Summary
- Despite high growth, market leadership and some of the largest clients in the world, the company has yet to turn a profit in its 14-year history.
- Competition that includes Cisco, Microsoft, Symantec and HP is fierce which results in little pricing power and risk of losing out to the bigger name that is better capitalized.
- The stock has been used as compensation, and as technicals weaken and guidance disappoint, this could bring on additional problems.
- The stock is expensive with company insiders on a constant selling spree.
Founded in 2002, Proofpoint (PFPT) is a security-as-a-service vendor that delivers data protection solutions. Its main product focuses on e-mail with its solution protecting clients from malware, virus, spam, phishing and similar and associated security issues and problems for corporate e-mail systems. In 2011, the company was certified by FISMA (Federal Information Security Management Act) and so can also serve U.S. federal agencies.
Considering its small size, the company has an impressive clientele with 49% of the Fortune 100, as shown below:
