- Record revenue, annualized recurring revenue, non-GAAP
operating income and operating cash flow for fourth quarter and
full year 20201,2
- Revenue of $248 million, an increase of 5 percent from the
fourth quarter of 2019
- Total annualized recurring revenue of $638 million, an increase
of 8 percent from the fourth quarter of 20192
- Platform, cloud subscription and managed services annualized
recurring revenue of $340 million, an increase of 20 percent from
the fourth quarter of 20192
- Non-GAAP operating margin of 12 percent, an increase of 5
points from the fourth quarter of 20191
FireEye, Inc. (NASDAQ: FEYE), the intelligence-led security
company, today announced financial results for the fourth quarter
and full year ended December 31, 2020.
“Our record fourth quarter and 2020 results demonstrated that we
are gaining momentum in our Platform, Cloud Subscription, Managed
Services and Professional services categories. The combined revenue
from these two categories accounted for 55% of total revenue in
2020 and increased 23% from the full year 2019,” said Kevin Mandia,
FireEye chief executive officer.
“We continue to transform our business and believe we are
well-positioned as organizations shift to intelligence-led security
focused on security effectiveness. Our vision is to become a
seamless extension of our customers’ security operations by
delivering our threat intelligence and expertise gained on the
frontlines through the Mandiant Advantage platform,” added
Mandia.
Fourth Quarter 2020 Financial Results
Q4 2020
Q4 2019
Y/Y change
Revenue
$248 million
$235 million
+5%
Annualized recurring revenue2
$638 million
$592 million
+8%
GAAP gross margin
65%
66%
-1 pt
Non-GAAP gross margin1
72%
73%
-1 pt
GAAP operating margin
(11)%
(15)%
+4 pts
Non-GAAP operating margin1
12%
7%
+5 pts
GAAP net income (loss) per share
attributable to common stockholders, basic and diluted
$(0.17)
$(0.23)
+$0.06
Non-GAAP net income (loss) per share
attributable to common stockholders, diluted1
$0.12
$0.07
+$0.05
Cash flow provided (used) by operating
activities
$71 million
$40 million
+$31 million
Capital expenditures
$4 million
$7 million
$(3) million
2020 Financial Results
2020
2019
Y/Y change
Revenue
$941 million
$889 million
+6%
GAAP gross margin
64%
65%
-1 pt
Non-GAAP gross margin1
71%
73%
-2 pts
GAAP operating margin
(16)%
(24)%
+8 pts
Non-GAAP operating margin1
8%
1%
+7 pts
GAAP net income (loss) per share
attributable to common stockholders, basic and diluted
$(0.93)
$(1.24)
+$0.31
Non-GAAP net income (loss) per share
attributable to common stockholders, diluted1
$0.31
$0.05
+$0.26
Cash flow provided (used) by operating
activities
$95 million
$68 million
+$27 million
Capital expenditures
$26 million
$46 million
$(20) million
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.”
2 Annualized recurring revenue is defined as the annualized
run-rate of active term licenses, subscriptions, and support
contracts at the end of a reporting period.
First Quarter and 2021 Outlook
FireEye provides guidance based on current market conditions and
expectations. The company emphasizes that the guidance is subject
to various important cautionary factors referenced in the section
entitled "Forward-Looking Statements" below, including risks and
uncertainties associated with the COVID-19 pandemic.
Q1 2021 Outlook
2021 Outlook
Revenue
$235 - $238 million
$990 - $1,010 million
Non-GAAP gross margin
70% - 71%
70.5% - 71.5%
Non-GAAP operating margin
6.5% - 7.5%
9% - 10%
Net interest income (expense)
$(1) million
$(3) - $(4) million
Provision for non-GAAP income taxes
$1 - $2 million
$4 - $6 million
Weighted average shares outstanding,
diluted
238 million
240 - 245 million
Non-GAAP net income (loss) per share
attributable to common stockholders, diluted
$0.05 - $0.07
$0.35 - $0.37
Capital expenditures
~ $6 million
~ $25 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, acquisition related expenses, restructuring
charges, non-cash interest expense related to the company’s
convertible senior notes, discrete tax provision (benefit),
dividends on Series A convertible preferred stock, other special
non-recurring items, and shares issuable upon conversion of the
company's convertible senior notes and Series A convertible
preferred shares that are anti-dilutive. A reconciliation of
non-GAAP guidance measures to the most directly comparable GAAP
financial 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 expense in the first quarter of
2021 and full year 2021 will have a significant impact on the
company’s GAAP operating margin and net loss per share attributable
to common stockholders. 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 most directly comparable GAAP financial
measures for future periods is not available without unreasonable
effort.
