Proofpoint, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. Total revenue for the fourth quarter of 2015 was $74.9 million, an increase of 33% compared to $56.2 million in the prior-year period. GAAP gross profit for the fourth quarter of 2015 was $51.0 million compared to $36.8 million for the fourth quarter of 2014.  Non-GAAP gross profit for the quarter was $54.9 million compared to $38.9 million in the year ago period.  GAAP operating loss for the fourth quarter of 2015 was $25.0 million compared to a loss of $14.4 million during the fourth quarter last year.  Non-GAAP operating loss for the fourth quarter of 2015 was $3.0 million compared to a loss of $2.0 million for the same period last year. GAAP net loss for the fourth quarter of 2015 was $31.4 million or $0.77 per share based on 40.5 million weighted average shares outstanding.  This compares to a GAAP net loss of $17.4 million or $0.45 per share based on 38.3 million weighted average shares outstanding in the prior-year period. Non-GAAP net loss for the fourth quarter of 2015 was $4.4 million or $0.11 per share based on 40.5 million weighted average shares outstanding.  This compares to a non-GAAP net loss of $3.6 million or $0.09 per share based on 38.3 million weighted average shares outstanding during the same period last year. Adjusted EBITDA for the fourth quarter of 2015 was $0.6 million compared to $0.5 million for the fourth quarter of 2014. The company generated $8.1 million in net cash from operations for the fourth quarter of 2015 compared to $15.5 million during the fourth quarter of 2014. The company generated $0.4 million in free cash flow for the quarter compared to $10.9 million during the same period last year. Purchase of property and equipment was $7.700 million against $4.593 million a year ago.LBITDA was $18.361 million against $10.316 million a year ago.

Total revenue for the full year of 2015 was $265.4 million, an increase of 36%, compared to $195.6 million in 2014. GAAP gross profit for the full year of 2015 was $181.3 million compared to $129.9 million for 2014.  Non-GAAP gross profit for the full year of 2015 was $194.5 million compared to $137.1 million for 2014.  GAAP operating loss for the full year of 2015 was $85.9 million compared to a loss of $51.1 million during 2014.  Non-GAAP operating loss for the full year of 2015 was $8.1 million, compared to a loss of $9.5 million during 2014. Non-GAAP net loss for the full year of 2015 was $13.9 million or $0.35 per share based on 39.8 million weighted average shares outstanding.  This compares to a loss of $15.0 million or $0.40 per share based on 37.4 million weighted average shares outstanding for 2014. Adjusted EBITDA for the full year of 2015 was $4.6 million compared to negative $0.5 million for 2014. The company generated $45.5 million in net cash from operations for the full year of 2015 compared to generating $21.3 million during 2014.  The company generated $19.7 million in free cash flow for the full year of 2015 compared to $6.3 million during 2014. Purchase of property and equipment was $25.827 million against $14.988 million a year ago. LBITDA was $62.919 million against $35.516 million a year ago.

The company provided earnings guidance for its first quarter and full year 2016. For first quarter 2016, total revenue is expected to be in the range of $75.5 million to $76.5 million. Adjusted EBITDA loss is expected to be in the range of $0.5 million to $1.0 million.  Non-GAAP EPS loss is expected to be in the range of $0.14 to $0.15 based on approximately 41.0 million weighted average shares outstanding.  

For full year 2016, total revenue is expected to be in the range of $345.0 million to $348.0 million. Adjusted EBITDA is expected to be in the range of $12.0 million to $14.0 million.  Non-GAAP EPS loss is expected to be in the range of $0.21 to $0.26 based on approximately 41.7 million weighted average shares outstanding.  Free cash flow, defined as operating cash flow less capital expenditures, is expected to be in the range of $31.0 million to $35.0 million, which assumes capital expenditures of $28.0 million to $30.0 million for the full year.