EX-99.1 2 d815595dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FireEye Reports Record Billings and Revenue for Third Quarter 2014

Third quarter billings of $165 million increased 133 percent year-over-year and exceeded guidance as

awareness of advanced targeted attacks increased

MILPITAS, CA – November 4, 2014 – FireEye, Inc. (NASDAQ: FEYE), the leader at stopping today’s advanced cyber attacks, today announced financial results for the third quarter ended September 30, 2014.

“Our third quarter billings reflected strong demand for FireEye’s advanced security solutions in an environment of escalating targeted attacks,” said David DeWalt, chairman and chief executive officer of FireEye. “Billings from new and existing customers were both at record levels as FireEye expanded its installed base and successfully cross-sold multi-vector solutions.”

“In this past quarter, we took a major step forward in our mission to reimagine security with the announcement of our Adaptive Defense™ security model and FireEye-as-a-Service™ offering,” added DeWalt. “This Adaptive Defense approach combines FireEye’s technology, threat intelligence and security expertise in a comprehensive solution designed to reduce the time to detect and respond to cyber attacks. FireEye-as-a-Service operationalizes Adaptive Defense by allowing organizations to scale cyber security strategies based on their unique needs, making our advanced threat protection and the security expertise and broad threat visibility provided by FireEye security operations centers, accessible to customers of all sizes. This “on-demand” delivery model is creating new distribution channels for our solutions, as evidenced by recently announced strategic partnerships with SingTel and Verizon to deliver FireEye advanced threat protection to their managed service customers.”

Third Quarter 2014 Financial Results

 

    Billings1: Third quarter billings were $165.1 million, up 45 percent from the second quarter of 2014 and exceeding the previously issued guidance range of $150 to $155 million. Total billings included $44.1 million in product billings, $71.9 million in product subscription billings, $30.7 million in support and maintenance billings, and $18.3 million in professional services billings.

 

    Revenue: Third quarter revenue was $114.2 million, an increase of 168 percent from the third quarter of 2013 and within the previously issued guidance range of $114 to $117 million. Total revenue included $48.4 million of product revenue, $32.8 million of product subscription revenue, $14.2 million of support and maintenance revenue, and $18.9 million of professional services revenue.

 

    Deferred revenue: Deferred revenue totaled $282.9 million at the end of the third quarter, an increase of $152.2 million from the end of the third quarter of 2013. Current deferred revenue was $160.8 million, an increase of $89.3 million from the end of the third quarter of 2013. Non-current deferred revenue was $122.2 million, an increase of $62.9 million from the end of the third quarter of 2013.


    GAAP net loss: Third quarter GAAP net loss was $120.0 million, or $0.83 per share, based on 144.9 million weighted average shares outstanding. This compares with a GAAP net loss of $50.9 million, or $1.61 per basic and diluted share, based on 31.6 million weighted average shares outstanding, in the third quarter of 2013.

 

    Non-GAAP net loss1: Third quarter non-GAAP net loss was $73.9 million, or $0.51 per basic and diluted share, compared with the previously issued guidance range of $0.52 to $0.56 loss per share. Non-GAAP net loss in the third quarters of 2013 and 2014 excluded stock-based compensation expenses, amortization of intangible assets, acquisition related costs and discrete tax benefits. Additionally, non-GAAP net loss for the third quarter of 2013 excluded changes in the fair value of preferred stock warrant liabilities and non-GAAP net loss for the third quarter of 2014 excluded a charge of $2.8 million related to workforce reductions and consolidation of facilities.

 

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.”

Recent Business Highlights

Since its initial public offering in the third quarter of 2013, FireEye has executed on a strategy to expand its advanced security platform and increase the installed base of customers. In the past year, the company

 

    Released more than 20 new and enhanced products and services, including new appliances, support for Apple operating environments, a mobile threat prevention solution, a data center threat prevention solution, cloud-based email threat protection, the Threat Analytics Platform™ (TAP™), an Intrusion Prevention System (IPS), and the FireEye-as-a-Service offering.

 

    More than doubled its customer base, from 1,349 customers at the end of the third quarter of 2013 to 2,761 customers at the end of the third quarter of 2014.

