our year-over-year guidance Revenue operating quite with XX% million. $XXX.X this million of and quarter. totaled $XXX.X above Gary. well Thanks We $XXX.X to pleased were up our range results million
metric compelling when approximately these XX% this the We this of apart that particularly all traded us revenue publicly across results as which companies. believe is recurring are considering SaaS on that just leader
the contributed in perpetual to at and was $X.X the of ObserveIT tune both on to legacy during announced we balance that with nominally combination along based these the expected As results time-based roughly and a acquisition, total the time million sheet recognized added to deferred the contribution the from licenses that of revenue quarter.
recorded growth million very end against the have XX% viewed XXXX. challenging we high of still quarter of of the would revenues above comparison we that impact, range $XXX the our this for the in and Absent fourth during the of when guidance roughly the or measured results quarter a context recorded good result
with in day As working the of December we companies year be quite the sooner. marking many even proved cases expected calendar and challenging XX to their final some year-end on had
deliver working high XX% of fourth paperwork quarter of us above of That said, an year-over-year to teams executed our their guidance our $XXX.X enabling down in with billings sales for and an proactively million the million, and get excellent of to increase customer administrative $XXX submitted the end their form million. range $XXX company closed to prospect before holiday, each the
I to the opportunity and for in to the shareholders. thank world of hours extraordinarily for our would and around this record all hard their billings like our Gary season company the teams work long this delivering for holiday and throughout take
represented quarter-to-quarter for seeing total billings preceding quarter XX% sequential underscoring as seasonality, expected, this billings fourth nearly further the are in Note nearly year, quarter the from we increasing reflecting metric. our the and a that X/X of of increase
now right the prior refund of receivable our well XXX, reflect on unbilled liability. requires quarter of to during any accounts as noted calls metric adjustments as the under derivation activity As ASC billings
billings For items adjustment these related had million. $X.X impact to two a to positive QX, of the
larger as was of Our recorded entire committing to reflected quarter the deployment million balances, that up our duration Fourth short our prior of over and term growing XX of the months the continued during only of operated course chose ended high further of of the arc sequentially duration year. XX million the to and execute long Proofpoint our some the revenue as quality generation to we the $XX in free million. by year larger increasing million, our to prepaid terms underscore duration of customers in of purchase the within with historical This flow which solutions. is trend the quarter at quarter $XXX of part cash as transactions by multiyear range $XXX bundles with deferred consistent term across we $XX
down of quarter, QX year. also that by short-term Note And in year-over-year. in in noting revenue for that is only of XX% our measured increase this deferred when deferred overall worth long-term sequential contributed growth it the grew XX% from XX% revenue to deferred revenue this the balance
final Before reporting. turning as I'd profitability to segment expense it our metrics, relates provide some to like to and commentary
As we've key initiative in solutions. element shared our strategy drive further portfolio has of on bundling our of to prior growing adoption calls, customer our become a
XX% XXXX we that our As by in was and over encouraged noted, added of new ARR driven the approach was with early traction. Gary this are
expect individual of to these revenue meaningful the allocation we contributor value becoming drive the continue an of with increasingly in products adoption result. increasingly will years bundles ahead, to a to as subjective become As of they our
of it believe segment compliance-oriented products as mind reporting given evolving our With we that of in business no business we does nor our the and structure our a reflect terms will our performance the threat between as measuring and structure. terms operating reporting informative operating not longer it is the in business, advanced that run of provide how we overall in
expectations, gross total expenses strong margin non-GAAP primarily On the and for XX% profitability our was to quarter. our performance. our above by Turning a driven basis revenue fourth
period to of total XX% quarter, year expenses fourth XX% the total revenue. million, over non-GAAP representing $XXX.X operating the prior increased During
of profitability non-GAAP In of guidance we income the $XX for revenues $XX.X And to that million nominal note the of above $XX of our terms million addition reported net range quarter, million. were for operations. effectively the quarter. offset acquisition expected by And on by had recorded the ObserveIT income the from impact material no additional expenses operating their such, as contributed as net
on to back our diluted and such $X.XX of EPS Moving to method debt. adds fully million calculation range earnings in with $X.XX convertible The XX.X applies shares. to associated cash share non-GAAP the EPS, above on $X.XX the was guidance notes for convertible quarter if-converted our issued per $XXX,XXX based the newly share as per interest
basis, fourth quarter loss per On recorded totaling net or on for we million shares XX.X million $XX.X based a the a $X.XX share GAAP outstanding.
