Proofpoint's CEO Presents at 2013 Wedbush Transformational Technologies Management Access Conference (Transcript)

Seekingalpha Mar 06, 2013 Back to press

Proofpoint Inc. (PFPT) 2013 Wedbush Transformational Technologies Management Access Conference Call March 6, 2013 10:55 AM ET

Sanjit Singh - Wedbush Securities, Inc.

All right. Good morning, everyone. We have Proofpoint at our conference here. I’m Sanjit Singh, Communications Analyst with Wedbush. Gary Steele, the CEO of Proofpoint is joined with Paul Auvil, the Chief Financial Officer. I think as we go over the presentation, I have a few questions and we’ll turn it over to the audience for Q&A as well.

Gary, go ahead.

Gary Steele - Chief Executive Officer

Great. Thank you very much. It’s great to here today. What I’ll do is just give you a very quick short overview. So Proofpoint is a company that is focused on the $5 billion data security market and we’re using SaaS to truly transform that industry with a whole set of new disruptive technologies and we’re seeing great residence across our customer base.

If you look at our business today, we have roughly 2,700 customers. We focus on midsize and large customers with many of the world’s largest and most brands as customers today. We have some key partners. Microsoft, IBM, VMware being good examples of that. Microsoft, for example, resells part of our solutions to their largest cloud customers. IBM has a resell rate of relationship with us where they have the ability to resell all of our products across the globe.

If you look at our revenue and growth, our annual growth rate has run roughly 33% and we continue to be recognized in industry as a leader. So Gartner has its place, for example, and the two major quadrants where we play. We are considered a leader in those quadrants. We also get great feedback from the industry price as well as customers be a way for example it’s been a longstanding customer. They actually rank all their vendors on a scale of one to 100. Last quarter we got 100 and it’s difficult to get 100.

So to give you little bit of perspective on the capabilities that we deliver, we deliver a broad platform of capabilities broken into four key product areas. The first key product area is protection. This is where we got started in the business. In this particular context, we’re looking at spam viruses and other forms of malware coming into an organization. We’re protecting our customers from that. We’re blocking it before it ever gets to their inbox.

So the way this works today in our datacenters is, as an example, we have a retailer that employs 2 million people. All the email from that global organization goes into our datacenters. We run our analytics and email that’s coming through. We determine what is potentially malicious, what is just truly unwanted and then we route back to that retailer a clean email stream.

In this category we’ve also introduced a new capability. We introduced it in August called Targeted Attack Protection. This is focused on the most malicious advance for system threats coming into an organization. We’re leveraging our strength and the email strength to look for spear phishing and it’s interesting. We had one of our large financial services customers do an analysis on their threat environment and they found that in a quarter, 91% of the malicious attacks had come through the email stream.

So with this particular capability effectively what we do is we look for URLs and email. When we see the URL, we use a set of big data techniques that determine whether something is potentially malicious. We actually rewrite the URL in the email and with that rewrite we’re able to redirect that user to our cloud-based service. And so, at the time the user decides to click on it, we can determine whether something is malicious or not.

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