 

    Expanded its presence to more than 65 countries.

 

    Expanded its channel partner programs to more than 900 distributors and resellers worldwide.

 

    Built 24/7, round-the-clock, round-the-world customer support and security operations centers.

 

    Increased the number of employees from 1,164 at the end of the third quarter of 2013 to 2,402 at the end of the third quarter of 2014.

Business highlights announced since the release of second quarter 2014 financial results on August 5, 2014 included:

 

    An agreement between Verizon and FireEye to join forces to secure organizations from advanced attacks and emerging mobile threats. As part of the agreement, Verizon clients will have access to the FireEye® Mobile Threat Prevention™ (MTP™) offering to protect against mobile threats and correlate attack data from the mobile vector.


    A strategic partnership with SingTel to launch the first managed defense solution powered by FireEye in the Asia-Pacific region (APAC). The partnership includes significant investments related to new Advanced Security Operation Centres (ASOCs) in Singapore and Australia; training up to 150 professionals to operate the ASOCs; and bi-annual APAC-focused threat advisory reports by SingTel and FireEye.

 

    Introduction of new and enhanced products and services, including:

 

    FireEye-as-a-Service, the industry’s first global security-as-a-service solution, an on-demand security management offering that allows organizations to apply FireEye’s technology, intelligence and expertise to find and stop cyber attacks.

 

    FireEye Advanced Threat Intelligence™ (ATI), providing access to advanced threat intelligence and analytical tools to identify attacks and provide context about the tactics and motives of specific threat actors.

 

    Support for Apple OS X and iOS operating environments in the FireEye Network Security Threat Prevention Platform (NX series), FireEye Forensic Analytics (AX series), FireEye Mobile Threat Prevention (MTP) and the FireEye Investigation Analysis System (IAS) platforms.

 

    FireEye Investigation Analysis System (IA Series), a forensics analytics platform that enhances and expedites incident investigation by pairing in-depth analytics and visualization capabilities with the industry’s fastest lossless, intelligent packet capture and retrieval.

 

    FireEye App for Splunk Enterprise, which allows organizations to visualize internal and external threats and unearth threat patterns in FireEye data by leveraging Splunk Enterprise’s ability to correlate multiple data sources from across their IT infrastructure.

 

    FireEye Threat Analytics Platform (TAP) for Amazon Web Services (AWS) customers. A cloud-based security analytics solution, TAP applies FireEye Dynamic Threat Intelligence™ (DTI™) to event data produced by security devices, networks, systems, and applications for attack detection, security monitoring, and incident investigation support.

 

    A free service to help victims recover files encrypted by CryptoLocker ransomware, offered with Fox-IT and resulting in close to three thousand successful recoveries of ransomed data.

Leadership in Advanced Threat Intelligence

Threat intelligence is at the heart of the FireEye mission to reduce the impact of cyber threats by reducing the time to detect and respond to cyber attacks. By combining the accumulated threat intelligence from millions of virtual machines and endpoint threat sensors, combined with hundreds of incident response engagements, FireEye threat prevention solutions are able to detect and block advanced attacks and provide contextual threat intelligence to enable a rapid response.


In addition to regular blog posts on new attack campaigns and trends in cybersecurity, recent threat discoveries and analyses by the FireEye Labs community of threat researchers and security experts included:

 

    Discovery of two new zero-days exploiting the Windows Kernel. Security researchers in FireEye Labs have identified 16 total zero-day attacks in the last two years uncovering 11 in 2013 and five in 2014.

 

    A report exposing long-standing operations by cyber espionage group APT28 targeting government, military, and security groups of interest to Russia.

 

    A technical report, “A Daily Grind: Filtering Java Vulnerabilities,” outlining the three most commonly exploited Java vulnerabilities used in targeted attacks and mapping out the step-by-step infection flow of exploit kits that leverage them.

 

    A warning regarding a new strategic web compromise campaign targeting non-profit organizations and non-governmental organizations (NGOs) with links to the Sunshop Digital Quartermaster, a collective of malware authors that supports multiple China-based advanced persistent threat (APT) groups.

