Strong demand for cybersecurity products
Proofpoint (PFPT) announced its first-quarter earnings results on April 25 and reported sales growth of 25% YoY (year-over-year) in the period. Proofpoint attributed this growth to strong demand for next-generation cloud security products. The growing threat of cyberattacks has compelled enterprises to invest heavily in cybersecurity solutions.
The worldwide security appliance market is expected to grow in the double digits over the next few quarters driven by the migration of applications and workloads to the cloud. Hackers are increasingly targeting enterprises and employees via phishing attacks, account takeovers, credential theft, and socially engineered attacks that result in data loss and brand dilution.
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Proofpoint believes that its expertise in email security and threat intelligence and its expanding product suite across cloud and email will help it increase and retain its customer base.
Customer insights are beneficial
Proofpoint also provides customers with insights into what type of employee is targeted in an organization and by which method. It then compiles its findings and compares the data among industry peers.
During the company’s first-quarter earnings call, Proofpoint CEO Gary Steele stated, “This exceptional visibility has increased our relevance to security teams globally as this information can better arm security teams with actionable data and enable them to implement adaptive control to construct a more mature security posture.”
Proofpoint isn’t overly concerned with competition in this space, as the company expects its people-centric approach to strike a chord with its growing customer base. The success of this strategy can be seen via Proofpoint’s increase in new contracts and its world-class renewal rate of over 90%.
In the chart above, we can see that the global cybersecurity market is expected to reach $248 billion in 2023, up from $152 billion in 2018.