are expected to be in the range of
`$90.0 million to $92.0 million. Adjusted EBITDA loss is expected to be in the
`range of $0.5 million to $1.0 million. NonGAAP EPS loss is expected to be in
`the range of $0.14 to $0.15 based on approximately 41.0 million weighted
`average shares outstanding.
`
`Full Year 2016 Guidance: Total revenue is expected to be in the range of
`$345.0 million to $348.0 million. Billings are expected to be in the range of
`$428.0 million to $431.0 million. Adjusted EBITDA is expected to be in the
`range of $12.0 million to $14.0 million. NonGAAP EPS loss is expected to be
`in the range of $0.21 to $0.26 based on approximately 41.7 million weighted
`average shares outstanding. Free cash flow, defined as operating cash flow less
`capital expenditures, is expected to be in the range of $31.0 million to $35.0
`million, which assumes capital expenditures of $28.0 million to $30.0 million
`for the full year.
`
`Quarterly Conference Call
`
`Proofpoint will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m.
`Eastern Time) to review the company's financial results for the fourth quarter and
`full year ended December 31, 2015. To access this call, dial (877) 7414245 for the
`U.S. or Canada and (719) 3254773 for international callers with conference ID
`#8909114. A live webcast of the conference call will be accessible from the Investors
`section of Proofpoint's website at investors.proofpoint.com, and a recording will be
`archived and accessible at investors.proofpoint.com. An audio replay of this
`conference call will also be available through February 11, 2016, by dialing (877)
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
`
`5/16
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`6/21/2016
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`8705176 for the U.S. or Canada or (858) 3845517 for international callers, and
`entering passcode #8909114.
`
`About Proofpoint, Inc.
`
`Proofpoint, Inc. (NASDAQ:PFPT) is a leading nextgeneration security and
`compliance company that provides cloudbased solutions for comprehensive threat
`protection, incident response, secure communications, social media security,
`compliance, archiving and governance. Organizations around the world depend on
`Proofpoint's expertise, patented technologies and ondemand delivery system.
`Proofpoint protects against phishing, malware and spam, while safeguarding
`privacy, encrypting sensitive information, and archiving and governing messages
`and
`critical enterprise
`information. More
`information
`is available at
`www.proofpoint.com.
`
`Proofpoint is a trademark or registered trademark of Proofpoint, Inc. in the U.S.
`and other countries. All other trademarks contained herein are the property of
`their respective owners.
`
`ForwardLooking Statements
`
`This press release contains forwardlooking statements that involve risks and
`uncertainties. These forwardlooking statements include statements regarding
`momentum in the company's business, market position, future growth, market
`share 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:
`failure to maintain or increase renewals and increased business 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
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`6/16
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`6/21/2016
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`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 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 10Q for the quarter ended September 30, 2015, 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 forwardlooking 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 forwardlooking statements herein in light of
`new information or future events.
`
`NonGAAP Financial Measures
`
`We have provided in this release financial information that has not been prepared in
`accordance with GAAP. We use these nonGAAP 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 nonGAAP 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 nonGAAP financial measures to investors.
`
`NonGAAP 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 nonGAAP financial measures to
`their most directly comparable GAAP financial measures below. As previously
`mentioned, a reconciliation of our nonGAAP financial measures to their most
`directly comparable GAAP measures has been provided in the financial statement
`tables included below in this press release.
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`7/16
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`6/21/2016
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`NonGAAP gross profit and gross margin. We define nonGAAP gross profit as
`GAAP gross profit, less stockbased compensation expense and the amortization of
`intangibles associated with acquisitions. We define nonGAAP gross margin as non
`GAAP gross profit divided by GAAP revenue. We consider these nonGAAP financial
`measures to be useful metrics for management and investors because they exclude
`the effect of stockbased compensation expense and the amortization of intangibles
`associated with acquisitions so that our management and investors can compare our
`recurring core business operating results over multiple periods. There are a number
`of limitations related to the use of nonGAAP gross profit and nonGAAP gross
`margin versus gross profit and gross margin, in each case, calculated in accordance
`with GAAP. For example, stockbased compensation has been and will continue to
`be for the foreseeable future a significant recurring expense in our business. Stock
`based compensation is an important part of our employees' compensation and
`impacts their performance. In addition, the components of the costs that we exclude
`in our calculation of nonGAAP gross profit and nonGAAP gross margin may differ
`from the components that our peer companies exclude when they report their non
`GAAP results. Management compensates for these limitations by providing specific
`information regarding the GAAP amounts excluded from nonGAAP gross profit and
`nonGAAP gross margin and evaluating nonGAAP gross profit and nonGAAP gross
`margin together with gross profit and gross margin calculated in accordance with
`GAAP.
