- Q2 revenue of $218 million increased 7 percent from the second
quarter of 2018
- Q2 billings of $221 million increased 13 percent from the
second quarter of 20181
- Successfully closed the acquisition of Verodin on May 28,
2019
FireEye, Inc. (NASDAQ: FEYE), the intelligence-led security
company, today announced financial results for the second quarter
ended June 30, 2019.
“Our billings growth in the second quarter was led by an
acceleration in growth in our platform, cloud subscription, and
managed services category,” said Kevin Mandia, FireEye chief
executive officer. “Demand was strong for our threat intelligence
and managed defense solutions, as well as our strategic Mandiant
services. Looking forward, we are excited by the opportunities
created by the addition of the Verodin security instrumentation
platform to our solutions offering.”
Second Quarter 2019 Financial Results
- Revenue of $218 million increased 7 percent from the second
quarter of 2018 and was above the guidance range of $213 million to
$217 million.
- Billings of $221 million increased 13 percent from the second
quarter of 2018 and were at the high end of the range of $207
million to $222 million.1
- GAAP gross margin was 64 percent of revenue, compared to 67
percent of revenue in the second quarter of 2018.
- Non-GAAP gross margin was 72 percent of revenue, compared to 75
percent of revenue in the second quarter of 2018, and was below the
guidance range of 74 percent to 75 percent of revenue.1
- GAAP operating margin was negative 26 percent of revenue,
compared to negative 24 percent of revenue in the second quarter of
2018.
- Non-GAAP operating margin was negative 1 percent of revenue,
compared to 2 percent of revenue in the second quarter of 2018, and
was below the guidance range of 0 percent to 2 percent of
revenue.1
- GAAP net loss per share was $0.33, compared to GAAP net loss
per share of $0.38 in the second quarter of 2018.
- Non-GAAP net loss per share was $0.01, compared to non-GAAP net
income per share of $0.00 in the second quarter of 2018, and was
below the guidance range of non-GAAP net income per share of $0.00
to $0.02.1
- Cash flow used in operations was $15 million, compared to cash
flow used in operations of $44 million in the second quarter of
2018, and was below the low end of the guidance range of cash flow
used in operations of $7 million to $12 million. Cash flow used in
operations for the second quarter of 2018 included $44 million
deemed to be a repayment of accreted debt discount on $340 million
principal amount of the 1.000% Convertible Senior Notes due 2035
("Series A Notes") that were repurchased and retired prior to
maturity.
“We were encouraged by our continued strong billings performance
in the second quarter, and in particular by an increase in new
business sales and growth in our platform, cloud subscription and
managed services category," said Frank Verdecanna, FireEye chief
financial officer and chief accounting officer. “However, these
positive dynamics in our business also resulted in a greater than
expected increase in expenses related to cloud hosting and
commissions on new business, which negatively impacted our gross
and operating margins. Additionally, the end of life for our
third-generation appliances resulted in a decline in annual
recurring revenue in the product and related subscription and
support category as contracts attached to these appliances expired.
This resulted in a reduced outlook for revenue in the product and
related subscription and support category in the second half of
2019.”
1 A reconciliation of GAAP to non-GAAP financial measures is
provided in the financial statement tables included in this press
release. An explanation of these measures is also included under
the heading “Non-GAAP Financial Measures.”
Third Quarter and Updated 2019 Outlook
FireEye provides guidance based on current market conditions and
expectations.
For the third quarter of 2019, FireEye currently expects:
- Revenue in the range of $217 million to $221 million.
- Billings in the range of $245 million to $255 million.
- Non-GAAP gross margin as a percent of revenue of approximately
72 percent.
- Non-GAAP operating margin as a percent of revenue in the range
of 0 percent to 2 percent.
- Non-GAAP net income per diluted share between $0.00 and
$0.02.
- Cash flow generated by operations between $15 million and $25
million.
- Capital expenditures of approximately $10 million.
