world, Thanks the guidance with to which our across quarter, delivered thanks Gary. We the our quite of were the these operating work teams board. pleased results. who Many exceeded results hard this around
regarding reviewing million Before some and additional would I August. $XXX points in the quick we overview to which have to offering, modeling bond pleased convertible like numbers, provide were a recent our completed
some it support this access of Directors good our funding given to leadership M&A pricing market and felt our background, projects. convertible both Board was compelling terms to resource, In a of bond the time in future the team that primarily
interest conditions carry these which after XXXX of with the and exercised shares. per These XX installments closed are biannual year and approximately August issue time premium August. a provisional convertible call structured The the as in are annual carry The of notes three-year We are a equal associated or XX.X% that in on note. can X.XX% in and represented funding be met. price anytime is $XXX.XX, five-year of million August also notes cash six XXXX February into August million notes a assuming certain due expense $X.X at payable conversion
conversion we to $XXX.XX financial which up shares. beyond in of the dilution X.X Importantly, into million certain turn proceeds upside to up price net entered participate took XX in reduces with million approximately transaction and by cap institutions. the enables the company call This any a to
our cap financing net EPS as Taking now like notes series respectively call, shares XXXX in included the with will were dilutive. the and did they our $XXX million. these that with XXXX XXXX retired the the that be to new would into point in we notes I when in two from we previous proceeds are just approximately convertible associated out account calculations
that brief convertible today's same the for our treatment we associated summary in previous the be converted, EPS under series We going the, of have forward, for notes. included accounting applied used to a methodology release outlining if press methodology
our the guidance of results, range for to of Billings XX% of million million. year-over-year million. totaled to and year-over-year third the million quarter revenue range $XXX an our quarter $XXX.X above turning $XXX the of to $XXX million million, and financial $XXX above $XXX.X up Now were third for our XX% increase guidance high-end
unbilled adjustments accounts prior as the metric As liability. noted to any well requires during on as writer reflect XXX, refund billings our of ASC the calls under receivable quarter, activity derivation
For these to two million. was QX $X.X the related items adjustment
terms Recall that that contracts had different in fairly quarter that we’ve that conditions Proofpoint certain are particular transaction, this customer acquisitions, typical agreements assume fell into this one we accounting include from require our which and category. and customer legacy many treatment large
rebound these recorded deploy contract leverage all of global were operations. this reversal organizations driven of We in XX% a point execute archiving PX their roughly Gary the which all a two relative earlier to from in across also of commitment duration in prepaid three year. just multiyear modest three their primarily locking our saw part earlier low significant This contracts and increase transaction, quarter was a by of technology the as the deals in duration large mentioned
of which over sequentially which terms Note duration by million. short revenue for of $XXX.X from ended $XX.X growing by kind deferred XX% $XXX reflected short-term and year up that term This increasing basis million $XXX $XX.X the grew quarter revenue is further million by million. million, a million on to balances at long-term XX.X
It years. total that X.X% the is same deferred noting year-to-date billings, up basis, long-term also revenue over worth nominally two the modest our the X.X% and total recorded a past X% of equals in a on during compared period as increase to
and In represented XX% on from QX, our XX% segment of our grew a during XX% threat year-over-year compliance advanced bit segment XX% terms grew of of revenue and year-over-year revenues detail represented total more revenue. revenue and
driven for strong a was XX% third primarily our profitability by performance. and basis non-GAAP on margin gross expenses quarter, our above to Turning revenue expectations, the total
