Trend Micro Incorporated · TSE:4704
Trend Micro — Q2 2023 Earnings Presentation
19 slides from Trend Micro's earnings presentation, 2023
Slide 1: Enterprise & Consumer Update
Q2-2023 Enterprise & Consumer Update Kevin Simzer Chief Operating Officer Public
Slide 2: The Road to 2025
The Road to 2025 Rule of $2.5B+ $1.5B+ 40 Gross Sales ARR 100M Protected Assets 500K 18M Consumer Customers Enterprise SaaS Customers Public 2 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 yen, 1EUR =143.01 yen Non-GAAP and Reference for Internal management
Slide 3: Business Transformation
Business Transformation 1H-2023 1H-2020 Consumer Enterprise Consumer Consumer Enterprise Enterprise 27% 73% 24% 22% 76% 78% Public 3 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 yen, 1EUR =143.01 yen Non-GAAP and Reference for Internal management
Slide 4: Enterprise: The Road to 2025
Enterprise: The Road to 2025 $2.0B+ Gross Sales $1.5B+ ARR 100M Protected Assets 500K SaaS Customers Public 4 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 yen, 1EUR =143.01 yen Non-GAAP and Reference for Internal management
Slide 5: Our Growing Market Opportunity
Our Growing Market Opportunity Cyber Risk Management $49B IT Cloud & Infrastructure Container Security Security $15.2B $6.8B Security Operations (SOC) $26.9B Source: IDC Worldwide Corporate Endpoint Security Market Shares, 2021, *Worldwide Cybersecurity AIRO and Tier 2 SOC Analytics Forecast, Public
Slide 6: Enterprise Sales Growth
Enterprise Sales Growth Gross Sales Q2-2023 Gross SaaS Sales Q2-2023 (Pre-GAAP + Sales Rebates) $348 M $500 (Pre-GAAP + Sales Rebates) $128 M 百万 $2,000 +2% YoY +18% YoY 百万 $450 $1,800 $400 $1,600 SAAS now $350 $1,400 $1,200 $300 35% $1,000 $250 of enterprise gross sales $800 $200 $600 $150 $400 $100
Slide 7: Enterprise Annual Recurring Revenue (ARR)
Enterprise Annual Recurring Revenue (ARR) Q2-2023 $800 $722 M 百万 Existing Expand New $700 +23% YoY $600 $500 $400 $300 $200 $100 $0 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Public 7 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 ye
Slide 8: Converge and simplify security operations
Converge and simplify security operations Single platform Hybrid IT & console environments Ecosystem Generative-AI integration Public 8 | ©2023 Trend Micro Inc.
Slide 9: Driving Vision One Platform Growth
Driving Vision One Platform Growth Customers without Adoption Usage Measured by Attach Rate Measured by Engagement Score Vision One XDR Public 9 | ©2023 Trend Micro Inc.
Slide 10: Vision One XDR Growth
Vision One XDR Growth 9,000 35% Vision One Customer Count 31.1% 29.9% 8,000 Vision One Attach Rate 28.7% 30% Customer 26.9% 7,000 Engagement Level 24.5% 22.8% 25% 6,000 Medium, 21.0% 20% 30% 5,000 16.6% 4,000 13.2% High, 15% Average impact to ARR for 22% 3,000 highly engaged customers: Low, 9.1% 2,0
Slide 11: Driving ARR to 2025 with Vision One XDR
Driving ARR to 2025 with Vision One XDR 1,600 $1.5B 百万 Existing Expand New 1,400 1,200 1,000 • 2X the number of XDR customers 800 $722M • 60% move to high engagement • 2X growth in new SaaS logos 600 400 200 0 2020 2021 2022 Q2-23 Q4-25 Public 11 | ©2023 Trend Micro Inc.
Slide 12: Focus On Cyber Services Partners
Focus On Cyber Services Partners a 5600+ MSPs +120 MSPs New MSSP Program Globally Selling XDR YTD Announced June, 2023 Public 12 | ©2023 Trend Micro Inc. Non-GAAP and Reference for Internal management
Slide 13: Focus On Customers
Focus On Customers Expansion Expansion New US: Healthcare Europe: Manufacturing AMEA: Large Retail • Multi-cloud migration, • Security consolidation & break • Siloed security products, cloud consolidation & compliance down IT silos complexity & too many vendors • One platform for XDR & cloud • One p
Slide 14: Modernizing Our Brand
Modernizing Our Brand 139 Cities April to September 2023 Public 14 | ©2023 Trend Micro Inc.
Slide 15: Our Consumer Business
Our Consumer Business Public
Slide 16: Consumer: The Road to 2025
Consumer: The Road to 2025 % $500M Gross Sales 18MCustomers 25%+ Non-PC Public 16 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 yen, 1EUR =143.01 yen Non-GAAP and Reference for Internal management
Slide 17: Q2-2023 Consumer Performance
Q2-2023 Consumer Performance Gross Sales (Pre-GAAP + Sales Rebates) $410 百万 $400 $390 $380 Q2, 2023 • $103M @ +2% YoY $370 • 17m+ customers $360 • Growth in next generation offerings $350 $340 2019 2020 2021 2022 Public 17 | ©2023 Trend Micro Inc. * Converted at Company Plan Rates, 1USD= 135.23 yen,
Slide 18: Our Growth Strategy
Our Growth Strategy ID Mobile Telco B2B2C Future Innovation New offerings & New partner New identity & privacy New identity & privacy geographic expansion: expansion: protection solution: protection capabilities: +11% YoY Japan +29% YoY in AMEA +13% YoY in US +19% YoY Globally Public 18 | ©2023 Tren
Slide 19: Enterprise & Consumer Update
Q2-2023 Enterprise & Consumer Update Kevin Simzer Chief Operating Officer Public