IPO Preview: Proofpoint
PFPT is one of nine IPOs scheduled for the week of April 16th. (Full IPO calendar here.)
Manager, Joint Managers: Credit Suisse; Deutsche.
SUMMARY
PFPT is a pioneering security-as-a-service vendor that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data. PFPT was founded in 2002.
PFPT is a pioneering security-as-a-service vendor that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data. PFPT was founded in 2002.
Competition
Data protection competition include Cisco (CSCO) through its acquisition of IronPort, Google (GOOG) through its acquisition of Postini, McAfee, an Intel (INTL) subsidiary (through its acquisitions of Secure Computing and MX Logic), Microsoft (MSFT) through its acquisition of Frontbridge, and Symantec (SYMC) through its acquisitions of Brightmail and MessageLabs)
Data protection competition include Cisco (CSCO) through its acquisition of IronPort, Google (GOOG) through its acquisition of Postini, McAfee, an Intel (INTL) subsidiary (through its acquisitions of Secure Computing and MX Logic), Microsoft (MSFT) through its acquisition of Frontbridge, and Symantec (SYMC) through its acquisitions of Brightmail and MessageLabs)
Governance competition includes EMC (EMC) through its acquisitions of Legato and Kazeon, Hewlett-Packard (HPQ) through its acquisition of Autonomy and Symantec through its acquisitions of KVS and LiveOffice.
RESULTS
PFPT's sales increased 25% to $81 million from $65 million for 2011 versus 2010. PFPT lost $20 million for 2011, slightly less than the $21 million loss for 2010.
PFPT's sales increased 25% to $81 million from $65 million for 2011 versus 2010. PFPT lost $20 million for 2011, slightly less than the $21 million loss for 2010.
PRPT doesn't seem to be on the road to near-term profitability, even though gross margins were 64% for the year ended December 2011.
A plus, however, is that in 2011, PFPT achieved FISMA certification for its cloud-based archiving and governance solution, enabling PFPT to serve the rigorous security requirements of U.S. Federal agencies.
CONCLUSION
If as an IPO investor you like the sector, our recommendation is to take your IPO profits sooner than later.
If as an IPO investor you like the sector, our recommendation is to take your IPO profits sooner than later.
BUSINESS
PFPT is a pioneering security-as-a-service vendor that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data.
PFPT is a pioneering security-as-a-service vendor that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data.
PFPT's security-as-a-service platform is comprised of an integrated suite of on-demand data protection solutions, including threat protection, regulatory compliance, archiving and governance, and secure communication.
PFPT was founded in 2002 to provide a unified solution to help enterprises address their growing data security requirements. The first solution was commercially released in 2003 to combat the burgeoning problem of spam and viruses and their impact on corporate email systems. As the threat environment has continued to evolve, PFPT dedicated significant resources to meet the ongoing challenges that this highly dynamic environment creates for customers.
In 2011, PFPT achieved FISMA certification for its cloud-based archiving and governance solution, enabling PFPT to serve the rigorous security requirements of U.S. Federal agencies. PFPT also introduced an integrated security offering in conjunction with VMware (VMW) for its Zimbra Collaboration Server.
In 2012, PFPT introduced Proofpoint Enterprise Governance, an information governance solution that provides organizations the ability to monitor and apply governance policies to unstructured information across the enterprise.
RECURRING REVENUE
PFPT's business is based on a recurring revenue model. Customers pay a subscription fee to license the various components of the security-as-a-service platform for a contract term that is typically one to three years. Over time PFPT has retained over 90% of its customers.
PFPT's business is based on a recurring revenue model. Customers pay a subscription fee to license the various components of the security-as-a-service platform for a contract term that is typically one to three years. Over time PFPT has retained over 90% of its customers.
DISTRIBUTION
PFPT markets and sells solutions to large and mid-sized customers both directly through a field and inside sales teams and indirectly through a hybrid model where PFPT's sales organization actively assists a network of distributors and resellers.
PFPT markets and sells solutions to large and mid-sized customers both directly through a field and inside sales teams and indirectly through a hybrid model where PFPT's sales organization actively assists a network of distributors and resellers.
EMPLOYEES
As of December 31, 2011, PFPT employed 376 people,
As of December 31, 2011, PFPT employed 376 people,
INTELLECTUAL PROPERTY
As of December 31, 2011, PFPT had 14 patents and six patent applications.
As of December 31, 2011, PFPT had 14 patents and six patent applications.
USE OF PROCEEDS
PFPT expects to net $49 million from the sale of 5 million shares. Shareholders intend to sell 1.2 million shares. IPO proceeds are allocated to working capital and general corporate purposes.
By IPOdesk
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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