FireEye To Launch Marketplace To Gather Tools, Apps In One Place

FireEye plans to debut a marketplace that will serve as a single source of tools, applications and expertise develop internally or by customers and partners.

The Milpitas, Calif.-based cybersecurity vendor said the initial version of the FireEye Market will be available in the second half of 2018, featuring dozens of custom applications built by the company itself. FireEye's orchestration playbooks will also become available through the market in late 2018, said FireEye CEO Kevin Mandia on Wednesday during the company's second-quarter earnings call.

FireEye has already built more than 40 apps internally addressing topics ranging from User and Entity Behavior Analytics (UEBA) to going through PCAP data faster, Mandia said. At some point, Mandia said there may be apps in the market that FireEye charges for, though that isn't expected to happen right away.

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Then in early 2019, Mandia said FireEye plans to open its market up to third-party content from customers and channel partners. Making the company's integrated Helix platform open and accessible to all is critical, Mandia said, as the company looks to position itself as the security operations center (SOC) of the future.

"We know we want to have a community defense," Mandia told Wall Street analysts. "That's been a goal at FireEye for several years now."

The market should advance community defense since companies in a vertical such as financial services often find themselves dealing with similar cybersecurity issues at the same time, Mandia said.

"We want those teams to be able to work together in going through data, collecting and responding," he said.

FireEye's expertise on-demand program will also be infused into the Helix platform so that customers can obtain support with everything from malware analysis to a forensic investigation to an intelligence briefing with the single click of a button in the platform, Mandia said.

The market will be key in forming bridging experts together, Mandia said, since it's far easier for an organization to hand a problem in the log files off to a third-party that has experience dealing with the matter than to read through the 500-page manual themselves. Mandia said some FireEye clients have already developed capabilities that the company would be interested in disseminating more broadly.

"People need to be able to share through technology, and get expertise and advise through technology," Mandia said. "And this is the beginning of it in the marketplace."

FireEye sales for the quarter ended June 30 climbed to $202.7 million, up 5.7 percent from $191.7 million the year prior. That edged out Seeking Alpha's estimate of $201.5 million.

The company recorded a loss of $72.9 million, or 38 cents per diluted share, some 6.6 percent worse than the $68.3 million loss, or 39 cents per diluted share, recorded last year. On a non-GAAP basis, the company recorded a net profit of $488,000, or $0.00 per diluted share, improved from a net loss of $4.9 million, or 3 cents per share, last year. That beat a Seeking Alpha net loss projection of 1 cent per share.

FireEye's stock tumbled 5 percent to $14.90 in after-hours trading, which is the lowest the company's stock has traded since February. Earnings were released after the market closed Wednesday.

Product, subscription and support revenue for the quarter jumped to $167.4 million, up 5.9 percent from $158.1 million last year. And professional services revenue climbed to $35.3 million, up 4.9 percent from $33.6 million the year before.

For the coming quarter, FireEye expects to record non-GAAP income of between 1 cent and 3 cents per share on sales of between $206 million and $210 million. Seeking Alpha had been projecting non-GAAP earnings of 2 cents per share on revenue of $208.1 million.