FireEye's Latest Earnings Provide a Checkup on Its Transition

FireEye (NASDAQ: FEYE) released earnings in early November showing a solid quarter, but the stock took a hit due to a conservative outlook for the remainder of the year. With the cybersecurity company in the midst of a turnaround, every quarter's result is an opportunity to check in to see how the company is progressing. Looking at deferred revenue growth and customer adoption of its new product platform, and following the company's commitments, will give investors an idea whether the plan is working.

FireEye's management calls deferred revenue "an important indicator of [its] health": It represents the bulk of the company's future revenues and is a good measure of whether the company's plan is gaining traction.

Data source: FireEye's earnings reports. Chart and calculations by author.

Source: Fool.com