Non-GAAP net income per diluted share for the third quarter
assumes interest income on cash and cash equivalents and short-term
investments will offset cash interest expense associated with the
company’s convertible senior notes, provision for income taxes of
between $1.5 million and $2.0 million, and weighted average diluted
shares outstanding of approximately 218 million.
For 2019, FireEye currently expects:
- Revenue in the range of $865 million to $875 million.
- Billings in the range of $935 million to $955 million.
- Non-GAAP gross margin as a percent of revenue of approximately
73 percent.
- Non-GAAP operating margin as a percent of revenue between 0
percent and 1 percent.
- Non-GAAP net income per diluted share between $0.00 and
$0.04.
- Cash flow generated by operations between $85 million and $105
million.
- Capital expenditures between $40 million and $50 million.
Non-GAAP net income per diluted share for 2019 assumes interest
income on cash and cash equivalents and short-term investments will
offset cash interest expense associated with the company's
convertible senior notes, provision for income taxes of between $6
million and $8 million, and weighted average diluted shares
outstanding of approximately 214 million.
Guidance for non-GAAP financial measures excludes stock-based
compensation, amortization of stock-based compensation expense
capitalized in software development costs, amortization of
intangible assets, non-cash interest expense related to the
company’s convertible senior notes, and other non-recurring items.
A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis due to
the uncertainty regarding, and the potential variability of, the
amounts of stock-based compensation expense, amortization of
intangible assets, and non-recurring expenses that may be incurred
in the future. Stock-based compensation expense is impacted by the
company’s future hiring and retention needs, as well as the future
fair market value of the company’s common stock, all of which are
difficult to predict and subject to constant change. The actual
amount of stock-based compensation in the third quarter of 2019 and
full year 2019 will have a significant impact on the company’s GAAP
operating margin and net loss per share. Further, amortization of
intangible assets, as well as other non-recurring expenses, if any,
will also impact results. Accordingly, a reconciliation of the
non-GAAP financial measure guidance to the corresponding GAAP
measures for future periods is not available without unreasonable
effort.
Conference Call Information
FireEye will host a conference call today, July 30, 2019, at 5
p.m. Eastern time (2 p.m. Pacific time) to discuss its second
quarter financial results and the company’s outlook for the third
quarter and full year 2019. Interested parties may access the
conference call by dialing 877-312-5521 (domestic) or 678-894-3048
(international). A live audio webcast of the call can be accessed
from the Investor Relations section of the company's website at
https://investors.fireeye.com. An archived version of the webcast
will be available at the same website shortly after the conclusion
of the live event.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements related to future financial results for the
third quarter and full year 2019, including revenue, billings,
non-GAAP gross margin, non-GAAP operating margin, interest income
and expense, provision for income taxes, non-GAAP net income per
diluted share, weighted average diluted shares outstanding, cash
flows generated by operations, and capital expenditures in the
section entitled “Third Quarter and Updated 2019 Outlook” above, as
well as statements regarding market opportunities.
These forward-looking statements involve risks and
uncertainties, as well as assumptions which, if they do not fully
materialize or prove incorrect, could cause FireEye’s results to
differ materially from those expressed or implied by such
forward-looking statements. The risks and uncertainties that could
cause FireEye’s results to differ materially from those expressed
or implied by such forward-looking statements include customer
demand and adoption of FireEye’s products and services; real or
perceived defects, errors or vulnerabilities in FireEye's products
or services; any delay in the release of FireEye's new products or
services; FireEye's ability to react to trends and challenges in
its business and the markets in which it operates; FireEye's
ability to anticipate market needs or develop new or enhanced
products and services to meet those needs; FireEye’s ability to
hire and retain key executives and employees; FireEye’s ability to
attract new and retain existing customers and train its sales
force; the budgeting cycles, seasonal buying patterns and length of
FireEye’s sales cycle; risks associated with new offerings; sales
and marketing execution risks; the failure to achieve expected
synergies and efficiencies of operations between FireEye and its
acquired companies; the ability of FireEye and its acquired
companies to successfully integrate their respective market
opportunities, technologies, products, personnel and operations;
the ability of FireEye and its partners to execute their
strategies, plans, objectives and expected investments with respect
to FireEye’s partnerships; and general market, political, economic,
and business conditions, as well as those risks and uncertainties
included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in FireEye’s Form 10-Q filed with the Securities and
Exchange Commission on May 3, 2019, which should be read in
conjunction with these financial results and is available on the
Investor Relations section of FireEye’s website at
investors.fireeye.com and on the SEC website at www.sec.gov.
