Second quarter billings were $178.3 million, an increase of 57% from the second quarter of 2014 and above the previously issued guidance range of $165 to $170 million. At the same time, deferred revenue totaled $409.9 million, an increase of $177.9 million, or 77%, from last year.
The company gave guidance for the third quarter: FireEye expects a loss per share of $0.44 to $0.48 per share on $164 million to $168 million in revenue. There are consensus estimates of a net loss of $0.46 per share on $164.26 million in revenue. Separately the company expects total billings to range from $225 million to $230 million and gross margin to be 70% to 73%.
FireEye also announced that Michael Sheridan, FireEye CFO since 2011, intends to leave the company to accept a position as CFO at a private technology company in an unrelated industry. Frank Verdecanna, vice president of finance, will serve as interim CFO following Sheridan’s departure in early August.
David DeWalt, Chairman and CEO of FireEye, commented on earnings:
Our business continued to gain momentum in the second quarter as the power of our platform resulted in expansion of our customer base, new strategic partnerships, and additional cross-selling opportunities. Record sales across our portfolio of network, endpoint, cloud and services offerings further highlight the power of our platform to drive growth and deliver value to customers. Our strong second quarter billings and revenue performance resulted in improved operating leverage and operating cash flow of more than $39 million, giving us the confidence to raise our outlook and accelerate our anticipated timeline for achieving positive annual operating cash flow. We achieved these outstanding financial results while increasing our investments in new products, global infrastructure, and sales capacity to extend our leadership in advanced security.
Second quarter cash flow from operations increased by more than $100 million year-over-year to $39.1 million, compared to negative $61.9 million from last year. At the same time FireEye reported having $1.19 billion in cash, cash equivalents, and marketable securities.
Shares of FireEye closed Thursday up 0.4% at $47.75 on its 52-week trading range of $24.81 to $55.33. Following the release of the earnings report, shares were down 5.1% at $45.34. The stock has a consensus analyst price target of $52.93.
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