Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Proofpoint Inc (NASDAQ:PFPT) jumped more than 13% Thursday after the company announced encouraging first-quarter results.
So what: Quarterly revenue rose 39% year over year to $42.7 million, which translated an adjusted loss of $0.12 per share. Analysts, on average, were expecting a wider loss of $0.18 per share on sales of just $40.7 million. Billings for the first quarter also rose to $46.6 million, or an increase of 33% over the same year-ago period.
In addition, Proofpoint expects second-quarter revenue in the range of $43 million to $44 million, and an adjusted loss per share of $0.11 to $0.13. The midpoints of both ranges are ahead of analysts' expectations, which called for a Q2 loss of $0.13 per share on sales of $41.95 million.
Finally, for the full year 2014, Proofpoint sees total revenue in the range of $178 million to $180 million, which should result in an adjusted loss per share of $0.41 to $0.46. By comparison, analysts were modeling 2014 sales and losses per share of $175.85 million and $0.49, respectively.
Now what: CEO Gary Steele added, "Our ability to exceed expectations across all key operating metrics was driven by our continued high win rates across our entire product line, strong renewals, and expansion with our existing customers."
These are solid results by any measure, so I can't blame the market for bidding up shares today. If Proofpoint can continue steadily marching toward sustained profitability, I still see no reason the stock won't continue rewarding investors going forward.
The biggest thing to come out of Silicon Valley in years
But Proofpoint also isn't the only promising tech name out there. To be sure, if you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.
Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.