SOURCE: Proofpoint

Proofpoint

August 07, 2012 16:01 ET

Proofpoint Announces Second Quarter 2012 Financial Results

SUNNYVALE, CA--(Marketwire - Aug 7, 2012) - Proofpoint, Inc. (NASDAQ: PFPT)

  • Total revenue of $25.9 million, up 30% year-over year
  • Subscription revenue of $24.7 million, up 40% year-over-year
  • Billings of $26.3 million, up 22% year-over-year
  • GAAP EPS loss of $0.21; Non GAAP EPS loss of $0.08
  • Operating cash flow of $0.9 million during the second quarter

Proofpoint, Inc. (NASDAQ: PFPT), a leading provider of security-as-a-service solutions, today announced financial results for the second quarter ended June 30, 2012.

"We are very pleased with our performance during the second quarter as demand for our integrated Security-as-a-Service platform remains robust and our high win rates continue to drive new customer momentum," stated Gary Steele, chief executive officer of Proofpoint. "Our ability to execute our growth strategy is being driven by a combination of new customer acquisition, expansion with our existing customers and traction with our strategic partners."

Steele continued, "We remain focused on investing additional resources to expand and enhance our sales organization. In addition, we are committed to further strengthen our research and development capabilities to drive innovation and market share gains evidenced by our recent launch of Proofpoint Targeted Attack Protection. Looking forward, we believe we are well positioned to maintain momentum during the second half of the year."

Second Quarter 2012 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2012 was $25.9 million, an increase of 30% compared to $19.9 million in the prior-year period. Within total revenue, subscription revenue was $24.7 million, an increase of 40% on a year-over-year basis. Hardware and services revenue contributed the remaining $1.2 million of total revenue for the second quarter of 2012.

  • Billings: Total billings were $26.3 million for the second quarter of 2012, an increase of 22% compared to the second quarter of 2011. The company defines billings, a non-GAAP financial measure, as revenue recognized during the period plus the change in deferred revenue from the beginning to the end of the period.

  • Gross Profit: GAAP gross profit for the second quarter was $17.6 million compared to $12.5 million for the second quarter of 2011. Non-GAAP gross profit for the quarter was $18.7 million compared to $13.6 million in the year ago period. Non-GAAP gross margin was 72% for the second quarter of 2012, compared to 68% during the same period last year.

  • Operating Loss: GAAP operating loss for the second quarter was $5.1 million compared to a loss of $4.3 million during the second quarter last year. Non-GAAP operating loss for second quarter of 2012 was $2.0 million, compared to a loss of $2.1 million during the same period last year.

  • Net Loss: GAAP net loss for the second quarter was $5.5 million or $0.21 per share based on 26.2 million weighted average diluted shares outstanding. This compares to a GAAP net loss of $4.3 million or $1.10 per share based on 3.9 million weighted average diluted shares outstanding in the prior-year period.

    Non-GAAP net loss for the second quarter of 2012 was $2.4 million or $0.08 per share based on 30.3 million weighted average diluted shares outstanding, which assumes the company was public for the full year. This compares to a loss of $2.1 million or $0.09 per share based on 23.5 million weighted average diluted shares outstanding during the same period last year.

  • Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2012 was negative $0.9 million compared to negative $1.3 million for the second quarter of 2011.

  • Cash and Cash Flow: As of June 30, 2012, Proofpoint had cash, cash equivalents and short term investments of $81.4 million, compared to $13.2 million as of March 31, 2012. The increase is primarily due to Proofpoint's initial public offering on April 19, 2012, which generated net proceeds of approximately $70 million and includes a partial exercise of the underwriters' over-allotment option.

    The company generated $0.9 million in net cash from operations and invested $1.2 million in capital expenditures during the second quarter of 2012.

    A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Second Quarter and Recent Business Highlights:

  • Launched Proofpoint Targeted Attack Protection™, a new cloud-based security solution uniquely architected to protect against spear phishing and other malicious target attacks. The solution deploys an array of advanced technologies including big data analysis techniques, URL interception, and malware analysis to provide unprecedented protection.

  • Proofpoint Targeted Attack Protection™ was selected as a finalist for the Microsoft Best of TechEd Awards due its unique architecture and ability to protect against spear phishing and other malicious attacks.

  • Won the CSO New Technology Demo award, which recognized the Proofpoint Enterprise Governance solution demonstration as one of the best at the CSO Security Confab Conference. The Proofpoint Enterprise Governance solution allows organizations to easily track, classify, apply policies and monitor unstructured information across the enterprise using patented Digital Thread technology.

