Mandiant (MNDT) 28 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you standing by, and welcome to the FireEye Q1 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference maybe recorded [Operator Instructions]. I would now like to turn the conference to your speaker today, Kate Patterson Investor Relations for FireEye.

you. Thank thanks discuss the the FireEye’s of and us for first everyone XXXX. to today financial to afternoon call on joining quarter Good results for be over is FireEye’s of investors.fireeye.com. Internet broadcast call at the live This and Relations being website can accessed section on Investor the With today’s Chief and Accounting Kevin of FireEye. call Mandia, Officer; Chief Executive Officer me Frank Chief Verdecanna, Financial on and Executive are FireEye’s Vice President, Officer quarter the closed market a FireEye XXXX. results for today, first announcing the After press the issued of release

number and representing statements statements. materially from of capabilities views Before control, drivers opportunities during this that and plans which priorities, FireEye’s should differ actual to forward-looking statements we not investments, and certain remind management by FireEye’s FireEye’s our you expectations to and for go-to-market begin, results and uncertainties, subscriptions a as could let beyond forward-looking expansion strategies. FireEye’s the and and me cause financial expectations, new and These in involve as those market you will these statements of of make availability on are and obligation metrics, them services, the the forward-looking today, offerings, growth and results enhanced rely guidance relating call, and to no statements and of benefits, expectations for initiatives, call. products, of apply of and we course future These update which business the these transformation, after some undertake anticipated risks our including statements

website. earnings of documents visiting from SEC filings, our uncertainties, and hour may be our please Relations ago. as by Copies the to these a For of an detailed or Investor well of our as posted description section SEC obtained the the release risks refer

certain financial on we call. be Additionally, discussed will measures this that non-GAAP provide

well non-GAAP financial Relations as measures of the for directly in financial as We on the website, section release. earnings have measures most Investor the provided these in reconciliations the comparable GAAP

Finally, the supplemental we out to over I’ll have statements financial on Relations I’d Investor With call point that, posted like Kevin. the that section. to slides and turn

Kate all And Thank investors, joining hope for supporting financial are the thank employees, doing of I us our you well customers, appreciate partners exceeded the quarter. first you this FireEye. ranges on all your interest key call. guidance against well. you, plan and executed I We our all metrics during in and and to

to me. During the emerged quarter, two themes

second, for FireEye frontline First, has And determine accelerating. expertise transformation. our our the need intelligence is made and

turn briefly us. things of the to speak first I about are that and we how quarter two best these to before meet front highlights Let in innovating me the opportunities are

XXXX, never the portfolio. is with we FireEye And areas by turn, to subscriptions. our of made XX% in our represented first growing in more subscription this strategic shift was First, Sandbox and and our XXXX. to our XXXX, tied billings. And category intelligence digits strategic tit Billings’ in seeing making product the have managed evidence our approximately been expertise are has regards of of we the threat quarter XX% of of total category XX% business our technology to double turn with second, cloud and demand. was seeing services product revenue an billings, quarter services related first our And more grow In in to are the In and faster declined combined in business. platform, of mix professional they on-premise billings and the as technology the ongoing reported this

the and supply exploits occurred. chain, of During environment, impacting and the first threat complex products day popular extortion Ransomware quarter, organizations hostile faced onslaught in an a and zero implants

are threat at conventional escalates, the not effective risk. reducing environment safeguards As

and safeguards more products as protect used commonly innovating FireEye intelligence intelligence, and effectively. into we expertise at expertise Mandiant speed well the Therefore, our the threat embed threats with customers and to adapt far our to as coupled However, Advantage can continued faster platform.

strong quarter. Now FireEye let me quarter Team some discuss highlights. delivered first first a

our business. we our continue to transform performance, financial addition to In

of made services of category transformation. from services billings our testament the first cloud managed to combined the and platform our is we billings substantial of quarter XXXX grew efforts subscription This mix first mix with Our and the progress a professional of with XX% the to our in total of our shift have in XX% quarter total XXXX.

this mix saw shift ARR. with also to trend and in revenue respect We

grew we in ARR combined mix grew XX% Our XX% security in believe mix our continue expand quarter category our and the first revenue year-over-year to XX%, in address the This our emerging from capacity consecutive XX% right our revenues expertise strong and professional market Ransomware In in as of validation. of and quarter, services direction. from services remains and as of managed Services, to to first growth. quarter I scale cloud record XX% moving zero of offerings our Demand short, with is the assessments, needs Mandiant the for this in resulting quarter respectively. of for Mandiant revenues migration mix such to our subscription was XXXX, XXth platform cloud XXXX, trust,

year-over-year and growth. cloud revenue billings platform subscription Mandiant category Our XX% and growth Services XX% had year-over-year

endpoint threat acceleration the and across our we in growth intelligence, While validation driven all strength by this and solutions the cloud solutions. security category, was saw

