Pending Google Takeover, Mandiant Posts Q1 Sales Gains, Boosting Net Loss
Cybersecurity provider Mandiant, which Google will formally buy for $5.4 billion later this year, reported quarterly revenue of $130 million in the three months ended March 31, up 13% compared to the same period a year ago.
Still, Reston, Va.-based Mandiant continued to lose money. The company reported a net loss of $96.7 million for its first quarter of fiscal 2022, compared with a loss of $50.6 million for the same period a year earlier.
The company’s annualized recurring revenue was $287 million, a 22% increase from the end of the first quarter of 2021. Meanwhile, its deferred revenue of $400 million was up 43% from the end of the first quarter of 2021, the company announced in a press release on Tuesday.
Google is buying Mandiant for $5.4 billion for its existing customer base and growth potential, as part of Google’s bid to bolster its internal cybersecurity resources.
Assuming the deal wins regulatory approval, Google’s takeover of Mandiant should close before the end of this year.
Citing its pending sale to Google, Mandiant did not hold a conference call on Tuesday to provide further details and comment on its first-quarter numbers.
The company also said in a press release that it would not provide financial guidance for the second quarter of 2022 or updated financial guidance for the full year of 2022.
By acquiring Mandiant, Google Cloud Platform will now be able to offer end-to-end security solutions to customers – and potentially open billions of new business opportunities for Google.
CRN previously reported that Mandiant’s top executives and directors could earn up to $196.9 million in stock, options and severance pay if Google’s proposed acquisition goes through.