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Wednesday 29 July 2020

FireEye and F5 results highlight COVID-19 security investment

FireEye and F5 results highlight COVID-19 security investmentAs lockdown restrictions continue to ease in some parts of the world at least, cyber security suppliers FireEye and F5 Networks will be hoping to have avoided the worst of its economic fallout.

FireEye grew its revenue for the quarter ending June 30th 6% yoy to US$230m, with the acquisition of Cloudvisory earlier this year making a small contribution. Turnover from product and related subscription and support revenue shrank almost 12% to US$104m, but was offset by growth in both platform, cloud subscription and managed services revenue (up 30% to US$73.5m) and professional services turnover (up 21% to US$52.6m).

F5 Network’s third quarter (also ending June 30th) saw total revenue increase 4% yoy to US$563m, though we estimate the purchase of Shape Security in an estimated US$1bn cash deal will have added the larger share of additional turnover – organic growth was flat at 1%. As with FireEye while F5 product sales (up 1.6% yoy to US$253m) were subdued most of the growth has come from its services segment, up 5% yoy to US$330m.FireEye and F5 results highlight COVID-19 security investment

Q3 revenue was also US$20m less than the US$583m F5 posted in Q2, suggesting the company is seeing COVID-19 performance impacts (FireEye grew its Q3 revenue 2% sequentially). It should be remembered that not all of F5’s revenue is derived from cyber security provision however. A significant chunk comes from application performance management tools which may be less of a spending priority for enterprise buyers in the current climate.

While the Coronavirus crisis is not over by any means, there are signs that cyber security suppliers (including Check Point which reported 4% Q2 growth earlier this month) have seen continued enterprise demand for their services nonetheless (read our latest SITS Market Forecasts and Supplier Rankings 2020 report for further insight here).

Posted by: Martin Courtney

Tags: results   Q3   q2   cybersecurity  

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