FireEye reports smaller loss as shift to subscription model pays off
May 2 (Reuters) - FireEye Inc reported a smaller quarterly loss on Wednesday as the cybersecurity firm gained from an ongoing transition to a subscription-based model.
FireEye is pivoting to a subscription-based model from its traditional business that centered around the sale of hardware boxes to boost recurring revenue and shore up margins.
The subscription and services business rose 7.6 percent to $165.5 million in the first quarter ended March 31, above analysts' expectation of $163.2 million, according to Thomson Reuters I/B/E/S.
"Our newer products and cloud offering will continue to drive significant growth," Chief Executive Officer Kevin Mandia said.
The Milpitas, California-based company has been involved in investigating some of the biggest cyber attacks, including the massive data breach at consumer credit agency Equifax Inc .
FireEye reported adjusted billings of $175.1 million, beating analysts' estimate of $170.3 million.
Billing includes revenue recognized plus the change in deferred revenue, which are an important indicator of the health and visibility of a company's business.
The company's net loss narrowed to $71.8 million, or 39 cents per share, in the three months ended March 31, from $77.2 million, or 45 cents per share, a year earlier.
On an adjusted basis, the company lost 4 cents per share.
Total revenue rose about 8 percent to $199.1 million. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Sriraj Kalluvila)