center investments XX% range this XX% the result though our performance during drop than also data for the nominally this was quarter. that Note benefiting the above slower target XXXX quarter to was our in of expected
during $XXX million, XX% representing over prior year total to expenses the quarter non-GAAP XX% increased revenue. of period Total operating the
operating bringing schedule. high-end third XX% of million reflecting quarter XX% into income year of $XX.X full an range Our for XXXX targeted us to the of was a margin our of non-GAAP operating ahead the XX%
Non-GAAP of nicely million $XX.X R&D net $XX.X above well lower-than-expected guidance million our the million marketing, data investments. to range spending outperformance and our as $XX.X driven by ramp both income center slower as was $XX.X revenue the million sales, in aforementioned to in
was expense August Also it for interest million to $X.X the netted rate. during to net the additional of our earned from note in of income that holders, issued balances convertible tax funds million million attributable late and C&DI quarter $X.X XX% upside the on $X income adjusted note is expense, with notes important interest rather an cash the to against accrued of the raised, payable directly
As calls, we past income discussed XXXX, SEC's Section of and January in non-GAAP beginning interpretations on in two net Xst the are accordance our now with compliance calculating financial measures, we XXX.XX. disclosure non-GAAP
calculation expense XX%. quarter under rate last $X.X quarter’s tax consistent with include applied in million tax an and of This C&DI
per for earnings per Non-GAAP the share. quarter share diluted $X.XX was fully
issued the as notes As calculation I method convertible back the the newly as EPS noted, in $X.X to cash interest associated and if-converted million applies with debt. such convertible
specifically QX outstanding as were weighted the shares X.X million as only these fully of use we calculation represented share the were XXrd a calculation, For included of shares. XX.X which million issued August notes share on in count diluted
still been of result of $X.XX the per transaction, which converted the $X.XX. end have Adjusting guidance from so $X.XX July, in quarter high would otherwise the our to range wasn't our course contemplated the to for in guidance back above share, eliminate still the impacts of
per loss per our was we in share the quarter, on basis deferred fact the United a QX shares of the recorded third associated outstanding. the Israel Networks based tax Meta intellectual acquisition to for GAAP until million October. million for from with repatriation XX Of or net note, States of On $XX.X a expected property payment $X.XX totaling
on and by will I prepared result, fact GAAP the impact current a flow in detail quarter my until while in million, delayed was did repatriation tax as deferred expense $XX.X QX impact the cash So more fourth its discuss later in remarks. as
increase investments cash, we with August. cash billion convertible the notes to the We by significant to equivalents balance $XXX driven in was sheet. and the compared Moving QX. closed short-term ended offering quarter that million in This in primarily $X.X
$XX in operating capital million $XX resulting cash guidance in cash million, million. of our in flow quarter flow we free invested to terms the $XX.X of flow, for of $XX of and $XX.X In generated million cash million well expenditures, ahead
the this we that million. While the it's one-time guidance result, quarter acquisition payment property strong cycle of had a to within Meta very repatriate associated assumed note also that helped with deliver of roughly quarter $XX to our a to important intellectual collection our original for Networks
completed So hence in for this to for when adjusted million my and third for would $XX have the the equivalent $XX earlier comment effect. million this the did guidance quarter get quarter been not
a in this good Given very our flow nearly recorded ahead guidance, reflecting result flow the margin a nicely cash of free was context our of $XX.X quarter XX%. million during and cash still free
the the rest of Moving on to guidance year. for
$X.XXX our the full guidance to nearly $X.XXX of we the billings For growth billion, year, representing at are maintaining range XX% billion midpoint.