`
`NonGAAP operating loss. We define nonGAAP operating loss as operating loss
`less stockbased compensation expense and the amortization of intangibles and
`costs associated with acquisitions and litigation. We consider this nonGAAP
`financial measure to be a useful metric for management and investors because they
`exclude the effect of stockbased compensation expense and the amortization of
`intangibles and costs associated with acquisitions and litigation so that our
`management and investors can compare our recurring core business operating
`results over multiple periods. There are a number of limitations related to the use of
`nonGAAP operating loss versus operating loss calculated in accordance with GAAP.
`For example, as noted above, nonGAAP operating loss excludes stockbased
`compensation expense. In addition, the components of the costs that we exclude in
`our calculation of nonGAAP operating loss may differ from the components that
`our peer companies exclude when they report their nonGAAP results of operations.
`Management compensates for these limitations by providing specific information
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`8/16
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`6/21/2016
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`regarding the GAAP amounts excluded from nonGAAP operating loss and
`evaluating nonGAAP operating loss together with operating loss calculated in
`accordance with GAAP.
`
`NonGAAP net loss. We define nonGAAP net loss as net loss less stockbased
`compensation expense and the amortization of intangibles and costs associated with
`acquisitions and litigation, and noncash interest expense related to the convertible
`debt discount and issuance costs for the convertible debt offering. We consider this
`nonGAAP financial measure to be a useful metric for management and investors for
`the same reasons that we use nonGAAP operating loss. However, in order to
`provide a complete picture of our recurring core business operating results, we also
`exclude from nonGAAP net loss the tax effects associated with stockbased
`compensation and the amortization of intangibles and costs associated with
`acquisitions and litigation, and noncash interest expense related to the convertible
`debt discount and issuance costs for the convertible debt offering. We used a 5
`percent effective tax rate to calculate nonGAAP net loss for the fourth quarter of
`2015 and 3 percent for the fourth quarter of 2014. We believe that a 610% effective
`tax rate range is a reasonable estimate of the nearterm normalized tax rate under
`our current global operating structure. The same limitations described above
`regarding our use of nonGAAP operating loss also apply to our use of nonGAAP
`net loss.
`
`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.
`
`Adjusted EBITDA. We define adjusted EBITDA as net loss, adjusted to exclude:
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`9/16
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`6/21/2016
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`depreciation, amortization of intangibles, interest income (expense), net, provision
`for income taxes, stockbased compensation, acquisition and litigationrelated
`expense, other income (expense), net. We believe that the use of adjusted EBITDA is
`useful to investors and other users of our financial statements in evaluating our
`operating performance because it provides them with an additional tool to compare
`business performance across companies and across periods. We use adjusted
`EBITDA in conjunction with traditional GAAP operating performance measures as
`part of our overall assessment of our performance, for planning purposes, including
`the preparation of our annual operating budget, to evaluate the effectiveness of our
`business strategies and to communicate with our board of directors concerning our
`financial performance. We do not place undue reliance on adjusted EBITDA as our
`only measure of operating performance. Adjusted EBITDA should not be considered
`as a substitute for other measures of financial performance reported in accordance
`with GAAP. There are limitations to using this nonGAAP financial measure,
`including that other companies may calculate this measure differently than we do,
`that it does not reflect our capital expenditures or future requirements for capital
`expenditures and that it does not reflect changes in, or cash requirements for, our
`working capital.
`
`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.
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
`
`10/16
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`Proofpoint, Inc.