 

    A report, “Operation Quantum Entanglement, detailing two attack campaigns by different groups in separate regions of China, apparently operating in parallel.

 

    A joint study with KPMG of the Swedish threat landscape showing 93 percent of the organizations were infected with malware and 79 percent experiencing attempts to exfiltrate data from the organizations.

Forward Outlook

FireEye provides guidance based on current market conditions and expectations.

For the fourth quarter of 2014, FireEye expects total revenue in the range of $135 to $147 million. Additionally, for the fourth quarter, on a non-GAAP basis, the company expects:

 

    Total billings in the range of $195 to $210 million.

 

    Gross margin in the range of 70 to 73 percent of total revenue.

 

    Research and development expenses in the range of 34 to 37 percent of total revenue.

 

    Sales and marketing expenses in the range of 70 to 73 percent of total revenue.

 

    General and administrative expenses in the range of 16 to 19 percent of total revenue.

 

    Loss per share of $0.46 to $0.50, based on estimated weighted average shares outstanding of approximately 144 million.

For 2014, the company currently expects total revenue in the range of $418 to $430 million, compared with the prior guidance range of $423 to $430 million. Additionally, on a non-GAAP basis, for 2014 the company expects:

 

    Total billings in the range of $573 to $588 million.

 

    Gross margin in the range of 69 to 72 percent of total revenue.


    Research and development expenses in the range of 41 to 44 percent of total revenue.

 

    Sales and marketing expenses in the range of 76 to 79 percent of total revenue.

 

    General and administrative expenses in the range of 18 to 21 percent of total revenue.

 

    Loss per share of $2.05 to $2.15, based on estimated weighted average shares outstanding of approximately 142 million.

Guidance for non-GAAP financial measures excludes stock based compensation, amortization of intangible assets, acquisition expenses, restructuring charges, discrete tax benefits, and other non-recurring expenses. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

Conference Call Information

FireEye will host a conference call today, November 4, 2014, at 5:00 PM Eastern Time (2:00 PM Pacific Time) to discuss its third quarter financial results and outlook for the fourth quarter of 2014. 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, as well as related multi-media content, can be accessed from the Investor Relations section of the company’s website at http://investors.fireeye.com. Shortly after the conclusion of the call, an archived version of the webcast will be available at the same website.

Analyst Update Scheduled for November 12

FireEye will host an analyst update in New York City on November 12, 2014 at 2:00 PM Eastern Time (11:00 AM Pacific Time) at the Sofitel Hotel, 45 West 44th Street, New York, NY. The event will be webcast live and may be accessed from the Investor Relations section of the company’s website at http://investors.fireeye.com. An archived version of the webcast will be available at the same website shortly after the conclusion of the event.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to future billings, revenue, non-GAAP gross margins, non-GAAP research and development expenses as a percent of total revenue, non-GAAP sales and marketing expenses as a percent of total revenue, non-GAAP general and administrative expenses as a percent of total revenue, weighted average shares outstanding, and non-GAAP loss per share in the section entitled “Forward Outlook” above, as well as statements related to the features, benefits and availability of FireEye products and services and expectations, beliefs and future strategies, plans, objectives and investments with respect to FireEye’s partnerships with SingTel and Verizon.

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; FireEye’s limited operating history, particularly as a newly public company; the failure to achieve expected synergies and efficiencies of operations between FireEye and its acquired companies; ability of FireEye and its acquired companies to successfully integrate their respective market opportunities, technology, products, personnel and operations; FireEye’s ability to attract new and retain existing customers and expand and train its sales force; the budgeting cycles, seasonal buying patterns and length of FireEye’s sales cycle; risks associated with FireEye’s rapid growth; real or perceived defects, errors or vulnerabilities in FireEye’s products and services; rapidly evolving technological developments in a market that is characterized by rapid changes in technology, customer requirements, industry standards, and frequent new product introductions and improvements; 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 August 13, 2014, 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. Any future product, feature, or related specification that may be referenced in this release are for information purposes only and are not commitments to deliver any technology or enhancement. FireEye reserves the right to modify future product or service plans at any time.

