The 10-second takeaway
For the quarter ended March 31 (Q1), Proofpoint beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share grew. GAAP loss per share dropped.
Gross margins grew, operating margins shrank, net margins dropped.
Proofpoint booked revenue of $30.8 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $29.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $24.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.12. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. Non-GAAP EPS were -$0.12 for Q1 against -$0.08 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q1 against -$0.85 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.5%, 450 basis points better than the prior-year quarter. Operating margin was -19.2%, 60 basis points worse than the prior-year quarter. Net margin was -20.8%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $31.2 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $129.0 million. The average EPS estimate is -$0.35.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with five members out of 18 rating the stock outperform, and 13 members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one give Proofpoint a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Proofpoint is outperform, with an average price target of $19.43.
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