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`
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`Consolidated Statements of Operations
`(In thousands, except per share amounts)
`(Unaudited)
`
`
`
`
`
`
`
`
`
` Three Months Ended Twelve Months Ended
`December 31,
`December 31,
`
`
`
`
`
` 2015
` 2014
` 2015
` 2014
`
`
`
`
`Revenue:
` $ 72,472 $ 52,770 $ 257,329 $ 187,527
`Subscription
` 2,467 3,424
`8,068
`8,080
`Hardware and services
`
` 74,939
` 56,194
` 265,397
` 195,607
`Total revenue
`Cost of revenue:(1)(2)
`
`
`
`
` 53,136
`
`
` 20,374
` 14,841
`71,746
`Subscription
` 3,518 4,602 12,312 12,543
`Hardware and services
` 23,892 19,443 84,058 65,679
`Total cost of revenue
`
` 51,047
` 36,751
` 181,339
`Gross profit
` 129,928
`Operating expense:(1)(2)
`
`
`
`
` 51,903
`
`
` 20,092
` 14,203
`74,459
`Research and development
` 102,455
`
`
` 45,157
` 29,795
`156,156
`Sales and marketing
` 10,827 7,194 36,616 26,679
`General and administrative
` 76,076 51,192 267,231 181,037
`Total operating expense
`
` (14,441)
`(85,892)
`Operating loss
` (25,029)
`
`
`(51,109)
`
`
`(5,912)
` (2,828)
`
`(18,000)
`
`(11,213)
`Interest expense
`
`(292 )
`(858 )
`(1,927 )
`Other expense, net
`(2,230 )
`
` (18,127)
` (105,819)
`Loss before (provision for) benefit from income taxes
` (31,233)
` (64,552)
`
`(142 )
`753
`(635 )
`(Provision for) benefit from income taxes
`313
` $ (31,375 ) $ (17,374 ) $ (106,454 ) $ (64,239 )
`Net loss
` $
`(0.77 ) $
`(0.45 ) $
`(2.68 ) $
`Net loss per share, basic and diluted
`(1.72 )
`
` 40,531
` 38,265
`39,787
`Weighted average shares outstanding, basic and diluted
`
` 37,381
`
`
`
`
`
`(1) Includes stock‑based compensation expense as follows:
`
`
`
`2,404
` $
`1,408 $
`766 $
`5,028 $
`Cost of subscription revenue
`604
`
`
`324
`
`173
`
`1,098
`
`Cost of hardware and services revenue
`10,204
`
`
`5,110
`
`2,721
`
`20,672
`
`Research and development
`10,795
`
`
`6,016
` 3,632
`
`21,511
`
`Sales and marketing
` 3,379 1,915
`11,785
`6,997
`General and administrative
` $ 16,237 $ 9,207 $ 60,094 $ 31,004
`Total stockbased compensation expense
`
`
`
`
`
`(2) Includes intangible amortization expense as follows:
`
`Cost of subscription revenue
`Research and development
`Sales and marketing
`General and administrative
`Total intangible amortization expense
`
`7,079 $
`1,244 $
`2,165 $
` $
`91
`
`23
`
`22
`
`
`
`5,074
`
`1,192
`
`1,235
`
`
`
`12
`12
`
`
` $ 3,422 $ 2,471 $ 12,256 $
`
`4,157
`93
`4,494
`46
`8,790
`
`Proofpoint, Inc.
`Consolidated Balance Sheets
`(In thousands, except per share amounts)
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
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`11/16
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`6/21/2016
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`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`(Unaudited)
`
`
`Assets
`Current assets:
`Cash and cash equivalents
`Shortterm investments
`Accounts receivable, net
`Inventory
`Deferred product costs
`Prepaid expenses and other current assets
`Total current assets
`Property and equipment, net
`Deferred product costs
`Goodwill
`Intangible assets, net
`Other assets
`Total assets
`Liabilities and Stockholders' Equity
`Current liabilities:
`Accounts payable
`Accrued liabilities
`Equipment loans and capital lease obligations
`Deferred rent
`Deferred revenue
`Total current liabilities
`Convertible senior notes
`Longterm capital lease obligations
`Longterm deferred rent
`Other long term liabilities
`Longterm deferred revenue
`Total liabilities
`
`
`Stockholders' equity
`
`Common stock, $0.0001 par value; 200,000 shares authorized at December 31, 2015 and 2014; 40,840 and
`38,665 shares issued and outstanding at December 31, 2015 and 2014, respectively
`Additional paidin capital
`Accumulated other comprehensive loss
`Accumulated deficit
`Total stockholders' equity
`Total liabilities and stockholders' equity
`
`
`
` December
` December
`31,
`31,
`
`
` 2014
` 2015
`
`
`
`
` $ 346,205 $ 180,337
`
` 60,032
` 34,649
`
`
`54,522
`
`40,912
`
`
`485
`
`499
`
`
`2,228
`
`1,847
`
`5,695
`7,994
`
` 469,167
` 266,238
`
`
`34,501
`
`18,718
`
`
`314
`
`307
`
` 133,769
` 107,504
`
`
`41,330
`
`27,086
`
`3,733
`4,163
` $ 682,814 $ 424,016
`
`
`
`
`9,249
` $
`14,081 $
`
`
`35,053
` 24,220
`
`
`32
`
`695
`
`
`496
`
`569
` 182,195 123,550
`
` 231,857
` 158,283
`
` 345,699
` 161,396
`
`
`123
`
`
`
`
`2,033
`
`2,099
`
`
`1,188
`
`6,640
` 41,531 39,125
` 622,431 367,543
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`4
`
`4
`
` 330,744
` 441,104
`
`
`(27)
`
`(23)
`
` (380,702 ) (274,248 )
` 60,383 56,473
` $ 682,814 $ 424,016
`
`Proofpoint, Inc.
