6. Mandiant Business Has Outperformed FireEye Business
FireEye’s product business has struggled for several years due to the persistence of legacy, on-premises appliance-based technology. Revenue for the company’s product business fell to $540.9 million in 2020, down 3 percent from $557.8 million a year earlier. That’s despite the surge in cybersecurity spending that accompanied the rapid shift to remote work at the onset of the COVID-19 pandemic.
Conversely, revenue for the Mandiant business surged to $399.7 million in 2020, up 20.6 percent from $331.4 million year earlier. And Mandiant’s sales increased by 25 percent between 2018 and 2019, according to the company. Mandiant expects to have more than $1 billion of annual revenue by 2025, which would necessitate a compound annual growth rate (CAGR) of greater than 20 percent.
However, from a profitability perspective, Mandiant’s operating losses barely budged, coming in at $183 million in 2020. Conversely, in the product business, FireEye recorded operating income of $27.8 million in 2020, improved from a $26.8 million operating loss in 2019. The company in April 2020 announced plans to cut $25 million of costs through a 6 percent staff reduction in its mature appliance business.
