FireEye Shares Gain 20% on Record Q2 Revenue and Strong FY Outlook
Source: Streetwise Reports
July 30, 2020 (Investorideas.com Newswire) Shares of FireEye Inc. traded higher after the company reported Q2/20 financial results that included a 6% growth in revenue along with positive FY/20 forward guidance.
FireEye Inc. (FEYE:NASDAQ), which provides solutions that help organizations prepare for, prevent, respond to and fend off cyber-attacks, yesterday announced financial results for the second quarter ended June 30, 2020.
The firm reported that in Q2/20 revenue increased by 6% to $229.9 million, compared to $217.6 million in Q2/19. The company also reported a lower net loss in Q2/20 of $53.28 million, or $0.24 per share, versus a net loss of $67.32 million, or $0.33 per share in Q2/19.
The company's CEO Kevin Mandia commented, "The steps we have taken to accelerate our transformation to a security-as-a-service company resulted in record second quarter revenue and our highest ever non-GAAP profitability...Growing adoption of our validation platform, cloud-based security products and intelligence solutions, combined with improved net retention in our appliance-based security controls business, drove annualized recurring revenue to record levels."
"Cyber security remains a top spending priority for organizations worldwide, and the uncertainty of the current environment is creating opportunities for solutions that allow customers to purchase exactly what they need, when they need it... We know more about cyber threats and threat actors than any other company in our industry, and we continue to invest in solutions that make our knowledge and expertise available on demand and immediately actionable for our customers," CEO Mandia added.
The company additionally provided some forward guidance for Q3/20 and FY/20. The firm advised that for Q3/20 it expects revenue of $225-229 million and non-GAAP net income per diluted share of $0.06-0.08. FireEye also noted that for FY/20, it expects revenue of $ $905-925 million and non-GAAP net income per diluted share of $0.22-0.26.
FireEye is based in Milpitas, Calif., and is an intelligence-led security company that helps companies and organizations identify and fight off cyber-attacks. The firm stated it provides products and services to more than 9,300 clients in more than 100 countries including more than 50% of the Forbes Global 2000. The company's products include threat detection and prevention solutions, e-mail security products, security management and forensic investigational products. In addition, FireEye offers subscription services for threat intelligence, security-as-a-service and general customer maintenance and support.
FireEye started the day with a market capitalization of around $3.0 billion with approximately 222.8 million shares outstanding and a short interest of about 8.4%. FEYE shares opened 12% higher today at $14.99 (+$1.61, +12.03%) over yesterday's $13.38 closing price. The stock has traded today between $14.735 and $16.28 per share and is currently trading at $16.18 (+$2.80, +20.93%).
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