"Our execution was strong during the second quarter, as evidenced by our ability to exceed expectations from a revenue, billings and cash flow perspective," stated Paul Auvil, chief financial officer of Proofpoint. "The growth was a result of the 40% increase in our subscription revenue, which accounted for over 95% of total revenue during the quarter. The combination of our strong balance sheet and ability to generate cash from operations positions the company to maintain its momentum and grow market share globally."

Financial Outlook

As of August 7, 2012 Proofpoint is providing guidance for its third quarter and full year 2012 as follows:

  • Third Quarter 2012 Guidance: Total revenue is expected to be in the range of $26.1 million to $26.5 million. Billings is expected to be in the range of $28.2 million to $28.6 million. Adjusted EBITDA loss is expected to be in the range of $1.9 million to $2.2 million. Non-GAAP EPS loss is expected to be in the range of $0.09 and $0.11 based on 31.8 million weighted average diluted shares outstanding.

  • Full Year 2012 Guidance: Total revenue is expected to be in the range of $103.5 million to $104.5 million. Billings is expected to be in the range of $111.0 million to $112.0 million. Adjusted EBITDA loss is expected to be in the range of $5.8 million and $6.1 million. Non-GAAP EPS loss is expected to be in the range of $0.38 and $0.39 based on 29.8 million weighted average diluted shares outstanding, which assumes the company was public for the full year. Free cash flow, defined as operating cash flow less capital expenditure, is expected to be in the range of negative $0.6 million to $1.0 million, which assumes capital expenditures of approximately $7.0 million.

Quarterly Conference Call

Proofpoint will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to review the company's financial results for the second quarter ended June 30, 2012. To access this call, dial 888.466.4447 for the U.S. and Canada or 719.457.1509 for international callers with conference ID #4700673. A live webcast of the conference call will be accessible from the investor's page of Proofpoint's website at investors.proofpoint.com, and a recording will be archived and accessible at investors.proofpoint.com. An audio replay of this conference call will also be available through August 21, 2012, by dialing 877.870.5176 for the U.S. and Canada or 858.384.5517 for international callers and entering passcode #4700673.

About Proofpoint, Inc.

Proofpoint Inc. (NASDAQ: PFPT) is a leading security-as-a-service provider that focuses on cloud-based solutions for threat protection, compliance, archiving & governance and secure communications. Organizations around the world depend on Proofpoint's expertise, patented technologies and on-demand delivery system to protect against phishing, malware and spam, safeguard privacy, encrypt sensitive information, and archive and govern messages and critical enterprise information. More information is available at www.proofpoint.com.

Proofpoint, Proofpoint Enterprise Governance, Proofpoint Enterprise Privacy and Digital Thread are trademarks or registered trademarks of Proofpoint, Inc. in the U.S. and other countries. All other trademarks contained herein are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the momentum in the company's business, future growth and future financial results. It is possible that future circumstances might differ from the assumptions on which such statements are based. Important factors that could cause results to differ materially from the statements herein include: the effect of general economic conditions; specific economic risks in different geographies and among different industries; failure to maintain or increase renewals and increased business from existing customers; uncertainties related to continued success in sales growth and market share gains; failure to convert sales opportunities into definitive customer agreements; risks associated with successful implementation of multiple integrated software products and other product functionality; competition, particularly from larger companies with more resources than Proofpoint; risks related to new product introductions and innovation; the ability to attract and retain key personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make Proofpoint's products and services less competitive; risks associated with the adoption of, and demand for, the Security-as-a-Service model in general and by specific industries; risks related to integrating the employees, customers and technologies of acquired businesses; and the other risk factors set forth from time to time in our filings with the SEC, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and Proofpoint undertakes no obligation, and expressly disclaims any obligation, to update forward-looking statements herein in light of new information or future events.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors. 

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below. As previously mentioned, a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit plus stock-based compensation expense and the amortization of intangibles associated with acquisitions. We consider this non-GAAP financial measure to be a useful metric for management and investors because they exclude the effect of stock-based compensation expense and the amortization of intangibles associated with acquisitions so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP gross profit versus gross profit calculated in accordance with GAAP. Non-GAAP gross profit excludes stock-based compensation expense. Stock-based compensation has been and will continue to be for the foreseeable future a significant recurring expense in our business. Stock-based compensation is an important part of our employees' compensation and impacts their performance. In addition, the components of the costs that we exclude in our calculation of non-GAAP gross profit may differ from the components that our peer companies exclude when they report their non-GAAP results. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP gross profit and evaluating non-GAAP gross profit together with gross profit calculated in accordance with GAAP.

