Cybersecurity leader FireEye (NASDAQ:FEYE) reported fourth quarter results on Feb. 11. Revenue jumped 29% year-over-year to $184.8 million, and billings -- an important measure of future revenue that reflects the value of contracts signed -- increased 21% to $256.9 million. Both revenue and billings were within the ranges forecasted by management in the third quarter earnings release and subsequent fourth quarter preliminary results.
FireEye continues to make progress toward profitability, with operating margin -- adjusted for stock-based compensation and non-recurring items -- improving to negative 28%, compared to negative 40% in the year-ago quarter. That led to a smaller adjusted net loss per share of $0.36 versus $0.38 for last year. The company's cash generation also continues to strengthen, with FireEye delivering positive cash flow from operations of $9.4 million, a year-over-year improvement of $9.7 million.
"We made tremendous progress in 2015 on our multi-year journey to build the world's leading advanced threat management platform," said CEO David DeWalt. "On a year-over-year basis, we grew billings 35%, increased revenue 46%, added nearly 1,200 new customers, and expanded our international presence."
Management expects first quarter revenue in the range of $167 million to $177 million and billings in the range of $163 million to $183 million. Adjusted operating margin is projected to be between negative 40% to negative 47%, and the company anticipates an adjusted loss of $0.49 to $0.53 per share.
Management also issued its full-year 2016 outlook, including:
- Revenue in the range of $815 million to $845 million.
- Billings in the range of $975 to $1,055 million.
- Adjusted operating margin in the range of negative 22% to negative 24%.
- Adjusted net loss per share of $1.25 to $1.32.
- Positive cash flow from operations in the range of $70 to $80 million.
- Capital expenditures on property and equipment of approximately $50 million.
"We achieved a significant milestone on our path to profitability, with positive operating cash flow of $37.0 million for the year as billings growth exceeded growth in non-GAAP operating expenses," said CFO Michael Berry. "Based on our 2016 guidance for billings and non-GAAP operating expenses, and anticipated capital expenditures, we expect to achieve positive operating and free cash flow for the year."