PFPT - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen and welcome to the Proofpoint Second Quarter 2019 Earnings Results Conference Call. Today’s conference is being recorded.

At this time, I would like to hand the conference over to Mr. Jason Starr, Vice President, Investor Relations. Please go ahead.

Jason Starr

Lisa. Thanks, welcome quarter and earnings Proofpoint’s to afternoon, XXXX second call. Good

Proofpoint’s Gary on the Chief Auvil, the me Steele, Board; Financial call Paul of Joining Chairman are Proofpoint’s Officer. and Executive and Chief Officer

be Relations was after copy section website. that of of we’ll press afternoon, available is closed issued discussing in our the announced Today, our results on release which this market a the the Investor

call. make company, forward-looking financial During are statements you future materially. risk the call, in press important course risks future the of We factors the events could results the material performance to release we’ll of that cause which conference this subject and caution uncertainties on to and consider contained regarding and to actual differ this

also detailed date, of result XX-Q. Form that on no statements Risk obligation future factors of with we fully to be filings Proofpoint’s update believe these new events. risk based the as XXXX. in forward-looking SEC, under including a today’s most as These the to assumptions or July undertake statements information XX, are Factors are We our caption These recent more reasonable

unless through financial a Of Proofpoint’s to is the neither today’s or policy through guidance release press a a done it call, X-K. provided of reiterate note, adjust also Form public disclosure, on as nor to is it such filing the

today’s or reconciliation non-GAAP a measures measures GAAP of analyzing release. a today’s you the to on uses non-GAAP to for, why list financial and considered Proofpoint’s the non-GAAP intended call. included measures to we non-GAAP our to GAAP release. performance. all consider encourage in both and set as isolation are items superior measures number measures be present forth exclude not from, results, of these non-GAAP company press reasons will measures a and when we of in A substitute GAAP Additionally, are in These These our

encourage such investor-oriented our webcasts, other investors the press our events, filings, investors.proofpoint.com post filings, release and section relevant to news of at addition and we website to information monitor investors as SEC and materials routinely to it. Finally, reading presentations in financial also we as

So, turn I’ll over said, with to the Gary. that call

Gary Steele

everyone Thanks, for today. us to the call thank on like Jason. joining I’d

pleased of results QX with our XX% top-line expectations very and representing our quarter yet line were results. with of are and another We $XXX.X delivering QX bottom ahead million team annual financial revenues growth. solid

results our operating targets. ahead in demonstrate of operating free gross coming with metrics strong all margin, guided flow Our such our embedded income, the in leverage as business our and profitability cash

to customers people-centric win and demand rates, favorable products, XX%. and above of the visibility driven Our business momentum migration which demand key remains competitive resonating prospects nicely overall and world-class into our evolving cloud renewal generation as evidenced by a landscape. rapidly by with the and approach our The robust our our the unique for the rate, threat for ongoing compliance security cloud emerging and remains our environment remains platform, strong, alike is cybersecurity number next to factors, a continued high including our

many financial of often to and they that vectors benefits, the provides unprotected to an migration with applications exploit enterprise with known individuals provides and ongoing new organizations The attackers workloads compromise can entirely also for well cloud but gain.

capabilities critical it wide positioned globally array our To they and our of to set to in become an applications. needs email approach This broadening Proofpoint with with whenever content cybersecurity and by the deliver and firewall. a reach imperative wherever uniquely for cloud safeguard has security a is with security company threat of people-centric deal combining evolving excellence teams intelligence comprehensive across employees these new need companies interact their – challenges, beyond better compliance and

enable security additional advanced security them teams visibility their an browser threat exceptional the adaptive conducting to into overall or phishing by protect security awareness data controls provide most and the actors. frequently that deploying such to landscapes targeted to isolation posture unique implement as actionable training threat Our simulation are with users improve further and to

To do access year, we limit teams zero as an innovator precisely easier further on contractor access. security us in a this reduce acquired provide these it transaction make with such, adaptive consumer in May full capabilities Meta premise people-centric of them cloud and exposure authorized individual applications an additional employees employee to or extend controls and breach will This network to and to the specific Networks compromise enterprises contractor. and for trust far

extremely brings that expect we’re any people-centric vision, revenue meaningful XXXX. in the Meta we excited potential that to it will generate not our to While about do contribution

some review I’d product our like this a on new some to we wins, announced QX touch of providing earlier Before of that enhancements key week. exciting

TAP significant our for integration Specifically, files isolation Advanced system browser our which Detection browser called isolations order further isolation end protection Isolation, we email to launched solution and of a our user. enhance enables seamless enhancement to Threat in Proofpoint and the TAP between offerings every

ability involved. provides policies when with the and customize to This isolation the capability teams new security establish system is

VAP can example, approach user’s isolate designation. to URL they a selectively a such risk they’re attack on clicks risk-based very For people, as factors based deploy or

company each that can on for risk govern evaluating only or while Proofpoint on choose isolate such believe profile, greatly based URLs based the security can all simplifies programmable isolation web unknown user’s users organizations content. unscanned posture. We risk how categorization they the overall to and which metrics that their other security is customize Similarly, as risk high

as trust such, to these provides risk them environment impact whenever In an an isolated risk personal cloud-based to of with which protecting being protect zero terms users higher on control a of they experience environment have interact link they click on their adaptive to web no URLs. all exposed redirecting and to content services, virtually by collaboration their with while malicious and email, the of new functionality, this solution isolation additional

and the threats for of such any resolve set mitigate user’s particular operating within system content to or Proofpoint’s the to either while the exit interact to potential all isolation that the deems directly the Cloud with conducts content detect, can isolated Once deep online While webpage. and protect automatically as Proofpoint’s scan isolation safe, web users’ engine a and to content from in the choose remain environment endpoint the be compromise. user

drive particular turning suite – generation Now, and of of key infrastructure. meet cannot to to during changing systems infrastructure the second that this to some Office full of catalyst long-term our are ongoing landscape rapidly the the XXX cloud operating as by on challenges the and of helping to quarter, be cloud new and the existing results definition for dual migration threat in continue Microsoft premise demand to solutions and compliance Proofpoint’s security the transition

the bundles. strength Proofpoint’s also – security also to Office products solutions to effectively continue We their the compared we by Microsoft provided of of baseline XXX demonstrate when as continue part

the users, and users. customers, financial to TAP Office purchased subsequently company Defense Proofpoint decided that and protection, to for XX,XXX and Response services TAP, second organization a that Bundle for their purchase a XXX Mail the medical services private purchased during of had moved capabilities protection manufacturing XXX XX,XXX company security Threat Examples upgrade for with Fortune in users and PX a that who privacy quarter XX,XXX included Internal

very drive Email strong growth for another demand demand success of Awareness market. pleased in we and encouraged this opportunity Response growth products, security or We we Threat our quarter. attractive with by notably our are cybersecurity the into the sales believe meaningful Defense are for to yet base, emerging customer In Fraud to our Proofpoint ongoing by PSAT, for add-on which particular, nicely EFD, and Proofpoint strength led exciting or of which segment also an new our Training represents the contributed

as our as selling driving Overall, new with account we’re base seeing interests PSAT, well existing strong customer with success into wins.

