Tue, Feb. 17, 2:25 PM
- Kaspersky Labs uncovered an international hacking ring that (using sophisticated malware) has stolen up to $1B from 100+ banks in 30 countries. The scheme goes back to 2013, with the attackers coming from China and Europe.
- Also: Jim Cramer argued on CNBC cybersecurity firms still have room to run, and cited FireEye (FEYE +4.8%) and CyberArk's (CYBR +10.1%) Q4 numbers (I, II) as evidence of the industry's momentum.
- FireEye and CyberArk are adding strongly to last week's big earnings-driven gains. Imperva (IMPV +3%) and KEYW Holding (KEYW +3%) are also rallying.
Wed, Feb. 11, 4:35 PM
- FireEye (NASDAQ:FEYE) expects Q1 revenue of $118M-$122M and full-year revenue of $605M-$625M, below consensus estimates of $121.1M and $622.4M at the midpoints. Q1 and full-year EPS guidance is respectively at -$0.49 to -$0.53 and -$1.80 to -$1.90 vs. consensus estimates of -$0.53 and -$1.87.
- Q4 billings totaled $212.6M, topping guidance of $195M-$210M. Product subscription/support billings amounted to $120M, helping FireEye's deferred revenue balance rise by $165M Y/Y to $352.5M. Q1 billings guidance is at $130M-$140M, and full-year guidance at $800M-$820M (compares with 2014 billings of $590.7M).
- Spending remains heavy: GAAP operating expenses rose 102% Y/Y to $204.7M. Sales/marketing spend totaled $118.1M, R&D $53.1M, and G&A $31.9M.
- Q4 results, PR
Wed, Feb. 11, 4:04 PM
Tue, Feb. 10, 5:35 PM
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Thu, Jan. 29, 12:22 PM
- In addition to beating Q4 revenue estimates (while posting in-line EPS), Fortinet (NASDAQ:FTNT) guided on its CC (transcript, earnings slides) for Q1 revenue of $200M-$205M and full-year revenue of $915M-$925M (+20% Y/Y at the midpoint), above consensus estimates of $199.1M and $877.8M. But EPS guidance is respectively at $0.06 and $0.49-$0.50, below consensus estimates of $0.12 and $0.59.
- GAAP operating expenses rose 40% Y/Y in Q4 to $138.4M ($93.2M on sales/marketing), outpacing revenue growth of 26% and billings growth of 35%, and preventing an EPS beat. CFO Andrew Del Matto states Fortinet's investments are focused on "strengthening our enterprise sales force including key vertical teams as well as increased marketing to improve our lead generation and sales productivity."
- Q4 billings totaled $283M, soundly exceeding guidance of $245M-$250M. Q1 and full-year billings guidance is respectively at $226M-$230M (+22% at the midpoint) and $1.065B-$1.08B (+20%). The deferred revenue balance rose 29% Y/Y in Q4 to $558.8M.
- Strong billings growth led 2014 free cash flow to total $164.4M, more than 2x net income of $80.8M. Fortinet's high-end FortiGate UTM and next-gen firewall appliances (the 1000, 3000, and 5000 series') made up 40% of product billings.
- FireEye (FEYE -2.9%), Imperva (IMPV -2.2%), and CyberArk (CYBR -2.7%) are following Fortinet lower; Imperva reports on Feb. 5, FireEye on Feb. 11, and CyberArk on Feb. 12. FireEye announced a partnership with major European/Latin American carrier Telefonica this morning.
- Check Point has also provided light EPS guidance (to go with strong revenue guidance) due to its aggressive spending plans.
Nov. 12, 2014, 6:24 PM
- In addition to blowing away Q3 estimates, CyberArk (NASDAQ:CYBR) is guiding for Q4 revenue of $26M-$27M and EPS of $0.04-$0.06, above a consensus of $25.1M and $0.02. Given Q3 revenue came in at $28M, the guidance might be conservative.
- The cybersecurity software vendor's license revenue rose 67% Y/Y in Q3 to $16.6M. Maintenance/professional services revenue rose 64% to $11.3M. GAAP opex rose 43% to $16.7M.
- FireEye (NASDAQ:FEYE) has received a lift from CyberArk's numbers.
- Q3 results, PR
Nov. 4, 2014, 4:27 PM
- In addition to missing Q3 revenue estimates (while beating on EPS), FireEye (NASDAQ:FEYE) is guiding for Q4 revenue of $135M-$147M, below a $144.2M consensus at the midpoint. EPS guidance is at -$0.46 to -$0.50 vs. a -$0.50 consensus.
