According to a Mordor Intelligence report published recently, the mobile Anti-Malware market was estimated at $3.42 billion in 2017. It is estimated to grow 18% annually over the next five years to $9.2 billion by 2023. Recently, anti-malware focused player FireEye (Nasdaq: FEYE), reported its third-quarter results, which surpassed market expectations.
FireEye’s Financials
FireEye had done well at the start of the year, but during the course of the year, investors lost confidence. FireEye continued to face execution challenges and witnessed slow uptake of its new products and services. It has been blaming the results to its shift to a subscription-based model. But average contract lengths and deferred revenue growth continue to decline, causing anxiety amongst investors. But that appears to be changing now.
Revenues for the quarter grew 7% to $212 million with billings growing 8% to $219 million. Losses narrowed to $50 million, or $0.26 per share, compared to a loss of $69.21 million, or $0.39 per share, a year earlier. Adjusted earnings came in at $0.06 a share. The market was looking for revenues of $208.4 million, billings of $215.2 million and an adjusted EPS of $0.02 for the quarter.
By segment, FireEye’s Product, Subscription and Support revenues grew 8% over the year to $175.7 million. Analysts were expecting $171.75 million from the segment. Professional services revenues grew 5% over the year to $36 million.
For the current quarter, FireEye expects revenue in the range of $214-$218 million and billings in the range of $245-$255 million. It projected a non-GAAP net income of $0.04-$0.06 per share. The Street was looking for revenues of $216.6 million, billings of $250.8 million, and an adjusted EPS of $0.04 for the quarter. For the current fiscal, FireEye expects revenues of $827-$831 million with non-GAAP net income of $0.06-$0.08 per share.
FireEye’s Product Upgrades
FireEye continued to expand its market reach through product and service upgrades. Where most security companies are one-dimensional, FireEye has been able to create multiple streams of security services including threat intelligence, endpoint security, e-mail security, network security, and malware protection.
