Security Experts:

Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Email Security

Proofpoint Files for Initial Public Offering

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.

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.

Proofpoint LogoWhile 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.

Written By

For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.

Click to comment

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Management & Strategy

Industry professionals comment on the recent disruption of the Hive ransomware operation and its hacking by law enforcement.

Management & Strategy

Tens of cybersecurity companies have announced cutting staff over the past year, in some cases significant portions of their global workforce.

Email Security

Microsoft is urging customers to install the latest Exchange Server updates and harden their environments to prevent malicious attacks.

Management & Strategy

Microsoft making a multiyear, multibillion dollar investment in the artificial intelligence startup OpenAI, maker of ChatGPT and other tools.

Management & Strategy

SecurityWeek examines how a layoff-induced influx of experienced professionals into the job seeker market is affecting or might affect, the skills gap and recruitment...

Funding/M&A

Twenty-one cybersecurity-related M&A deals were announced in December 2022.