FireEye, Inc. (NASDAQ:FEYE) Q1 2021 Earnings Highlights
CEO Kevin Mandia:
“….In the first quarter of 2021, our strategic platform, cloud subscription and managed services category combined with our professional services to grow 46% tit in billings, and represented 69% of our total billings. And this is evidence of the turn we have made with our portfolio.
And second, our technology threat intelligence and expertise has never been in more demand. During the first quarter, organizations faced a complex and hostile threat environment, implants in the supply chain, zero day exploits impacting popular products and an onslaught of Ransomware and extortion occurred.
As the threat environment escalates, conventional safeguards are not effective at reducing risk. However, coupled with our expertise and intelligence, commonly used safeguards can adapt faster to the threats and protect customers far more effectively. Therefore, we continued innovating at speed to embed our threat intelligence and expertise into FireEye products as well as the Mandiant Advantage platform.
Now let me discuss some first quarter highlights. Team FireEye delivered a strong first quarter. In addition to our financial performance, we continue to transform our business. Our mix of the platform cloud subscription and managed services category combined with our professional services grew from 56% of our total billings in the first quarter of 2020 to 69% of our total billings in the first quarter of 2021. This substantial mix shift is a testament to the efforts and progress we have made with our transformation.
We also saw this trend in mix shift with respect to revenue and ARR. Our mix of revenues in our platform cloud subscription and managed services category combined with professional services grew from 53% of our revenues in the first quarter of 2020, to 61% in the first quarter of 2021, and our mix of ARR grew from 49% to 55%, respectively. In short, I believe our mix is moving in the right direction.
Demand for Mandiant expertise remains strong this quarter, resulting in 25% year-over-year revenue growth. This was the 12th consecutive record quarter for Mandiant Services, as we continue to scale our capacity and expand our offerings to address emerging market needs such as zero trust, Ransomware assessments, cloud migration and security validation. Our platform cloud subscription and Mandiant Services category had 45% year-over-year billings growth and 26% year-over-year revenue growth. While we saw strength across all the solutions in this category, the acceleration and growth was driven by our threat intelligence, security validation and cloud endpoint solutions.
During the first quarter, we also closed 30 transactions greater than $1 million. More than 70% of these transactions included three or more products or solutions, and 60% of these 30 transactions included consulting services. FireEye continued to prove the value of our frontline expertise and intelligence in the first quarter. We recently published our annual M-Trends report, which contains our observations about threats and effective remediation actions, and it was gleaned from frontline Mandiant investigations performed around the globe.
And here are just a few of our findings. Nearly half of the 294 distinct malware families we observed in investigations last year were new and never seen before. More than 80% of these new malware families were not publicly available, meaning they were privately developed and availability was restricted in some way. And 70% of all the malware families we observed were only found in a single intrusion set.
These observations tell us that threat actors continue to innovate faster than the technologies customers are deploying to protect their networks and organizations are deploying to protect their networks. The attackers are learning new ways to circumvent conventional safeguards that cannot or do not learn from the frontlines in a timely manner. And as a result of this, organizations are re-evaluating the effectiveness of their cybersecurity investments. They’re looking for strategies to implement zero trust to protect against Ransomware, to secure their cloud environments. And they want to know how [technical difficulty] processes with XDR and how machine learning and artificial intelligence can improve their security posture. And lastly, they want to validate if they are protected from the latest attacks…”