Recent Highlights
- Uncovered an international cyber espionage campaign with our
discovery of a supply chain compromise in the SolarWinds Orion
platform
- Strengthened our management team with the addition of Bryan
Palma as Executive Vice President, FireEye Products
- Added new board members, Viral Patel, Senior Managing Director
at Blackstone and Arthur Coviello, Venture Partner at Rally
Ventures
- Introduced Mandiant Advantage, a software-as-a-service (SaaS)
platform for delivery of our solutions, beginning with Mandiant
Intelligence; Mandiant Validation and other offerings will become
available on the platform in coming months
- Announced a $400 million strategic investment by Blackstone and
ClearSky to accelerate investment in Mandiant Solutions strategic
growth initiatives
- Acquired Respond Software, an innovator in security operations
automation through AI-driven eXtended Detection and Response
(XDR)
- Awarded first place by Naval Information Warfare Systems
Command in a network threat detection challenge, following the
March 2020 first place award for FireEye Endpoint Security
- Recognized by CRN with a 2020 CRN Tech Innovator award in the
‘Security – Risk Assessment and Management’ category for Mandiant
Security Validation
Conference Call Information
FireEye will host a conference call today, February 2, 2021, at
5 p.m. Eastern time (2 p.m. Pacific time) to discuss its fourth
quarter financial results and the company’s outlook for the first
quarter and full year 2021. 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
first quarter and full year 2021, including revenue, non-GAAP gross
margin, non-GAAP operating margin, net interest income and expense,
provision for non-GAAP income taxes, weighted average shares
outstanding, non-GAAP net income per share, and capital
expenditures in the section entitled “First Quarter and 2021
Outlook” above, as well as statements regarding plans and
opportunities, including new offerings.
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, solutions and services;
real or perceived defects, errors or vulnerabilities in FireEye's
products, solutions or services; any delay in the release of
FireEye's new products, solutions or services; FireEye's ability to
realize the expected benefits resulting from its 2020 restructuring
plans; the potential disruption or perception of disruption to
FireEye's business due to the restructuring plans; the impact of
the COVID-19 pandemic on FireEye's business, results of operations,
liquidity and capital resources; 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, solutions 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 October 30, 2020,
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 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
financial measures has been provided in the financial statement
tables included in this press release, and investors are encouraged
to review the reconciliation.
Non-GAAP gross margin. 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.
Non-GAAP operating income (loss) and non-GAAP operating margin.
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 (loss) divided by total
revenue.
Non-GAAP net income (loss) attributable to common stockholders.
FireEye defines non-GAAP net income (loss) attributable to common
stockholders 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, non-cash interest expense related to the company’s
convertible senior notes, discrete tax provision (benefit),
dividends on Series A convertible preferred stock, and other
special or non-recurring items.
Non-GAAP net income (loss) per share attributable to common
stockholders. FireEye defines non-GAAP net income per diluted share
attributable to common stockholders as non-GAAP net income
attributable to common stockholders divided by weighted average
diluted shares outstanding. Weighted average diluted shares used to
calculate non-GAAP net income per diluted share attributable to
common stockholders excludes shares issuable upon conversion of the
company's convertible senior notes and Series A convertible
preferred shares that are anti-dilutive. FireEye defines non-GAAP
net loss per share attributable to common stockholders as non-GAAP
net loss attributable to common stockholders 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
and Series A convertible preferred shares that are
anti-dilutive.
Non-GAAP net income attributable to common stockholders and
non-GAAP net income per diluted share attributable to common
stockholders in the fourth quarter and full year of 2020 excluded
stock-based compensation expense, amortization of stock-based
compensation expense capitalized in software development costs,
amortization of intangible assets, acquisition related expenses,
restructuring charges, non-cash interest expense related to
convertible senior notes issued in June 2015 and the second quarter
of 2018, discrete tax provision (benefit), and dividends on Series
A convertible preferred stock. Weighted average diluted shares
outstanding used to calculate non-GAAP net income per diluted share
excluded stock options, restricted stock units, performance stock
units, and shares issuable upon conversion of the company's
convertible senior notes and Series A convertible preferred shares
that were anti-dilutive.