All forward-looking statements in this press release are based
on information available to the company as of the date hereof, and
FireEye does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made,
except as required by law. Any future product, service, feature, or
related specification that may be referenced in this release is for
informational purposes only and is not a commitment to deliver any
offering, technology or enhancement. FireEye reserves the right to
modify future product or service plans at any time.
Non-GAAP Financial Measures
In this release FireEye has provided financial information that
has not been prepared in accordance with generally accepted
accounting principles in the United States (GAAP). These non-GAAP
financial measures are not based on any standardized methodology
and are not necessarily comparable to similar measures used by
other companies. The company uses these non-GAAP financial measures
internally in analyzing its financial results and believes that the
use of these non-GAAP financial measures is useful to investors as
an additional tool to evaluate ongoing operating results and
trends, and in comparing the company's financial results with other
companies in its industry, many of which present similar non-GAAP
financial measures.
Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable financial information
prepared in accordance with GAAP, and should be read only in
conjunction with the company's consolidated financial statements
prepared in accordance with GAAP. A reconciliation of the company's
non-GAAP financial measures to their most directly comparable GAAP
measures has been provided in the financial statement tables
included in this press release, and investors are encouraged to
review the reconciliation.
Billings. FireEye defines billings as revenue recognized plus
the change in deferred revenue from the beginning to the end of the
period. FireEye excludes deferred revenue assumed in connection
with acquisitions from the billings calculation. The company
considers billings to be a useful metric for management and
investors because billings drive deferred revenue balances, which
are an important indicator of the company’s future revenues.
Revenue recognized from deferred revenue represents a significant
percentage of quarterly revenue. There are a number of limitations
related to the use of billings versus revenue calculated in
accordance with GAAP. First, billings include amounts that have not
yet been recognized as revenue. Second, FireEye’s calculation of
billings may be different from other companies in its industry,
some of which may not use billings, may calculate billings
differently, may have different billing frequencies, or may use
other financial measures to evaluate their performance, all of
which could reduce the usefulness of billings as a comparative
measure. FireEye compensates for these limitations by providing
specific information regarding GAAP revenue and evaluating billings
together with revenue calculated in accordance with GAAP.
Non-GAAP gross margin, operating income, operating margin, net
income (loss), and net income (loss) per share. FireEye defines
non-GAAP gross margin as total gross profit excluding stock-based
compensation expense, amortization of stock-based compensation
expense capitalized in software development costs, amortization of
intangible assets, and, as applicable, other special or
non-recurring items, divided by total revenue.
FireEye defines non-GAAP operating income (loss) as operating
income (loss) excluding stock-based compensation expense,
amortization of stock-based compensation expense capitalized in
software development costs, amortization of intangible assets,
acquisition-related expenses, restructuring charges, and other
special or non-recurring items. FireEye defines non-GAAP operating
margin as non-GAAP operating income divided by total revenue.
FireEye defines non-GAAP net income (loss) as net income (loss)
excluding stock-based compensation expense, amortization of
stock-based compensation expense capitalized in software
development costs, amortization of intangible assets,
acquisition-related expenses, restructuring charges, other special
or non-recurring items, non-cash interest expense related to the
company’s convertible senior notes, and discrete tax provision
(benefits). FireEye defines non-GAAP net income per diluted share
as non-GAAP net income divided by weighted average diluted shares
outstanding. Weighted average diluted shares used to calculate
non-GAAP net income per diluted share excludes shares issuable upon
conversion of the company's convertible senior notes that are
anti-dilutive. FireEye defines non-GAAP net loss per share as
non-GAAP net loss divided by weighted average basic shares
outstanding, which excludes stock options, restricted stock units,
performance stock units, and shares issuable upon conversion of the
company's convertible senior notes that are anti-dilutive.