They're intrusion in observations effective found quarter. single continue the are gleaned to [technical safeguards Ransomware, are strategies these contains in greater networks. which that XX their their customers manner. observations continued frontlines set. of and new and their transactions or if want of from here some trust re-evaluating cloud way. We And the can in aligns processes value attackers from XX% report, to tell organizations or this, their all During and to also about conventional of the investments. are list the findings. threats our environments. that not our it of was families the protect distinct in or to restricted do to This quarter, recently of result networks remediation learning latest know availability to a were a our first products effectiveness performed and consulting prove More were are the are three protect published XX% how frontline half than learn meaning closed to are to developed us these looking included XX% than timely more ways expertise malware available, than $X year transactions intelligence and were in than machine with improve publicly services. the of zero their a well how technologies actions, for actions new included and and observed The of cannot These malware from protected they first frontline these solutions, learning lastly, More they of XDR we was intelligence circumvent the XX% new transactions FireEye attacks. of only were and our with faster and cybersecurity not M-Trends seen never privately annual as And the FireEye’s just deploying And families million. the security to difficulty] we validate families implement artificial protect before. And threat innovate they investigations against want they posture. malware few Mandiant we a globe. investigations Nearly and organizations around And XXX of actors observed deploying XX topics secure to strengths. last

And to these the and We incidents. more remediation to considered expertise and secure. have we to have leverage investigations our can themselves intelligence organizations make meet all into of activities Therefore, various our performed continue thousands expand to security we learned how need. incidents, solutions this threat

company the quarter SaaS like we platform By Mandiant expanded fourth Solutions. quarter of with with security acquired the XXXX. we Respond in And completing Software, to our So first for our Mandiant first, innovations that's I'd and integration operations. our discuss Advantage, the

As frontline another This models early alerts Automated April investigation launched XXXX. in our Advantage module updated Mandiant the and continuously at we and expertise. the threat discovery Automated it machine Defense, it trained of automates Respond of intelligence are we capability The in speed. platform, with Mandiant Defense became renamed in and and

there of with right than operations other is Defense integrates more security using a Automated So security currently Mandiant center. vendors. experts having from Mandiant products team Automated like XX Defense your in Mandiant

So customers their with multi-vendor environments safeguard can leverage networks. defense to automated better

our Defense Automated with as endpoint integrated security Network Helix. FireEye email controls, well also We and as with

Respond, defense module. managed mandiant the model, and advantage service. addition of the threat now or as With are these our a automated technology our our of available validation modules three security intelligence as Each modules, module, includes

refer to they can capability on an when against expanded need safely to to subscription. onetime Second, adversary Security is we simply itself offering service paid with and without what defend our a what threat? customers and ongoing a onetime, demand particular need We a they is test so it validation customer's emulate validation answer an the question, validation this Mandiant

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agnostic defense XDR be rapidly able As market, service with we expect we the controls managed to our controls a support deliver to additional offering. to

And our tuned. innovations turn like stay FireEye products. the we accomplished now So to in to I'd

detection network our next XDR industry-leading delivering email protection continued native platform and through for Suite our with generation endpoint, Security FireEye Our capabilities. and customers

as Our hybrid where in cloud deploy solutions be we strategy and the effective in on-premise continues to the of as they meeting environments. customers our are

saw network deals. we growth endpoints, cloud high security above security market email a large renewal strong Specifically, and subscription for rates, quarter for

been you lead four hired he areas. first quarter the recall, product Brian focused Palma As on we our And team. to may has particularly

improving our products. First, across experience of suite user the

our increasing machine efficacy integrating expertise, our detection and by updating our frontline intelligence, Second, algorithms. threat learning

product correlation better team will Third, achieved last few with enabling functionality XDR, just engine for have as enterprise security. we our that quarter. I fourth Helix a of the milestones over recent wide cloud mention And a extending

the threats did extensible recent and threat additional XX. modules incidentally, consultants both we for in the our download the And to on actions the other framework are year, identifying by full the combating FireEye develop of to available test. XX% were extensible APIs modules modules, plan time in available our and endpoint the framework these First, for total three bringing adding to the Marketplace partners, endpoint of responsible consultants FireEye to by we power our and wild. MITRE customers, this modules unleash attack Later real allowing for leverage endpoint

