FireEye (FEYE) went public in September 2013 and in December 2014, it acquired Mandiant for ~$1.0 billion. Mandiant was considered one of the most prominent data breach and response players in the space.
Recently FireEye’s Mandiant was appointed to investigate Equifax (EFX), which experienced one of the most massive data breaches to date. More than 143 million US customers, or about 44% of the US population, were impacted by this breach.
Despite getting a boost from major data breaches and cyberattacks like Equifax, Petya, and WannaCry, FireEye stock has struggled to maintain an upward trajectory.
FireEye stock, which peaked in mid-2015 at $55 per share, has been whipsawed and is now trading in the price range of $13.50–$14.50 per share.
FireEye’s presence in the cybersecurity space
Despite slow revenue growth and low billings growth in comparison to its peers, FireEye (FEYE) has delivered positive earnings for 16 straight quarters—including its 3Q17 earnings. Its revenues have missed analysts’ expectations six times in the last 16 quarters, as the chart above shows.
Currently, FireEye is struggling to report growth due to a shift in its subscription contracts. FireEye is a prominent player in the cybersecurity space, which is a rapidly growing space as the transition to the cloud continues.
FireEye’s comprehensive suite of offerings includes NX (network security), AX (malware analysis), FX (file content security), EX (email security), HX (endpoint security), and endpoint forensics. These offerings are integrated into a threat intelligence and analytics platform.
IDC (International Data Corporation) estimates show that global revenues for security-related offerings could reach $81.7 billion this year. Globally, spending on security offerings is estimated to grow at a CAGR[2. compound annual growth rate] of 8.7% until 2020, when the industry’s revenues are expected to reach ~$105.0 billion.