Technology

FireEye vs. CyberArk: A Tale of 2 Cyber Earnings

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Both FireEye Inc. (NASDAQ: FEYE) and CyberArk Software Ltd. (NASDAQ: CYBR) reported their fourth-quarter financial results after the markets closed on Thursday. 24/7 Wall Street took highlights from each of the earnings reports and put them side by side so we can see which cybersecurity firm had the better fourth quarter.

FireEye had a net loss of $0.36 per share on $184.8 million in revenue, versus consensus estimates from Thomson Reuters that called for a net loss of $0.37 per share on $185.30 million in revenue. The same period from the previous year had a net loss of $0.38 per share on $142.98 million in revenue.

Revenue increased by 29% in the fourth quarter year over year. At the same time, billings totaled $256.9 million, an increase of 21% from the same period of the previous year.

In terms of the outlook for the first quarter, the company expects to see a net loss per share of $0.49 to $0.53, total revenue in the range of $167 million to $177 million, and billings in the range of $163 million to $183 million. There are consensus estimates that call for a net loss of $0.40 per share on $167.87 million in revenue.

David DeWalt, FireEye’s chairman of the board and CEO, commented on earnings:

We made tremendous progress in 2015 on our multi-year journey to build the world’s leading advanced threat management platform. On a year-over-year basis, we grew billings 35 percent, increased revenue 46 percent, added nearly 1,200 new customers, and expanded our international presence. We also made progress on our path to profitability, generating record annual cash flow from operations and improved operating margins.

Shares of FireEye closed Thursday at $12.41, with a consensus analyst price target of $28.00 and a 52-week trading range of $11.53 to $55.33. Following the release of the earnings report, the stock was down 3.3% at $12.00 in the after-hours trading session.


CyberArk reported $0.39 in earnings per share (EPS) on $51.5 million in revenue. That compares to consensus estimates of $0.20 in EPS on $43.88 million in revenue. The same period from the previous year had $0.21 in EPS on $36.30 million in revenue.

Revenue in the fourth quarter increased 42% year over year, driven by an increase of 35% in license revenue and an increase of 55% in maintenance and professional services revenue.

In terms of guidance for the first quarter, the company expects EPS to be in the range of $0.15 to $0.16 and revenues to be in the range of $42.5 million to $43.5 million. There are consensus estimates that call for $0.17 in EPS on $41.64 million in revenue.

Udi Mokady, CEO of CyberArk, commented on earnings:

2015 was another record year for CyberArk. We executed on our strategy to expand our sales and marketing reach, enhance our product offering, and strengthen our position as the recognized leader in Privileged Account Security. Our investments delivered record results across all financial and operational metrics. As we enter 2016, we believe that the momentum in our business positions us to capitalize on the rapidly growing, greenfield opportunity for this must-have new layer of enterprise security and to continue to deliver strong growth and solid profitability.

Shares of CyberArk closed Thursday at $36.74, with a consensus price target of $55.15 and a 52-week range of $33.89 to $76.35. Following the release of the earnings report, the stock was up 0.7% at $37.00 in the after-hours trading session.

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