And URLs as they on G our Microsoft launched OneDrive, and malicious files detect industry-leading media, across to remarks. demand an access instant wrap can customers applications. to prepared solution. like I'd our this added applications. experts collaboration native Box my recently capability malicious network capability help. extended Slack, immediate Detection across endpoint storage up Salesforce, we cloud messaging need and CRM, And such on the We Ask Suite leading platform. last, And this our our social now to capabilities or tools, Expert Second, we detection Mandiant provides detection when across demand

for confident programs recent year combat trust, catalyst, nearly a of will responding current of to us required puts and With as outcomes. security derived to XXXX we that changes environment. at demonstrate the their in decades our headlines matter deliver best our from am threat solutions I seeing line we customers better defense. position the which believe that customers us of provide continues a breach the the look FireEye be security of two that incidents to are I forefront security the re-evaluate to

for quarter for a We us our that, start their for investors I hard more continued I'll our the and employees are bringing off work And our this to to and all would Frank our financial our details turn point. their thank the over want like support. with FireEye partners on to great call first performance. Frank? I to customers, With thank to and

was we To and call. second carry you QX forward Kevin, XXXX into of half would that on today. hello to quarter XXXX the clearly predicted last for us worth It’s XXXX. everyone history. our it momentum Thanks, the quarter, QX, was And this the that true. performance from joining summarize, And the Thank company's first of an XXXX. best repeating equally follows in strong

QX year metrics from our cloud platform our Our on operating in us and and growth rates and EPS Billings, services top-line accelerated The the strategic remainder and for gross year-over-year in the allowed QX revenue, operating for categories. our for translate XXXX. into to ARR metrics, our strength on revenue raise margin overachievement of continued strength outlook margin, to subscriptions,

move on be guidance guidance full updated for and our operating you the in let QX except results and I'll that referring me we revenue our cash to year Before the to detail for of remind metrics, flow. XXXX, for non-GAAP QX, the

exclude stock-based a measures intangibles, expense convertible restructuring convertible and items. non-GAAP other debt, our series Our amortization convertible charges, stock preferred non-cash preferred on compensation, and non-recurring of interest accretion equity, on

revenue approximately three range, year-over-year was million and our high than $XXX Turning second to of the growth and ever. of growth XX% above revenue of revenue We million, $X years. delivered highest quarterly more QX the our details. highest quarterly the guidance rate end Revenue

The time, rates performance revenue cloud revenue sequentially, of with and will sequentially, related to accelerated ARR gradually Services recurring ’XX compared XX% for the our growth installed XX% revenue stabilization will to on over Note important categories was Total focused revenue, controls-agnostic Mandiant compared shift area and years. but Services the from to the ago. support XXXX a result impact ongoing at we endpoint, that products mix in our sales revenue decline accounts and threat growth beginning most higher XX%, cloud our reflecting higher a the ARR mix areas year-over-year. of market declined offset higher in a category XX% expect endpoint, renewals reflective total of by growth just in the without cycles. mix appliance increased in response our Mandiant We this compared Product cloud cloud and X% XX% long shift total quarter subscription base This balances metric. subscription ARR the regard capacity platform deferred performance continue years we trend X% or to contracts of indicators at in of the XXXX. growth non-services past tail revenue and end, of and of our as Kevin out adoption for Our continue of ARR growing the the in diminish. into market steady the of slightly previous and in growth Revenue contract mix revenue now typical of year-over-year with sales hardware insight and expansion year-over-year, and was and combination our XX% see in discussed, and incident of recurring accounted as the amortize year-over-year business. category the XX% reflecting increased ARR Mandiant lower a deferred see two this QX of subscription and Growth as in revenue refresh Product revenue. seasonality over hardware of in intelligence increased of intelligence strong cloud large platform strength shift deferred validation. hires average X% recurring provides the annualized organic of in annualized the to this performance and of and are on declined with changes QX Solutions, reflected remain top-line QX and metric as adoption. evolution validation related and build driven revenue the of threat reflecting that accelerated and higher to subscription support that the quarter, continue and the the The both towards subscriptions both year and business. Services I

we've in factors growth rates, or cause these especially all within billings quarterly can seen any As breakout the volatility the categories.