Non-GAAP net income attributable to common stockholders and
non-GAAP net income per diluted share attributable to common
stockholders in the fourth quarter and full year of 2019 excluded
stock-based compensation expense, amortization of stock-based
compensation expense capitalized in software development costs,
amortization of intangible assets, acquisition related expenses,
restructuring charges, non-cash interest expense related to
convertible senior notes issued in June 2015 and the second quarter
of 2018, and discrete tax provision (benefit). Weighted average
diluted shares outstanding used to calculate non-GAAP net income
per diluted share excluded stock options, restricted stock units,
performance stock units, and shares issuable upon conversion of the
company's convertible senior notes that were 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, restructuring charges, non-cash interest expense
related to convertible senior notes issued in June 2015 and the
second quarter of 2018, discrete tax provision (benefit), dividends
on Series A convertible preferred stock, 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 amortization of intangible assets,
acquisition related expenses, restructuring charges, non-cash
interest expense related to the company’s convertible senior notes,
discrete tax provision (benefit), and dividends on Series A
convertible preferred stock, 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 9,900 customers across 103
countries, including more than 50 percent of the Forbes Global
2000.
© 2021 FireEye, Inc. All rights reserved. FireEye 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)
December 31, 2020
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$
676,454
$
334,603
Short-term investments
624,824
704,955
Accounts receivable, net
153,575
171,459
Inventories
4,023
5,892
Prepaid expenses and other current
assets
103,368
96,827
Total current assets
1,562,244
1,313,736
Property and equipment, net
79,770
93,812
Operating lease right-of-use assets,
net
38,251
58,758
Goodwill
1,364,886
1,205,292
Intangible assets, net
126,067
134,420
Deposits and other long-term assets
74,664
84,468
Total Assets
$
3,245,882
$
2,890,486
Liabilities, Convertible preferred stock
and Stockholders' equity
Current Liabilities:
Accounts payable
$
5,107
$
26,271
Operating lease liabilities, current
16,024
18,437
Accrued and other current liabilities
23,239
24,496
Accrued compensation
95,664
59,513
Convertible senior notes, current, net
—
117,288
Deferred revenue, current
613,709
603,944
Total current liabilities
753,743
849,949
Convertible senior notes, non-current,
net
960,896
893,273
Deferred revenue, non-current
342,748
370,623
Operating lease liabilities,
non-current
42,202
70,481
Other long-term liabilities
12,339
4,494
Total liabilities
2,111,928
2,188,820
Commitments and contingencies
Series A convertible preferred stock
$
401,050
$
—
Stockholders' equity:
Common stock
24
22
Additional paid-in capital
3,623,243
3,457,359
Treasury stock
(80,000
)
(150,000
)
Accumulated other comprehensive income
3,834
1,180
Accumulated deficit
(2,814,197
)
(2,606,895
)
Total stockholders’ equity
732,904
701,666
Total Liabilities, Convertible preferred
stock and Stockholders' equity
$
3,245,882
$
2,890,486
FireEye, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands,
except per share amounts)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Revenue:
Product, subscription and support
$
189,721
$
185,008
$
724,945
$
708,836
Professional services
57,781
50,078
215,639
180,316
Total revenue
247,502
235,086
940,584
889,152
Cost of revenue: (1)(2)(3)
Product, subscription and support
55,160
54,494
217,255
210,432
Professional services
31,883
26,217
116,772
98,460
Total cost of revenue
87,043
80,711
334,027
308,892
Total gross profit
160,459
154,375
606,557
580,260
Operating expenses:
Research and development (1)(2)(3)
63,009
67,537
252,771
271,326
Sales and marketing (1)(2)
96,796
93,077
380,998
396,822
General and administrative (1)
25,646
28,862
101,452
111,881
Restructuring charges (5)
1,487
(15
)
26,507
10,265
Total operating expenses
186,938
189,461
761,728
790,294
Operating loss
(26,479
)
(35,086
)
(155,171
)
(210,034
)