Non-GAAP net loss and net loss per share in the second quarter
of 2019 excluded stock-based compensation expense, amortization of
intangible assets, amortization of stock-based compensation expense
capitalized in software development costs, acquisition-related
expenses, non-cash interest expense related to convertible senior
notes issued in June 2015 and the second quarter of 2018, and
discrete provision for income taxes. Weighted average shares
outstanding used to calculate non-GAAP net loss per share excluded
stock options, restricted stock units, performance stock units, and
shares issuable upon conversion of the company's convertible senior
notes that are anti-dilutive.
Non-GAAP net income and net income per share in the second
quarter of 2018 excluded stock-based compensation expense,
amortization of intangible assets, amortization of stock-based
compensation expense capitalized in software development costs,
non-cash interest expense related to convertible senior notes
issued in June 2015 and the second quarter of 2018, non-cash losses
on the repurchase and retirement of $340 million principal amount
of Series A Notes, and discrete benefit from income taxes. Weighted
average diluted shares outstanding used to calculate non-GAAP net
income per share excluded shares issuable upon conversion of
convertible senior notes that are anti-dilutive.
FireEye considers these non-GAAP financial measures to be useful
metrics for management and investors because they exclude the
effect of stock-based compensation expense, amortization of
stock-based compensation expense capitalized in software
development costs, amortization of intangible assets, acquisition
related expenses, non-cash interest expense related to the
company’s convertible senior notes, amounts deemed repayment of
accreted debt discount on repurchased convertible senior notes,
change in fair value of contingent earn-out liability,
restructuring charges, and other non-recurring and discrete items
so that management and investors can compare the company's core
business operating results over multiple periods.
There are a number of limitations related to the use of these
non-GAAP financial measures versus their nearest GAAP equivalents.
First, these non-GAAP financial measures exclude stock-based
compensation expense. Stock-based compensation is an important part
of FireEye employees' overall compensation and has been, and will
continue to be for the foreseeable future, a significant recurring
expense in the company's business. Second, the components of the
costs that FireEye excludes in its calculation of these non-GAAP
financial measures, including not only stock-based compensation,
but also amortization of stock-based compensation expense
capitalized in software development costs, non-recurring or
non-operating items such as acquisition related expenses, legal
settlement costs, amortization of intangible assets, non-cash
interest expense related to the company’s convertible senior notes,
amounts deemed repayment of accreted debt discount on convertible
senior notes, non-cash losses related to the retirement of
convertible senior notes prior to maturity, change in fair value of
contingent earn-out liability, restructuring charges, and discrete
tax benefits, may differ from the components excluded by peer
companies when they report their non-GAAP results of operations.
FireEye compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from non-GAAP
financial measures and evaluating non-GAAP financial measures
together with their nearest GAAP equivalents.
About FireEye, Inc.
FireEye is the intelligence-led security company. Working as a
seamless, scalable extension of customer security operations,
FireEye offers a single platform that blends innovative security
technologies, nation-state grade threat intelligence, and
world-renowned Mandiant® consulting. With this approach, FireEye
eliminates the complexity and burden of cyber security for
organizations struggling to prepare for, prevent, and respond to
cyber attacks. FireEye has over 8,200 customers across 103
countries, including more than 50 percent of the Forbes Global
2000.
© 2019 FireEye, Inc. All rights reserved. FireEye, Verodin and
Mandiant are registered trademarks or trademarks of FireEye, Inc.
in the United States and other countries. All other brands,
products, or service names are or may be trademarks or service
marks of their respective owners.
