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Mandiant (MNDT) Q2 Loss Narrows, Revenues Surge in Double Digit
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Mandiant posted a non-GAAP loss of 13 cents per share in the second quarter of 2022, missing the Zacks Consensus Estimate of a loss of 10 cents. However, the quarterly loss per share was a penny lower than the year-ago quarter’s loss of 14 cents.
Mandiant’s second-quarter revenues of $137.9 million surpassed the Zacks Consensus Estimate of $132.2 million. Also, the top line registered a 21% increase from the year-ago quarter’s revenues of $113.9 million.
This was Mandiant’s fourth quarterly results following the divestiture of its FireEye Product business. On Oct 8, 2021, the company completed the sale of its FireEye Product business to a consortium led by the private equity firm, Symphony Technology Group, in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, MNDT classified the FireEye Product business as discontinued operations, and the business hasn’t been included in second-quarter financial results from continuing operations.
Revenues from Mandiant’s platform, cloud subscription and managed services division increased 19.5% year over year to $62.1 million. Its professional services segment’s revenues surged 22.4% year over year to $75.9 million.
Mandiant’s second-quarter 2022 billings grew 11% year over year to $145.8 million, primarily driven by strong billings registered across both operating segments. Professional services billings grew 13%, while Platform, cloud subscription and managed services billings increased 10%.
Annualized recurring revenues increased 25% year over year to $305.5 million.
The non-GAAP gross margin remained flat on a year-over-year basis while improving 100 basis points sequentially to 59% in the second quarter. The company reported a non-GAAP operating margin of negative 20% compared favorably with negative 26% in the year-ago quarter as well as in the previous quarter.
Balance Sheet & Cash Flow
Mandiant exited the second quarter with cash and cash equivalents and short-term investments of $1.64 billion, which were lower than $2.13 billion as of Mar 31, 2022.
During the quarter, the company used $38.5 million of cash for operational activities and had negative free cash flow of $45.7 million.
Guidance
Pursuant to its Mar 8, 2022 announcement of entering into a definitive agreement to be acquired by Google LLC, Mandiant didn’t hold the post-earnings conference. Also, the company did not provide guidance for the second quarter and withdrew its full-year 2022 guidance.
On its fourth-quarter 2021 earnings conference call, management anticipated revenues and annualized recurring revenues in the range of $555-$565 million and $360-$366 million, respectively, for full-year 2022.
The company projected the non-GAAP gross margin of 61.5-62.5%. The non-GAAP operating margin was estimated between negative 13% and negative 14%. Mandiant expected the non-GAAP loss per share from continuing operations in the band of 36-38 cents for full-year 2022.
Zacks Rank & Stocks to Consider
Currently, Mandiant carries a Zacks Rank #3 (Hold). Shares of MNDT have rallied 30% year to date (“YTD”).
The Zacks Consensus Estimate for 8x8's second-quarter fiscal 2023 earnings has been revised upward by a penny to four cents per share over the past seven days. For fiscal 2023, the Zacks Consensus Estimate for 8x8's earnings has moved north by 10 cents to 23 cents per share in the past seven days.
8x8's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same in one, the average surprise being 175%. Shares of EGHT have plunged 69.1% YTD.
The Zacks Consensus Estimate for Cadence Design Systems' third-quarter 2022 earnings has been revised upward by five cents to 97 cents per share over the past seven days. For 2022, earnings estimates have moved north by 3.5% to $4.11 per share in the past seven days.
Cadence Design Systems' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.8%. Shares of CDNS have decreased 1.5% YTD.
The Zacks Consensus Estimate for CrowdStrike's second-quarter fiscal 2023 earnings has been revised upward by a couple of cents to 29 cents per share in the past 60 days. For fiscal 2023, earnings estimates have moved south by a penny to $1.23 per share in the past 30 days.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.3%. Shares of CRWD have plunged 8.1% YTD.
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Mandiant (MNDT) Q2 Loss Narrows, Revenues Surge in Double Digit
Mandiant posted a non-GAAP loss of 13 cents per share in the second quarter of 2022, missing the Zacks Consensus Estimate of a loss of 10 cents. However, the quarterly loss per share was a penny lower than the year-ago quarter’s loss of 14 cents.