- In spite of the revenue miss, Q3 billings totaled $165.1M, +45% Q/Q and above guidance of $150M-$155M. Q4 billings guidance is at $195M-$210M, and full-year guidance has been hiked to $573M-$588M from $560M-$580M.
- Q3 product revenue +104% Y/Y to $48.4M; subscription/services revenue +248% to $65.8M. Both figures were boosted by the Mandiant acquisition.
- Spending remains aggressive: Excluding restructuring charges, GAAP opex (also boosted by Mandiant) rose 157% to $196.5M.
- Peers are also off: PANW -3.5% AH. CUDA -1.9%.
- Q3 results, PR
Nov. 4, 2014, 4:10 PM
Nov. 3, 2014, 5:35 PM
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Oct. 23, 2014, 12:03 PM
- Check Point (CHKP +4.2%) beat Q3 estimates and offered healthy Q4 guidance: Revenue of $395M-$430M and EPS of $0.99-$1.09 vs. a consensus of $410.3M and $1.03.
- Fortinet (FTNT -0.1%) posted a Q3 beat, reported strong billings growth, and issued above-consensus Q4 revenue guidance. EPS guidance was light due to aggressive spending.
- Several security tech peers are outperforming on a day the Nasdaq is up 1.7%. PANW +4.4%. FEYE +4.5%. PFPT +4.9%. QLYS +2.7%. The numbers follow downbeat guidance from IBM, SAP, and VMware, and arguably highlight security's growing share of IT spend.
- Oppenheimer is reiterating an Outperform and $30 target on Fortinet, and notes the company's new billings guidance implies 26% 2014 growth at the midpoint (up from 22%). It thinks the UTM hardware vendor's performance is being driven by strong high-end appliance sales, product refreshes, and the fruits of major sales/marketing investments.
Aug. 6, 2014, 11:35 AM
- In addition to beating Q2 estimates, FireEye (NASDAQ:FEYE) is guiding for Q3 revenue of $114M-$117M and EPS of -$0.52 to -$0.56 vs. a consensus of $108.9M and -$0.56. Full-year guidance is for revenue of $423M-$430M and EPS of -$2.05 to -$2.15 vs. a consensus of $412.2M and -$2.23.
- Q2 billings totaled $113.8M, above revenue of $94.5M and guidance of $108M-$112M. Q3 billings are expected to total $150M-$155M, and full-year billings $560M-$580M. Total customers more than doubled Y/Y to 2,498.
- FireEye has also announced the hiring of John McGee, previously the EVP of field operations at data warehousing software vendor Informatica (INFA +1.6%), as its new SVP of worldwide sales. McGee has been Informatica's sales chief since 2012. FireEye's prior sales chief, Jeff Williams, will now be in charge of Americas sales.
- Morgan Stanley notes investors want more detail about the performance of FireEye's traditional threat-prevention offerings relative to recently-acquired Mandiant's endpoint protection software/services.
- As one might expect (given huge losses), the firm also sees bottom-line questions weighing on shares. "Investors have to rely on long-term free cash flow estimates (five plus years) to gain comfort on FireEye's valuation."
- FireEye mentioned on its CC (transcript) it will now move "much more aggressively towards profitability," and will eliminate some redundant positions. Sales/marketing spend is expected to equal 76%-79% of 2014 revenue, and R&D spend 41%-44%.
Aug. 5, 2014, 4:12 PM
Aug. 4, 2014, 5:35 PM
- AMTG, APEI, ARC, ATSG, ATVI, AVNR, AWR, AXLL, BIO, BKH, BMR, CHUY, CLR, CRTO, CSU, DAVE, DIS, DPM, DRYS, ENPH, EOG, FANG, FEYE, FRGI, FSLR, FTR, FUEL, GMED, GRPN, HCI, HGR, HT, ITRI, JAZZ, JCOM, KAR, LBTYA, MCHX, MITT, MODN, MPO, MRCY, NSTG, NYMT, OAS, OKE, OKS, ORA, ORIG, PBPB, PEGA, PNNT, PRAA, PZZA, QUAD, REXX, RLD, RST, RSYS, SGMS, SGY, SKT, SMCI, TDW, TMHC, TPC, TRMB, TTWO, UNTD, WBMD, WES, WGP, WMGI, WTR, XEC, Z, ZAGG, ZGNX
Jul. 24, 2014, 1:57 PM
- Fortinet (FTNT +6.7%) beat Q2 estimates with the help of 33% Y/Y billings growth (exceeded rev. growth of 25%) and a 95% Y/Y increase in $500K+ deals.