In $XX.X terms we resulting of and of $XX.X $XX.X for guidance flow million operating in the million our cash in generated to expenditures, cash flow $XX.X free flow, million cash $XX.X in million quarter of invested million. range above capital
to the our XXXX. year the above and Total a for were quick an results $XXX full revenue of summary for compared full was XX% Turning of end year-over-year, the high year. final the of XX% billion, for up $X.XXX guidance XXXX. million, Billings year to increase the of
net adds our XX.X the shares diluted or was $X.XX to The million, cash such in and share. outstanding applies of with IF-converted debt. per weighted convertible year interest our million back based or $XXX.X $XXX,XXX method calculation average and per guidance million, $XXX.X for to above $X.XX EPS share income Non-GAAP associated the on $X.XX $XXX.X million
in million. the We of expenditures, flow million year million free flow in operating cash generated in resulting for invested cash capital $XXX.X $XX.X $XXX.X and
associated our compelling results free highlighting while of at Meta in free been same ability the scale. of with strong payment million, from revenue, generate cash one-time at XXXX, growth, the would intellectual flow, or the of to time the acquisition have of up million for line Networks, company's flow transfer delivering cash top $X.X property recorded $XXX.X XX% Excluding XX% the
customer take which update past to annual progress the with underscore in like while a driving statistics, to the our services additional everyone XX provide regarding I'd an the customer significant expanding months. base, of over made sale we've moment our both
our XX are of which annual customers, revenue business. ending the year each In minimum to over of up months, the XX% past customer recurring we $XX,XXX X,XXX contributes with terms of approximately enterprise count, a enterprise in
thousands past annually below to revenue this in years, solutions threshold exclude this of whom our of most metric are smaller our platform. Essentials continues access that the SMB-oriented customers As of tens recurring through
share solutions, Essentials as solution dedicated don't enterprise our primarily Proofpoint smaller in multitenant security Protection Proofpoint our is that our as targeted several same provided part over a the market that Essentials cloud-based platform. email past security is years. has Now other but businesses traction infrastructure the with email and features gained reminder, of want partners sold steadily market need and This available world-class is solution through at TAP and the MSSP the and
end Essentials continued In through that is the fact, the quarter, are services customers these XXX,XXX the believe poised platform fourth in the as forward, we around And our provides to of years of for over that to pleased the we partners. growth now report Essentials ahead. going solution world
driving unique to fueling over existing revenue, our to of factor annual XX our well we now sales important our installed our opportunity were to additional into which is our broadening Another stands in products these in at represent recurring base. $X growth success by line, services product sell and an billion leveraging if continues customers
land solutions, also engage new traditional additional to and expanding these threat create portfolio customers management additional prospects CASB entry product PSAT of TAP. protection our in point many beyond This such as, important as Insider opportunities risk, is leveraging
growth, with add-on X,XXX, the of And customer continue further through base. X,XXX XX% into number that to to statistic months, customers add-on yet our the of our drive add-on or or only substantial XX%. great recorded past of that with sales headroom one coming providing have half still has to two from more just the this increased an products under of sales just and revenue also highlights products increase we by with over exemplified make over in XXXX XX from three customers Overall, progress fact
success, at half Proofpoint. however, to the We XXX so deployment just note, enterprise that ended solutions. least of our of with we scale revenues to even security one the sale significant the index that grow add-on have while compliance approximately also whom in from with enterprise winning has our It's still over these category through with XXXX, and through opportunity with customers customers capabilities, additional this year customers important Fortune substantial new further ongoing of Proofpoint each best-in-class this
of many customers of point a broad that Proofpoint X/X which as an our these means our Fortune purchase benefit roughly of product customers of line, XXXX of And yet these core a outside reference, demonstrating joined Proofpoint them suite. of through security are customers initial email product of another protecting solution
