FireEye, Inc.

CIK:0001370880|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Total revenue	$ 137,920	$ 113,910	$ 268,064	$ 228,598
Cost of revenue:
Total cost of revenue	75,510	63,525	147,712	122,610
Total gross profit	62,410	50,385	120,352	105,988
Operating expenses:
Research and development	44,394	40,930	88,855	82,835
Sales and marketing	71,153	63,018	140,562	124,231
General and administrative	34,428	29,020	66,841	54,371
Restructuring charges	0	1,927	1,040	1,927
Total operating expenses	149,975	134,895	297,298	263,364
Operating loss	(87,565)	(84,510)	(176,946)	(157,376)
Interest income	2,881	1,365	4,632	3,009
Interest expense	(3,561)	(14,762)	(7,875)	(29,386)
Other income (expense), net	(1,671)	(471)	(952)	100
Loss before income taxes from continuing operations	(89,916)	(98,378)	(181,141)	(183,653)
Provision for income taxes	575	763	1,364	1,943
Loss from continuing operations	(90,491)	(99,141)	(182,505)	(185,596)
Net income from discontinued operations, net of income taxes	0	34,445	0	70,254
Net loss	(90,491)	(64,696)	(182,505)	(115,342)
Dividend on series A convertible preferred stock	(4,772)	(4,563)	(9,490)	(9,075)
Accretion of series A convertible preferred stock	0	0	0	(82)
Net loss attributable to common stockholders	(95,263)	(69,259)	(191,995)	(124,499)
Net loss attributable to common stockholders	$ (95,263)	$ (69,259)	$ (191,995)	$ (124,499)
Net loss per share attributable to common stockholders, basic and diluted:
Continuing operations, basic (in usd per share)	$ (0.41)	$ (0.44)	$ (0.83)	$ (0.83)
Continuing operations, diluted (in usd per share)	(0.41)	(0.44)	(0.83)	(0.83)
Discontinued operations, basic (in usd per share)	0	0.15	0	0.30
Discontinued operations, diluted (in usd per share)	0	0.15	0	0.30
Net loss per share attributable to common stockholders, basic (in usd per share)	(0.41)	(0.29)	(0.83)	(0.53)
Net loss per share attributable to common stockholders, diluted (in usd per share)	$ (0.41)	$ (0.29)	$ (0.83)	$ (0.53)
Weighted average shares used in computing net loss per share, basic (in shares)	233,218	237,279	231,909	236,016
Weighted average shares used in computing net loss per share, diluted (in shares)	233,218	237,279	231,909	236,016
Platform, cloud subscription and managed services
Revenue:
Total revenue	$ 62,056	$ 51,936	$ 119,685	$ 107,935
Cost of revenue:
Total cost of revenue	29,704	28,243	59,825	54,856
Professional services
Revenue:
Total revenue	75,864	61,974	148,379	120,663
Cost of revenue:
Total cost of revenue	$ 45,806	$ 35,282	$ 87,887	$ 67,754

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (182,505)	$ (115,342)
Less: income from discontinued operations	0	70,254
Loss from continuing operations	(182,505)	(185,596)
Adjustments to reconcile loss from continuing operations to net cash used in continuing operating activities:
Depreciation and amortization	33,859	46,648
Stock-based compensation	80,012	72,143
Non-cash interest expense related to convertible senior notes	2,007	22,907
Deferred income taxes	61	(114)
Loss (gain) on disposal of property and equipment	(44)	113
Other	239	(63)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	32,806	17,445
Prepaid expenses and other assets	16,150	6,374
Accounts payable	9,546	4,211
Accrued liabilities	(24,498)	(1,540)
Accrued compensation	(21,964)	(14,231)
Deferred revenue	(2,415)	13,072
Other long-term liabilities	(5,128)	(4,915)
Net cash used in operating activities - continuing operations	(61,874)	(23,546)
Net cash provided by operating activities - discontinued operations	0	67,851
Net cash provided by (used in) operating activities	(61,874)	44,305
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and demonstration units	(16,196)	(13,378)
Purchases of short-term investments	(569,715)	(512,642)
Proceeds from maturities of short-term investments	514,681	264,160
Business acquisitions, net of cash acquired	0	50
FireEye Products business sale transaction costs	(1,057)	0
Lease deposits	785	674
Net cash used in investing activities - continuing operations	(71,502)	(261,136)
Net cash used in investing activities - discontinued operations	0	(10,107)
Net cash used in investing activities	(71,502)	(271,243)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of convertible senior notes	(451,691)	0
Settlement of share repurchases	(11,483)	(68,334)
Series A convertible preferred stock issuance costs	0	(82)
Payment related to shares withheld for taxes	(7,336)	(9,725)
Proceeds from employee stock purchase plan	9,981	12,335
Proceeds from exercise of equity awards	1,659	3,600
Net cash used in financing activities	(458,870)	(62,206)
Net change in cash and cash equivalents	(592,246)	(289,144)
Cash and cash equivalents, beginning of period	1,154,458	673,234
Cash and cash equivalents held for sale, beginning of period	0	3,220
Cash and cash equivalents held for sale, end of period	0	(3,220)
Cash and cash equivalents, end of period	562,212	384,090
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	10,915	3,558
Cash paid for interest	6,480	6,480
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment in accounts payable and accrued liabilities	3,579	3,722
FireEye Products business divestiture transaction costs in accounts payable and accrued liabilities	2,342	0
Dividend on series A convertible preferred stock	9,490	9,075
Accretion of series A convertible preferred stock	$ 0	$ 82

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 562,212	$ 1,154,458
Short-term investments	1,074,826	1,039,339
Accounts receivable, net of allowance for doubtful accounts of $550 and $806 at June 30, 2022 and December 31, 2021, respectively	113,535	146,460
Prepaid expenses and other current assets	58,980	73,079
Total current assets	1,809,553	2,413,336
Property and equipment, net	56,000	46,329
Operating lease right-of-use assets, net	27,227	25,768
Goodwill	1,060,023	1,060,023
Intangible assets, net	62,224	79,511
Deposits and other long-term assets	24,225	26,220
TOTAL ASSETS	3,039,252	3,651,187
Current liabilities:
Accounts payable	29,362	32,585
Operating lease liabilities, current	14,733	13,306
Accrued and other current liabilities	80,881	105,886
Accrued compensation	49,696	71,660
Convertible senior notes, current, net	0	451,030
Deferred revenue, current	318,969	307,611
Total current liabilities	493,641	982,078
Convertible senior notes, non-current, net	626,735	556,240
Deferred revenue, non-current	88,944	102,717
Operating lease liabilities, non-current	51,476	52,132
Other long-term liabilities	7,557	7,376
TOTAL LIABILITIES	1,268,353	1,700,543
Commitments and contingencies
Series A Convertible Preferred Stock, par value of $0.0001 per share; 400 shares authorized, issued and outstanding as of June 30, 2022 and December 31, 2021	428,894	419,404
Stockholders' equity:
Common stock, par value of $0.0001 per share; 1,000,000 shares authorized, 234,861 shares and 231,166 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	23	23
Additional paid-in capital	3,238,180	3,511,444
Treasury stock, at cost; None as of June 30, 2022 and 1,778 shares as of December 31, 2021	0	(80,000)
Accumulated other comprehensive loss	(17,946)	(2,172)
Accumulated deficit	(1,878,252)	(1,898,055)
Total stockholders’ equity	1,342,005	1,531,240
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$ 3,039,252	$ 3,651,187