FireEye revenue outlook tops Street view, shares rise

Thu Nov 7, 2013 6:10pm EST

Nov 7 (Reuters) - FireEye Inc, a technology firm that helps companies fend off cyber attacks, gave a revenue outlook for 2014 that came in ahead of Wall Street forecasts as it posted results for the first time since it went public in September in one of this year's hottest IPOs.

The company's shares climbed 8 percent. FireEye said it sees revenue next year of between $240 million and $250 million, up from between $156 million and $158 million this year.

Analysts have been forecasting 2014 revenue of $231 million, according to Thomson Reuters I/B/E/S.

FireEye uses cloud-based technologies to help businesses detect malicious software that it says evade old-school anti-virus software made by companies including Symantec Corp and Intel's McAfee security division.

FireEye's CEO, Dave DeWalt is the former chief executive of McAfee who sold McAfee to Intel.

FireEye's third-quarter non-GAAP loss widened to $38.2 million, or $1.21 per share, from $6.1 million, or 55 cents, a year earlier, as the number of outstanding shares nearly tripled. Analysts were expecting a loss of $1.28 per share.

FireEye shares rose to $41.15 in extended trade, up from their Nasdaq close of $38.03.

The shares are trading at about double their $20 IPO price on expectations that heavy spending on sales and marketing, along with more modest investments in research and development, are preparing the company for a period of rapid growth.

Third-quarter revenue rose 95 percent from a year earlier to $42.7 million. Billings climbed 103 percent to $70.8 million.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.