Non-GAAP operating loss. We define non-GAAP operating loss as operating loss plus stock-based compensation expense and the amortization of intangibles associated with acquisitions. We consider this non-GAAP financial measure to be a useful metric for management and investors because they exclude the effect of stock-based compensation expense and the amortization of intangibles associated with acquisitions so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating loss versus operating loss calculated in accordance with GAAP. Non-GAAP operating loss excludes stock-based compensation expense. Stock-based compensation has been and will continue to be for the foreseeable future a significant recurring expense in our business. Stock-based compensation is an important part of our employees' compensation and impacts their performance. In addition, the components of the costs that we exclude in our calculation of non-GAAP operating loss may differ from the components that our peer companies exclude when they report their non-GAAP results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating loss and evaluating non-GAAP operating loss together with operating loss calculated in accordance with GAAP.

Non-GAAP net loss. We define non-GAAP net loss as net loss plus stock-based compensation expense and the amortization of intangibles associated with acquisitions. We consider this non-GAAP financial measure to be useful metrics for management and investors for the same reasons that we use non-GAAP operating loss. However, in order to provide a complete picture of our recurring core business operating results, we exclude from non-GAAP net loss the tax effects associated with stock-based compensation and the amortization of intangibles associated with acquisitions. We used a 4% percent effective tax rate to calculate non-GAAP net loss for the second quarter of 2012 and for the second quarter of 2011. We believe that a 4-8% effective tax rate range is a reasonable estimates of the near-term normalized tax rate under our current global operating structure. The same limitations described above regarding our use of non-GAAP operating loss also apply to our use of non-GAAP net loss.

Billings. We define billings as revenue recognized plus the change in deferred revenue from the beginning to the end of the period. We consider billings to be a useful metric for management and investors because billings drive deferred revenue, which is an important indicator of the health and visibility of our business, and has historically represented a majority of the quarterly revenue that we recognize. There are a number of limitations related to the use of billings versus revenue calculated in accordance with GAAP. Billings include amounts that have not yet been recognized as revenue. We may also calculate billings in a manner that is different from peer companies that report similar financial measures. Management compensates for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with revenues calculated in accordance with GAAP.

Adjusted EBITDA. We define adjusted EBITDA as net loss, adjusted to exclude: depreciation, amortization of intangibles, interest income (expense), net, provision for income taxes, stock-based compensation, acquisition-related expense, other income, and other expense. We believe that the use of adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. We use adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance, for planning purposes, including the preparation of our annual operating budget, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We do not place undue reliance on adjusted EBITDA as our only measures of operating performance. Adjusted EBITDA should not be considered as a substitute for other measures of financial performance reported in accordance with GAAP. There are limitations to using this non-GAAP financial measures, including that other companies may calculate these measures differently than we do, that they do not reflect our capital expenditures or future requirements for capital expenditures and that they do not reflect changes in, or cash requirements for, our working capital.

Free Cash Flow. We define free cash flow as net cash provided by operating activities minus capital expenditures. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, can be used for strategic opportunities, including investing in our business, making strategic acquisitions, and strengthening the balance sheet. Analysis of free cash flow facilitates management's comparisons of our operating results to competitors' operating results. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating our company is that free cash flow does not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period. Management compensates for this limitation by providing information about our capital expenditures on the face of the cash flow statement and in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" section of our reports filed with the Securities and Exchange Commission.

   
Proofpoint, Inc.  
Condensed Consolidated Statements of Operations  
(On a GAAP basis)  
(In thousands, except per share amounts)  
(Unaudited)  
   
    Three Months Ended
June 30,
    Six
 Months Ended
June 30,
 
    2012     2011     2012     2011  
Revenue:                                
  Subscription   $ 24,750     $ 17,663     $ 48,019     $ 33,740  
  Hardware and services     1,193       2,217       2,543       4,921  
    Total revenue     25,943       19,880       50,562       38,661  
Cost of revenue:(1)(2)                                
  Subscription     7,236       5,801       14,447       11,617  
  Hardware and services     1,134       1,530       2,303       3,113  
    Total cost of revenue     8,370       7,331       16,750       14,730  
Gross profit     17,573       12,549       33,812       23,931  
Operating expense:(1)(2)                                
  Research and development     6,224       4,881       12,105       9,822  
  Sales and marketing     13,450       9,846       25,625       19,291  
  General and administrative     2,964       2,092       5,730       4,140  
    Total operating expense     22,638       16,819       43,460       33,253  
Operating loss     (5,065 )     (4,270 )     (9,648 )     (9,322 )
Interest expense, net     (43 )     (112 )     (103 )     (188 )
Other income (expense), net     (178 )     94       (209 )     243  
Loss before provision for income taxes     (5,286 )     (4,288 )     (9,960 )     (9,267 )
Provision for income taxes     (232 )     (30 )     (311 )     (136 )
Net loss   $ (5,518 )   $ (4,318 )   $ (10,271 )   $ (9,403 )
Net loss per share, basic and diluted   $ (0.21 )   $ (1.10 )   $ (0.65 )   $ (2.43 )
Weighted average shares outstanding, basic and diluted     26,195       3,909       15,907       3,871  
                                 
