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Why FireEye’s Dependence on the US Market Is Good News

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Dec. 4 2020, Updated 10:53 a.m. ET

The US accounts for 41% of global security appliance revenues

While Palo Alto Networks (PANW) poses the biggest threat to Cisco Systems’ (CSCO) dominance in security appliance space, FireEye (FEYE) aims to be a player, and the security appliance market is experiencing growth in all regions.

The US (QQQ) accounted for 41% of the worldwide security appliance market, and revenues rose 9.2% YoY in this region, according to IDC. Asia-Pacific (excluding Japan) drove revenues in 2Q17, rising 21% YoY. The US and the EMEA (Europe, the Middle East, and Africa) region accounted for two-thirds of the total security market, but Asia-Pacific showed the highest YoY growth at 17.2%.

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FireEye generates the majority of its revenues from the US

The presentation above shows that FireEye (FEYE) generates close to two-thirds of its revenues from the US, followed by EMEA and Asia-Pacific. Although FireEye doesn’t feature in the top five vendors list in the global security appliance space, it’s likely to benefit from growth in the pace due to its distinct offerings.

High-profile data breaches and hacks—including the recent Equifax (EFX), WannaCry, and Petya ransomware attack that impacted companies and governments all over the world—have brought the cybersecurity market into the spotlight. These events have thus acted as a growth catalyst for major players in the cybersecurity space.

Meanwhile, both the US market for cybersecurity products and the global cybersecurity market are growing exponentially. This trend could also benefit FireEye, given its dependence on the US for most of its revenues.

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