- At least 5 firms have hiked their FireEye (NASDAQ:FEYE) targets after the threat-prevention/incident-response tech leader beat Q1 estimates on the back of 53% Y/Y billings growth, and provided strong sales/billings guidance. CyberArk (NASDAQ:CYBR), hit hard yesterday amid a tech selloff, is following FireEye higher.
-
Stephens: "Revenue upside was driven by strength across the Company's portfolio of products as Mandiant responded to more than 100 incidents, FireEye as a Service grew faster than any other product at scale, email attach rates were particularly strong, and [intrusion prevention system] attach rates doubled."
-
JPMorgan notes 28 $1M+ deals were inked in Q1, twice what was seen a year ago, and that over half of them were from new customers. It's also pleased with a 98% increase in international revenue (now 29% of total revenue), and that FireEye is now getting $2.31 in incremental billings for every incremental dollar of sales/marketing spend (close to a historical industry average of $2.76).
- Both JPMorgan and Wells Fargo like the fact FireEye's sales cycles are shortening. Wells thinks the company can post 35%+ annual revenue growth for the next 5 years.
- Those more cautious, such as Morgan Stanley and Cowen, cite concerns about valuation and still-heavy losses. FBR (Outperform) sees FireEye's op. margin (-56.5% in Q1) improving to -25.3% in 2016 from -44.1% in 2014. With billings well above reported revenue, cash flow should continue outpacing earnings.