4 Trends Drive FireEye Security Revenue Growth
Growing cybersecurity risk and complexity mean more business opportunity, says FireEye CEO.
While some organizations have a deep sense of dread about the growth in cyber-threats, FireEye CEO Dave DeWalt has a different view, seeing it as an opportunity to grow his company's fortunes.
FireEye reported its fourth quarter and full year fiscal 2015 financial results this week, showing continued strength. For the quarter, FireEye reported revenue of $184.8 million, a 29 percent year-over-year gain. Full-year revenue was $623 million, a 46 percent year-over-year increase.
FireEye provided fiscal 2016 guidance for revenue between $815 million and $945 million, for a year-over-year growth rate of 31 percent to 36 percent.
During the company's earnings call, DeWalt said the company grew total billings 35 percent and reversed its operating cash flow losses from a negative $131 million to positive $37 million.
"We've come a long way since going public a little over two years ago," DeWalt said. "Annual billings have grown more than 200 percent, from $257 million in 2013 to nearly $800 million in 2015, and our customer base has more than doubled to more than 4,400."
The 4 Security Trends
DeWalt identified four key trends that are helping his company make money.
"The first trend is that the cybersecurity problem that we see continues to worsen by the day," DeWalt said. "If you look at just two metrics, they're simply staggering to the complexity of the problem."
FireEye is currently tracking over 16,000 different attacker groups globally, he noted, adding that Internet anonymity coupled with a lack of government cooperation means that safe havens for attackers are growing.
"In addition, the number of attack surfaces that the bad guys can use is becoming infinite as well," DeWalt said. "What once was primarily a Windows-based attack surface has now morphed to hundreds of device types, from endpoints, the servers, to IoT devices."
The second trend is the complexity of actually solving security technology challenges, with many large corporations using 100 or more security vendors.
The third trend is the convergence of the physical world with information security technology, as attacks begin to target critical infrastructure.
DeWalt's fourth trend is the realization that technology alone cannot solve the whole cyber-security problem.
"While machine learning, Big Data and analytics, and behavioral analysis are important, a combination of human intelligence and machine-based technology intelligence is required to address these highly-sophisticated and complex problems," DeWalt said.
Sean Michael Kerner is a senior editor at eSecurityPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.