The Street: Volatility Not Rocking Demand for Cybersecurity

Proofpoint’s solutions may be able to review more than 600 million emails per day, but they still cannot protect the cyber-security company’s stock from the market’s recent turbulence, said CEO Gary Steele. 'Organizations continue to struggle with security issues,' said Steele. 'We see visible hacks in the media every single day and as a result of that there has been strong demand. Although we do see this broader macro volatility, we feel very confident about the business given this strong demand environment.' Even after dropping almost 7% in the past three months, shares of Proofpoint are still up 18% so far in 2015. The tech-heavy Nasdaq Composite by comparison is up less than a percentage point year-to-date. The company said in July it expects its full-year 2015 non-GAAP net loss to be $16 million to $15.5 million, or a loss of $0.40 to $0.39 per share. The consensus estimate among analysts on Wall Street expect the company to lose about four cents a share in 2016. Steele, however, did not say that the company will be drastically cutting spending to get there. 'Last quarter we delivered 37% growth on the top line and we want to deliver that growth while increasing cash flow and profitability,' said Steele. 'We’ve consistently executed on that pledge.' View video