Why FireEye Crushed It in Q4

By Chris Lange Updated Jan 12, 3:34AM EST · Published Feb 9, 9:50AM EST

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Why FireEye Crushed It in Q4 — © Thinkstock

When FireEye Inc. (NASDAQ: FEYE) reported its fourth-quarter financial results late on Thursday, the cybersecurity company said that it had $0.01 in earnings per share (EPS) on $202.3 million in revenue. Consensus estimates had called for a net loss of $0.01 per share on revenue of $193.6 million. The same period of last year reportedly had a $0.03 per share net loss and $184.7 million in revenue.

During the quarter, billings increased 9% to $242.2 million year over year, and this is above the guidance range of $210 million to $230 million.

Looking ahead to the first quarter, the company expects to see a net loss in the range of $0.03 to $0.06 per share on revenues between $192 million and $197 million, with billings in the range of $165 million to $175 million. The consensus estimates are a net loss of $0.05 per share and $186.74 million in revenue for the quarter.

Cash flow from operations totaled $33.6 million, compared to cash flow generated by operations of $6.9 million in the same period last year, and better than the guidance range of $16 million to $25 million. Cash flow in this time also was reduced by a payment of $12.5 million in net legal settlement costs.

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On the books, FireEye’s cash, cash equivalents and short-term investments totaled $896.8 million at the end of the quarter, down from $935.7 million in the same period of last year.

Kevin Mandia, FireEye CEO, commented:

We achieved strong results across all key financial metrics in the fourth quarter and delivered against our year-long commitment of billings and revenue growth, non-GAAP operating profitability, and positive operating and free cash flow by the fourth quarter. We delivered year-over-year and sequential growth in every major product group and geographic region, and we closed a record number of transactions greater than $1 million.

Shares were last seen up more than 10% at $15.60 on Friday, with a consensus analyst price target of $17.09 and a 52-week range of $10.35 to $18.00

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.