Last Night>FireEye issues light Q1 guidance, shares -5.6% AH
Though it beat Q4 estimates and posted revenue that was slightly above a raised guidance range of $55M-$57M (provided on Jan. 2, at the time of the Mandiant deal announcement), FireEye (FEYE) is guiding for Q1 revenue of $70M-$72M and EPS of -$0.51 to -$0.56, below a consensus of $76.2M and -$0.37. Billings are expected to be in a range of $84M-$88M.
FireEye is maintaining full-year guidance (also provided on Jan. 2) for revenue of $400M-$410M and billings of $540M-$560M. However, it's also establishing EPS guidance of -$2.00 to -$2.20, well below a -$1.42 consensus.
With FireEye moving aggressively to expand the sales reach of its traditional security products, as well as Mandiant's offerings and the company's just-announced intrusion prevention systems (will compete against Cisco's Sourcefire unit), sales/marketing spend is expected to equal a whopping 82%-85% of 2014 revenue. R&D is expected to equal 36%-39% of revenue.
Ahead of the Mandiant deal, FireEye had Q4 billings of $97.9M, up 102% Y/Y. Product billings totaled $35.8M, product subscription billings $38.7M, and services billings $23.5M.
Including Mandiant, FireEye's deferred revenue balance stood at $187.5M at the end of Q4.
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