billings of to QX for XX% the $XXX the million This approximately guidance reflects fourth a implies range $XXX of rate also growth midpoint. year-over-year and quarter million at
$XXX.X million We million, our to million midpoint. XX% to the XXXX range increasing the for midpoint fourth to XX% by million QX. $X.X guidance for infers $XXX.X reflecting year-over-year million, of year-over-year This at are $XXX.X growth a quarter representing the $XXX.X increasing growth revenue
XXXX by back under reminder, challenging our roughly in similar performance $X as ASC quarter the million a baseline very part this in we was of year. revenue the fourth discussed creates in absent acceleration call. this XXX as revenue a January driven a acceleration in Now And strong in QX
guidance for quarter. effect, adjusting growth so XX% this the fourth for And implies
margin In terms and fourth we quarter of XX%. gross gross to expect approximately margin be annual guidance, non-GAAP
share based to In some income originally incurred QX were or expenses as terms fall we now fourth in non-GAAP diluted revenue earnings outstanding, up catches net fully to XX.X QX. in expect of for quarter, on of million shares will for to $XX the into be to net spending guidance $XX $X.XX expected $X.XX that million per million income, and
against the with late guidance cash this additional income $X on tax interest notes directly includes Also the balances note earned $X payable for it's XX% important million to in C&DI note raised funds the then convertible August the holders from quarter rate. million of upside to netted issued attributable fourth adjusted X.X to that interest million expense accrued of of and
Note approximately this of income XXX.XX C&DI million $X.X calculated and an of provision capital of million depreciation an assumes and guidance expenditures tax in rate XX%. that with effective QX million, approximately $XX $X of accordance
full For we net which increasing XX.X range equates by $XXX.X midpoint million the are million diluted million year to per $XXX.X of updated to $X.X to our share prior guidance $XX an $X.XX of million, our earnings shares on from million range fully million $XX the income at to $X.XX outstanding. to based
noted, As a quarter. this fourth year the third I $X approximately across notes issuance convertible favorable full of includes just guidance and the million updated impact from of the
the outlook. $X.X As in notes and our million is such, attributable $X convertible just million to is noted, of million guidance increase to operational improved attributable $X.X
approximately this income that accordance in guidance of million of million $XX capital expenditures an roughly $XX.X for year $XX provision Note with the tax calculated assumes of C&DI million million, to and depreciation XXX.XX. $XX
actually linearity the $XX.X with the million. between that quarter, given In now of third quarter, million expected QX to have cash into flow this otherwise been mind, terms flow, QX. of for were we the cash free in free in and collections strong in cash And that are would fourth accelerated terms expecting $XX.X during the range
a lower last bit estimate payments tax $XX onetime provided the the includes to original Meta than that which $X.X now this million, quarter. we have of that expect the repatriation with Networks, we million intellectual for property be associated of now Note
represents outlook when increasing million are range a or IP approximately of by the XX% we flow transfer the year, free flow million margin $X.X This $XXX.X full free the payment. cash XX% for a of million million. tax For excluding to $XXX.X new $X.X with cash
in updated from issuance this of that Note receipts notes. balances million convertible increased from income raise incremental resulting interest cash capital our $X the from approximately recent includes range our
is to compelling to believe We our the pursue as well investments our as in innovation market. particularly given opportunities key commitment ongoing the outlook this that
stages process, While we're in still our the of early planning
XXXX being view financial would highlight I this a made prior is to to now as I in for outlook. similar our with preliminary process our this of like modeling at would target share a like assumptions stage planning baseline that years. purposes regarding
we environment are provide we detailed will drivers firmly secular well-positioned, landscape move outline our more of in XXXX and place. our remains cloud competitive favorable, plan, the business As Overall, next our call. and assumptions the on operating active complete earnings the the to our strong threat of
So as our view on a preliminary as backdrop, with XXXX that is follows.
revenue our of providing billion baseline an midpoint rate measured billion initial are XXXX range of to We of when approximately $X.XX XX% the revenue guidance. $X.XXXX or updated a growth against
metric. practice of billion billings as public our metrics these business how of that seven we on scale this $X our our of beating years guidance guidance, look to terms a operate on has In after company, exceeded that as the end the annually, forward guiding we we've particular intend to billing cadence of decided now going we will
renewals the some of our drives growth actual cash of that billings and is the concluded here, flow background the such that and metric end the how that customers delivery of we billings our business combination as the important are buying per towards quarterly of as on is accumulating business, periods are in forward value particularly majority vast an it timing activity the terms of In revenue patterns. of not based we se increasingly our each how investors run
contracts. revenue recording recurring when XX% model in context subscription where the flows, billed in quarter timing of to renewals timing days these or the wells are the no are the opposed the of of of few build particularly cash the relevant derived on either over on viewed next impact of the our last has that from all of operating of first release With additional as either revenues whether mind, one are
