Proofpoint, Inc. (PFPT)

Get PFPT Alerts
*Delayed - data as of Jun. 24, 2016 15:59 ET  -  Find a broker to begin trading PFPT now
Exchange: NASDAQ
Industry: Technology
Community Rating:
View:    PFPT After Hours
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
Basic Chart Interactive Chart
Company Headlines Press Releases Market Stream
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save Stocks

Proofpoint Inc. (PFPT)

2013 Wedbush Transformational Technologies Management Access Conference Call

March 6, 2013 10:55 am ET


Gary Steele – Chief Executive Officer

Paul Auvil – Chief Financial Officer


Sanjit Singh – Wedbush Securities, Inc.


Sanjit Singh – Wedbush Securities, Inc.

All right. Good morning, everyone. We have Proofpoint at our conference here. I’m Sanjit Singh, Communications Analyst with Wedbush. Gary Steele, the CEO of Proofpoint is joined with Paul Auvil, the Chief Financial Officer. I think as we go over the presentation, I have a few questions and we’ll turn it over to the audience for Q&A as well.

Gary, go ahead.

Gary Steele

Great. Thank you very much. It’s great to here today. What I’ll do is just give you a very quick short overview. So Proofpoint is a company that is focused on the $5 billion data security market and we’re using SaaS to truly transform that industry with a whole set of new disruptive technologies and we’re seeing great residence across our customer base.

If you look at our business today, we have roughly 2,700 customers. We focus on midsize and large customers with many of the world’s largest and most brands as customers today. We have some key partners. Microsoft, IBM, VMware being good examples of that. Microsoft, for example, resells part of our solutions to their largest cloud customers. IBM has a resell rate of relationship with us where they have the ability to resell all of our products across the globe.

If you look at our revenue and growth, our annual growth rate has run roughly 33% and we continue to be recognized in industry as a leader. So Gartner has its place, for example, and the two major quadrants where we play. We are considered a leader in those quadrants. We also get great feedback from the industry price as well as customers be a way for example it’s been a longstanding customer. They actually rank all their vendors on a scale of one to 100. Last quarter we got 100 and it’s difficult to get 100.

So to give you little bit of perspective on the capabilities that we deliver, we deliver a broad platform of capabilities broken into four key product areas. The first key product area is protection. This is where we got started in the business. In this particular context, we’re looking at spam viruses and other forms of malware coming into an organization. We’re protecting our customers from that. We’re blocking it before it ever gets to their inbox.

So the way this works today in our datacenters is, as an example, we have a retailer that employs 2 million people. All the email from that global organization goes into our datacenters. We run our analytics and email that’s coming through. We determine what is potentially malicious, what is just truly unwanted and then we route back to that retailer a clean email stream.

In this category we’ve also introduced a new capability. We introduced it in August called Targeted Attack Protection. This is focused on the most malicious advance for system threats coming into an organization. We’re leveraging our strength and the email strength to look for spear phishing and it’s interesting. We had one of our large financial services customers do an analysis on their threat environment and they found that in a quarter, 91% of the malicious attacks had come through the email stream.

So with this particular capability effectively what we do is we look for URLs and email. When we see the URL, we use a set of big data techniques that determine whether something is potentially malicious. We actually rewrite the URL in the email and with that rewrite we’re able to redirect that user to our cloud-based service. And so, at the time the user decides to click on it, we can determine whether something is malicious or not.

And so what’s interesting and cool about this is, because we analyzed the URL for malicious code at the time, that someone clicks, we can protect people out enough of their corporate network, because a lot of times people do not want to be on their VPN. They want to be sitting on their hotel bed with their iPad, reviewing their email and then they click at that time. Well, we’ll protect you then and we’ll also protect you when you’re in corporate network.

So this is a new capability for us. We announced in August, we had a first full quarter selling in Q4. In our Q4 conference call, we announced that we’ve closed several of those customers. So it is one that is clearly creating a lot of value for customers and getting people excited.

Second key product area is privacy. So with privacy, we’re helping organizations deal with our compliance initiatives as it relates to private data; private data meaning, banking information, health information, a range of data that they want to be kept proprietary and private. We provide a policy engine that controls or lease the organization. But if they want to send that private information over the Internet, we give them two ways to do that. One is with encryption. So they can send all the way to an end-user in an encrypted format.

We also announced in January a new product capability called Secure Share. Secure Share is a capability to allow for fast, secure file sharing over the Internet as well. And so, what is interesting and exciting about this new capability is we’re doing within the structure of the security policies. What’s driving CIO’s net today is people are taking essentially corporate data, data that needs to be managed and secured and they’re sticking into drop-offs and that are called file sharing techniques, but not within the compliance of their security policies. So that’s a new capability that we just introduced as part of our privacy suite.

Read the rest of this transcript for free on