released. pleased PSAT of and in we’re meaningful for row, – announce awareness also We sixth product the is to magic are and superior compelling believe seeing security to quadrant new for six we’ve time computer-based in vision recently We training, quadrant roadmap placed features adoption our the a our execute. Gartner several its highlighting that ability of time leader’s

in our have customers I’m is either or integration it midst momentum are have this shared closed the email integration in our response Threat of to we call gaining share that are now and of in As Response loop enabled clear pleased April, between and hundreds PSAT implementation. we analysis and

arm As official is from a further evaluated with pressing matters. of reminder, security this investigation, it Proofpoint’s which a feature them extracted that only the automatically This then that are organization to malicious emails analyzer not but automation freeing valuable enables that end the plug-in highly eliminates users received the all teams within on Threat else If need report in to user’s message to full to be focus as the other suspicious breadth is it thereby from determined manual Intelligence. PSAT, anyone is also minutes. using overburdened for mailbox,

an Overall, in the new excellent key included of outpacing over third and few growth, product our the one and rest the of portfolio contributing emerging of QX business quarter. of our A source add-on again, be a users. added during total product products had continued and for and users, purchased university that the Fortune Response closed emerging to XX,XXX EFD EFD wins XX,XXX XXX meaningfully company conglomerate users insurance PSAT the Response for added users and company XXX,XXX and XXX chemicals private added agricultural PSAT for that Threat that Fortune that leading Threat XX,XXX for an

recorded digital segment another quarter in our as record our In solid accelerating archiving terms with quarter of reporting, continued momentum of products Compliance driven the of our yet our by paired business as our well segment solutions. growth interest risk for PSAT

seen supervision, of industries healthcare particularly new in the several are firms quarters, features starting we and we’ve past financial to from analytics demand. visualization, we drive archiving features increased shared have as many such introduced the as As such interest and over regulated in and eDiscovery services the

who closed term with very to quarter. XXX the was the Fortune second whenever of and am archiving our a here I which portion a in that for in quarter, an financial in five-year range, largest the built initial small institution, we Specifically, pleased us contracted second eight-figure supervision mid report

results. in our size legacy of these opportunities, contribute in we’re quarters pipeline and competitors to it on-premise larger Our in note of and that the meaningfully and compared cloud-based important archiving continues positioning investments innovation and clearly model your as strengthen terms to mature prospects take optimistic given can market making while for to them to given complexity and delivery we’re this many is many to our

included noted, examples energy of the deals professional in and had In addition that significant international XX,XXX financial deal other quarter technical firm with users. and users company I services converting with the with XX,XXX to just services firm users a XXX XX,XXX second a Fortune archiving services

was year with PX, shared our simplifying cycles key customers our and this steadily PX represents initiative addition selling quarter, PX, of these the channel. We make services. As capabilities, go solutions of unique PX. that easier bundles grown and the eliminating Meta the launch A we it last bundles need team portfolio the multiple process now believe for greatly and to for broad these our consumed for has product XX importantly and for the market sales for

still to is of that bundles. closed the the solid PX I’m program handful in we first results effort nicely this start the to pleased particularly expectations and a QX approach, wins interest also report PX our this of launched in QX of our products, we While customer again, this when year. PX ahead PX early entry reflecting level in bundled contributed and at

bundle bundle purchased non-profit company customers that a XXX the that Examples and for bundles isolation hospitality game added A XXXX purchased users. XX,XXX privacy bundle users. hospital and included second that our X,XXX that and A XX,XXX a PX Fortune users. our during X,XXX that PX of purchased developer browser our for for bundle purchased quarter retailer for PX video our users PX purchased Fortune

company global which We around XXXX testing the executing United our that quarter, towards food purchased protection, subsidiary believe XX,XXX and deals services make bundle with abroad and geographies continue in for TAP of We Protection capitalize Isolation the the PX such for its that in outside as XX% represented are XX% and the on plan opening the during and operations also pleased for and our security as XXXX company XXXX the quarterly business, to our highlighted services of a total Global well A users. international year-over-year Proofpoint company revenue. users. closed Fraud additional international the equipment to Threat expansion XXX,XXX States and purchased Defense with burgeoning further invest a Email by notable purchased for including Email to grew continued opportunity in order users are and results we demand world. that people-centric Response to global XXXX Overall, progress international

federal next one before week helping earlier drive as receive account that this to making with the secure of an efforts operate a of I’m for milestone was such and government. new TAP as progress closing final in progress the step certification certification This Commission, more are our report the have sponsor solutions. within of EOP our Federal full several now serve in with certification highlighted to believe cooperation the also XXX,XXX will we three to is authority Communications than protection, who our which FedRAMP this All achieved is for to this expect milestone we by pleased federal FedRAMP customer, and existing serving a final customer, us employees and we further excellent agency a weeks. our This first the that as endeavor. lighthouse in wins

In the now. sponsorship receiving archiving team designation is which that has the States has to solution its status security months, and the next Proofpoint authority occur several our of solution for awareness in under United expect XX Commerce our FedRAMP and addition, years to helped within call working training we operate, of Department process achieved our towards we

our in we this driver quarter. growth represents agency all, the regarding in We vertical has team important Proofpoint beyond progress new our that protocol be we believe July. contributor third overtime government will while all the and here federal made the business moderate great closed So, a FedRAMP that in that here another for overall to believe

certified we’re early the Given these ramping stages be of efforts our fully around soon sales to solutions. in that

turning it regarding Paul, provide news to with before you like to over on directors. quick board update I’d some a of our

many pleased recognizes more been director was announce Evan, The she integrity, of be forward service XXXX want not XXXX displays company National our I and leadership Director, serves and appointments for to Independent Corporate shareholders. our that by to and Directors. excellent our Proofpoint Proofpoint as of currently Board year contributions Member courage the her and to look for who the to and to Dana to has Dana our the could of award I across and that named thank I her First, Association the board Lead ongoing work since a all This

of first marketing directors years appointment largest spent member where is the our insights longest valuable pleased effective also two the announce Leyla and business I’m expertise to sales be led July of business running XXth. the she new to marketplace. Leyla operations XX market, force, at board. the to Her world’s members new to go board app Seka. AppExchange, and and product management, our will product past

