hello and on the everyone Kevin, Thanks, call. to
financial want model. business to and our general I frame First on few outlook remarks a with comments my
to had our continues as for business size, and regions First, families, several product across customer geographic it verticals. diversify quarters,
families. family many is the of to year. existing are are as add every logo new in which growth our continue and product trends in billings cash billings, well flow leading We a for customers the deploying indicator of as customers product rest outlook for in in demand and more These healthy our the reflected
years were We already in amortization any a to our from a as due effect factors outlook model, have book This share. $XX million. ago. is few by in outlook a headwind prior we also ratable and revenue to our Second, experiencing profitability, result, includes have for growth caused margins decline revenue a and it per on reduce Several the as because appliance we for our to us a sales periods. revenue sales reduced had XXXX earnings indicator cascading experienced in lagging our
our and remain said, That confident long-term strategy I outlook. in
are We and without looking are long-term committed our to efficiency increase opportunities growth. profitability for jeopardizing to balance and growth continually
leverage a growth You as apparent when you billings. revenue up can and our metrics in revenue expenses the This on calculate billings. become model flow trends our the leverage to margin catch cash inherent compare business in see base billings operating will
and the metrics our referring and I'll discuss results and for details be except QX operating non-GAAP let I revenue XXXX, to you cash for of flow. Before that guidance remind our me QX
interest Our non-cash nonrecurring intangibles, non-GAAP stock-based amortization on compensation, other items. expense of convertible exclude and debt our measures
remind platform for impact cloud category. that managed as of the I to breakout reflects short. and category. Helix in addition platform There to the or to we platform, change historical the this services changing to category no name you was a is The managed of cloud also to included metrics services the subscription and change Verodin already want categories, the billings minor made revenue and subscriptions
included, we the there to reference, these the categories. a product mapping in of each of appendix is For slides in the families
'XX. results. QX million $XXX of our QX billings Total to increase of XX% our guidance Turning range, were at the of an high-end of from
expected, on $XX year-over-year for billings managed not did any As XX% greater QX up were and quarter, than 'XX Platform, reported basis. million. as subscriptions include transactions our cloud million an services billings the $XX
million. of $XXX for Mandiant increased cloud ARR and million, Billings increase to subs services platform, year-over-year managed Professional an were $XX our 'XX. XX% for XX% from of Services QX
were product for and our million, We $XXX operate near support continue strategic in Billings highly related the and to portion category capacity subscriptions year-over-year. up this of business. X%
strength which of some and year-over-year. end of sales category to XXXX. of appliances XX% XX% with for hardware QX, appliances new in accounted first wave our of attribute approximately email Similar for subscription introduced refreshes and appliance advanced were a product for the we on third-generation up year-over-year these contracts Sales network life we security. relying support appliances, total older This of related customer for the the created and to and still
Consistent is we've record. past services and to two for Mandiant billings revenue Professional million This Mandiant XX% revenue. billings $XX.X Services cloud million. services a over and fifth managed of quarter subscription managed to also with record increased Turning Services cloud the in consecutive growth Professional years, $XX year-over-year experienced platform, subs revenue a record revenue. the platform, was
decrease X% QX the $X opening deferred current million about year-over-year related of category. million the $XX and for in decline Product this The decreased support revenue reflected subscriptions or 'XX. revenue from balance
discussed means occurred As ratable XXXX XXXX of recognition XXX appliance and in deferred just revenue our the past, under the are flowing and product revenue. in through current in billings decreases the revenue we’ve that now
in the quarter product from in an $XXX in recognized $XXX balance XX% related, decline increase and current services from revenue revenue X% our non-services was was or revenue sheet. the than year-over-year. platform million, deferred of performance categories million With the offsetting of the more and total
XX% hosting the margin products our to margin decrease cloud move as to our to The provider. our Gross in increase in margin gross platform cloud with product support of due migration FireEye down of us real-time from The QX public in XX% was additional QX accelerated offset of was greater increase we decline 'XX the gross provides public than 'XX. the in XX% needed an The centers and to internal partially to the services gross and was cloud scalability expected data cloud-based majority platform to margin flexibility in a business. XX%. growing quarter, of a from costs compared by
Operating $X expense operating sequentially, expenses for year-over-year. by billing both about increased and both trends, The COGS small in but million the resulted X% loss in quarter. declined million $XX driven increase partially improved or
QX However, in percentage of continued of billings, of demonstrating expenses from operating QX to our as declined 'XX, a leverage XX% business 'XX model. long-term in in XX%
the for product we and operating leverage. offerings expense the Our platform year-over-year was areas as drive both primarily potential our growth development across to expected we sales growth marketing, in in launch and innovation future and research in and our QX. investment with accelerated R&D, gear next invested and the operations up In in gen security
expense Sales new sales with and marketing and performance reflecting was commission growth higher expense in associated increased higher business. accelerated year-over-year,
acquisition. each May we per month and impact consistent the $X.XX. of loss operating a we QX one largely expense to announce outlined Verodin the the share resulting on Finally, in included financial had in with Other of call offset income taxes other,
continue lowest flow QX performance. to the of typically and with QX to collections the timely enter Turning receivables in balance our reflecting year, and balance drive billings. We flow, growth seasonality sheet in billings cash our the cash
QX result, this was operating of to be the million negative in quarter. pattern year a the seasonal held lowest tends year. the operating As flow flow cash This through and cash $XX
acquisition. $XXX We We the net XX using XX quarter maintain ended range sheet better million very target and $X of days. DSOs in billion than of cash days. with continue short-term million with was investments Verodin calculated This on to balance slightly after receivables of to of $XXX our a even on almost cash the XX billings approximately healthy and
an 'XX. sequentially current end The million of of approximately million increase an deferred revenue $X total acquired $X deferred revenue deferred include from $XX revenue balances of of Ending $XXX million, was QX of from and and deferred the increase million approximately Verodin.
