FireEye Inc (NASDAQ:FEYE) faltered Wednesday, after the company reported weaker-than-expected Q2 earnings and issued Q3 guidance below analyst estimates.
The Milpitas, Calif-based company reported Tuesday revenue proved to be $218 million, an increase of 7% from the second quarter of 2018 and above the guidance range of $213 million to $217 million.
Billings were $221 million increased 13% from the second quarter of 2018 and were at the high end of the range of $207 million to $222 million.
Gross margin was 64% of revenue, compared to 67% of revenue in the prior-year quarter.
Net loss per share was $0.33, compared to GAAP net loss per share of $0.38 in the second quarter of 2018.
FEYE also reported that cash flow used in operations was $15 million, compared to cash flow used in operations of $44 million in the second quarter of 2018, and was below the low end of the guidance range of cash flow used in operations of $7 million to $12 million.
Said CFO Frank Verdecanna, "We were encouraged by our continued strong billings performance in the second quarter, and in particular by an increase in new business sales and growth in our platform, cloud subscription and managed services category.
"However, these positive dynamics in our business also resulted in a greater than expected increase in expenses related to cloud hosting and commissions on new business, which negatively impacted our gross and operating margins."
FireEye shares slipped $1.15, or 7.1%, to $14.95.