second as However, billings for a was XX length billings evaluated rate customer year-over-year, contract geographies, grew a mind, the revenue conjunction in The with momentum. that and that for compared especially useful was Growth and of indicator and subscriptions size. row growth in average recurring vertical XX% trended months digit years performance report quarter XX highest underlying the in broadly ARR when QX months, pleased in I'm billings, based business to leading the approximately double can markets to weighted XXXX. three across be growth. With in

services subscription Solutions. controls length by category. by and momentum billings true cloud-based our that the two at increased acquisition even million. second contract Respond not managed grew XX% $XX in the the consecutive did platform reflects was our performance and Looking category, and billings achieved QX months contribute year-over-year. and by growth so Mandiant quarter above though agnostic products in year-over-year cloud for declined Services of materially to was the This The acceleration market in XX% quarter average billings

growth for Although we QX on-premise the for for length our Billings, and assumptions underlying subscriptions hardware support. level year-over-year, metric related strength emphasize continued performance for clearly I category Adjusting believe initial demonstrates support XX% and declined reflects sales, strategic have ACL, year-over-year The the to services. in of product and XX% revenue would billings better revenue the for by declines appliance and demonstrate ARR contract month business the solutions XX%. that of demand and than high to year-over-year. best QX and the for our services. as This declined in sustained performance and in average shorter our approximately recurring momentum growing subscriptions X% four in Billing a of expertise. decline

higher decline over as for forecast emphasis multi-year months. to to as quarter-by-quarter of range Billings, our business return increased the industry the going on average the on contract that of make our our XX expecting assumptions QX mix for mix healthy while related a in ARR quite Recall and XX we of in contracts. but the length that is have Before renewals precision of about in a year ACL and I'd trends, consistent trend remainder we decline The the basis, forward. and is as SaaS the and our like to to to the with category. been the ACL higher in remains with well difficult is for we assumption a margins, comment quick product

per was the to higher guidance of of diluted margin. as margins, gross was services $X our quarter XXXX $X.XX of weighted QX solutions. response as in of and our share strategic a payroll The sequentially. in guidance and the share programs strong two average XXX above The operating first for and reflects reflected employee-related top-end taxes operating gross at reflected our growth range for quarter impact we more higher Gross above with achieve cloud-hosted margin of full as increased to expenses higher count margin than revenue profit increase Earnings sequential due drive X.X%. issued products share quarter. of associated as mix compared and to Overall acquisition to our X.X% the The and high expenses about the our sales of year, above incremental fully about increase price plus expenses commissions the an a margin well other resulted to of and of beginning guidance awareness strong Turning during from the seasonal a Respond the Respond shares marketing to million kick million $X.XX. performance X%, average points to and full higher at range XXXX XX% quarter $X.XX operating $XX of declined million expenses for of incident margins economies continue scale. our efficiencies and XX%

balance flow to on sheet. cash the Turning the

generated in increase guidance software areas Cloud were XX in due expenditures consecutive for second Mandiant million operations growth below The flow Capital With $XX modules CapEx internally of we quarter. million. investment in other platform, the Billings strategic Endpoint the increase million. days our primarily of business. the of $XX $X in above of We Advantage range as ramp acceleration from is to cash an approximately developed and the DSOs and our of growth

was with $X.X quarter quarter with remains Our of billion. deferred we accounts equivalents We and $XXX balance end term the QX at level lowest cash million, of million the quarter short of healthy, revenue and XXXX. what ended of accounts investments Total of ended current. cash, receivable $XXX XX% the was sheet very since receivable

the the Now turn let's quarter for second XXXX. and updated year full our to outlook for our outlook

the $XXX million For to of we revenue in range million. expect QX, currently $XXX

approximately and For support expect the platform managed consistent QX. categories, product rates and subscription cloud and services and related we subscription year-over-year with growth

response relatively instead saw consulting rates incident XX% services implies strategic assumes we This but is levels be the to services end other our the expect XX% We mix of QX, flat high the to QX, historical towards range. year-over-year revenue to versus than the which we with of still target higher slightly closer delivered in XX% the mix in of less QX. growth

expect XX%. gross between margin of and We XX%

assuming mix We IR of expect the decline QX, lower margins range. services XX% to slightly and from return XX% to to and

expect to and support products gross subscription also margin remain the We in mid-XXs.