great the team. scaling and technology businesses of leading Proofpoint of and addition Peter The multibillion Peter served Peter dollar that, and as a CEO to second president behalf president new will On BMC was the the in software experience Peter enterprise board, welcome be both Leyla board. is I in-depth and Polycom. the CEO to of prior the Leav. has member and to and

and positioned alike. we on believe further well addressable are years. customers total our results clearly our execute approach continue security demonstrated to our strong $XX by well coming to So in cyber with to unique the prospects future our billion over our gain market resonating momentum. people-centric market and as we we share And in compliance and opportunity and the capitalize summary, is to

over With let that, me Paul. to turn it

Paul Auvil

around results our quarter, all with Gary. were key with pleased to thanks hard Thanks, the world. the operating teams our metrics guidance We this of quite our our work financial of on many exceeded which

million. increase guidance XX% to of million, $XXX.X $XXX.X our $XXX $XXX our the year-over-year year-over-year guidance above of $XXX range quarter of of million range the end high an were and for $XXX billings totaled million, and second million up XX% Revenue above million. to

requires prior XXX, unbilled any noted the metric quarter, well to activity accounts under of calls, As ASC liability. during derivation on billings of right reflect the refund our adjustments receivable as as

items related was adjustment the $X.X these two million. to QX, For negative

high for to continues lower at range our the and of free our landing of quality generation. This quarter sequentially the up XX terms million in $XX.X months QX, is deferred quarter underscore sequentially balances, at end of targeted the cash Our and down months to from duration duration XX flow trend ended revenue by million long-term $X.X only with growing short-term increasing which in further million, reflected million. $XX by our the of was $XXX.X

of of terms grew In during QX, total Advanced in from a bit revenue more represented and detail our XX% segment revenues year-over-year XX% Threat revenue.

of it revenue. that to our the on calls. discussed keep of year-over-year business down impact of year-over-year our grew and when have a prior in analyzing Our XX% represented Advanced XX% important wind basis, Cloudmark’s revenues mind Compliance Threat we OEM is Note on the as segment

reminder rest in practice revenue wind down of base. As basis more over when over historical of been several Cloudmark’s course eliminated when even considering reporting. the and of an elected is OEM annual relationships course the the the The of resulting which we across installed the part negligible point also our coupled legacy a segment their has Threat growth that reduction selling comparative perpetual of Advanced XXX XXXX, were model pronounced XXXX, estimated in we effect their the revenue to with growth course context historical of licenses of business

was the ahead and a XX% our for we now that XXXX Day investors outlined targeted expenses for of non-GAAP year quarter. profitability second we to schedule end of also June that like high first during analyst target for would range our XX% I of are our gross basis, of to at revenue of primarily XXXX. in full our and performance. our on strong to highlight XX%, expectations, the XX%, margin driven Turning a at above total by

representing year total expenses revenue. the second over XX% the XX% million, to prior $XXX.X increased of operating During period total quarter, non-GAAP

again, nicely was revenue to year for operating full as the both the quarter operating the in income $XX.X net million, our well Our schedule. second marketing, of by our was targeted above XX% $XX.X Non-GAAP XXXX guidance sales, million lower expected XX% bringing of over second $XX.X million million driven range reflecting and as ahead R&D. for $XX.X quarter performance margin non-GAAP XX% spending range into both of than of us an to our income a

and X, income disclosure non-GAAP As we XXX.XX. January Section non-GAAP we beginning SEC’s C&DI quarter, compliance financial last calculating net are with interpretations now measures, discussed in accordance XXXX, the

This our quarter’s quarter fully recorded guidance rate an based we of Non-GAAP above of million per share totaling range last $XX.X the per quarter the a shares and tax million million nicely $X.XX with was expense for in $X.XX outstanding. on XX%. $X.XX calculation earnings end implied on non-cash of consistent tax includes a $X.X based for share shares. or diluted the high to XX.X net $X.XX loss $XX.X basis, GAAP per on quarter million share,

for quarter equivalents of range within the $XXX.X guidance driven better cash, operating ahead well million quarter. cash terms of than Moving the $XX in million $X.X invested by and we million, in in in cash billings strong the with and of free our sheet. in result $XX ended and million short-term capital balance resulting flow the $XX in to flow, This collections partially quarter of investments flow We $XX.X expenditures cash cash million million. was generated expected to

on of moving the to guidance second for year. Now, the half

commentary. growth in million $XXX with midpoint of the our QX in and prior to year-over-year resulting at $XXX to million We expect XX% billings line

our we XX% of at million implies range to year, $X.XXX a of midpoint. guidance are range billings nearly XX%. This $XXX QX growth million now guidance and full reflecting approximately billings the billion $X billion representing increasing growth by the For $X.XXX of year-over-year expect

XX% range QX be million the to $XXX of or the to million midpoint. nearly at We expect $XXX our revenue in

we nearly our representing to million midpoint For the year, $X.X to XX% at the million by $XXX.X growth increasing $XXX.X revenue year-over-year the full are million, increasing guidance midpoint. and

by XXXX rate in challenging a was very for we year, As acceleration $X the under year a in fourth in discussed million creates roughly revenue which $XXX this a strong quarter in January, absent and of that the in expected as roughly part the reminder, or coming growth recall fourth of performance driven ASC we XXX million. baseline effect quarter XX% of the similar XXXX

terms be expect non-GAAP guidance, In guidance. for margin to for and slight XX% QX annual of approximately gross both raise QX a gross our representing we margin

$X.XX XX.X third we $XX.X the of For spending as fully quarter, our based the earnings with income catches net million diluted on $X.XX per to up revenue shares non-GAAP $XX.X expect to share million during or outstanding million quarter.