FireEye, Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in
thousands)
June 30, 2019
December 31, 2018
Assets
Current assets:
Cash and cash equivalents
$
331,901
$
409,829
Short-term investments
655,841
706,691
Accounts receivable, net
127,450
157,817
Inventories
6,100
6,548
Prepaid expenses and other current
assets
98,708
100,295
Total current assets
1,220,000
1,381,180
Property and equipment, net
95,876
89,163
Operating right-of-use assets, net
62,870
—
Goodwill
1,204,674
999,804
Intangible assets, net
163,250
143,162
Deposits and other long-term assets
84,492
82,769
Total assets
$
2,831,162
$
2,696,078
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
27,246
$
26,944
Operating lease liabilities, current
17,434
—
Accrued and other current liabilities
24,004
29,797
Accrued compensation
55,104
63,808
Convertible senior notes, current, net
114,310
—
Deferred revenue, current
545,876
556,815
Total current liabilities
783,974
677,364
Convertible senior notes, non-current,
net
871,967
962,577
Deferred revenue, non-current
366,873
378,013
Operating lease liabilities,
non-current
75,920
—
Other long-term liabilities
3,658
27,730
Total liabilities
2,102,392
2,045,684
Stockholders' equity:
Common stock
21
20
Additional paid-in capital
3,369,963
3,152,159
Treasury stock
(150,000
)
(150,000
)
Accumulated other comprehensive loss
970
(2,299
)
Accumulated deficit
(2,492,184
)
(2,349,486
)
Total stockholders’ equity
728,770
650,394
Total liabilities and stockholders'
equity
$
2,831,162
$
2,696,078
FireEye, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands,
except per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Revenue:
Product, subscription and support
$
174,102
$
167,429
$
344,005
$
332,902
Professional services
43,506
35,267
84,147
68,864
Total revenue
217,608
202,696
428,152
401,766
Cost of revenue: (1)(2)(3)
Product, subscription and support
53,198
46,136
101,666
93,565
Professional services
24,195
21,146
47,295
41,646
Total cost of revenue
77,393
67,282
148,961
135,211
Total gross profit
140,215
135,414
279,191
266,555
Operating expenses: (1)
Research and development (2)(3)
67,538
63,575
134,933
129,771
Sales and marketing (2)
101,494
94,196
205,390
191,447
General and administrative (4)
27,926
26,179
55,302
54,597
Restructuring charges (5)
—
—
3,799
—
Total operating expenses
196,958
183,950
399,424
375,815
Operating loss
(56,743
)
(48,536
)
(120,233
)
(109,260
)
Other expense, net (6)(7)
(10,040
)
(22,912
)
(19,743
)
(32,965
)
Loss before income taxes
(66,783
)
(71,448
)
(139,976
)
(142,225
)
Provision for income taxes (8)
540
1,411
2,722
2,464
Net loss attributable to common
stockholders
$
(67,323
)
$
(72,859
)
$
(142,698
)
$
(144,689
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.33
)
$
(0.38
)
$
(0.71
)
$
(0.77
)
Weighted average shares used in per share
calculations, basic and diluted
204,109
189,696
201,001
188,085
FireEye, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in
thousands)
Six Months Ended June
30,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(142,698
)
$
(144,689
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
48,102
44,601
Stock-based compensation
80,474
81,040
Non-cash interest expense related to
convertible senior notes
23,700
20,144
Loss on repurchase of convertible senior
notes
—
10,764
Deemed repayment of convertible senior
notes attributable to accreted debt discount (9)
—
(43,575
)
Deferred income taxes
(18
)
(60
)
Other
637
2,372
Changes in operating assets and
liabilities, net of assets acquired and liabilities assumed in
business acquisitions:
Accounts receivable
32,860
24,892
Inventories
(243
)
(2,266
)
Prepaid expenses and other assets
3,959
4,892
Accounts payable
4,415
(4,152
)
Accrued liabilities
(3,566
)
949
Accrued compensation
(8,704
)
(1,209
)
Deferred revenue
(24,830
)
