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Factors that Are Affecting Symantec’s Billings Growth

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Identifying the major billings headwinds

Symantec (SYMC) has long dominated the endpoint security market with products like Endpoint Detection and Response (or EDR), Symantec Endpoint Protection 14, and Norton Mobile Security for Android (GOOGL). However, the company’s extended sales cycle continues to hurt its billings growth. 

The cybersecurity firm is also facing a shorter contract duration, which can be a concern for the company. The contract duration in the fiscal first quarter of 2019 was 16.5 months compared with 18.5 months in the previous quarter. 

The company is upselling as well as cross-selling its products to its customers to drive business. However, rising competition from other cybersecurity firms is gradually denting Symantec’s market share. 

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Intelligence-based cybersecurity operator FireEye (FEYE) has started to shift its interest toward endpoint security, triggered by the rising popularity of the BYOD (Bring Your Own Device) concept. In September 2017, FireEye launched Endpoint 4.0, an advanced-level endpoint protection product that which offers threat intelligence capabilities for endpoint resistance.

Billings trend

From the graph above, we can see the overall billings growth for Symantec in the last five quarters. During this period, it declined at a CAGR (compound annual growth rate) of 4.5%. 

In the fiscal first quarter of 2019, Symantec’s total billings fell 17.0% YoY to $996.0 million. The billings from its Enterprise Security segment stood at $453.0 million, down 31.0% YoY. The billings from its Consumer Digital Safety segment were flat at $543.0 million.

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