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.
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.
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
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