Provider of Cloud-Based Email Security and Compliance Solutions Could Raise Approximately $50 Million Through IPO
Proofpoint Inc., a Sunnyvale, California based provider of cloud-based security and compliance solutions, filed an S-1 registration statement with the Securities and Exchange Commission this week for a proposed initial public offering.
While the company has yet to determine the number of shares to be sold and the price range, the company is expected to raise approximately $50 million through the proposed offering.
Along with the IT security and compliance sector in general, the company is experiencing rapid growth, reporting revenue of $59.1 million through the first nine months of 2011, with a net loss of $13.7 million in during the period, but a revenue increase of 27 percent over same period last year.
The company has operated at a net loss in every year since its launch, including net losses of $19.7 million and $20.9 million in 2009 and 2010, respectively, while accumulating a deficit of $155.7 million as of September 30, 2011.
The company doesn’t expect to turn a profit anytime soon. “Achieving profitability will require us to increase revenue, manage our cost structure, and avoid unanticipated liabilities,” the S-1 filing noted. “We do not expect to be profitable in the near term. Revenue growth may slow or revenue may decline for a number of possible reasons, including slowing demand for our solutions, increasing competition, a decrease in the growth of our overall market, or if we fail for any reason to continue to capitalize on growth opportunities."
While these figures and statements may sound a bit eery, these are the typical things that must be included in SEC filings and for a company experiencing fast growth in an increasingly competitive space, profitability isn’t the primary goal.
Proofpoint’s cloud-based email security and compliance solutions help organizations address three key challenges; discovery readiness, regulatory compliance, and information governance.
Founded in 2002 by the former CTO of Netscape, the company claims more than 2,400 customers, including enterprises, universities and government agencies, supporting tens of millions of users.