Non-GAAP Financial Measures

FireEye has provided in this release 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. 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 health and visibility of the company’s business. 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 margin, net loss and net loss per share. FireEye defines non-GAAP gross margin as total gross profit excluding stock-based compensation expenses, amortization of intangible assets, and, as applicable, other special items, divided by total revenue. FireEye defines non-GAAP operating margin as operating loss excluding stock-based compensation expense, amortization of intangible assets, acquisition related expenses, restructuring charges and other special or non-recurring items, divided by total revenue. FireEye defines non-GAAP net loss as net loss excluding stock-based compensation expense, amortization of intangible assets, change in fair value of preferred stock warrant liability, acquisition-related expenses, restructuring charges and discrete tax benefits. FireEye defines non-GAAP net loss per share as non-GAAP net loss divided by the weighted average shares outstanding. Additionally, weighted average shares outstanding used to calculate non-GAAP net loss per share excludes as anti-dilutive stock options, restricted stock units and performance stock units.


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 intangible assets, acquisition related expenses, restructuring charges, change in fair value of preferred stock warrant liability 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 expense has been and will continue to be for the foreseeable future a significant recurring expense in the company’s business. Second, stock-based compensation is an important part of FireEye employees’ overall compensation. Third, 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 non-recurring items such as acquisition related expenses, amortization of intangible assets, restructuring charges, changes in fair value of preferred stock warrant liability 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 has invented a purpose-built, virtual machine-based security platform that provides real-time threat protection to enterprises and governments worldwide against the next generation of cyber attacks. These highly sophisticated cyber attacks easily circumvent traditional signature-based defenses, such as next-generation firewalls, IPS, anti-virus, and gateways. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors and across the different stages of an attack life cycle. The core of the FireEye platform is a virtual execution engine, complemented by dynamic threat intelligence, to identify and block cyber attacks in real time. FireEye has over 2,700 customers across 67 countries, including over 157 of the Fortune 500.

© 2014 FireEye, Inc. All rights reserved. FireEye, Adaptive Defense, FireEye-as-a-Service, Threat Analytics Platform, TAP, Mobile Threat Prevention, MTP, Advanced Threat Intelligence, Dynamic Threat Intelligence and DTI 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.

Media contact:

Vitor De Souza

FireEye, Inc.

415-699-9838

vitor.desouza@fireeye.com

Investor contact:

Kate Patterson

FireEye, Inc.

408-321-4957

kate.patterson@fireeye.com

Source: FireEye


FireEye, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

     September 30,
2014
    December 31,
2013
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 98,843      $ 173,918   

Short-term investments

     299,022        —     

Accounts receivable, net

     155,798        95,772   

Inventories

     5,765        5,663   

Deferred tax assets, current portion

     26,775        14,584   

Prepaid expenses and other current assets

     31,508        25,230   
  

 

 

   

 

 

 

Total current assets

     617,711        315,167   

Property and equipment, net

     84,095        64,765   

Goodwill

     750,275        706,327   

Intangible assets

     273,314        281,377   

Deposits and other long-term assets

     10,366        8,677   
  

 

 

   

 

 

 

Total assets

   $ 1,735,761      $ 1,376,313   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 30,198      $ 34,128   

Accrued and other current liabilities

     20,574        17,677   

Accrued compensation

     66,308        41,625   

Deferred revenue, current portion

     160,768        110,535   
  

 

 

   

 

 

 

Total current liabilities

     277,848        203,965   

Deferred revenue, non-current portion

     122,153        76,979   

Deferred tax liabilities, non-current portion

     36,068        45,147   

Other long-term liabilities

     6,553        2,120   
  

 

 

   

 

 

 

Total liabilities

     442,622        328,211   

Stockholders’ equity:

    

Common stock

     15        14   

Additional paid-in capital

     1,855,016        1,271,590   

Accumulated other comprehensive loss

     (326     —     

Accumulated deficit

     (561,566     (223,502
  

 

 

   

 

 

 

Total stockholders’ equity

     1,293,139        1,048,102   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,735,761      $ 1,376,313   
  

 

 

   

 

 

 


FireEye, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014     2013     2014     2013  

Revenue:

        