are We basis. operating diluted operating implies earnings expenses flat $X.XX. a of XXX the we shares, quarter count fully diluted and first XX%. approximately between dollar This on fully of share between expect X% of margin per Using $X.XX and million with share expect

of year. range the raising midpoint approximately representing guidance the at XXXX, are $XX million growth we for For our X% by revenue

margin of gross XX% expect between We XX%. and

million XX%. outstanding a range are based assumptions. a within a fully results to are guidance margin on annual non-GAAP on earnings Embedded of We our ranges diluted $X.XX, of XX% to These in approximately operating per share guidance XXX average basis. $X.XX raising to shares our weighted several

rest year-over-year of year-over-year for are Services talking and rates annual rates grow growth XX% our for annual continue rate to XX% growth can of And and to the note subscriptions vary. from quarterly higher and services. for for expect product and subscription Mandiant the revenue that by for Please year. for decline revenue XX% growth XX% to categories managed year. growth XX% Revenue growth end of platform we to cloud towards related to assumes about around each the we at Our these the support

to range gradual the improvement more margin the second operating year, weighted heavily throughout year. the Our of half assumes

overall and an but level We have in travel at and a facilities entertainment the expense assumed lower levels. expense to compared facilities and in pre pandemic increase as second half, T&E

solutions. We increase the to marketing to Mandiant expect awareness increase also investments for and Advantage

of Finally, XX% full these expense we operating the as for an about year. margin levels flow expect cash

as low quarter. level slightly of the receivables to the we QX, negative expect enter flow Given we see cash second in operating

Let me QX now conclude turn repeating that the quarter by our for continued this I'll our reflects great questions. updating a our future. in operator was confidence outlook and the call over to

Thank from you. Auty [Operator Instructions] Our first Sterling JPMorgan. with question comes

proceed may your You question. with

Great. the Ader is for do actually you Thanks questions. for tonight. XX% can growth the This How to support in that think Sterling taking up continued that of quickly the our of Jackson order year? need you on couple Mandiant. you through kind A headcount rest on scale of questions

That this We able approximately being did heads to would last it. year. be XXX do similar we year, anticipate number and

It's tracking been of consistent And kind we of ramping be heads. that. to very to continue

that. been so And on services of And seen growth quarters XX to you've kind we've there. able continue of deliver to record

of a Frank, hot And, -- just think heads in where whether added you the are utilization this seeing at But part in XXXX. those expansion where strength first bit of And little what rates capacity quarter? the the that relative were you to running curious expected for moment? some I you you are the things -- mentioned

team. expectations, I very can chargeable driven environment a as with it years. our consulting threat couple has that consistent of been last Yeah, it think various -- and for elevated, think the as has pretty continues running I be much of to obviously Yeah, really to hot the but be our been areas pretty, was be that it's

Okay, you. great. Thank

you. Thank

Thank you.

with Boolani Our next from question Fatima comes UBS.

question. You may your with proceed

taking you Good I'll for my questions. Kevin, with you. afternoon. Thank start

You of how us KPIs. for business every your single on the much really quantified transformed has one

transition. you've chasm sort crossed on of the clearly, that So

behind rest So in remaining shepherd to some place your more some non-recurring XX% to newer is What base follow that of over customer newer Frank, mandates form the have solutions, Just of business, the the the existing that. in I the programs the category. please. or factors what's sort of do but of you I'm of sort importantly, for have a incentives, And strategy solutions? up your with wondering of the still

on the think I of could got there. call strategies. probably We Yeah, we the rest strategy numerous spend the

I think FireEye side Fatima? -- you're what that at and products, our foremost decelerate? as is on-prem the correct First And to continues least referring strategy to their on

That's right. exactly

Yeah.

integrate first -- thing I it was years out you I tell a the First think box, do of black ago, the is box, the five appliance. get can to black the way by IP literally

done we've So that.

efficacy. use bundling endpoint security, rave the on get FireEye integration because the about can you it's and that so focused so security, do and on of being you focused Helix get went the detection on these network security, cloud, can together, to so XDR email And products value a and suite platform, that, can from a you works that products, on the focus folks bundle that

we do. to UI is just that that's And to now always something trying get got So software improved. that everybody usability in and

we've quickly, done So that. again, cloudify And period. it,

coordination thing is version there's working all every the a and software make single keep So you can cloud that of integrated bundle. XDR the Helix then platform better sure say now. always subscribe can integration, between our And that for to nucleus a we products,

So sure things. experience to improve, nicely continues four all integrated user and those to it's make

-- that. I Frank maybe appreciate for

doesn’t work. it think I But

That's helpful.

adoption you you've Advantage, the I a threat that's module. it been had Thank the XXXX? that And Mandiant On And you. at some modules statistics, out for appreciate, for can sort should me. attached do from maybe long Curious can to appreciate share question that suite. especially as new it support slate? as statistics? the think what the of Now, we intelligence in you. have of Frank, it your full product on-premise only about the family I as for all or that, you contribution tail, the in added available to and expect terms ASP now relates contribution to How now if

Yep.

