FireEye's pivot toward cloud and managed security services is gaining momentum, according to the cybersecurity company's second quarter 2020 results released Tuesday, July 28.
The evidence? In a statement, FireEye says:
"Platform, cloud subscription and managed services annualized recurring revenue of $302 million ending Q2 increased 27 percent compared to the end of the second quarter of 2019 and eclipsed Product and related subscription and support annualized recurring revenue for the first time."]
The cloud manage managed security services momentum helped to lift FireEye's Q2 revenue to a record $230 million, up 6 percent from the second quarter of 2o19.
In a prepared statement, CEO Kevin Mandia said:
“The steps we have taken to accelerate our transformation to a security-as-a-service company resulted in record second quarter revenue and our highest ever non-GAAP profitability. Growing adoption of our validation platform, cloud-based security products and intelligence solutions, combined with improved net retention in our appliance-based security controls business, drove annualized recurring revenue to record levels.”
The positive buzz lifted FireEye's stock ($FEYE) 13 percent in after-hours trading.
FireEye 2020 Cybersecurity Business Evolution
FireEye has been striving to grow both organically and through strategic acquisitions. The company in January 2020 acquired Cloudvisory to bolster FireEye Helix’s multi-cloud and container security capabilities across Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP) and more.
FireEye has also trimmed some staff and ended development of one product this year in order to align costs during the coronavirus pandemic and sharpen the company's focus on growth opportunities.