Other expense, net (6)
(12,182
)
(11,702
)
(49,238
)
(41,685
)
Loss before income taxes
(38,661
)
(46,788
)
(204,409
)
(251,719
)
Provision (benefit) for income taxes
(7)
(58
)
2,428
2,894
5,690
Net loss
$
(38,603
)
$
(49,216
)
$
(207,303
)
$
(257,409
)
Dividend on series A convertible preferred
stock (8)
(1,050
)
—
(1,050
)
—
Net loss attributable to common
stockholders, basic and diluted
$
(39,653
)
$
(49,216
)
$
(208,353
)
$
(257,409
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.17
)
$
(0.23
)
$
(0.93
)
$
(1.24
)
Weighted average shares used in per share
calculations, basic and diluted
229,203
214,565
223,308
207,234
FireEye, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in
thousands)
Year Ended December
31,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(207,303
)
$
(257,409
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
96,384
103,305
Stock-based compensation
156,107
153,517
Non-cash interest expense related to
convertible senior notes
46,728
47,983
Deferred income taxes
(838
)
(257
)
Other
6,998
945
Changes in operating assets and
liabilities, net of assets acquired and liabilities assumed in
business acquisitions:
Accounts receivable
16,681
(12,109
)
Inventories
3,285
51
Prepaid expenses and other assets
3,607
7,003
Accounts payable
(18,931
)
4,707
Accrued liabilities
(6,738
)
(3,074
)
Accrued compensation
36,151
(4,295
)
Deferred revenue
(20,773
)
36,987
Other long-term liabilities
(16,463
)
(9,817
)
Net cash provided by operating
activities
94,895
67,537
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and
demonstration units
(26,326
)
(45,605
)
Purchases of short-term investments
(393,442
)
(617,194
)
Proceeds from maturities of short-term
investments
443,396
620,580
Proceeds from sales of short-term
investments
29,161
—
Business acquisitions, net of cash
acquired
(123,740
)
(127,249
)
Purchase of investment in privately held
company
(1,000
)
—
Lease deposits
(207
)
432
Net cash used in investing activities
(72,158
)
(169,036
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of convertible senior notes
(96,392
)
—
Series A convertible preferred stock
issuance costs
(4,653
)
—
Series A convertible preferred stock
400,000
—
Payment related to shares withheld for
taxes
(9,363
)
—
Proceeds from employee stock purchase
plan
22,188
22,086
Proceeds from exercise of equity
awards
7,334
4,187
Net cash provided by financing
activities
319,114
26,273
Net change in cash and cash
equivalents
341,851
(75,226
)
Cash and cash equivalents, beginning of
period
334,603
409,829
Cash and cash equivalents, end of
period
$
676,454
$
334,603
FireEye, Inc.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(Unaudited, in thousands,
except per share amounts)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
GAAP operating loss
$
(26,479
)
$
(35,086
)
$
(155,172
)
$
(210,034
)
Stock-based compensation expense (1)
42,514
36,355
156,107
153,517
Amortization of stock-based compensation
capitalized in software development costs (3)
1,065
968
4,128
3,524
Amortization of intangible assets (2)
11,669
14,531
45,882
53,943
Acquisition related expenses (4)
425
—
425
597
Restructuring charges (5)
1,487
(15
)
26,507
10,265
Non-GAAP operating income (loss)
$
30,681
$
16,753
$
77,877
$
11,812
GAAP gross margin
65
%
66
%
64
%
65
%
Stock-based compensation expense (1)
4
%
3
%
4
%
4
%
Amortization of intangible assets (2)
3
%
4
%
3
%
4
%
Non-GAAP gross margin
72
%
73
%
71
%
73
%
GAAP operating margin
(11
)%
(15
)%
(16
)%
(24
)%
Stock-based compensation expense (1)
17
%
16
%
16
%
17
%
Amortization of stock-based compensation
capitalized in software development costs (3)
—
%
—
%
—
%
—
%
Amortization of intangible assets (2)
5
%
6
%
5
%
6
%
Restructuring charges (5)
1
%
—
%
3
%
2
%
Non-GAAP operating margin
12
%
7
%
8
%
1
%
GAAP net loss attributable to common
stockholders
$
(39,653
)
$
(49,216
)
$
(208,354
)
$
(257,409
)
Stock-based compensation expense (1)
42,514
36,355
156,107
153,517
Amortization of stock-based compensation
capitalized in software development costs (3)
1,065
968
4,128
3,524
Amortization of intangible assets (2)
11,669
14,531
45,882
53,943
Acquisition related expenses (4)
425
—
425
597
Restructuring charges (5)
1,487
(15
)
