Proofpoint, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported total revenue of $40,837,000 compared to $28,649,000 a year ago. Operating loss was $11,693,000 compared to $5,354,000 a year ago. Loss before provision for income taxes was $12,382,000 compared to $5,406,000 a year ago. Net loss was $12,572,000 or $0.35 basic and diluted per share compared to $5,497,000 or $0.17 basic and diluted per share a year ago. Non-GAAP operating loss was $2,134,000 compared to $3,004,000 a year ago. Non-GAAP net loss was $2,536,000 or $0.07 basic and diluted share compared to $3,147,000 or $0.10 basic and diluted per share a year ago. LBITDA was $7,901,000 compared to $3,736,000 a year ago. Adjusted LBITDA was $361,000 compared to $1,744,000 a year ago. The company generated $5.3 million in net cash from operations for the fourth quarter of 2013 compared to generating $4.9 million during the fourth quarter of 2012. The company generated $2.2 million in free cash flow for the quarter compared to $2.9 million during the fourth quarter of 2012. The company invested $3.1 million in capital expenditures.

For the year, the company reported total revenue of $137,931,000 compared to $106,295,000 a year ago. Operating loss was $30,171,000 compared to $19,577,000 a year ago. Loss before provision for income taxes was $31,027,000 compared to $19,839,000 a year ago. Net loss was $28,219,000 or $0.81 basic and diluted per share compared to $20,360,000 or $0.85 basic and diluted per share a year ago. Net cash provided by operating activities was $12,591,000 compared to $6,836,000 a year ago. Purchase of property and equipment was $7,633,000 compared to $5,904,000 a year ago. Non-GAAP operating loss was $10,249,000 compared to $8,977,000 a year ago. Non-GAAP net loss was $11,282,000 or $0.32 basic and diluted share compared to $9,760,000 or $0.31 basic and diluted per share a year ago. LBITDA was $20,419,000 compared to $12,021,000 a year ago. Adjusted LBITDA was $4,326,000 compared to $4,543,000 a year ago. The company generated $5.0 million in free cash flow for the full year of 2013 compared to $0.9 million during 2012. The company invested $7.6 million in capital expenditures.

For the first quarter of 2014, the company expects total revenue to be in the range of $40.0 million to $41.0 million, adjusted EBITDA to be in the range of $4.5 million to $3.5 million, non-GAAP EPS loss to be in the range of $0.21 to $0.18 based on approximately 36.5 million weighted average shares outstanding. The company expects EBITDA loss to increase in the first quarter of 2014 as compared to the fourth quarter of 2013. The company expects non-GAAP gross margin to be approximately 71%. The company expects non-GAAP net loss to be $6.5 million to $7.5 million.

For the full year of 2014, the now expects total revenue of $174.5 million to $176.5 million, reflecting an annual growth rate of 27% at the mid point of the range, and above its preliminary guidance. The company expects non-GAAP gross margins to be approximately 71%. The company expects adjusted EBITDA loss to be in the range of $7.0 million to $5.0 million, non-GAAP EPS loss to be in the range of $0.53 to $0.48 based on approximately 37.6 million weighted average shares outstanding and free cash flow, defined as operating cash flow less capital expenditures, is expected to be approximately positive $10.0 million, which assumes capital expenditures of $13.0 million to $15.0 million for the full year. The company expects non-GAAP net loss to be $18 million to $20 million. The company expects its free cash flow to be $10 million.