of Internationally, market we Global Asia Pacific both opportunity and with the of EMEA ended a outside future year the XX% XXXX Proofpoint. further for the represents highlighting addressable compelling that the States in growth United
security with pleased compliance with made quite We're penetrating the our base expanding we've further customer of global progress and products. comprehensive in portfolio it our and
plan and global guidance us, at for move Day sales provide expect even to customer add-on our on With to regarding with this we an expanding XXXX let's the XXXX traction hold Analyst XXXX. year. to behind sometime dive second deeper our base which of We half bundles our during
sight positioned As start excess the Year, of well line, that companies with customer XXXX. environment, competitive founded a generating been achieved a were broad billion a product a revenues we by only public of has we a line favorable the base, $X in and tech of remain X% to milestone that year New loyal since
carry will longer evolving operational the no for QX our consistently now metric rather exceeding providing as billings of guidance consecutive of be quarters our that we In than to we call activities flow guidance, more of cash XX of after our October, the on terms timing with we billings. have timing in shared an on emphasis billings this decided of
model equal less For than duration range billings commentary we'd slightly previous to those like who our to will and would investors metric, somewhere likely which or in growth we be of on growth our depending remain revenue XXXX to XX contracts analysts reiterate to XX that expect build to months. this choose in to continue of
XX% billings invoiced of follow customer given a timing XX% with pattern of of half seasonal past timing and should approximately renewal invoiced the cycles of in X/X fourth And similar the and being to sales the the years to quarter. year in terms approximately during first
in to topic. we during model refer provided commentary commentary this the additional Please for on October detailed our that call and
revenue rate we range million billion original to of billion $X.XXXX growth of XXXX terms by new XX%. reflects of guidance a $X.XX In of billion to an the $X range midpoint increasing which to raises $X.XXX for are just and $X.XX our billion annual over
will the our three for quarters factoring range that end of final in each of ObserveIT the I the growth of the revenues adjusting guidance XXXX. guidance XXXX, growth When and shortly XX% million annual approximately outline suggests XX% high in $X.X QX by approximately QX year this for in contributed of
points As Gary and I'd are modeling and some we like world-class provide platform this on acquisition noted, a excited to threat our their topic. additional Insider about of take ObserveIT to moment
a model in on from in on perpetual based to with rest As we based noted acquisition, a the the licenses directly our of subscription solutions. November release moving business their order align licenses announcing the we to are model immediately
course and QX, Under $X.X million support as $X.X million QX. in deferred $X.X will standard recognized revenue QX, million million in to associated million of XXXX acquisition maintenance legacy in $X.X QX contracts accounting, be in of $X.X follows: recognize over we a the our total with in and
an of revenue are acquired roughly we per for Beyond in this basis benefit, in model on against a effectively limited $XX from annualized starting this of or measured And the million selling subscription-based $XX this business rate deferred solution. scratch go-forward quarter. spend terms million with of licenses economic the
to gross to of our and the long-term above when modestly XX.X%, be We XX% high margins compared improved non-GAAP expect range year XXXX full approximately end of XXXX to XX%.
roughly the that our call midpoint. provided for in In net income October, we on full the non-GAAP on the income, guide terms based our at million for of $XXX details net year implied was
However, to announced our in mid-November, ObserveIT. guidance subsequent of we acquisition that
$X.X account this tax contribution aforementioned expense additional XX%. deferred revenue, operating down of the acquisition, million midpoint the the acquired Taking revenues brings $XX applying from rate $XX million initial into our C&DI offset million of of by when roughly from guidance to to
guidance million initial share raising shares these background, as $X.XX XX.X a that range all million $XX $XX we our of are taking $X.XX or account, of to factors million $XX With using into to the per to when million with midpoint outstanding.
