If you believe their statements, I have some sympathy for FireEye’s predicament. As cybersecurity projects move from tactical or business-as-usual budgets and become strategic projects it tends to push the sales cycles into ‘plan this year, spend next year’. That adversely affects cashflow…:
FireEye added 230 new customers during the quarter that ended in March, seven fewer than what it added in the year-ago period. It blamed the long sales cycle of its endpoint and antivirus products that were launched a couple of quarters ago for this slowdown. But management tried to assuage concerns by pointing out that it has been witnessing healthy customer growth in the ongoing quarter.
FireEye believes that its new products will typically take six to nine months to sell, so it is possible that the company could see a meaningful spike in its customer base later in the year. However, a closer look indicates the customer growth rate has been trending down over the past several quarters.