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Proofpoint (Proofpoint) Operating Income : $-132 Mil (TTM As of Jun. 2021)


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What is Proofpoint Operating Income?

Proofpoint's Operating Income for the three months ended in Jun. 2021 was $-47 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $-132 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Proofpoint's Operating Income for the three months ended in Jun. 2021 was $-47 Mil. Proofpoint's Revenue for the three months ended in Jun. 2021 was $309 Mil. Therefore, Proofpoint's Operating Margin % for the quarter that ended in Jun. 2021 was -15.34%.

Good Sign:

Proofpoint Inc operating margin is expanding. Margin expansion is usually a good sign.

Proofpoint's 5-Year average Growth Rate for Operating Margin % was 18.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Proofpoint's annualized ROC % for the quarter that ended in Jun. 2021 was -9.79%. Proofpoint's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 was -68.09%.


Proofpoint Operating Income Historical Data

The historical data trend for Proofpoint's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Proofpoint Operating Income Chart

Proofpoint Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -70.86 -54.93 -101.71 -104.93 -95.20

Proofpoint Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.83 -21.11 -21.49 -42.06 -47.36

Proofpoint Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-132 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Proofpoint  (NAS:PFPT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Proofpoint's annualized ROC % for the quarter that ended in Jun. 2021 is calculated as:

ROC % (Q: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2021 ) + Invested Capital (Q: Jun. 2021 ))/ count )
=-189.432 * ( 1 - -4.57% )/( (2030.642 + 2016.521)/ 2 )
=-198.0890424/2023.5815
=-9.79 %

where

Invested Capital(Q: Mar. 2021 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2452.536 - 115.338 - ( 882.55 - max(0, 853.189 - 1159.745+882.55))
=2030.642

Invested Capital(Q: Jun. 2021 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2511.745 - 158.583 - ( 929.306 - max(0, 899.185 - 1235.826+929.306))
=2016.521

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) data.

2. Joel Greenblatt's definition of Return on Capital:

Proofpoint's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2021  Q: Jun. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-196.28/( ( (290.42 + max(-543.033, 0)) + (286.127 + max(-555.092, 0)) )/ 2 )
=-196.28/( ( 290.42 + 286.127 )/ 2 )
=-196.28/288.2735
=-68.09 %

where Working Capital is:

Working Capital(Q: Mar. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(180.971 + 0.457 + 95.767) - (115.338 + 704.89 + 0)
=-543.033

Working Capital(Q: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(204.264 + 0.432 + 101.824) - (158.583 + 703.029 + 0)
=-555.092

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2021) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Proofpoint's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2021 )/Revenue (Q: Jun. 2021 )
=-47.358/308.653
=-15.34 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Proofpoint Operating Income Related Terms

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Proofpoint (Proofpoint) Business Description

Traded in Other Exchanges
N/A
Address
892 Ross Drive, Sunnyvale, CA, USA, 94089
Proofpoint Inc. is a provider of cloud-based security solutions to large- and mid-sized organizations in a wide range of industries. The firm's solutions are delivered through its security-as-a-service platform, which hosts an integrated set of on-demand data protection applications. These solutions include threat protection, incident response, regulatory compliance, archiving, governance, and secure communication capabilities. The company derives revenue from subscription fees and hardware, training, and professional services fees. A majority of the firm's revenue is generated in the United States.
Executives
Robert Darren Lee officer: EVP/GM Compliance/Digital Risk C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Gary Steele director, officer: Chairman and CEO C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
David Knight officer: EVP/GM, Security Products C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Ashan Willy officer: EVP/GM-Sec Prd & Svc Grp C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Auvil Paul R. Iii officer: Chief Financial Officer C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
Dana L Evan director 550 EAST TIMPANOGOS CIRCLE, *, OREM UT 84097
Blake P. Salle officer: EVP, Worldwide Sales C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Bhagwat Swaroop officer: EVP Indus. Solutions/Bus. Dev. C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Kevin Harvey director 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Richard Scott Herren director 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309
Leyla D. Seka director C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Kristen Gil director C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Michael M Johnson director C/O PROOFPOINT, INC. 892 ROSS DRIVE SUNNYVALE CA 94089
Richard P Wallace director KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134
Jonathan D Feiber director 3000 SAND HILL ROAD BLDG 1, MENLO PARK CA 94025

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