Attention Cybersecurity Investors: Proofpoint Is No Longer A One-Trick Pony

Clarifying their view, analysts Joel Fishbein and Edward Parker said Proofpoint is not just an email security company but a next-gen cybersecurity player protecting individuals, data and brands. The analysts said the company's broad set of capabilities based on its cloud platform, protect a broad set of threat vectors, including email, URL, social, mobile and the domain.

The analysts estimate that emerging products such as email fraud defense, social media and mobile security, threat response, threat intelligence and TAP SaaS defender account for over 10 percent of the company's average revenue growth. These businesses are growing at a healthy pace of 100 percent year over year, the firm added.

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"The renewal/upsell potential in the business is coupling nicely with the core greenfield opportunities in the market, which should drive long-term profitability and FCF above current expectations," BTIG said.

BTIG sees robust market opportunity for Proofpoint, as it continues to grow at industry best rates. The firm noted that the company has about 41 percent of the Fortune 500, 33 percent of the Fortune 1000 and 15 percent of the Global 2000 companies among its customers.

Giving an indication of the opportunity before it, the firm said only about 20 percent of Proofpoint's revenues currently come from outside of North America.

Giving the key takeaways from the analyst day, BTIG said it sees Proofpoint as one of the strongest investment cases in the current cybersecurity cycle. The firm believes the company would continue to benefit from the growing vendor consolidation within the enterprise.

Additionally, the firm thinks the company's upwardly revised 2020 revenue guidance of $1.025 billion to $1.100 billion looks achievable on trend line assumptions, with room for upside.

Concluding the firm said, its positive investment thesis remains intact.