February 6, 2019 / 9:05 PM / 14 days ago

FireEye beats revenue estimates on higher subscriptions

Feb 6 (Reuters) - FireEye Inc beat analysts’ estimates for quarterly revenue and reported a smaller quarterly loss on Wednesday, as the cybersecurity firm’s shift to a subscription-based model and cost-cutting efforts paid off.

Net loss attributable to common stockholders narrowed to $48.4 million, or 25 cents per share, in the fourth quarter ended Dec. 31, from $70.4 million, or 39 cents per share, a year earlier.

Total revenue rose 5.7 percent to $217.5 million, beating analysts’ average estimate of $216.8 million, according to IBES data from Refinitiv.

Revenue from subscription and services rose about 5 percent to $178.8 million, while analysts were expecting $166.3 million.

Cybersecurity companies have benefited as organizations worldwide set aside budgets to shield against rising cyber crime. Severe attacks such as a denial-of-service can cripple entire organizations while malware and phishing often target individuals via emails.

FireEye, which has probed some of the biggest cyber attacks to date including the Equifax Inc breach, said its operating costs dropped 5.8 percent in the quarter.

Spending by businesses on protection from cyber attacks rose 20 percent year-over-year in 2018, according to Wedbush Securities.

The Milpitas, California-based company forecast adjusted net loss of 2 cents to 4 cents per share and revenue in a range of $208 million to $212 million for the current quarter.

Analysts on average were expecting a profit of 1 cent per share and revenue of $211.3 million. (Reporting by Vibhuti Sharma in Bengaluru and Angela Moon in New York; Editing by Sriraj Kalluvila)

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