Technology

Making Its Point: Proofpoint Shares Hit Record High

The proof is in the revenue, or so seems to be the mantra of Proofpoint (PFPT), a cybersecurity company with a revenue run-rate of $700 million in 2018, up 40% from 2017.

Its shares, currently at $129.53 and climbing today, are at an all-time high.

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Bloomberg News

Celebrating the six-year anniversary of its 2012 initial public offering, the company has posted nine straight solid quarters and grown through diversifying beyond its bread-and-butter business--email security against spam and viruses--to security solutions across cloud-based systems, social media and mobile. Its built its product portfolio through acquisitions of Wombat Security Technologies  and Cloudmark  over the last six months.

The Sunnyvale, Calif.-based Proofpoint has adopted a "360-degree view of the [cybersecurity] threat environment" as the underpinning of its business model, company Chief Financial Officer Paul Auvil  tells Barron's.

"We've evolved [product-wise] as the [security] threat has grown to social media content and weaponized documents," Auvil says. "We're protecting people from all forms of advanced threats."

Last week, the company reported non-GAAP earnings of 30 cents a share, an improvement of 36% year-over-year jump, outpacing the Zacks Consensus Estimate of 16 cents, and Proofpoint's guidance of 15 cents to 17 cents per share.

"Proofpoint is not just an email security company, but a next-generation cybersecurity player," Joel Fishbein, BTIG Research analyst, said in a note to clients last month.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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