a for C&DI, rate rate terms expect we In of with of XX%. XXXX consistent approximately tax a XXXX under
also assumes to cash guidance items potential $X.X approximately of provision and million million. of This discrete depreciation interest $XX income of income net roughly $XX exclusive $XX million in tax an million,
Free year. cash Now in flow to the turning cash for flow. particular
$XX As associated we headquarters. in million, million free which earnings the was flow expectation initial corporate with $XXX roughly one-time XXXX and shared call October, added on included of in our cash build-out new cash our expenses our approximately net for in
with net in million indicated this from guidance, spending taking we of November activities $X the for As roughly estimated million. subsequent with maintenance offset income, acquisition our on be support of XXXX announced legacy of annualized an roughly we and to will $XX that we where ObserveIT
of million, with further initial said, $XXX that million. This we would $XXX $XX United This guidance of adjust impact both incurred company property and naturally our Networks intellectual Meta repatriate adjusting FireLayers. with one-time roughly by of be thus $XX the to the alone tax With the Israel States, acquisition to of to have complete, original million. decided consistent tax $XXX QX downward flow our guidance the $XXX million from in here cash million payment additional to down for will an our strategies million from XXXX,
from estimate With $XX million of equates all all that margin by the of effectively adjusted of we're to range $XXX $XXX and taking backdrop cash the flow raising $XXX this to at approximately to updated a free XX%. our free factors start here approximately account, million which an million baseline year into cash of million, as flow these
our which our model $XXX just had free at XXXX would approximately outlined cash we if revenue the one-time consistent adjust to said, effects be this That that in first to years, million, flow for XXXX in the bring XX% the XXXX. total we noted, of with or would the of adjusted this second analyst days we and half. majority XX% $XX both Similar the with past flow be delivered cash expect in million half of to the roughly contributed of year in
have though the partially form of quarter's offset our million of with landlord. expenditures guidance with by allowance capital $XX.X CapEx million in the $XX.X headquarters, a $XX.X Consistent approximately tenant including commentary, that this million associated last with assumes we in negotiated the new of build-out approximately XXXX
a to the this cash capital against flow expense. through will As operating the offset of as opposed statement run line netting reminder, cash
particular. Now, quarter let's the discuss outlook our first financial in for
of be we to million, expect XX% at range $XXX to the As growth the $XXX in noted, reflecting midpoint. million revenue
first quarter We roughly expect XX%, slightly to non-GAAP be from gross margin QX. down
be share. income We to of million exclusive an the provision $X to quarter $XX approximately assumes $X.XX items tax net income quarter. or $XX This of expect $X.XX first to per also million during discrete million, non-GAAP
million, $X $X and share roughly of fully outstanding. Net cash interest shares million of XX.X a depreciation of million count diluted income
million, on cash We no aforementioned be expect free quarter $XX first also includes cash material and $XX roughly payment the million property of flow million new million, with guidance This which spending $XX includes the $XX ObserveIT expenditures transfer. to capital to campus. associated the intellectual
to model. Before seasonal I'd share occur our about financial trends a like few reminders wrapping up, that within
to we quarter accounts. revenues fourth sequentially employ bit daily a lower First, the a revenue tends to with revenue from that releasing quarter methodology revenue the given respect deferred our from first subscription to recognition growth be
revenue scale. only size given our in QX, is and equates days More XX has to sequential revenue XX result of recognize at in existing approximately $X.X compared from our business to of X%, QX roughly a specifically, decline to subscription million which that as the current
taxes, increases on with of the well first for accelerated marketing seasonal side, year, for commission the at year. for end of program, the sales bonus payment profitability in a that is and payroll as timing of always our first terms the performers the quarter kickoff, company's mind in for as payments keep as backward and our includes the top cash investments sales costs initial in company, associated sales quarter step annual flow the the cost Also,
In in conclusion, we quarter to we competitively. strong well remain and the fourth XXXX continue operating top full results year execute and and well bottom line positioned the delivering
to expected Our to drive against on this in proven built advanced with targeted ahead, to increasing continue defend growth well Proofpoint XXXX capability margins our years are security remains expand the threats. free believe compliance flow investments today's that enterprises to disciplined and and cash positioned opportunity we
year expect absorbed XXXX. these integration we While headquarters of we XXXX investment as ObserveIT, our operating to exit the into of bit a an do and clearly new our be given framework is
in a thought this over our favorable in final opportunity XXXX one of many as very investments be with here what in given terms point our we billion the in on In from execute market. the vantage see ahead, we much revenue exceeding guidance $X compared trends of larger years years believe the we to
intend in to attractive commitment our on that to in and growth XX rule of a margins. cash revenue combination to annualized timeframe, the in the with on milestone, while ongoing where business execute a XXXX-XXXX double delivering turning built $X score revenues we focus So to next mid-XXs our our we continuing of flow of are billion major the said, free now
turning the for us has call one our that everyone like to I discussion. it to duration Thank join chance the would themselves to questions, of to in on ensure limit much time the question help call to and taking for to over today. reduce today's request Before that a just everyone be operator included very the to you
we'd Operator? take with questions happy your that, be now. And to
