Proofpoint, Inc. (NASDAQ:PFPT) offers cloud-based cybersecurity and archiving tools to help companies protect assets such as e-mail, cloud software applications and social media. Shares fell in the first quarter due primarily, in our view, to a Street analyst downgrade that raised concerns regarding potential increased competition from Microsoft Office 365’s built-in e-mail capabilities and risks of a deceleration of billing growth. We retain conviction in Proofpoint’s growth drivers, including the importance of e-mail in today’s workflow, the increasing need to protect against social engineering attacks, McAfee displacement, migration to Office 365 and growing channel partner programs. (Ishay Levin)
From the Baron Opportunity Fund first quarter 2017 shareholder letter.
