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2018 Press Releases

May 03, 2018

FireEye Reports Financial Results for First Quarter 2018

FireEye, Inc., the intelligence-led security company, today announced financial results for the first quarter ended March 31, 2018.
 
“We continued to execute well in the first quarter and delivered revenue above our guidance range and billings slightly above our guidance range,” said Kevin Mandia, FireEye chief executive officer. “We also continued to drive innovation across our product portfolio, added new features and functionality, and updated our pricing and packaging.”
 
“Our frontline knowledge of the threat landscape and how organizations are combating cyber attacks is at the heart of our unique innovation cycle,” added Mandia. “FireEye network, email and endpoint security products continue to detect attacks that evade other security solutions. Our Helix platform operationalizes our intelligence and expertise to reduce the complexity of security operations and capture the untapped potential of prior security investments.”
 
First Quarter 2018 Financial Results
 

  • Revenue of $199 million, an increase of 8 percent from the first quarter of 2017, and above the guidance range of $192 million to $197 million.
  • Billings of $175.1 million, an increase of 21 percent from the first quarter of 2017, and slightly above our guidance range of $165 million to $175 million.1
  • GAAP gross margin of 66 percent, compared to 64 percent in the first quarter of 2017.
  • Non-GAAP gross margin of 74 percent, compared to 74 percent in the first quarter of 2017, and consistent with guidance of approximately 74 percent.1
  • GAAP operating margin of negative 31 percent, compared to negative 36 percent in the first quarter of 2017.
  • Non-GAAP operating margin of negative 3 percent, compared to negative 4 percent in the first quarter of 2017, and within the guidance range of negative 2 percent to negative 4 percent.1
  • GAAP net loss per share of $0.39, compared to a GAAP net loss per share of $0.45 in the first quarter of 2017.
  • Non-GAAP net loss per share of $0.04, compared to a non-GAAP net loss per share of $0.05 in the first quarter of 2017, and within the guidance range of non-GAAP net loss per share of $0.03 to $0.06.1
  • Cash flow generated by operations was $9 million, compared to cash flow generated by operations of negative $17 million in the first quarter of 2017, and better than the guidance range of negative $10 million to break-even.

 
FireEye adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), effective January 1, 2018 using the full retrospective method. Prior period information has been adjusted to reflect the adoption of the new standard.
 
1 A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”
 
Second Quarter and Updated 2018 Outlook
 
FireEye provides guidance based on current market conditions and expectations.
 
For the second quarter of 2018, FireEye currently expects:
 

  • Total revenue in the range of $199 million to $203 million.
  • Billings in the range of $180 million to $195 million.
  • Non-GAAP gross margin of approximately 74 percent.
  • Non-GAAP operating margin in the range of negative 2 percent to positive 1 percent.
  • Non-GAAP net income (loss) per share of $(0.03) to $0.00.
  • Cash flow generated by operations between zero dollars and negative $15 million.
  • Non-GAAP net income (loss) per share for the second quarter assumes cash interest expense of approximately $3 million associated with the company’s convertible senior notes, provision for income taxes of between $1.0 million and $1.5 million, and weighted average shares outstanding of approximately 188 million.

 
For 2018, FireEye currently expects:
 

  • Revenue in the range of $820 million to $830 million.
  • Billings in the range of $815 million to $835 million.
  • Non-GAAP operating margin between 1 percent and 2 percent.
  • Non-GAAP net income per share between $0.00 and $0.04.
  • Positive cash flow generated by operations of $50 million to $60 million.
  • Capital expenditures between $35 million and $40 million.
  • Non-GAAP net income per share for 2018 assumes cash interest expense of approximately $12.1 million, paid semi-annually in June and December, associated with the company's convertible senior notes, provision for income taxes of between $5.0 million and $6.0 million, and diluted weighted average shares outstanding of approximately 197 million.

 
Guidance for non-GAAP financial measures excludes stock based compensation, amortization of intangible assets, and non-cash interest expense related to the company’s convertible senior notes. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability of, the amounts of stock-based compensation expense, amortization of intangible assets, and non-recurring expenses that may be incurred in the future. Stock-based compensation expense is impacted by the company’s future hiring and retention needs, as well as the future fair market value of the company’s common stock, all of which is difficult to predict and subject to constant change. The actual amount of stock-based compensation in the second quarter of 2018 and full year 2018 will have a significant impact on the company’s GAAP operating margin and net loss per share. Further, amortization of intangible assets, as well as other non-recurring expenses, if any, will also impact results. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.