Proofpoint, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported total revenue of $106,805,000 compared to $74,939,000 a year ago. Operating loss was $16,126,000 compared to $21,046,000 a year ago. Loss before provision for income taxes was $22,710,000 compared to $27,250,000 a year ago. Net loss was $22,884,000 or $0.54 per basic and dilute share compared to $27,392,000 or $0.68 per basic and dilute share a year ago. Net cash provided by operating activities was $41,238,000 compared to $8,218,000 a year ago. Purchase of property and equipment was $8,880,000 compared to $7,700,000 a year ago. On non GAAP basis, the company reported operating income of $9,899,000 compared to $1,018,000 a year ago. Net income of $8,493,000 or $0.18 per diluted share compared to loss of $376,000 or $0.01 per diluted share a year ago. LBITDA was $7,862,000 compared to $14,379,000 a year ago. Adjusted EBITDA $14,758,000 compared to $4,555,000 a year ago. Non-GAAP free cash flows was $32,358,000 compared to $518,000 a year ago.

For the year, the company reported total revenue of $375,496,000 compared to $265,397,000 a year ago. Operating loss was $85,581,000 compared to $78,150,000 a year ago. Loss before provision for income taxes was $110,222,000 compared to $98,077,000 a year ago. Net loss was $111,208,000 or $2.66 per basic and dilute share compared to $98,712,000 or $2.48 per basic and dilute share a year ago. Net cash provided by operating activities was $94,235,000 compared to $46,504,000 a year ago. Purchase of property and equipment was $34,407,000 compared to $25,827,000 a year ago. On non GAAP basis, the company reported operating income of $21,566,000 compared to loss of $312,000 a year ago. Net income of $16,880,000 or $0.37 per diluted share compared to loss of $6,122,000 or $0.15 per diluted share a year ago. LBITDA was $55,132,000 compared to $55,177,000 a year ago. Adjusted EBITDA $38,697,000 compared to $12,332,000 a year ago. Non-GAAP free cash flows was $59,828,000 compared to $20,677,000 a year ago.

For the first quarter of 2017, total revenue is expected to be in the range of $109.0 million to $111.0 million.  GAAP loss is expected to be in the range of $31.6 million to $28.5 million, or $0.73 to $0.66 per share, based on approximately 43.2 million weighted average diluted shares outstanding.  Non-GAAP net income is expected to be in the range of $3.0 to $4.0 million, or $0.07 to $0.09 per share, using 54.7 million weighted average diluted shares outstanding.  Free cash flow is expected to be in the range of $15.0 million to $20.0 million. GAAP cash flows provided by operating activities expected to be in the range of $27.5 million to $33.5 million. Purchases of property and equipment expected to be in the range of $12.5 million to $13.5 million. The company expects first quarter non-GAAP gross margin to be approximately 76%, a modest decline from the 77% recorded in the fourth quarter of 2016 as its spending begins to catch up with the accelerated revenue delivered during the second half of 2016. The capital expenditures expected roughly $13 million, a $4 million increase from fourth quarter of 2016.

For the full year 2017, the company expects total revenue to be in the range of $488.0 million to $492.0 million. GAAP loss is expected to be in the range of $121.4 million to $113.3 million, or $2.75 to $2.57 per share, based on approximately 44.1 million weighted average diluted shares outstanding.  Non-GAAP net income is expected to be in the range of $23.0 to $25.0 million, or $0.49 to $0.52 per share, using 55.7 million weighted average diluted shares outstanding. This is up from the company's previous guidance of $21 million to $23 million or $0.45 to $0.49 per share on a fully diluted basis. Free cash flow is expected to be in the range of $95.0 million to $105.0 million, which assumes capital expenditures of $40.0 million to $42.0 million for the full year. GAAP cash flows provided by operating activities expected to be in the range of $135.0 million to $147.0 million. Purchases of property and equipment expected to be in the range of $40.0 million to $42.0 million. The company expects full year 2017 non-GAAP gross margins to be approximately 76.5%, demonstrating ongoing progress toward the company's 2020 target range of 77% to 79%.