through quarter sold caps-off all very Advantage. So Intel, had year really Mandiant another it's strong obviously strong Mandiant Advantage. offering really days Intel that of for early But, -- Mandiant Advantage is a we've now and XXXX. through not our we seen And in right

to new So well. Advantage the and would going got with the new we've ramping Those if I the Managed be validation it really in you acquisition, areas are umbrella, the our for Module do automated launching high you've got got say, added and Mandiant you've we'll models there, intel, look growth Defense threat there. all defense then to you've And at business. are in Respond obviously,

together And so it we're with pulling Mandiant Advantage. it and all all tying together

to growth be one drivers platform bucket. the of of that's the So going primary cloud

Fair Thanks enough. that. for

Thank you, Fatima.

Thank you.

question Essex next Goldman Sachs. Brian from comes with Our

question. may You your with proceed

the good afternoon, you do Kevin, was seeing for these of go-to-market, Mandiant if and you've are thank the will, the are able that And that on taking how circle by within most you Greenfield competitive platform? been three where wondering to on that Mow have if what back displacements, these much and competition? to effect, attack of of opportunities? halo is can regard products maybe kind that? Are driven the you solarwinds of With like modules Advantage. I you Great, the back you main question.

Brian. Yeah, to that backwards. so I'm going peel

we we our company. solarwinds, from responding reach effect but security I'm of halo know being more we wasn't to find by point And days than the the as being aware how just we zero in. It us frontlines. we do don't other where investigations, breaches. frontlines broke the attacker a just that think find any for I most And them on

customer implant. December peeling zero a This So year a day software don't to we we and knowledge at. every an is that's of solarwinds in seat the name you like I we front want there’s happen what just others, back start single found creates the on But to end for not it. be effect halo found the itself, event. row the And of the at the day,

So provide your it's adding see that like for can you and don't plug is there to intelligence. Advantage, Mandiant does Getting I what tailwind a ever to technology where a network. XXXX it's existed it's Greenfield, believe I experts

to Advantage You make work. have have Mandiant to

languages. XX a moat for we countries have you global in to Intel over who speak have capability. it, the Here's XX we're have Brian, that over And

day, And of did tactical, we we that a year. X,XXX to you products adapt the that intelligence of can as to that we're the to Advantage absolutely with lines. don't a seat have are today, single every our they Mandiant threats a the people behind breach think, where so It's they're front these have lot strategic. front of of team, all intelligence message row international circumventing think security the clean the have, and getting up own intelligence which are don't to left have our and get simply it today static, majority over because that from knowledge can investigations You last feed the we we is that just can how investigations products. learn, lot don't we safeguards products the And we

having to starting business because popular as invested in now XX was see in was ago. a for I've years, that it years ago, bottom been not think business it tailwind. that not been was almost. XX people the It's But not a a it market knowledge. I for So XX incident are line, we've years, years a response in XX XX years market becoming strategic the ago, value market

it you Greenfield do So and Intel that that ability the to Brian simply Mandiant expertise and to many do that. naturally your to validation, safely and And past automate then speed. security related to safely it's Advantage at bring the machine opportunity is

your to threats and security you you’re got to If do knowledge. real with test real

the got hey, it? threat. You simulate I get the made software Well, content can't you We that a just can do be for where content.

that so Intel love just marries we up the And story the have. validation with I perfectly

So together. then component of automated Advantage. the got all And it defense Mandiant finally

And we way automating We continue haystack, it. a of in needle it's of finding it, -- it's to the our with really we doing a which spend bed. train every learn to single continue lot a time

Intel that's collections the has long-winded a Advantage line think Mandiant the the capability, frontline us. anything done But like this the because in lot I So Greenfield international for have opportunities bottom AI don't a past, expertise, answer. of machine learning. then company's and work provides no and to existed

just on force where sales you is how Maybe sales And a That's super how and point? mature Maybe at is it? And follow this channel that versus Got marketing. investing helpful. up direct? much Frank, now?

brand is But side and side. we're the Solution on the areas investing very bit sales awareness mature. now quite in Mandiant a of Advantage the I think Mandiant distribution on

inside handled lot conversions the investing pipeline Advantage can is we're The of on the inside because a sales more lot Mandiant be other force. on and thing doing sales of a build by an

the side leverage. our I products Brian's ultimately So really with lot will of the think the easily easily demo helping deploy is work team there. and which been usability help we're seeing on working more help to a leverage product channel that And

Got Appreciate it. much, guys. very Thank you it.