- The company guided in its CC slides (.pdf) for Q3 revenue of $182M-$185M and EPS of $0.11 vs. a consensus of $177.3M and $0.13. Full-year guidance is for revenue of $735M-$740M and EPS of $0.47-$0.48 vs. a consensus of $714M and $0.50. Billings are expected to grow ~22% to $835M-$840M.
- On its CC (transcript), the UTM hardware leader suggested its light EPS guidance is due to a heavy investment pace, including aggressive sales hiring. It also mentioned Americas sales were up 40% Y/Y, fueled by a 73% increase for U.S. enterprise.
- Meanwhile, Vasco Data (VDSI +16.9%) trounced Q2 estimates and hiked its guidance for 2014 revenue from traditional businesses to $175M-$180M from $168M-$172M. The company notes adoption of new productions leveraging its Cronto visual authentication tech (acquired last year) has been strong.
- FireEye (FEYE +3%), Palo Alto Networks (PANW +2.8%), Proofpoint (PFPT +3.6%), and Check Point (CHKP +1.7%) are trading higher. Proofpoint reports after the bell; Check Point provided a Q2 beat and healthy top-line guidance yesterday.
- On the other hand, Barracuda (CUDA -5.9%) is selling off. JPMorgan attributes the decline to Fortinet's CC remarks about rapidly growing sales to mid-sized businesses - Barracuda depends heavily on them - with the help of new resellers. The firm argues the concerns are overblown, particularly since Fortinet is more focused on larger mid-sized businesses.
May. 7, 2014, 2:24 PM
- FireEye (FEYE -26.2%) has crashed to new post-IPO lows after offering light EPS guidance to go with a revenue beat, and has sparked a sharp selloff in IT security stocks on (another) down day for momentum plays. PANW -10.2%. IMPV -7.1%. PFPT -6.8%. QLYS -8.7%. FTNT -3.3%.
- Citi is worried about a lack of "opacity" for FireEye's top-line numbers following the Mandiant deal. "Management noted 'bookings' for both FireEye and Mandiant grew >50% Y/Y. With FY13 growth of near 100% this leaves an outstanding question of whether or not business decelerated meaningfully on an organic basis."
- Others are more positive. Wells Fargo (Outperform) is still confident about its forecast for 50%+ revenue growth over the next 3 years, and the "disruptive nature" of FireEye's business model (integrated threat-prevention hardware/software/services). Goldman (Neutral, but with a $58 PT) thinks organic growth is good enough, and expects a flurry of new products to provide a boost.
- FBN (Outperform) is still bullish long-term, but also notes product revenue was below consensus, and is on edge over a May 21 lockup expiration that will lead 68% of shares to become eligible for sale.
May. 6, 2014, 5:58 PM
- FireEye (FEYE) expects Q2 revenue of $89M-$91M and EPS of -$0.58 to -$0.63 vs. a consensus of $87.9M and -$0.51. Full-year guidance is for revenue of $405M-$415M and EPS of -$2.10 to -$2.30 vs. a consensus of $407.1M and -$2.04.
- FireEye's breakneck spending pace is responsible for its EPS outlook: Sales/marketing spend is expected to equal 82%-85% of 2014 revenue, and R&D spend 40%-43%; the latter range is up from a prior 36%-39%.
- A bright spot: Q1 billings totaled $99.2M, well above guidance of $84M-$88M. That, in turn, contributed to a $25.2M Q/Q increase in FireEye's deferred revenue balance to $212.7M. Full-year billings guidance has been hiked by $10M to $550M-$570M.
- Separately, FireEye has announced it's buying nPulse Technologies, a network forsenics hardware/software provider, for $60M in cash + $10M in stock. FireEye asserts the integration of nPulse's products with recently-acquired Mandiant's endpoint security offerings will yield the first enterprise forsenics solution offering a unified view of network and endpoint activity.
- Shares are now down 65% from a March high of $97.35.
- Q1 results, PR
FEYE vs. ETF Alternatives
FireEye Inc provides cybersecurity solution for detecting, preventing and resolving cyber-attacks that evade legacy signature-based security products. Its solutions include traditional and next-generation firewalls, IPS, anti-virus, and gateways.
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