assumes an XXX.XX $XX $XX we guidance provision approximately depreciation our an guidance rate C&DI updated that capital at C&DI depreciation million, $X.XX provision to Note of the $XX.X accordance income this guidance in an fully and share tax of are based calculated range calculated accordance of from million for diluted $X.X that or tax million XX.X of $X to earnings million and $XX.X $XX QX income $XX approximately in of effective range income capital an net Note on million million, prior tax year, roughly with million to assumes increasing per of with $XX this expenditures XX%. $X.XX expenditures million shares $XX approximately of for full XXX.XX. million of to of million, million outstanding. to $XX million, the year our

million, with repatriate as had acquired on press to estimate release associated $XX year. of we be we tax flow, Meta the acquisition cash United keep we be intellectual to States in mind the this that one-time with free acquisition, do in to likely May third our to from of expect the the paid approximately a indicated Israel please now terms payment, property during which in announcing quarter the X

of of the to flow a to Absent a tax representing of $XXX guidance cash $XXX April full million the We again for into range of IP, $XXX with of an as our that to million for full schedule. two free call million. here range weeks year this raised recall flow with the XXXX that backdrop, roughly ahead our guidance payment bringing $XXX a for free our are repatriation of during us on cash million acquisition. earnings the the target of announcement expected XX, our XX% QX in prior So, margin range XX% we raising XX% XXXX July, a to full again, to year year

acquisition during second of updated tax estimated in expected in the opportunities this given $XX results million guidance to approximately the range million an the half effects for of our approximately million QX expected Adjusting of QX the related QX. to the million million million this to in guidance $XX and commitment the of of property repatriation $XX with for $XX to the breakdown intellectual market. payment $XXX key believe $XXX ongoing year that We in and investments compelling outlook pursue in is our particularly the innovation of

metric would I prior which comment, discussed strategy, final of guidance reflects revenue our dual both proofpoint’s for highlight remains a hallmark disciplined and rule to growth a attractive in corroborated XX that of free quarters. the further and in objectives XXXX driving is are as under flow, this cash As like operating

with Meta prominently revenue in When and XXXX XX% of cash of growth the which under quartile which SaaS points basis the delivering construct, places acquisition companies. flow tax of the still additional XX% of we Networks, figure a all publicly-traded XX rule and free absorbs top impact XX outlook associated us discussing costs are XXX considering again, from of of the our margins,

to strategy growth in attractive We flow. remain terms committed and of of free driving our revenue cash

new we by with in workloads while rule excess flow considering our XX content throughout the over growth years, landscape, into the to secular threat and trends the world significant our we in next ongoing that a the opportunity our mid-XXs. revenue and ongoing metric mid-XXs cash of several strong XX% free a of maintaining add the add-on selling maintain the the of we to cloud of ever-expanding given in believe think installed as customers migration severity can while about base driving the margins opportunity combined So,

continue drive threats. capability we and Proofpoint and well to execute security positioned today’s remains to cash free the results continue second believe well delivering disciplined defend conclusion, operating quarter our growth enterprises strong with built proven to advanced compliance in flow the and In against margins bottom-line top on to increasing

that our the a for and operator the like duration today. over to today’s to Before ensure to be to request limit much one the just call our question turning call it chance to included reduce that time to to discussion. taking on us everyone I would join themselves you help of Thank questions, to everyone for very in has

that, And be take we now. will to with questions happy your Operator?

Operator

Thank you, Instructions] We’ll Wells [Operator Fargo. to sir. first Winslow, Phil go

Phil Winslow

a to of it. Hey, congrats and adoption are stand from guys update products, thanks the I on on your quarter. focusing I great on sort you couple highlighted where Gary just perspectives. continued we another want an do PSAT. emerging what want guys focus you guess of just Really, kind of on a you if of

just force then getting cetera. et up go First market. sell It’s go-to-market motion it the it in technical ramped terms sales the of how call in that and of also portfolio, to just of training broader terms then, sort you’re of the the technology integration just sort into to

Gary Steele

bet. You

and we’re the speaking, really broader broadly So, excited this market competitive about landscape.

we’ve this it’s market integration and two-fold. really – key that and our values been done. the really so it’s differentiators of in One technical has

integrated on So, today the and of type our that is threats threat in we’ve can do Intel. one simulations companies we those we’re so and types seeing environment. of their

customers. So, simulations which world, can value to been has of incredibly our make high real we

on-prem then I as our can evaluated clear, that prepared allows reports in user remarks, determine a XXX pull for portfolio and malicious. be reported full to integration are threat And to can and and it then automatically mail it’s Analytics then whether out Threat its malicious of Intel we Office whether reach if it’s email against second, that phish we that our store, call refer into someone, who the this

detection be So, environment PSAT, high and proven that’s this core value. also integration between our to

standalone offering, look out our really and a just And training we’re landscape, we’re awareness ahead security phish at so of simulation the when company. we because in terms competitive far not

trained And market then approached this been team to way has the seller broad sales we’ve Phil, so have of basically question, the efficient. in in that specialists/experts very been is terms of go and every a team. it’s the of the small that we part And across so support second which to answer your globe incredibly

Paul Auvil

that only global Yes. in player the other I thing the I’d reach. the scale is and And right is terms find now because that in we space think add largest the thing in of we there the are market

We a of we’ve have develop the advantage in good for well, with and as unique is we relationships. reach which worked this we that years channel have set market, a because is very the many us relationship across think a to channel our for globe think real –

are not to channel around account to drive enable We help the working in only our hard tandem go but the world. with U.S., of course, very business, managers the and in

So, think that’s time. advantage an the this for marketplace in we at us

Phil Winslow

guys. Thanks, Great.

Paul Auvil

Phil. Thanks,

Operator

Our Imtiaz Koujalgi, from Partners. next Guggenheim question comes

Imtiaz Koujalgi

Thanks of If guys. I the and inflectional taking performance my the second first guidance look half growth coming the big hey to in there’s the your at for question. half. year, a

core a inflection loaded seasonality on what why Wombat. it and if I us XX% you that half second lot think about also XX%, you’re the Proofpoint of for backend loaded driving guidance half? is average Is Can you growth and the Wombat then XX%. getting about than big the were the was backend more in remind comment going what’s half the first business? implies again second can of

Paul Auvil

Yes.

think is So, the half of second versus I to relative half. to things, right, first a couple and billings growth, question, referring your you’re what

Imtiaz Koujalgi

Yes.

Paul Auvil

Yes.

that there. a Wombat bit One, loaded. a the properties acquired tend there are I to of be say so And and backend more would few both cloudmark things

activity seeing here XXXX that is effect so And is renewing in XXXX. compared you��re to their we’re

So that’s one impact.

of second discussed definition, is before, happened by quarter in that the by fourth I is amounts and year half think, flush. business disproportionate budget the in impact especially that you and like probably of Second I have, driven we

closing And in that and we’re business business renews. course, year so each quarters of those then

the more have then new we we we XXXX but of both deals nano we overall of business And in that course, XXXX, periods closed in deals they’re business other XXXX renewing renews in that multiyear growth then also but quarter renewed have that than one-year were that that renewed do in the prior in XXXX XXXX, course, any in that add we XXXX course, quarter that and fourth only in rate. in XXXX And now in during billings year. not we closed in done do do of to that have XXXX,

thing. So, specifically? me together growth of those again, what a the that that in half it’s of about It’s drive Wombat remind in it’s all and the not in you want a variety higher second things effects, rate combination And of one year then did particular. QX