(30,545
)
Other long-term liabilities
(4,564
)
1,742
Net cash provided by (used in) operating
activities
9,524
(35,100
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and
demonstration units
(28,240
)
(26,645
)
Purchases of short-term investments
(258,104
)
(218,842
)
Proceeds from maturities of short-term
investments
311,905
209,045
Business acquisitions, net of cash
acquired
(127,249
)
(5,945
)
Lease deposits
426
26
Net cash used in investing activities
(101,262
)
(42,361
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible
senior notes
—
584,405
Purchase of capped calls
—
(65,220
)
Repurchase of convertible senior notes
—
(286,817
)
Proceeds from employee stock purchase
plan
12,315
10,993
Proceeds from exercise of equity
awards
1,495
4,579
Net cash provided by financing
activities
13,810
247,940
Net change in cash and cash
equivalents
(77,928
)
170,479
Cash and cash equivalents, beginning of
period
409,829
180,891
Cash and cash equivalents, end of
period
$
331,901
$
351,370
FireEye, Inc.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(Unaudited, in thousands,
except per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
GAAP operating loss
$
(56,743
)
$
(48,536
)
$
(120,233
)
$
(109,260
)
Stock-based compensation expense (1)
40,151
38,892
80,474
81,040
Amortization of stock-based compensation
capitalized in software development costs (3)
847
497
1,640
497
Amortization of intangible assets (2)
12,952
12,646
25,078
25,260
Acquisition related expenses (4)
597
—
597
264
Restructuring charges (5)
—
—
3,799
—
Non-GAAP operating income (loss)
$
(2,196
)
$
3,499
$
(8,645
)
$
(2,199
)
GAAP gross margin
64
%
67
%
65
%
66
%
Stock-based compensation expense (1)
4
%
4
%
4
%
4
%
Amortization of stock-based compensation
capitalized in software development costs (3)
—
%
—
%
—
%
—
%
Amortization of intangible assets (2)
4
%
4
%
4
%
4
%
Non-GAAP gross margin
72
%
75
%
73
%
74
%
GAAP operating margin
(26
)%
(24
)%
(28
)%
(27
)%
Stock-based compensation expense (1)
19
%
20
%
19
%
20
%
Amortization of stock-based compensation
capitalized in software development costs (3)
—
%
—
%
—
%
—
%
Amortization of intangible assets (2)
6
%
6
%
6
%
6
%
Acquisition related expenses (4)
—
%
—
%
—
%
—
%
Restructuring charges (5)
—
%
—
%
1
%
—
%
Non-GAAP operating margin
(1
)%
2
%
(2
)%
(1
)%
GAAP net loss
$
(67,323
)
$
(72,859
)
$
(142,698
)
$
(144,689
)
Stock-based compensation expense (1)
40,151
38,892
80,474
81,040
Amortization of stock-based compensation
capitalized in software development costs (3)
847
497
1,640
497
Amortization of intangible assets (2)
12,952
12,646
25,078
25,260
Acquisition related expenses (4)
597
—
597
264
Restructuring charges (5)
—
—
3,799
—
Loss on repurchase of convertible senior
notes (7)
—
10,764
—
10,764
Non-cash interest expense related to
convertible senior notes (6)
11,922
10,450
23,700
20,144
Adjustment to provision (benefit) from
income taxes (8)
(834
)
98
(223
)
(284
)
Non-GAAP net income (loss)
$
(1,688
)
$
488
$
(7,633
)
$
(7,004
)
GAAP net loss per common share, basic and
diluted
$
(0.33
)
$
(0.38
)
$
(0.71
)
$
(0.77
)
Stock-based compensation expense (1)
0.20
0.21
0.40
0.43
Amortization of stock-based compensation
capitalized in software development costs (3)
—
—
0.01
—
Amortization of intangible assets (2)
0.06
0.07
0.12
0.13
Acquisition related expenses (4)
—
—
—
—
Restructuring charges (5)
—
—
0.02
—
Loss on repurchase of convertible senior
notes (7)
—
0.05
—
0.06
Non-cash interest expense related to
convertible senior notes (6)
0.06
0.05
0.12
0.11
Adjustment to provision for (benefit from)
income taxes (8)
—
—
—
—
Non-GAAP net income (loss) per common
share, basic and diluted
$
(0.01
)
$
0.00
$
(0.04
)
$
(0.04
)
Weighted average shares used in per share
calculation for GAAP, basic and diluted
204,109
189,696
201,001
188,085
