Proofpoint (NASDAQ: PFPT) reported Q1 EPS of $0.30, $0.15 better than the analyst estimate of $0.15. Revenue for the quarter came in at $162.5 million versus the consensus estimate of $152.28 million.

• Total revenue of $162.5 million, up 40% year-over-year
• Billings of $186.2 million, up 35% year-over-year
• GAAP EPS of $(0.24) per share, Non-GAAP EPS of $0.30 per share
• Generated operating cash flow of $34.9 million and free cash flow of $26.4 million
• Increasing FY18 billings, revenue and profitability guidance

Launched an extensive software enhancement to the Proofpoint Enterprise Archive solution to simplify e-Discovery and improve defensibility, giving organizations an unprecedented capability to save time and reduce costs.

Financial Outlook

As of April 26, 2018, Proofpoint is providing guidance for its second quarter and increasing full year 2018 guidance as follows:

• Second Quarter 2018 Guidance: Total revenue is expected to be in the range of $168.0 million to $170.0 million. Billings are expected to be in the range of $194.0 million to $196.0 million. GAAP gross margin is expected to be 69%. Non-GAAP gross margin is expected to be approximately 76%. GAAP net loss is expected to be in the range of $(40.4) million to $(37.3) million, or $(0.79) to $(0.73) per share, based on approximately 51.0 million weighted average diluted shares outstanding. Non-GAAP net income is expected to be in the range of $8.0 million to $9.0 million, or $0.15 to $0.17 per share, using 56.6 million weighted average diluted shares outstanding, and adding back the $0.4 million in cash interest expense as prescribed under the “If-Converted” method. Free cash flow during the quarter is expected to be in the range of $15.0 million to $17.0 million, which assumes capital expenditures of approximately $10.0 million.
• Full Year 2018 Guidance: Total revenue is expected to be in the range of $702.0 million to $706.0 million. Billings are expected to be in the range of $866.0 million to $870.0 million. GAAP gross margin is expected to be 71%. Non-GAAP gross margin is expected to be approximately 77%. GAAP net loss is expected to be in the range of $(123.2) million to $(113.0) million, or $(2.42) to $(2.22) per share, based on approximately 50.9 million weighted average diluted shares outstanding. Non-GAAP net income is expected to be in the range of $55.0 million to $60.0 million, or $1.00 to $1.09 per share, using 56.8 million weighted average diluted shares outstanding, and adding back the $1.7 million in cash interest expense as prescribed under the “If-Converted” method. Free cash flow for the full year is expected to be in the range of $141.0 million to $143.0 million, which assumes capital expenditures of approximately $45.0 million for the full year.

GUIDANCE:

Proofpoint sees FY2018 EPS of $1.00-$1.09, versus the consensus of $0.90. Proofpoint sees FY2018 revenue of $702-706 million, versus the consensus of $694.04 million.

For earnings history and earnings-related data on Proofpoint (PFPT) click here.