Imtiaz Koujalgi

Is the core Wombat… How is loaded in business? in backend it’s seasonally Wombat Proofpoint more the compared

Paul Auvil

Yes, that. on yes, touched I Yes.

more third with it So, backend was business first the quarter fourth loaded was compared the half. and bit definitely a to as acquired

is very compared into that backend you’re loaded flow So effects which plus here XXXX. to through in XXXX cloudmark, QX, those are, seeing

Imtiaz Koujalgi

you. Thank

Operator

Talpaz, comes question from Gur Stifel. Our next

Gur Talpaz

ask here. my Okay, think you from kind year nice the is core you or with Meta, for business. with think Thanks taking cap congrats evangelical to you. nature? more your buckets VPN can then quarter. How Thank And I going great. questions half and adjacency wanted spend of to about with on secondarily, another you you’re your do meta it you’re is Meta – in related guys when your networks natural doing what budgets about

Paul Auvil

a Yes, couple things. of

So tight about of one adjacency. because meta, the excited is we’re

a nice people. see to higher we can control as customer risk Meta communities so adopt a that wants that protect adaptive of And

be on necessarily because group, use them to then you risky the give want control So, one contractors at as their Meta without the control infect your them used could network classic Meta, to entire exposing network. network. don’t the putting you a single you them of endpoint through to access of adaptive entire the use there endpoint. cases don’t And – would

We So, the good. same. buyers quite the as see see is adjacency we the

tried excited we in quite into remarks, from contribution it about out in said talked further we’re prepared because excited as it. Having fits. But of we about And where problem. that, as because and to this we’re terms then the that tight budget XXXX, budget XXXX. So, I figure people we see don’t from expect that definitely the out come this about those dollars in existing dollars, adjacency, of projects, think

budgeted used cases. are So, these

have it’s confident pretty that created. versus budgets we so that early, And budgets confident, tapping we that feel quite into we’ll to although exist be feel be

Jason Starr

next go we’ll Lisa, our to question.

Operator

Jonathan Robert to Ruykhaver, go Baird. We’ll W. you. Thank

Jonathan Ruykhaver

issues first issues you’re on it last faced I’m was if afternoon you’ve there of wondering those to what that cohort. what guys. when back productivity Good execution. the amongst help Congrats can the go brought Yes. we back up rep us the and year sales late and from some understand today newer were seeing

Gary Steele

Yes.

So I’ll start and Paul probably has a couple of comments.

fact enablement needed program. was the one we a recognized broader we So, that

should understand wasn’t products that to to time in program to how help Proofpoint of to customers. effective and set be. global proven that comprehensive basically our our it to reps could put effective broad has We new up sell place them enablement or speed So, quite we to take what get be are with and a a thought how to be rep

that things. was the of one So critical

think good combining thing hiring of think and then and success And hiring the this that meeting was with I our those. had enablement. addressed targets I then very just second both we’ve We’ve

year QX that that. as beyond issues those like so we’re our and well were So, months we we call ago cited last nine in feel over

Jonathan Ruykhaver

Thank Good. you.

Operator

hear Pritchard, Next up, we’ll from Walter Citi.

Walter Pritchard

Paul, quarter, about talk forecasting you in I this that forward your from heard this the in some up last look what duration second the we’ve of what here, to fourth it quarter if if the know this for? I – of was could looking you year it understand you like around billings us sort wondering duration as trend hi, but that you’re half and popped that year help in think quarter, confusion down, in half. second even folks duration looks wondering could

Paul Auvil

Yes.

Now, a good question. it’s

can million duration with than long-term grew was here you prepared this down lower end on near by range. the So low the only we QX our as $X And commented expected deferred that and that fact see the revenue in yes, remarks, of the I quarter.

So, the induration. pleased I the compression was billings results did we that despite delivered we

as the the kind of assuming maintains the half I’m middle of year duration the I range. second current of the in in look at So, guide,

very today. one-year, about do little a things two-year, but which to are It’s the where at up we’ll again, any a felt like our we three-year QX from bit is So, business. little predict aberration, given deals. one bit hard customers of time, this an of

move do have free one-year trying XX% decided that, on I that renewal. to budget renewal to almost work more, absolute to customers to a pay three-year up even they because though coming to may off they choose dollars a they’re other projects.

good that question, So, I of duration maintains, assuming that to. in guidance of that right second year. specific the duration can to half guided I a but kind bit feel historical the range but be your our about our for I’m middle in here of our the unpredictable, numbers

Walter Pritchard

Thanks, Paul.

Paul Auvil

Yes.

Operator

Next up is Rob Markets. Owens, KeyBanc Capital

Rob Owens

seeing Thanks wondering the bit for on a business. my if archiving elaborate was taking strength Great. in question little you’re the you could

mentioned you You mid the ever but eight-figure largest second wins billings some and took of deal, quarter. only one in your range

we in deal? is back from customers, this can on follow Thanks. from the maybe elaborate existing new coming expect can the you relative So, that And then strength there. half to customers,

Gary Steele

Yes.

the So little may just of that very later in here this deal small that modest bits we will a had current but here amounts. specifically quarter. be second on small the in There the amount year, was those quarter, bill closed mechanics we be we that the built,

anniversary that on each something it bill year. roughly think will as likely the so of And

XXXX each – cetera. a So et it’s XXXX, billings in item QX it’s of a kind year,

So way that the is that’s the deal structured.

for contributions meaningful contract don’t now to particular between from the and billings So, end of any look this XXXX.

Paul Auvil

look was existing, of through a security as quite customer that some in that And that mix we’d customer then terms customers, and account of deal this we they new versus in on customers time been the it a knew half for quickly. mix look The terms were long – think And had strong you more and built and about half particular reputation I existing with at referenced, side. with rob, established a customers that the were broadly that the security really customers. won, built new of we that I relationship at we’d if is examples brand there if

customers customers brand-new also on had that us but archiving next generation with the security had solution winning relationships we’re long So, no past. looking winning in established a the side. that we’re for relationship over

Rob Owens

gentlemen. Great. Thanks,

Paul Auvil

You bet.

Operator

Steve Securities is Koenig, up Wedbush next.

