Revenue during the quarter surged 43.35 percent to $113.25 million from $79 million in the previous year period. Gross margin for the quarter expanded 283 basis points over the previous year period to 71.41 percent. Operating margin for the quarter stood at negative 15.85 percent as compared to a negative 32.41 percent for the previous year period.

Operating loss for the quarter was $17.95 million, compared with an operating loss of $25.60 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $7.12 million compared to operating loss of $2.51 million in prior year period.

“Our strong first quarter results benefitted from continuing trends that included the overall threat landscape, the transition to the cloud, and enterprise customers driving vendor consolidation around Proofpoint’s best-of-breed cloud-based security platform,” stated Gary Steele, chief executive officer of Proofpoint. “Our ability to exceed expectations was also driven by robust new and add-on activity, traction with new emerging products, and consistently high renewal rates. I believe that our ongoing commitment to innovation and our proven capability in handling today’s advanced security threats positions the company to grow market share around the world for the remainder of the year and beyond.”

For the second-quarter 2017, Proofpoint, Inc expects revenue to be in the range of $118 million to $120 million and its net loss to be in the range of $26.90 million to $30.10 million and adjusted net income to be in the range of $5 million to $6 million ans its diluted loss per share to be in the range of $0.69 to $0.61 and adjusted diluted earnings per share to be in the range of $0.11 to $0.13.

For fiscal year 2017, Proofpoint expects revenue to be in the range of $496 million to $500 million and its net loss to be in the range of $106 million to $117.60 million and adjusted net income to be in the range of $26.50 million to $28.50 million and its diluted loss per share to be in the range of $2.67 to $2.48 and adjusted diluted earnings per share to be in the range of $0.56 to $0.59.

Cash flow from investing activities was $10.58 million for the quarter, down 46.61 percent or $9.24 million, when compared with the last year period.

The company has spent $14.76 million cash to carry out financing activities during the quarter as against cash outgo of $6.23 million in the last year period.

Cash and cash equivalents stood at $381.86 million as on Mar. 31, 2017, up 1.17 percent or $4.42 million from $377.44 million on Mar. 31, 2016.

Working capital drops significantly
Proofpoint, Inc has witnessed a decline in the working capital over the last year. It stood at $182.70 million as at Mar. 31, 2017, down 25.91 percent or $63.91 million from $246.61 million on Mar. 31, 2016. Current ratio was at 1.56 as on Mar. 31, 2017, down from 2.01 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 12 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 63 days for the same period last year.

Days inventory outstanding has decreased to 1 days for the quarter compared with 2 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 53 for the same period last year.