Strong Cloud Growth and 2 More Keys for FireEye Stock
FireEye (NASDAQ: FEYE) posted better-than-expected fourth-quarter revenue and non-GAAP (adjusted) earnings. However, disappointing billings -- revenue plus the change in deferred revenue -- surprised investors. And since the cybersecurity specialist is transitioning from its legacy hardware business to a cloud-based security portfolio, its single-digit revenue growth hides a mixed situation. With this context, here are three keys from FireEye's fourth-quarter results:
A few years ago, FireEye's business mostly consisted of selling highly priced hardware devices that dealt with advanced on-premises security threats. But with the development of cloud computing, the company has been transitioning to a cloud-based offering that includes services such as end point protection and email security. Thus, FireEye's fourth-quarter year-over-year 8% revenue growth is the result of its strong cloud business, offset by its declining legacy hardware activities.
Source: FireEye. YOY = year over year.
Source Fool.com