Steve Koenig

thanks guys, my question. Hey taking for

out? are XXXX, and do think that then now of in in growth you’re and objective, to – of fiscal revenue which growth start look drive it’s before it’s what be far we say really go possible couple to down the road, seeds you the So, next of towards going those your you if as in years, now, set your solution whether drivers, that plus to initiatives pursuing to cetera drivers, XX% prominent year et what product, even of come next market more that guys

Paul Auvil

Yes.

based it’s of things make setup I is XXXX a this basis a year step booking next the half no looking comments – driving business both one going or it’s XXXX, customer for So, XXXX, scale about that new that on on we the under going really for year about the to U.S. this our like really XXXX, has from here. company’s whether Gary a Europe, XXXX, outlook into into we’re like for next our the whether couple remaining you’d to going know started is toward just What like this then the if drive out of of in global in really I have of year, Day three the Meta XXXX. for our driving the number and Analyst growth where beyond you have, revenue then $X is fortune XXXX where and breadth back now. products we’re next has billion in we other business but Networks’ setup that I’d particularly business opportunities of over today; our include what the whether add-on across it’s average right getting we products,

we as about. I we And opportunity. the add-on the tiger of course, ton of as some just then a tail think potentially look our it, with categories there’s got product we’ve talked really at So, newer by of

of a has probably Gary on know I that. top So, things to few add

Gary Steele

think we started that in Paul in on our thing to with add to in noted taken this as we prepared comprehensive have remarks, made I breadth the getting products only just investment on nature we captured, No, we’re federal I’d of our that FedRAMP. of all FedRAMP the concept across we’d that ensure is, that

large investments in we’re product then role products out but short-term just started. what of and thoughtful play years and years and point plenty and can long We from for strategy positioned there’s to coming getting the And and making well the opportunities noted through a last about XX ahead. we’ve what get five like we’re in of there there view, I next a I we’re have a we think opportunity further thinking deal, products the been one think, like. look time what

we sustain that And long believers are fundamental so numbers time. XX compelling rule this of a can that we for

Steve Koenig

Great. Hey, thanks guys.

Paul Auvil

bet. You

Operator

Alex to Needham. go Henderson, We’ll

Alex Henderson

very willingness completed landscape bit. We were we I related wanted that to just competitive or few little email anything and survey supplier, how go for as Thank Great. a to you a cited surprised use just the a people any to identity. to back much. Microsoft, security particularly

give that change So, around us detail you trends in a field work in done us Can versus update customers. recent I know little you more the efficacy just you’re bit their there. that to from allow on us terms guys of our your have hearing some to performance? what restate

Gary Steele

Sure.

actively numbers if tested fact And not give think, demonstrate are of in to capabilities we by the EOP, would is of Microsoft in can test our we against I we has get chose solution. literally transition effectiveness, enterprise that results light more can from put and XXX up to insight those base EX. and daily get provided visibility we more environment basis. also that that the The of combination only EX, deliver they which the an make the consistently a which than strength that they them but customers customers the included Office Protection, Microsoft. on on-prem ATP, as that capabilities Online very And and in it’s the they included natural

more of then the given inform mill we’ve drive to stuff. better So, and it’s efficacy ATP you combination what’s systems and visibility how people-centric And potentially that everything is in from is that a it’s get come this data really insight through posture. that’s the our to broader approach broader taken and the that that and from and a security state that phish actors run it – today driving style from can

I think to Microsoft us for it’s XXX value office enabling create a combination things that’s of those customers.

Alex Henderson

Thanks. Great.

Gary Steele

You bet.

Operator

ISI. to go Ken We’ll Talanian, Evercore

Ken Talanian

trending the look taking the was internal the how expansion what in against for back year some half key for are thanks I are question. of plans guys. can we of into the wondering for and you the international and your milestones Hi next?

Gary Steele

typically obviously, guide would internal Street. we what plans Yes. our for Wall exceed

So, how with say are generally executing. that the we’re in with that pleased mind, I teams would

high think capacity little a last – team’s good some on building that there’s job bit I like done quota driving up we’ve behind of a talked I a that about bit being year. the felt territories as but internationally. hiring always U.S. the around capability ourselves of goals all our world, in in always set or activity, for the more we add both we’re looking well as to

say, that every week, to we we with we Europe, literally how team. improve also on So but month, every had the for staffing we’ve while enablement of to do doing that far. continues scaling a to things hard. that large something in I’d every be now driving pleased thus But, example quarter where team execute continue toward we’re that driving have everybody’s

U.S. front a of to Europe into to and a trying well of in little about are I’m train greatest a to as So, the account products opposed kind sales worked in of what in and we center regional new diving many one differences in countries the that’s how bit think in interest motion

but I along things moving of well feel lot feel like year. a we executing this like are we’re moved there we’re nicely – So, and parts there,

Paul Auvil

thing is the Proofpoint pursued where I’m of to and path expand a have superexcited what notable me employees. territories, number And for we the we what’s been Yes. was that about –

again, Nordics, confidence the opened and us. ground Middle months, we’re great that value making well we’re delivering Italy, within putting several of East, contribution in on nine that that all we Spain, seeing territories the investment have the opened of opened And the me to because impact the Benelux, then people last over those specific expansion years are territories. contribution course next So we’re opened gives expanded that across that the

Ken Talanian

Great. Thank you.

Operator

Piper Andrew from Jaffray. We’ll Nowinski, hear

Andrew Nowinski

customers sizes think to size And you Great, the and users, bundles, below of the PX the color involved I on their only any thank impacts said X,XXX typically I know you. handful deployed mentioned deal well your you on and I deployment like the was just growth. X,XXX about wondering high-end and more the but bundles if target. revenue was specifically could you minimum seems PX it which provide

So, bundles just some Thanks. wondering traction what seeing if you you’re could and on there? on comment

Paul Auvil

Yes.

to middle that in enterprise keep range. customers and that team the XXXs a mind middle we into all yes, kind enterprise focuses way high a of XXXX have that down So on small

of So, a XXXX the sure customers of we after. course, customers closing within that and that’s business range are go in we of get love for those we lot leverage. Global But where well the

couple talked I quarter as based his and large we on one, pleased end prepared of we is, So, a in Gary of the number were is PX, those very bundles about things; second PX low think, remarks, closed bundles. deals in a about the

But compared on broader buying So that it a and us, to sticky Proofpoint package just customers creates of for relatively make PX simplification in products executing package PX. through smaller channel, the those modest they’re well, uplift helps albeit deal as value. because a

by another put quotes when is the all we quarter of in PX then And what were second and a we pleased and this PX, rolled large of yet didn’t able the year. half any first out with be out we sales deals PX at close of to PX our really the the or first expect We beginning the kickoff. in at year to number

that fact the we we few So, were with. line, over got pretty a the happy

a probably add. things Gary of has that, with to couple So,

Gary Steele

noted No, we’ve XX,XXX And PX script that and I the and deals noted, the that traction and the really PX that X,XXX I’m was one PX deals bundles, say with about would XX,XXX the the excited in other had. we was X,XXX. on just that the we users,

for So, X,XXX for X,XXX the a and down these is straight us. field significant. sales rep pretty are fairway

quite they’re in meaningful good. it’s think superexcited the business really size we’re delivering I look start value if that deals, at to while to quarter, broad January XXX,XXX good really in not they’re second standing of you a to the and from So deals. the in – that QX we’re And organization, closing get

we we’re where we ahead lots of us, clearly but superencouraged opportunity are. where So, are, of by about superencouraged

Andrew Nowinski

Thank you, guys. Great.

