Revenues of cybersecurity provider FireEye (NASDAQ: FEYE) increased in the second quarter and exceeded the estimates. The company, meanwhile, reported a net loss for the quarter, which missed the Street View. The management revised down its full-year earnings guidance, sending the stock lower in Tuesday’s after-market session.
During the three-month period, revenues increased 7% to $218 million and exceeded the estimates. At $221 billion, total billings were up 13% year-over-year.
Slips to Loss
The company reported an adjusted loss of $0.01 per share for the quarter, marking a deterioration from the prior-year quarter when it reported nil earnings. The bottom-line also missed the estimates. On an unadjusted basis, it was a net loss of $67.3 million or $0.33 per share, compared to a loss of $72.9 million or $0.38 per share in the second quarter of 2018.
“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,” said CEO Kevin Mandia.
Looking Ahead
For the third quarter, the management expects revenue to be between $217 million and $221 million. The earnings forecast, on an adjusted basis, is in the range of $0.00 per share to $0.02 per share. Billing in the September-quarter is estimated to be in the $245-$255 million range.
In the whole of 2019, revenues are expected to be between $865 million and 875 million, while adjusted earnings are expected to be in the range of $0.00 per share to 0.04 per share. The billing outlook is between $935 million and $955 million. The current guidance is below the earlier outlook issued by the management and reflects an estimated increase in expenses.
Also see: FireEye Q1 2019 Earnings Conference Call Transcript
FireEye shares have gained 7.5% in the past twelve months and are currently trading broadly at the levels seen at the beginning of the year. The stock closed Tuesday’s regular trading session higher but fell sharply in the after-hours session, following the announcement.