Product

   $ 48,375      $ 23,729      $ 110,310      $ 55,957   

Subscription and services

     65,836        18,923        172,370        48,333   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     114,211        42,652        282,680        104,290   

Cost of revenue: (1)(2)(3)

        

Product

     15,440        7,358        39,515        18,124   

Subscription and services

     29,488        6,079        82,286        12,481   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     44,928        13,437        121,801        30,605   

Total gross profit

     69,283        29,215        160,879        73,685   

Operating expenses:(1)(2)

        

Research and development

     54,707        20,492        150,085        44,570   

Sales and marketing

     111,625        44,414        283,070        110,577   

General and administrative (3)

     30,119        11,704        89,150        29,385   

Restructuring charges (4)

     2,769        —          2,769        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     199,220        76,610        525,074        184,532   

Operating loss

     (129,937     (47,395     (364,195     (110,847

Other expense, net (5)

     (414     (4,448     (579     (7,595
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (130,351     (51,843     (364,774     (118,442

Provision for (benefit from) income taxes (6)

     (10,320     (917     (26,710     (320
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders

   $ (120,031   $ (50,926   $ (338,064   $ (118,122
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

   $ (0.83   $ (1.61   $ (2.41   $ (5.41
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in per share calculations, basic and diluted

     144,923        31,590        140,285        21,838   
  

 

 

   

 

 

   

 

 

   

 

 

 


FireEye, Inc.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in thousands)

 

     Nine Months Ended
September 30,
 
     2014     2013  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net loss

   $ (338,064   $ (118,122

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     67,631        12,344   

Stock-based compensation expense

     106,607        16,344   

Deferred income taxes

     (30,142     —     

Other

     1,702        5,363   

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:

    

Accounts receivable, net

     (60,041     (20,727

Inventories

     162        (5,174

Prepaid expenses and other assets

     (2,138     (5,676

Accounts payable

     (8,359     6,115   

Accrued liabilities

     6,684        3,711   

Accrued compensation

     25,415        6,481   

Deferred revenue

     95,107        54,370   

Other long-term liabilities

     4,434        547   
  

 

 

   

 

 

 

Net cash used in operating activities

     (131,002     (44,424
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Acquisition of business, net of cash acquired

     (55,058     (3,872

Purchase of property and equipment and demonstration units

     (55,466     (35,956

Purchase of short-term investments

     (352,401     —     

Maturities of short-term investments

     50,780        —     

Lease deposits

     (565     (1,636
  

 

 

   

 

 

 

Net cash used in investing activities

     (412,710     (41,464
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Net proceeds from follow-on public offering

     —          322,863   

Net proceeds from follow-on public offering

     444,338        —     

Borrowing from line of credit

     —          10,000   

Repayment of term loan

     —          (2,147

Net proceeds from issuance of convertible preferred stock

     —          9,988   

Proceeds from exercise of equity awards

     24,299        5,400   

Repayment of notes receivable from stockholders

     —          7,294   
  

 

 

   

 

 

 

Net cash provided by financing activities

     468,637        353,398   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (75,075     267,510   

Cash and cash equivalents, beginning of year

     173,918        60,200   
  

 

 

   

 

 

 

Cash and cash equivalents, end of year

   $ 98,843      $ 327,710   
  

 

 

   

 

 

 


FireEye, Inc.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share amounts)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2014     2013      2014     2013  
GAAP operating loss      $ (129,937)       $(47,395)         $(364,195)        $(110,847)   

Stock-based compensation expense (1)

     43,160        8,814         106,607        16,344   

Amortization of intangible assets (2)

     11,478        359         33,463        883   

Acquisition related expenses (3)

     —          —           1,559        —     

Restructuring Charges (4)

     2,769        —           2,769        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP operating loss

     $(72,530)        $(38,222)         $(219,797)        $(93,620)   

GAAP net loss

     $ (120,031)        $(50,926)         $(338,064)        $(118,122)   

Stock-based compensation expense (1)

     43,160        8,814         106,607        16,344   

Amortization of intangible assets (2)

     11,478        359         33,463        883   

Acquisition related expenses (3)

     —          —           1,559        —     

Restructuring Charges (4)