(1)   Includes stock-based compensation expense as follows:                                
      Cost of subscription revenue   $ 109     $ 107     $ 238     $ 205  
      Cost of hardware and services revenue     15       6       26       13  
      Research and development     485       283       907       561  
      Sales and marketing     820       478       1,471       907  
      General and administrative     506       239       794       484  
        Total stock-based compensation expense   $ 1,935     $ 1,113     $ 3,436     $ 2,170  
(2)   Includes intangible amortization expense as follows:                                
      Cost of subscription revenue   $ 1,019     $ 935     $ 2,119     $ 1,860  
      Research and development     7       --       15       --  
      Sales and marketing     146       141       317       484  
        Total intangible amortization expense   $ 1,172     $ 1,076     $ 2,451     $ 2,344  
                                         
                                         
                                         
Proofpoint, Inc.  
Condensed Consolidated Balance Sheets  
(On a GAAP basis)  
(In thousands, except per share amounts)  
(Unaudited)  
   
       
    June 30,
2012
    December 31,
2011
 
             
Assets                
Current assets                
  Cash and cash equivalents   $ 46,157     $ 9,767  
  Short-term investments     35,197       2,947  
  Accounts receivable, net     12,237       15,789  
  Inventory     506       729  
  Deferred product costs, current     1,526       1,803  
  Prepaid expenses and other current assets     2,867       2,556  
    Total current assets     98,490       33,591  
  Property and equipment, net     7,472       7,353  
  Deferred product costs, noncurrent     495       987  
  Goodwill     18,557       18,557  
  Intangible assets, net     3,738       6,189  
  Other noncurrent assets     249       1,275  
    Total assets   $ 129,001     $ 67,952  
Liabilities, Convertible Preferred Stock and Stockholders' Deficit                
Current liabilities                
  Accounts payable   $ 2,121     $ 3,504  
  Accrued liabilities     9,623       10,061  
  Notes payable and lease obligations     1,650       467  
  Deferred rent     512       517  
  Deferred revenue     54,184       52,836  
    Total current liabilities     68,090       67,385  
Notes payable and lease obligations, noncurrent     3,147       4,514  
Other long term liabilities, noncurrent     252       85  
Deferred revenue, noncurrent     21,722       23,404  
    Total liabilities     93,211       95,388  
                 
Convertible preferred stock, $0.0001 par value; no shares authorized, issued and outstanding as of June 30, 2012 and 39,424 shares authorized, 38,942 shares issued and outstanding at December 31, 2011, net of issuance costs and liquidation preference of $110,338     --       109,911  
Stockholders' deficit                
  Preferred stock, $0.0001 par value; 5,000 shares authorized; no shares issued and outstanding at June 30, 2012; no shares authorized, issued and outstanding at December 31, 2011     --       --  
  Common stock, $0.0001 par value; 200,000 and 71,400 shares authorized at June 30, 2012 and December 31, 2011, respectively; 31,795 and 4,961 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively     4       1  
  Additional paid-in capital     208,188       24,773  
  Accumulated other comprehensive loss     (12 )     (3 )
  Accumulated deficit     (172,390 )     (162,118 )
    Total stockholders' deficit     35,790       (137,347 )
    Total liabilities, convertible preferred stock, and stockholders' deficit   $ 129,001     $ 67,952  
                 
                 
                 
Proofpoint, Inc.  
Condensed Consolidated Statements of Cash Flows  
(On a GAAP basis)  
(In thousands)  
(Unaudited)  
   
