FireEye will later this year make its Mandiant Managed Defense service available on third-party endpoint technology for the first time to expand its addressable market.
The Milpitas, Calif.-based platform security vendor said providing its managed detection and response (MDR) service without being exclusive to FireEye products will enable new technical partnerships and alliances, CEO Kevin Mandia said. Mandiant had planned to offer Managed Defense on other tools prior to being bought by FireEye in 2014, but was then beholden to FireEye products for five years, he said.
“You’re not going to own every damn account on endpoint, period, and the demand for our expertise and a second set of eyes to look at every single alert is something almost everybody I’ve talked to wants,” Mandia told Wall Street analysts Tuesday. “But they’re not going to throw out their endpoint for our endpoint just to get that.”
FireEye knows the exact detection efficacy of everybody’s endpoint security products thanks to being on the front lines of every breach, Mandia said. Developing a list of supported third-party endpoint security products is something FireEye is capable of doing and will make its Managed Defense product more valuable, according to Mandia.
“We’re just sitting there on the front line seeing what gets invaded and how it gets invaded,” Mandia said. “And we need to apply that knowledge to more than just our technology, period.”
The number one use case for Managed Defense is for organizations to verify if they have a security problem and determine whether or not they’re been compromise, Mandia said. FireEye is already used to using third-party technology when collecting data during incident response efforts, and he said the company will build on that knowledge to support other endpoint technologies within Managed Defense.
“I just think that it [Managed Defense] should be growing faster than it is,” Mandia said. “And this is probably the fastest way to get that growth.”
FireEye’s sales for the quarter ended June 30 jumped to $229.9 million, up 5.6 percent from $217.6 million the year prior. The results crushed Seeking Alpha’s estimate of $214.8 million.
The company’s net loss improved to $53.3 million, or $0.24 per diluted share, 20.9 percent better than a net loss of $67.3 million, or $0.33 per diluted share, last year. On a non-GAAP basis, the company recorded net income of $20.7 million, or $0.09 per diluted share, improved from a net loss of $1.7 million, or $0.01 per diluted share, the year before. That beat Seeking Alpha’s net loss projection of $0.02 per share.
FireEye’s stock climbed $1.62 (12.11 percent) to $15 per share in after-hours trading Tuesday. That’s the highest the company’s stock has traded since Feb. 24.
Product, subscription and support revenue for the quarter inched ahead to $177.3 million, up 1.8 percent from $174.1 million the year prior. And professional services revenue jumped to $52.6 million, up 20.9 percent from $43.5 million last year.
For the coming quarter, FireEye expects to record non-GAAP net income of $0.06 to $0.08 per diluted share on sales of between $225 million and $229 million. That’s well above analyst expectations for net income of $0.02 per share on revenue of $220.3 million, according to Seeking Alpha.