     2,769        —           2,769        —     

Change in fair value of preferred stock warrant liability (5)

     —          3,560         —          6,538   

Non-recurring benefit from income taxes (6)

     (11,247)        —           (30,099)        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP net loss

     $(73,871)        $(38,193)         $(223,765)        $(94,357)   

GAAP net loss per common share, basic and diluted

     $ (0.83)        $(1.61)         $(2.41)        $(5.41)   

Stock-based compensation expense (1)

     0.30        0.28         0.76        0.75   

Amortization of intangible assets (2)

     0.08        0.01         0.24        0.04   

Acquisition related expenses (3)

     —             0.01        —     

Restructuring Charges (4)

     0.02        —           0.02        —     

Change in fair value of preferred stock warrant liability (5)

     —          0.11         —          0.30   

Non-recurring benefit from income taxes (6)

     (0.08)        —           (0.21)        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Non-GAAP net loss per common share, basic and diluted

   $ (0.51     $(1.21)       $ (1.60   $ (4.32

Weighted average shares used in per share calculations for GAAP and Non-GAAP, basic and diluted

     144,923        31,590         140,285        21,838   

(1) includes stock-based compensation expense as follows:

         

Cost of product revenue

     $243        $143         $624        $279   

Cost of subscription and services revenue

     3,430        762         10,455        1,330   

Research and development

     7,647        2,350         20,053        4,425   

Sales and marketing

     22,543        3,784         47,154        5,878   

General and administrative

     9,297        1,775         28,321        4,432   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total stock-based compensation expense

   $ 43,160      $ 8,814       $ 106,607      $ 16,344   

(2) includes amortization of intangible assets as follows:

         

Cost of product revenue

     $2,852        $262         $7,955        $786   

Cost of subscription and services revenue

     5,400        44         16,184        44   

Sales and marketing

     3,226        53         9,324        53   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total amortization of intangible assets

   $ 11,478      $ 359       $ 33,463      $ 883   

(3) includes acquisition related expenses as follows:

         

General and administrative

     $—          $—           $1,559        $—     

(4) includes restructuring charges as follows:

         

Restructuring charges

     $2,769        $—           $2,769        $—     

(5) includes change in fair value of preferred stock warrant liability as follows:

         

Other expense, net

     $—          $3,560         $—          $6,538   

(6) includes discrete benefit from income taxes as follows:

         

Provision for (benefit from) income taxes

     $(11,247)        $—           $(30,099)        $—     


FireEye, Inc.

RECONCILIATION OF NON-GAAP BILLINGS TO REVENUE

(Unaudited, in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2014      2013      2014      2013  

GAAP revenue

   $
114,211
  
   $ 42,652       $ 282,680       $ 104,290   

Add change in deferred revenue

     50,914         28,167         95,407         54,346   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP billings

   $ 165,125       $ 70,819       $ 378,087       $ 158,636   

FireEye, Inc.

BILLINGS BREAKOUT

(Unaudited, in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2014      2013      2014      2013  

Product billings

   $ 44,135       $ 27,077       $ 105,769       $ 62,241   

Product subscription billings

     71,925         25,415         153,446         57,563   
  

 

 

    

 

 

    

 

 

    

 

 

 

Product billings and product subscription billings

     116,060         52,492         259,215         119,804   

Support and maintenance billings

     30,717         16,124         64,994         35,498   

Professional services billings

     18,348         2,203         53,878         3,334   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP billings

   $ 165,125       $ 70,819       $ 378,087       $ 158,636   

FireEye, Inc.

REVENUE BREAKOUT

(Unaudited, in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2014      2013      2014      2013  

Product revenue

   $ 48,375       $ 23,729       $ 110,310       $ 55,957   

Product subscription revenue

     32,759         11,040         83,587         28,664   
  

 

 

    

 

 

    

 

 

    

 

 

 

Product revenue and product subscription revenue

     81,134         34,769         193,897         84,621   

Support and maintenance revenue

     14,198         6,928         36,823         18,097   

Professional services revenue

     18,879         955         51,960         1,572   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 114,211       $ 42,652       $ 282,680       $ 104,290