26,507
10,265
Non-cash interest expense related to
convertible senior notes (6)
11,248
12,215
46,728
47,983
Adjustment to provision (benefit) from
income taxes (7)
(1,545
)
43
(1,861
)
(861
)
Dividend on series A convertible preferred
stock (8)
1,050
—
1,050
—
Non-GAAP net income attributable to common
stock holders
$
28,260
$
14,881
$
70,612
$
11,559
GAAP net loss per common share
attributable to common stockholders, basic and diluted
$
(0.17
)
$
(0.23
)
$
(0.93
)
$
(1.24
)
Stock-based compensation expense (1)
0.19
0.17
0.70
0.74
Amortization of stock-based compensation
capitalized in software development costs (3)
—
—
0.02
0.02
Amortization of intangible assets (2)
0.05
0.07
0.21
0.26
Acquisition related expenses (4)
—
—
—
—
Restructuring charges (5)
0.01
—
0.12
0.05
Non-cash interest expense related to
convertible senior notes (6)
0.05
0.06
0.21
0.23
Adjustment to provision (benefit) from
income taxes (7)
(0.01
)
—
(0.01
)
—
Dividend on series A convertible preferred
stock (8)
—
—
—
—
Non-GAAP net income (loss) per common
share attributable to common stockholders, basic
$
0.12
$
0.07
$
0.32
$
0.06
Non-GAAP net income (loss) per common
share attributable to common stockholders, diluted
$
0.12
$
0.07
$
0.31
$
0.05
Weighted average shares used in per share
calculation for Non-GAAP, basic
229,203
214,565
223,308
207,234
Weighted average shares used in per share
calculation for Non-GAAP, diluted
233,287
220,421
226,549
213,043
(1) Includes stock-based compensation
expense as follows:
Cost of product, subscription and support
revenue
$
4,356
$
3,404
$
16,393
$
14,905
Cost of professional services revenue
5,329
3,333
18,695
13,972
Research and development expense
12,631
10,445
45,867
45,476
Sales and marketing expense
13,460
11,179
49,662
49,198
General and administrative expense
6,738
7,994
25,176
29,966
Restructuring charges
—
—
314
—
Total stock-based compensation expense
$
42,514
$
36,355
$
156,107
$
153,517
(2) Includes amortization of intangible
assets as follows:
Cost of product, subscription and support
revenue
$
7,228
$
10,332
$
28,739
$
37,643
Research and development expense
22
109
349
445
Sales and marketing expense
4,419
4,090
16,794
15,855
Total amortization of intangible
assets
$
11,669
$
14,531
$
45,882
$
53,943
(3) Includes amortization of stock-based
compensation capitalized in software development costs as
follows:
Cost of product, subscription and support
revenue
$
48
$
190
$
200
$
782
Cost of professional services revenue
24
95
100
391
Research and development expense
993
683
3,828
2,350
Total amortization of stock-based
compensation capitalized in software development costs
$
1,065
$
968
$
4,128
$
3,523
(4) Includes acquisition related expenses
as follows:
General and administrative expense
$
425
$
—
$
425
$
597
(5) Includes restructuring charges as
follows:
Restructuring charges
$
1,487
$
(15
)
$
26,507
$
10,265
(6) Includes non-cash interest expense
related to convertible senior notes as follows:
Other income, net
$
11,248
$
12,215
$
46,728
$
47,983
(7) Includes income tax effect of non-GAAP
adjustments as follows:
Provision (benefit) from income taxes
$
(1,545
)
$
43
$
(1,861
)
$
(861
)
(8) Dividend on series A convertible
preferred stock
$
1,050
$
—
$
1,050
$
—
FireEye, Inc.
REVENUE BREAKOUT
(Unaudited, in
thousands)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
Product and related subscription and
support revenue
$
104,589
$
114,050
$
422,812
$
467,823
Platform, cloud subscription and managed
services revenue
85,132
70,958
302,133
241,013
Product, subscription and support
revenue
189,721
185,008
724,945
708,836
Professional services revenue
57,781
50,078
215,639
180,316
Total revenue
$
247,502
$
235,086
$
940,584
$
889,152
ANNUALIZED RECURRING REVENUE
BREAKOUT
(Unaudited, in
thousands)
As of December 30,
2020
2019
Product and related subscription and
support
$
297,530
$
307,718
Platform, cloud subscription and managed
services
340,080
284,205
Total annualized recurring revenue
$
637,610
$
591,923
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210202006110/en/
Media inquiries: Media.Relations@fireeye.com
Investor inquiries: Investor.Relations@fireeye.com
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