Weighted average shares used in per share
calculation for Non-GAAP, basic and diluted
204,109
189,696
201,001
188,085
GAAP net cash provided by (used in)
operating activities
$
(14,929
)
$
(44,287
)
$
9,524
$
(35,100
)
Deemed repayment of convertible senior
notes attributable to accreted debt discount (9)
—
43,575
—
43,575
Non-GAAP net cash provided by (used in)
operating activities
$
(14,929
)
$
(712
)
$
9,524
$
8,475
(1) Includes stock-based compensation
expense as follows:
Cost of product, subscription and support
revenue
$
3,964
$
3,558
$
7,911
$
7,180
Cost of professional services revenue
3,641
3,448
7,350
7,350
Research and development expense
11,889
12,418
24,313
26,771
Sales and marketing expense
13,227
12,223
25,767
25,200
General and administrative expense
7,430
7,245
15,133
14,539
Total stock-based compensation expense
$
40,151
$
38,892
$
80,474
$
81,040
(2) Includes amortization of intangible
assets as follows:
Cost of product, subscription and support
revenue
$
8,947
$
8,717
$
17,176
$
17,379
Cost of professional services revenue
—
—
—
—
Research and development expense
109
134
227
291
Sales and marketing expense
3,896
3,795
7,675
7,590
Total amortization of intangible
assets
$
12,952
$
12,646
$
25,078
$
25,260
(3) Includes amortization of stock-based
compensation capitalized in software development costs as
follows:
Cost of product, subscription and support
revenue
$
196
$
188
$
399
$
188
Cost of professional services revenue
97
94
199
94
Research and development expense
554
215
1,042
215
Total amortization of stock-based
compensation capitalized in software development costs
$
847
$
497
$
1,640
$
497
(4) Includes acquisition related expenses
as follows:
General and administrative expense
$
597
$
—
$
597
$
264
(5) Includes restructuring charges as
follows:
Restructuring charges
$
—
$
—
$
3,799
$
—
(6) Includes non-cash interest expense
related to convertible senior notes as follows:
Other expense, net
$
11,922
$
10,450
$
23,700
$
20,144
(7) Includes non-cash loss on repurchase
of convertible senior notes as follows:
Other expense, net
$
—
$
10,764
$
—
$
10,764
(8) Includes income tax effect of non-GAAP
adjustments as follows:
Provision for (benefit from) income
taxes
$
(834
)
$
98
$
(223
)
$
(284
)
(9) Includes deemed repayment of
convertible senior notes attributable to accreted debt discount as
follows:
Net cash used in operating activities
$
—
$
(43,575
)
$
—
$
(43,575
)
FireEye, Inc.
RECONCILIATION OF NON-GAAP
BILLINGS TO REVENUE
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
GAAP revenue
$
217,608
$
202,696
$
428,152
$
401,766
Add change in deferred revenue
6,559
(6,580
)
(22,079
)
(30,544
)
Subtotal
224,167
196,116
406,073
371,222
Less Verodin deferred revenue assumed
(2,750
)
—
(2,750
)
—
Non-GAAP billings
$
221,417
$
196,116
$
403,323
$
371,222
FireEye, Inc.
BILLINGS BREAKOUT
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Product and related subscription and
support billings
$
112,693
$
107,025
$
213,289
$
197,390
Platform, cloud subscription and managed
services billings
63,181
49,617
106,294
106,727
Professional services billings
45,543
39,474
83,740
67,105
Non-GAAP billings
$
221,417
$
196,116
$
403,323
$
371,222
FireEye, Inc.
REVENUE BREAKOUT
(Unaudited, in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Product and related subscription and
support revenue
$
117,490
$
122,392
$
235,938
$
243,484
Platform, cloud subscription and managed
services revenue
56,612
45,037
108,067
89,418
Professional services revenue
43,506
35,267
84,147
68,864
Total revenue
$
217,608
$
202,696
$
428,152
$
401,766
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190730006010/en/
Media inquiries: Media.Relations@fireeye.com
Investor inquiries: Investor.Relations@fireeye.com
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