Gary Steele

Thanks.

Operator

Markets Capital next. is RBC Hedberg, Matt

Matt Hedberg

there’s the Hey, guys. Paul, talk lot of, next in sort I about Thanks year, sure. perspective. Oh, Can of towards as up look been a you I’m the I it’s reflect now year. a wondering I the the from of mentioned of of enthusiasm guess, has you believe head think, on the from just some seat. Blake – in level a any sales or sort of are as October, on coming high had positive said, you some scaling you other But changes seems on you longer-term look as of organization. broadly year, like sales differently the to been this structural goals about he there has next some any the think force the may forward look and Obviously you it changes as be for towards hiring’s are of sort – then – there speaking, better. business? maybe

Gary Steele

Yes.

you’d and if ask sales been any quarters think would he’s really across I done they if So, all that phenomenal helm, single that the the look over the person job. back whole Blake’s of style I three And at a company, approach his incredible salesperson, concur he’s front been been what – by that he’s of has the a have number single enthusiastic. things And a welcomed is a driven couple lead every incredibly enthusiasm just meaningful. from

So, hiring, making continuing done thing is work there because one U.S. a a was growth. work our drive a Paul We’ve and there. place, of hiring to was is for be global and done getting it two cadence clearly lot to driving year, the strong enablement we described sure a lot targets that in the in of but hit a critical

sales get which emerging through and Blake the helping in adoption place. in way instrumental built us has in been put of the expertise the we we’ve products the organization

that seeds. period impact the structural he’s short or think XXXX a Blake and international in big drive following out, off there’s pay the had year anticipate that he’s is we after. we year focused we think as that. really we’re a even we about further of So, pretty What that look broader said time footprint next years will and in been Having significant to that, as changes beyond has ensuring on no continuing

would probably for of top him. that be So mind

Matt Hedberg

All right. thanks, Gary.

Gary Steele

bet. You

Operator

is Catharine Trebnick, Dougherty. Next up

Catharine Trebnick

some well penetrating question. – taking for my more prepared you. remarks, – X,XXX doing have the on you Thank how deals the and Global you mid XXXX Global thanks XXXX? you are large Well, you how market, seats. But are your are Could X,XXX, with some how

Gary Steele

exact in stat. traction XXXX good to Catharine, those publish We but continue I don’t traction the in the exact really and the did have not to accounts stat, make U.S. in we continue our have Global XXXX internationally Fortune

Jason Starr

an So, – then break was but Jason, XXXX us, Catherine, it’s end the It’s annual the for XX% specifically. over of at was and break last we that Global we out. over XX% stat the year, XXXX but we it Fortune shared a – it again, XX% of stat a

Catharine Trebnick

All right. thank you.

Gary Steele

Lisa, we’ll you. Thank take next.

Operator

line open. to Blair. William go Mr. is Ho, we’ll Ho, Jonathan And your

Jonathan Ho

interest talk maybe, the sorry Hi, used bit Yes. and and expanded opportunity for guess products? that a seeing cases you about for isolation you Can level for about that the little traction you’re see, that. I the

Paul Auvil

really interesting. been it’s Yes.

system URLs Browser what really, what our of introduction been been conversation of on and and should GA detection the So customers kinds determine Advanced lots good. been the integration just will can we’ve be has isolated. of early you isolated in Isolation and the TAP, this reception Threat or were users We’ve really be with with of based when policy

are capability isolate down everything. attacked of we’re a we opportunity what that a path adoption organizations you this isolate. richness inside that isolation, isolation. have lot on being to help using choice, And want Intel where browser much you’ve a our we’re about optimistic getting really feel the base very sell that, in encouraged And so where they easier the doing customer get of and And through this, who it’s broad should our people bring users we’re of taking broader to different the to opportunity the got to visibility we across Threat path determine other started they’re integration. we’re organizations And to quite pretty this while because about just taking unlike

we’re we’re, So pretty enthusiastic.

Operator

Thank is up you. Keith Weiss, Morgan Stanley next.

Keith Weiss

lot I taking seems I’m Meta here little the you helping understand like broader there about a into you Networks. look And fit vendors up that Zscaler, about Okta sort to for that about in dig you into in filling Can whether of sort talking and to It question. of how ecosystem? more look bit of you Thank deeper to who do [indiscernible]. access one, there’s compete and of more like Franchi. wanted me and environment. a to Melissa are Yes. ask better the talk where control guys competitive you it’s sort for

Paul Auvil

You Bet.

in using So under people defined as model. access I as is indicated the to approach our think organizations broader can people-centric really secure I better of framework where adaptive before, control access, Meta zero groups we an with use trust keeping people-centric our our as and the

a so to see ourselves we vehicle use a the just as single infect ensure And helping entire that individual organizations Meta network. doesn’t

everyone. a risky infect a So like the individual contractor doesn’t and get on network

to network. someone’s have think taking who offers much of versus can as very we’re restructure trying reframe people competitive corporate you and entire case use view a So a

to trying not We’re do that.

very of We’re drive to are think to can capture broader dollars problems we that that help our and specific people-centric really model. solve adoption go trying those budgeted we budget

Keith Weiss

it. That’s helpful. Got super

Operator

from next Oppenheimer Eyal, question & Our Company. Shaul will come

Shaul Eyal

Thank so you. guys. successful PSAT know, another as it acquisition. on Congrats Wombat I you question consistent afternoon Good former the training, the Hi. the was on execution. a had awareness appears that the

months about behind probably that feel expectation is them you also take exceeding it? been and or can Thank you. internal into XX Now remind it give your the Do probably you about transaction. it’s this drivers

Paul Auvil

Sure.

And year, our So months. basically exceeded March so we’re XX months, expectations. it’s at in this last transaction XX was of finalized is been the

that of it on this of I have moving terms are showing need we demand This are continues that is in things desire terms one of anticipated in seen everybody in the or market, accelerate raise think the terms of think faster to the community. I than organizations, demand. broad user the market awareness to

number enthusiastic, about. So super probably excited that that is the we’ve been one thing

that of as control the customers. thing and a training environment together very whole our Wombat the our think been to capabilities has important with is works extremely adaptive then important And and thinking the detection the bring I it opportunity with really core message, well that

the bought market been that’s So no, ahead would primarily and customers. right with environment. driven demand of to and happy we we feedback by expectations think be capabilities of lots where I to the extremely run. think has positive this like is we’re delivering well room we has We’ve thought And the feel asset. that we Customer been extremely that

Operator

Thank you.