`Consolidated Statements of Cash Flows
`(In thousands)
`(Unaudited)
`
`
`
`
`
`
`
`
`
`
`
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
`
`12/16
`
`
`
`6/21/2016
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`17,823
`
`2
`
`312
`
`175
`
` 31,004
`
`5
`
`8,753
`
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
` Three Months Ended
` Twelve Months Ended
`December 31,
`December 31,
`
`
`
`
`
` 2015
` 2014
` 2015
` 2014
`Cash flows from operating activities
`
`
`
`
` $ (31,375) $ (17,374) $(106,454) $ (64,239)
`Net loss
`
`
`
`Adjustments to reconcile net loss to net cash provided by operating activities:
`
`6,960
`4,984
` 24,900
`Depreciation and amortization
`
`38
`2
`
`162
`Loss on disposal of property and equipment
`Amortization of investment premiums, net of accretion of purchase discounts
`12
`182
`
`103
`
`27
`84
`
`(231)
`Provision for allowance for doubtful accounts
`Stock‑based compensation
`
`16,237
`9,207
` 60,094
`
`
`
`
`
`Change in fair value of contingent earnouts
`
`5,022
`2,234
`
`14,933
`Amortization of debt issuance costs and accretion of debt discount
`
`
`
`
`Changes in assets and liabilities:
` (14,666)
`
`
`
` (16,010)
`(8,006)
`(12,117)
`Accounts receivable
`
`328
`
`
`
`
`353
`798
`14
`Inventory
`
`(791)
`
`
`
`
`90
`(17)
`(388)
`Deferred products costs
`
`(945)
`
`
`
`
`181
`411
`(1,829)
`Prepaid expenses
`
`(351)
`
`
`
`
`(519)
`1,004
`104
`Other current assets
`
`(691)
`
`
`
`
`153
`(695)
`509
`Deferred income taxes
`
`(23)
`
`
`
`
`2
`15
`47
`Noncurrent assets
`
`189
`
`
`
`
`4,633
`1,416
`2,460
`Accounts payable
`
`3,995
`
`
`
`
`(486)
`1,879
`4,448
`Accrued liabilities
`
`(13)
`
`
`
`
`
`
`
`Earnout payment
`
`2,315
`
`
`
`
`164
`635
`(165)
`Deferred rent
` 22,570 18,692 58,951 38,093
`Deferred revenue
`
`8,052
`15,451
` 45,541
`
`
` 21,275
`Net cash provided by operating activities
`Cash flows from investing activities
`
`
`
`
`11,353
`
`
`
`4,597
`3,353
` 39,056
`
`Proceeds from sales and maturities of shortterm investments
` (37,805)
`
`
` (16,459)
`
` (64,537)
`Purchase of shortterm investments
` (14,988)
`
`
`
`(7,700)
`(4,593)
` (25,827)
`Purchase of property and equipment
` (11,499 ) (31,645 ) (51,553 ) (53,680 )
`Acquisitions of business, net of cash acquired
`Net cash used in investing activities
`
` (31,061)
` (32,885)
` (102,861)
` (95,120)
`
`
`
`
`17,640
`
`
`6,702
`5,900
`18,583
`
`
`
`(4,170)
`
`
`(5,652)
`(2,331)
` (18,108)
`
`
`(191)
`
`
`
`
`
`(371)
`
`
`
`
`
`
`
` 223,790
`
`
`(1,655)
`
`
`(7)
`(415)
`
`(706)
`
`
`(741)
`
`
`
`
`
`
`
`
`
`
`
`
`(487 )
`1,043
`3,154 223,188 10,396
`
`
` (21,966)
` (14,280)
` 165,868
` (63,449)
`
`
`
`
` 368,171 194,617 180,337 243,786
` $ 346,205 $ 180,337 $ 346,205 $ 180,337
`
`Cash flows from financing activities
`Proceeds from issuance of common stock
`Withholding taxes related to restricted stock net share settlement
`Payments of debt issuance costs
`Proceeds from issuance of convertible senior notes
`Repayments of equipment loans and capital lease obligations
`Holdback payments for prior acquisitions
`Earnout payment
`Net cash provided by financing activities
`Net increase (decrease) in cash and cash equivalents
`Cash and cash equivalents
`Beginning of period
`End of period
`
`Reconciliation of NonGAAP Measures
`(In thousands, except per share amounts)
`http://investors.proofpoint.com/releasedetail.cfm?releaseid=952295
`
`13/16
`
`
`
`6/21/2016
`
`Proofpoint Announces Fourth Quarter and Full Year 2015 Financial Results (NASDAQ:PFPT)
`(Unaudited)
`
`
`
`(51,109)
`
`
`
`
`
`
` Three Months Ended Twelve Months Ended
`
`
`
`
`December 31,
`December 31,
`
`
`
`
`
` 2015
` 2014
` 2015
` 2014
`
`
`
`
`
` $ 51,047
` $ 36,751
` $ 181,339
` $ 129,928
`GAAP gross profit
`
`
`68%
`
`65%
`
`68%
`
`66%
`GAAP gross margin
`
`
`
`
`Plus:
`3,008
`
`
`939
`
`1,732
`
`
`
`
`
`6,126
`Stockbased compensation expense
` 2,165 1,244
`7,079