Brian. Thanks,

you. Thank

from next JMP Erik question with Suppiger comes Securities. Our

You question. your may proceed with

for thanks taking Yeah, question. the

a Or that On Advantage, is base? into Have looked a you about Mandiant how into freemium talk can customer that model? customer's the you you're at the quickly integrated the easily bit little easing that using environment? ways

done But a it of then a freemium how defense with these obviously to-date. intelligence Right updates threat hundreds XXXXs And in we enterprise we just And all on a And have Converted we it. sometimes. freemium now than platform. folks, last the now and had model have our been the folks cloud-based a to of Mandiant model. same that's our year customers see have customers more software, all of moved just between faster, Advantage. current the actually and we've every Because week, have sales modules lot week. to intelligence this integration three kick-off that. the updated We true automated it's that single second there there is of even timeframe, so advantage sales couple our heck unity a out that added is our a we the can threat single validation taken at that of and only customers the our credential,

we So kick-off. more to do have sales

than to we a the So continue on team more just enable quarterly basis.

So Frank, you that? to want add to

No, nice a and a spent marketing something a mean, conversion. nice starting see seeing because definitely that dollars to for are us. It's it's we've on pipeline build also really I really more we area focus

a service itself to lends more Is that channel sale.

Yeah, I were modules focused and purchased Mandiant think creating easily one Advantage be of within the be be things making that on advantage. that was demoed that we it purchased and we can easily really deployed, something really when easily Mandiant

of really really ease think the well. So and of ease usability I that use worked and And that kind fits of on channel we've kind purchasing. the of

Very good. you. Thank

Thanks, Erik.

Thank you.

Thank you.

Fodderwala comes Morgan Our from Hamza with Stanley. question next

You may proceed your question. with

And Hey, for thank my taking you guys, good evening. question.

I to towards Defense? do a Just time you starters, going what two underlie that a cases lot guys Automated questions on Mandiant to use Curious have that. do what you on more of going cannibalizing Advantage how and customer, that's defense. as think now be to a like you similar built Mandiant be our the think that just perhaps, seem somewhat initially, of potentially Helix here. Helix over see I'm curious of vis-à-vis helix, was the converted more for data lake, going automated

Helix ton Yeah, a there'll and be an the is with evolutionary, same of correlation because analytics. rules

see trillions how that we're of provide you'll we actionable what in models with our alerts you So automated get you our of down there's difference get you you do is Mandiant Advantage the analytics, maintain The we that defense. using expertise is get and us minimization that humans to get when there. though, actually that in rules, events alerts is our

overlap. there's So to some extent,

your and it. believe train a human that we're If that you skills you get a the correlation that going But to maintaining over rules, XX fact creating can system. is time, maintain you SIM, software have Mandiant Advantage have to mature learn you might think those do outcome that you required may from people systems. that's we SOC, the with great same have models overtake And the in get

then common SIM all got repository is, our SIM. second different data alerts So alert you doing how it, IP, to it. data is expertise the the down to how applying attention intelligence, it. with thing It here's just sidecar big say, the way go threats nailed event But differences, it to it's a stores it it's Whereas pay in is work Helix Helix Mandiant has has is Mandiant a rules than but does and you it it's got our and data, in of a that the Advantage volumes format about that's minimizing one in of and we the the SIMs. the that And to.

the minimization a So where a on Helix customer may they sidecar they'll rules to get overtime. there will correlation their ship have But Advantage be rules, to happy automated maintain everything we it the own be can with plug some buy the that. with -- Mandiant and depending of get the customer, and as

by think actually market automated the team own now do these I sort think mean, like solutions. on automated far today, can I How do as XDR of click type just response software? then And front. stands as you -- the our I much one automation. be security mean, like sort of

in I'm curious on Mandiant like, And side? about to really so services where the think that comes

as you provide with it. provide outcome Yeah, I'll Nobody long start this how you as first. cares the

is well it So Mandiant probably do We sitting and that if every us. of scale. I stock But create as a as I can minimization would that do wish can't it steering they thing can talked say a one at doesn't in not. do as the was system the had and Advantage we people their to, that human, lot that learns things of it Kind alert. they offer

it defense, security lot To or can all product humans. It's or off or some to and cases a security. team are today I automated in mark like the going it idea. to plane our use do network better land to and itself. like automated But of some faster, it And whether though Going stage got we've by than is of we it our plane with still I but in products extent it do kind at product you similar a have way product pilots And experts. email endpoint defense, the the this the absolutely. and on even do will take this

see, bought that collect of time And we safeguarding they to there Our miss that, our backstop. going on the all customers advanced know as they you we because customers anything? intelligence when never did are opportunity practices, well data the folks have products, the smartest we through we're the don't it, have products. purchase planet, mining talked our there's a constantly And But make And some actually human as all security to Is our all to safeguarded. even that about we professionals sure behind it. that that me metadata market our an thank for giving there? anything

