FireEye Q3 results beat expectations, raises year view, shares jump 6%

The security technology vendor hit a new high for recurring revenue, and highlighted a partnership with Microsoft.
Written by Tiernan Ray, Senior Contributing Writer

Shares of cloud-based security provider FireEye are up over 6% in late trading after the company this afternoon reported Q3 revenue and profit that topped analysts' expectations and forecast this quarter's revenue is higher as well. 

FireEye's CEO, Kevin Mandia, said the company's results showed how much progress the company has made "transforming our business."

Revenue in the three months ended in September rose almost 6%, year over year, to $238.6 million, yielding EPS of 11 cents. Analysts had been modeling, on average, $228 million and 7 cents per share. 

For the current quarter, the company sees revenue in a range of $237 million to $241 million and EPS in a range of 9 cents to 11 cents. That is, again, higher than consensus on the revenue line, at $237 million, and in line with profit consensus of 10 cents per share.

With the forecast, the company's full-year outlook for 2020 now stands at $930 million to $934 million, up from a forecast offered in July of $905 million to $925 million.

The company said its annualized recurring revenue reached an all-time high of $612 million, up 6%, year over year. 

Said Mandian, "We released our cloud-native Mandiant Advantage platform in October, making our intelligence and expertise easily accessible and actionable to any security organization, regardless of the security controls they deploy." The company "also announced a collaboration with Microsoft to provide cybersecurity services based on Microsoft security products." added Mandia.

"Both announcements reflect the technology-agnostic approach of Mandiant Solutions and allow us to expand our addressable market beyond the installed base of current FireEye customers."

FireEye, founded sixteen years ago in the Silicon Valley town of Milpitas, California, began by offering an appliance product to detect Web site threats, running inside of a virtual machine. 

The company expanded into its current form with the 2013 acquisition of privately held Mandiant, an incident response and forensics firm founded by Mandia.

FireEye stock rose almost 6% in late trading, to $14.90

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