in Ending sequentially deferred current increased and increases in and and that revenue $X million deferred revenue million continued $XX current as revenue. deferred services decline year-over-year platform offset product related
of originally into will amount redeem we these our that moved $XXX expect notes tranche is approximately remaining currently We cash of As XXXX. current will issued first XXXX. notes the in of of in liabilities. the notes see that a note, June you million This side convertible for the
let's With guidance our XXXX for a our the as year. now and background, ranges, turn to updated outlook starting with this quarter the third
our We of $XXX XXXX billings for year-over-year million guidance of a million, range growth reiterating XX% midpoint. to at are $XXX represent the
We're I little a on reducing will our $XXX primary decrease the guidance million revenue and these factors. $XXX detail XXXX more range million. of each million There three to for by $XX drivers to provide are
First, ARR of third-generation were and to category end attached due our refreshed. support life and appliances in primarily declined sequentially expirations not for $XX related the of to million the QX, product subscriptions and that subscriptions
many subscriptions deployments smaller appliances with refresh large and their of fifth-generation the customers customers over without past the hardware. While allow purchasing product and related even ARR -- approximately The the expire many to new our is expanded quarters, news several their for million. the for million third-generation than that in expectation good second estimated left appliances. decline there's $X in half ARR less $XX our by reduced The
and We could earlier. Kevin detection, we and cloud-based here ARR believe server-based expect related see we to security growth from network incremental the discussed and from stabilize product new
impact $XX the be million we appliances product be of expect We relatively also to availability to Security upfront $X upfront in management FSO, amount of the less less and forecast small Second, Orchestrator it quarter, we platform. this any forecasted. the part in now typically revised or so There summary puts million our be revenue revenue of Helix less given to are second expect revenue a and a the takes expect is but estimate at amount of the for about than we and upfront with for we sold of number FireEye Upfront related XX% to half. originally will of Helix licenses here, category. term the X% level, exclusively as
period related XX increase mix The mix XX third-generation appliance the higher the the believe of is months more related appliances. the third of recognition appliance mix item the to A decrease of billings, an is in XX to months. is to partially third duration of item revenue end heavy to of older average at to we the lengthens life also related compared to -- a subscription which
appliance when surge and contract to Additionally, sales Overall, the a increase of was combined tend the expansion believe related that mix of QX average hardware. ACL the buying product And million line for multi-year for estimated the accounted the purchase support. and subscription in in to $X new customers we the in appliance factor appliances $XX in subscriptions of decrease. with the higher million about
revenue lower share and margin With the translates breakeven of year. expect $X.X an of we in margin earnings now into for XX% gross This X% operating per to range the approximately $X.XX. of to
migration our billings higher same the million of we're public cloud cash with to costs With by $XX outlook million. flow range, the infrastructure, to $XXX $XX but million reducing associated range our to a
our more guidance cash flow a flow the margin our cash a XX% XX% than midpoint, increase and billings. on updated implies of year-over-year operating At of expected XXXX
at Our expectation the same CapEx $XX for million to remains million. $XX
data as our not XXXX major I move public to the all our investments do will in CapEx are cloud next decline year moves center expect our we facility this we’ve and plant guiding capital equipment. our reduce to to While time, completed at
XX% the will for range midpoint. which implies of our consistent billings $XXX to growth annual From to a annual of perspective, with in billings million, quarter. QX the at XX% expect QX, year-over-year million booked linearity linearity expected this we approximately range historical third be the in of XX% $XXX For implies
a X% through routable midpoint. of appliances. year-over-year the and long current of decrease million, implying as reflects continue expect in at to tail related product impact the deferred the million in of $XXX million $XX of range We we This $XXX work in growth revenue the category, approximately revenue recognition to the
XX% expect down slightly implies This and and revenue to QX. operating between margin Given be breakeven this flat X%. of compared margin we approximately operating range, will expenses with gross
in outlook related decrease as the more lower employees QX maximum payroll The hit taxes OpEx withholding for amounts. in is to primarily
plus income to prior million. share million interest interest a share quarters. of count plus are and per expense taxes or diluted $X.XX, a based between cash of XXX expect minus $X shares. also earnings million offset approximately weighted and average of We consistent with Both on This $X.X penny yields
range to Operating for cash equal in flat cash 'XX $XX at a QX on similar expected receivable flow flow the relatively $XX of the million million, midpoint, balances about to is basis. be operating of reflecting year-over-year and expenses in collection
We expect $XX million. CapEx of about
That prepared my remarks. concludes
now will Operator? take We your questions.