Mandiant’s second-quarter revenues of $137.9 million surpassed the Zacks Consensus Estimate of $132.2 million. Also, the top line registered a 21% increase from the year-ago quarter’s revenues of $113.9 million.
This was Mandiant’s fourth quarterly results following the divestiture of its FireEye Product business. On Oct 8, 2021, the company completed the sale of its FireEye Product business to a consortium led by the private equity firm, Symphony Technology Group, in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, MNDT classified the FireEye Product business as discontinued operations, and the business hasn’t been included in second-quarter financial results from continuing operations.
Mandiant, Inc. Price, Consensus and EPS Surprise
Mandiant, Inc. price-consensus-eps-surprise-chart | Mandiant, Inc. Quote
Quarter in Detail
Revenues from Mandiant’s platform, cloud subscription and managed services division increased 19.5% year over year to $62.1 million. Its professional services segment’s revenues surged 22.4% year over year to $75.9 million.
Mandiant’s second-quarter 2022 billings grew 11% year over year to $145.8 million, primarily driven by strong billings registered across both operating segments. Professional services billings grew 13%, while Platform, cloud subscription and managed services billings increased 10%.
Annualized recurring revenues increased 25% year over year to $305.5 million.
The non-GAAP gross margin remained flat on a year-over-year basis while improving 100 basis points sequentially to 59% in the second quarter. The company reported a non-GAAP operating margin of negative 20% compared favorably with negative 26% in the year-ago quarter as well as in the previous quarter.
Balance Sheet & Cash Flow
Mandiant exited the second quarter with cash and cash equivalents and short-term investments of $1.64 billion, which were lower than $2.13 billion as of Mar 31, 2022.
During the quarter, the company used $38.5 million of cash for operational activities and had negative free cash flow of $45.7 million.
Guidance
Pursuant to its Mar 8, 2022 announcement of entering into a definitive agreement to be acquired by Google LLC, Mandiant didn’t hold the post-earnings conference. Also, the company did not provide guidance for the second quarter and withdrew its full-year 2022 guidance.
On its fourth-quarter 2021 earnings conference call, management anticipated revenues and annualized recurring revenues in the range of $555-$565 million and $360-$366 million, respectively, for full-year 2022.
The company projected the non-GAAP gross margin of 61.5-62.5%. The non-GAAP operating margin was estimated between negative 13% and negative 14%. Mandiant expected the non-GAAP loss per share from continuing operations in the band of 36-38 cents for full-year 2022.
Zacks Rank & Stocks to Consider
Currently, Mandiant carries a Zacks Rank #3 (Hold). Shares of MNDT have rallied 30% year to date (“YTD”).
Some better-ranked stocks worth considering from the broader technology sector are 8x8, Inc. (EGHT - Free Report) , Cadence Design Systems (CDNS - Free Report) and CrowdStrike (CRWD - Free Report) . 8x8 and Cadence Design Systems each sport a Zacks Rank #1 (Strong Buy), while CrowdStrike carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for 8x8's second-quarter fiscal 2023 earnings has been revised upward by a penny to four cents per share over the past seven days. For fiscal 2023, the Zacks Consensus Estimate for 8x8's earnings has moved north by 10 cents to 23 cents per share in the past seven days.
8x8's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same in one, the average surprise being 175%. Shares of EGHT have plunged 69.1% YTD.
The Zacks Consensus Estimate for Cadence Design Systems' third-quarter 2022 earnings has been revised upward by five cents to 97 cents per share over the past seven days. For 2022, earnings estimates have moved north by 3.5% to $4.11 per share in the past seven days.
Cadence Design Systems' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.8%. Shares of CDNS have decreased 1.5% YTD.
The Zacks Consensus Estimate for CrowdStrike's second-quarter fiscal 2023 earnings has been revised upward by a couple of cents to 29 cents per share in the past 60 days. For fiscal 2023, earnings estimates have moved south by a penny to $1.23 per share in the past 30 days.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.3%. Shares of CRWD have plunged 8.1% YTD.