for said, to that few with provide So let choose me model a pointers. who this those investors still metric,
expect contracts, First, range to build growth somewhere in to to continue be than depending stroke we we'd duration months. to or less expect remain revenue slight our growth XXXX which to to XX equal on in billings would of XX
XX% the of seasonal pattern expect to booked remind half to we of of investors prior the first years similar customer sales our XX% in renewal cycles, seasonal and to a were Given the year. timing would is the business approximately
we efforts QX expect as that to we would protocol. closed rather flow the down new QX, the timing focus of end reasonably billings at traditionally on of of Drilling QX move under our a billings, would activity portion that renewal more will our cash intend into than have
reflects has days end recorded on deals no of be by with handle we in impact or from simply of activity end of of some cash This, easing XXXX moving the will quarter how handful revenue that flow April. course, and March, an early
occur over QX one-third to of the several as years. still billings past We approximately we've would in expect seen
For XXXX target have low of XX%. we we on calls to range income the modeling, end of the expecting operating are shared XX% that low prior the
considerations node terms of where we held recent which our X% offset are of mind assets, hope expense over for and approximately by that on our the balances In in interest liquid $X.X cash million our to expense with interest hold offering, will keep rate interest of be course in net year. the income, highly
year and activity a and these net serve course the to next adverse impact cash income EPS accordingly. have Also as note future as M&A such nominal would over our lower the balances well, of would on
XXXX under C&DI, rate to consistently and XX%. In we both rate at XXXX for of for tax be expect terms tax
Now, turning flow. cash free to
a our we and over renewal few in over planned next we for an our As the signed have as decade. campus just on away location where operated years growth that call, QX lease call outgrown our blocks XXXX, accommodate now noted headquarters we in XX-year shared to Sunnyvale current we XX
quarter remains a XXXX. targeted project schedule the fourth with opening on This of in
in our As prior approximate expect build end order to building an we million. at of currently onetime investment and Standards million improvements into of we indicated plan part tenant the to of that $XX make modest net of bring with out, lower we the in investments compliance estimate $XX million Office this to our $XX
tenant the will in For expenditures the for with in so will modeling incurred be purposes, that this negotiated $XX.X landlord. of we've million total for the project offset the $XX.X form that incurred be capital will a approximately allowance by million, be
With to to this our for flow the netting in cash line the the cash our the against to run year-over-year mind, financial statement our model. cash Note that cost demonstrating by characteristics million XX% onetime roughly headquarters, or expect cash excluding expense. free when we $XXX of will revenue, through XX% the as grow offset of flow approximately strong currently this free directly operating capital of flow opposed
key On flow a in we investments including reported free $XXX approximately pursue outlook to innovation particularly revenue. investments believe this ongoing headquarters, the the XX% - as market. or that to in this as hence commitment the cash expect our of new well our basis, the outlook compelling We given opportunities is making initial be we're to million
first years, This be half generated As the assumes the in this to just guidance half. delivered in of the prior majority cash in expect with of capital under XX% expenditures XXXX will we will flow of total million allowance $XX.X the offset $XX.X that just year of noted investment dollar the headquarters run approximately which $XX.X operating again the by cash capital million through flow. including second be partially TI million
to we is complete further our from but gain plan believe process we we to insights sales, and planning past refine this a partners additional our network year, extended starting as our and that point. of thoughtful XXXX channel Similar forecast
attractive to XX As the dual quarter. for and guidance like of a of which Proofpoint's under driving objectives flow both free discussed disciplined metric revenue Rule I and a in corroborated further strategy comment, of final is as our reflects remains last operating cash would that highlight hallmark XXXX growth this
the metrics in XX% model all the publicly very for XX onetime prominently flow figure headquarters top of When companies. revenue attractive would considering growth financial reflecting XX a construct XX% SaaS XXXX of investment margins, quartile to of place a free us traded our continues and initial rule adjusted the these which outlook cash of when under suggest
security strong In increasing continue margins enterprises continue and here well results execute improving the top threats. bottom well to conclusion, delivering cash flow positioned and to disciplined remains compliance to we growth against free third defend line operating on quarter and drive Proofpoint today's advanced that believe built to our capability with in
the questions today your over the to to that one in with duration our today's help like request to Before call that to turning has chance question it that to just everyone join happy I for for our would us themselves take to reduce of limit call be again now. the discussion. questions you included everyone ensure a we to and on time Thank Operator? operator to would be taking and