    Six Months Ended
June 30,
 
    2012     2011  
Cash flows from operating activities                
  Net loss   $ (10,271 )   $ (9,403 )
  Adjustments to reconcile net loss to net cash provided by (used in) operating activities                
    Depreciation and amortization     4,499       3,788  
    Stock-based compensation     3,436       2,170  
    Change in fair value of warranty liability     --       (66 )
    Change in fair value of contingent earn-outs     --       161  
    Changes in assets and liabilities:                
      Accounts receivable     3,552       1,014  
      Inventory     223       (60 )
      Deferred products costs     768       1,706  
      Prepaid expenses and other current assets     (311 )     (509 )
      Noncurrent assets     59       166  
      Accounts payable     (1,296 )     374  
      Accrued liabilities     790       (964 )
      Deferred rent     (5 )     177  
      Deferred revenue     (334 )     2,069  
        Net cash provided by operating activities     1,110       623  
Cash flows from investing activities                
  Proceeds from sales and maturities of short-term investments     2,939       411  
  Purchase of short term investments     (35,198 )     (5,081 )
  Acquisitions of business (net of cash acquired)     --       (2,136 )
  Purchase of property and equipment, net     (2,443 )     (160 )
        Net cash used in investing activities     (34,702 )     (6,966 )
Cash flows from financing activities                
  Proceeds from issuance of common stock, net of repurchases     1,761       418  
  Proceeds from initial public offering, net of offering costs     68,405       --  
  Proceeds of equipment financing loans     --       1,728  
  Repayments of equipment financing loans     (184 )     (138 )
        Net cash provided by financing activities     69,982       2,008  
        Net increase (decrease) in cash and cash equivalents     36,390       (4,335 )
Cash and cash equivalents                
  Beginning of period     9,767       12,087  
  End of period   $ 46,157     $ 7,752  
                 
                 
                 
Reconciliation of Non-GAAP Measures  
(In thousands, except per share amounts)  
(Unaudited)  
                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
                                 
                                 
GAAP gross profit   $ 17,573     $ 12,549     $ 33,812     $ 23,931  
Plus Adjustments:                                
Stock-based compensation expense     124       113       264       218  
Intangible amortization expense     1,019       935       2,119       1,860  
Non-GAAP gross profit     18,716       13,597       36,195       26,009  
                                 
GAAP operating loss     (5,065 )     (4,270 )     (9,648 )     (9,322 )
Plus:                                
Stock-based compensation expense     1,935       1,113       3,436       2,170  
Intangible amortization expense     1,172       1,076       2,451       2,344  
Non-recurring acquisition expense     -       28       3       28  
Non-GAAP operating loss     (1,958 )     (2,053 )     (3,758 )     (4,780 )
                                 
GAAP net loss     (5,518 )     (4,318 )     (10,271 )     (9,403 )
Plus:                                
Stock-based compensation expense     1,935       1,113       3,436       2,170  
Intangible amortization expense     1,172       1,076       2,451       2,344  
Non-recurring acquisition expense     -       28       3       28  
Non-GAAP net loss   $ (2,411 )   $ (2,101 )   $ (4,381 )   $ (4,861 )
                                 
                                 
Weighted average shares outstanding, basic and diluted     26,195       3,909       15,907       3,871  
Plus:                                
Additional weighted average shares giving effect to initial public offering and conversion of convertible preferred stock at the beginning of the period     4,094       19,567       11,834       19,567  
                                 
Shares used in computing Non-GAAP net loss per share, basic and diluted     30,289       23,476       27,741       23,438  
                                 
Non-GAAP net loss, basic and diluted   $ (0.08 )   $ (0.09 )   $ (0.16 )   $ (0.21 )
   
   
   
Reconciliation of Net Loss to Adjusted EBITDA  
(In thousands)  
(Unaudited)  
                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
                                 
Net loss   $ (5,518 )   $ (4,318 )   $ (10,271 )   $ (9,403 )
Depreciation     1,032       757       2,048       1,444  
Amortization of Intangible Assets     1,172       1,076       2,451       2,344  
Interest expense, net     43       112       103       188  
Provision for Income Taxes     232       30       311       136  
EBITDA   $ (3,039 )   $ (2,343 )   $ (5,358 )   $ (5,291 )
                                 
Stock Based Compensation   $ 1,935     $ 1,113     $ 3,436     $ 2,170  
Acquisition Related Expenses     -       28       3       28  
Other Income     (10 )     (78 )     (11 )     (138 )
Other Expense     189       (16 )     220       (105 )
Adjusted EBITDA   $ (925 )   $ (1,296 )   $ (1,710 )   $ (3,336 )
                                 
                                 
                                 
Reconciliation of Total Revenue to Billings
(In thousands)
(Unaudited)
                   
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2012   2011   2012     2011
                   
                   
                   
Total Revenue   $ 25,943   $ 19,880   $ 50,562     $ 38,661
                           
Deferred Revenue                          
Ending     75,906     71,170     75,906       71,170
Beginning     75,503     69,472     76,240       69,101
Net Change     403     1,698     (334 )     2,069
                           
Billings   $ 26,346   $ 21,578   $ 50,228     $ 40,730
                           

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