Erik Suppiger, will question come JMP next Securities. from Our

Erik Suppiger

taking might highest if attach rate a rate us just to for Yes, you to thanks give products. for be the think maybe a I’d PSAT sense can last And follow-up you the of the where that the is curious sense attach got that one. piece one, get emerging Actually go? us you on can secondly, tell question.

Paul Auvil

of over course terms was several of wouldn’t quarter, the called in things it quarters. last the one the with products. the of recent momentum certainly couple as a of accelerating characterize I strongest it the most three emerging top the it’s, So strongest, but

mostly here, that. The nice they not our in really we’ve lot. recall point great kind ago, we attach specific months some rate. but had your was had XXXX feel world. small about SME when Fortune focused we while acquired that is the first overlap fairly Wombat success that accounts news a on XX good enterprises, To They the on some So smaller any of and basis because customer

and go course, indoor have broadly back of we our are Wombat to salespeople get And install really working so the sale of a drive opportunity on base interesting it diligently.

in a think and broadly what call as really the I to threat mid of with improved the creates not the manage of of users to do driving call, capabilities TRAP as environment threat center as or between in security from way, enterprise. large feedback typical training, that well facets then rest and the size and platform operations SOC, really compelling have earlier we security platform for posture integration the all gateway overall enterprise PSAT optimal then simulation, very the or in terms at we a a that, simulation, be a able different touched our for the Gary but on great only training

So excited be for work Wombat is that the team, great leaders Pittsburgh we’re quadrant reflects really just row the six set good. the the think in the really development a up team. again, is of and to in we that And in year ongoing that think we

Erik Suppiger

Very good. you. Thank

Operator

Next Gray Powell, hear Deutsche from Bank. we’ll

Gray Powell

Thanks Thanks quick. welcome Yes. for in. Great. guys. me be I’ll

from we revenue half any asset? the of run was just acquired rate growing the should it? And was second contribution Meta how before it that Thanks. fast then and Networks from the in what billings then you think about XXXX So

Paul Auvil

zero, Yes. rounds I mean, literally like thousands of literally mean, to I dollars. was Meta

they call, had really proving to accounts that Mostly stage number working they really I’d revenue it leadership what were users they that were out some very were They but state with. worked, hadn’t early. advanced some interesting of running prototype where So yet. gotten

is where example points data pay we for tech, yet. the it early to really this out team there hadn’t of using got an really with some good in development but really a So great started terms adopters

a scale, some But mean, it some is the really some makes to part effective advanced working at in billings XXXX a sales as basis set to want that remainder of adaptive the some terms I up I we’re on the what phase team, development engaging part then Meta we in think likely working expect running that we will. broaden with and or That touched controls users really you in the aperture part in were and integrations of from Gary of kickoff of sales at get top-line really on. our start out suspect of initiative. that the test much our is terms pushing opportunistically I if within the year. we’ll this particularly of for So, on, business folks of don’t a of of economic they contribution from close

So, of I to great to would encourage lot really next It’s but nice potential. everyone year. to a a framework, as start results that until won’t something tech something think about our really contribute got Meta that’s

Gray Powell

you. Thank helpful. really That’s it. Got

Paul Auvil

Thanks.

Operator

Bank Bartus, Daniel from of Merrill America is question next The Lynch.

Daniel Bartus

just training. a on the follow-up awareness thanks ask Hey, I’ll quick guys.

as say it, was I that same seats it Thanks. of a product, and buy then is shaking So, like are customers to out. Do security? a TAP, matching a it a would product number are they after email of the buying for how quarters pricing they like think upsell you core wondering guys potential the has the couple when

Paul Auvil

Yes.

and It’s training kind it’s is that you’re is TAP if a level of TAP, less pricing bit product, a at healthy for the low scale sub it the of not pay end, So a users, but TAP. customers great the would on threat pricing actually simulation is but for thousand fraction than what someone pricing, large TAP.

all to it’s trained your links, the order not TAP, that ones the make through ones that want the to to those that to users all. to it all email sure like they know quite nice either is in don’t train Protection, in you you your appeared suspicious buy much sell, gateway. comes about thing so So, of one that of are everyone in handle buy your or you again, like product pretty it all weak at for point like may the we be every potentially weaker properly Because things properly brief, that, and so how where

Daniel Bartus

Great. guys. Thanks

Paul Auvil

Thanks.

Operator

Yako, And comes our Company. Nick final question Cowen and from today

Nick Yako

me fitting guys. in for Thanks

EFD You response. demand threat a and good for highlight

the contributing you. there’s rates maybe can anything products your email they’re how adoption then you and emerging overall or if to share growth? for attach related around Thank wondering Just

Paul Auvil

Yes.

three great the in that Then be development It’s is other So we it now seller from that well to our different years currently. a ago path team has great again, assets a both bring team emerging EFD several working in digital that’s and return to category enabled we market that’s category of our continues development since threat for run closely as available those products had in one kind than advanced acquired. top and risk very us acquired in contract our something to has the really really that development anything product reimagine today. else with very team us market as of

something go to a our we’re that And very team differentiated way product. it’s and in enables that sales with and pleased in the and quite go sell

feel sales to go that picked we’ve forward. market for of say been has still I that’s would both But to pleased significant know to That as that because we’re our a big we that that? the with really part lot there’s the line of opportunity don’t and up add executed growth assets of like kind that have early cultivate. to I we’re So, opportunity a think go-to-market And product on it whole sales life drive think today. U.S.-centric acquisition the were demand. internationally EFD. I you is of There’s anything that like I starting a of going Gary, to whether just where

Gary Steele

No.

think it’s just of and getting got lots I going. we’re legs

Nick Yako

Great. Thanks guys.

Gary Steele

Thanks.

Operator

Proofpoint I time, would conference remarks. Steele, this closing additional of back the Gary CEO At any to to hand like for or

Gary Steele

moment the take and thank for today. to call Great. I just us joining want everyone on a

We you product to the remain to to acquisition drive Thanks well about with attractive us and next results, look pleased We’re QX our on continued returns many and the well much – very this approach to with for particularly today. so our excited quarter. continued innovation. our we of our Meta, talking And seeing cybersecurity. I’m conference of on the the people-centric circuit forward for progress we’re believe call you joining shareholders positioned

Operator

gentlemen, participation. all and you again, ladies today’s that Once for does Thank your conference. conclude

You may now disconnect.

Proofpoint (PFPT) 26 Jul 192019 Q2 Earnings call transcript