So I systems, industry. be like the just when see you're over the next it'll airline few years, training

a to of the want our to sure train our we've saying, buy And boundaries lessons along make sure we to we But want at would we I deliver efficacy tech, a it the I whether think want that's XX% be Mandiant software. if experts feels tech? of outcome the but And to I want what XX% lot I how it, of and the and would will just way. to constantly learned that that's I've safe. test what make Automated tech deliver outcome know lot got or regardless to of Defense, we provide.

That’s helpful. super you. Thank

Thank you. Saket from Instructions] comes question Our next Kalia [Operator with Barclays.

may You proceed your with question.

taking questions guys, Great. for for maybe thanks my you. Kevin, Hey, here.

to additional for the customers sales something they to now Advantage? price of validation? of moved point? intel that once that cross have Or to security perspective move Intel those your sense from that threat opportunity customers For like can terms those that kind in Intel they segment Mandiant flavors them that opportunity Is sell Does of Advantage with kind maybe of base? the receive additional Mandiant threat make that to threat

from a two Yeah, size I happen. foremost, fits my or security guy it here's And how Those stop first one happening into it not either do operations. how there's want intel, something to gets I'm why if -- things. that's and But all. see probably could

anticipate, right. And so to third -- be would it's the either and

up our So got away. gives a I I've data right and display. being in think SOC sitting And heads it Advantage, to Mandiant us applied our again with a I'm if intel

the Mandiant of situational where fighter in pilots SIM I'm it, face. when with literally like got plugin force, with front Advantage, the like the a and cockpit we've in like So we at do getting got air my that that. displayed their get looking alerts We awareness you're display

we that [indiscernible]. that what address, on Here's IP based know,

all we responding just down you intel, to when presented open make to can want to you're additional drill And you our have alert. data well. but It's to intel don't Here's Google just an source sure on. not as you,

When your But currently is a would the as no, or to you're log that. provide. one that's great pivot a you're going the be, intel. compromised? number fire work? problem? So I want would Am an network. not you what on you're currently have let's I and question that done delivered with compromising Do answer team I be operator. to Yes put out there's to could Christy through pivot have this well say smoke files your that, And no how has with does we

last just Could Oh, we're and the I? doing. we God, have But week Within exaggerated thank you we straight from problem. go don't know, that to now couple see how run what? I the and have ability Let's paths a

right that's logical -- in great an a that's itself. software the upsell and So

relationships we're the sure between SOC, drive. But I'm we've it. managers, if to again, mention to you it. you an see to everybody have Intel-driven account trained Our And want going

the place. from You if things software. it's all stop that first something's the test happened, happened to if points in it to and into happening, could those that's possible, detect decision and we're linking Intel have want And then even

sense. a up a for you. makes for ton maybe That quick Frank, it? Got of follow

for that we of made, kind that call that platform and in you decline. X%, related to -- sense? that's cloud transformation. product the would of ARR, line? customers that is three ARR. form For that just five question of some Does we the make expect, about to product is earlier opting natural to of kind much factor how a X% certainly But sort that point and as year-on-year seen I from I The mean year sorry, terms mean, related versus you think it of I'm that

Yeah. it's Yeah, mix a of both.

cloud. migrating So customers the endpoint you do side, to and have on especially email, from on-prem

the network to that have migration. On side, as much we don't

the both. again, cloud on now huge right down that isn't if a it's But customer of could I So platform obviously, the a happen. to accelerate. get if we forward, going would going But churn, there. the factor is then But bucket a that it network say migration it. the to did upside on side, related kind is mix that's smaller of ARR

it. lot a in me here. for Got thanks Guys, squeezing

Appreciate it. Thank Saket. you,

any And now I back I'm further time, Mandia questions. not you. Kevin call remarks. further for Thank At seeing to this turn would over to like any the

attending. for to We've for everybody first thank the to quarter. great more I needed congratulate or FireEye been a like never team in want I'd cybersecurity. relevant more

our and the So teams I the protecting on customers been that frontlines, well our zero have customers. finding organizations as that as want to are the thank days

days look I speaking forward Take want So with with everybody. to that, I update. in XX to care. thank another you to

you you. today's gentlemen. conference and for This Thank participating. concludes Thank Ladies call.

now disconnect. may You