Withsecure — Q4 2023 Earnings Presentation
10 slides from Withsecure's earnings presentation, February 2024
Slide 1: First break-even and cash-flow positive quarter since the demerger
First break-even and cash- flow positive quarter since the demerger Q4 2023 Highlights Juhani Hintikka, President and CEO Tom Jansson, CFO
Slide 2: Key takeaways from Q4 2023
Key takeaways from Q4 2023 Cloud portfolio • Cloud ARR increased by 8% to EUR 86.8 million (EUR 80.2 million) • Cloud NRR was 99% • Cloud revenue grew by 13% year-on-year to EUR 21.2 million • DACH, France continued to perform well • UK and Nordics below expectations • Growth in all main products On
Slide 3: Key takeaways from Q4 2023
Key takeaways from Q4 2023 Profitability • Adjusted EBITDA EUR +0.2 million • Comparative opex of Q4 2022 is an estimate without TSA work for F-Secure; not fully comparable • Impact of 1H2023 cost savings visible already in the Sales & marketing expenses Strategy, products and leadership in 2024 • F
Slide 4: Cloud revenue and ARR impacted by market slowness and competition
Cloud revenue and ARR impacted by market slowness and competition (EUR million) Cloud ARR +8% Cloud revenue and ARR 86.8 81.5 81.9 80.2 81.2 • Cloud revenue impacted by market 71.7 60.9 64.1 67.5 slowness and competition 55.5 51.5 41.7 42.5 43.2 45.5 47.0 • Year-on-year growth in all products • Grow
Slide 5: On-premise revenue and ARR
On-premise revenue and ARR (EUR million) On-Premise ARR On-premise revenue and ARR 34.5 32.0 31.8 28.8 29.9 28.6 28.0 30.2 -10% • Revenue and ARR declining 27.1 27.6 26.1 25.9 25.0 25.3 23.6 23.2 • Customers are transferring to cloud- based environments Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/2
Slide 6: Cyber Security Consulting – improving revenue and profitability
Cyber Security Consulting – improving revenue and profitability (EUR million) Cyber security consulting revenue Cyber security consulting revenue • Revenue nearly at the level of Q4/22 12,4 12,0 -2% • Profitability improving, thanks to improvements in 11,6 11,2 11,1 demand planning 10,8 10,9 10.2 10
Slide 7: Deferred Revenue declining for lower revenue and increasing share of SaaS contracts
Deferred Revenue declining for lower revenue and increasing share of SaaS contracts (WithSecure, deferred revenue1, EUR million) •Orders are recognized after customer commitment, while deferred revenue is 70.3 69.2 67.9 67.7 68.6 recognized according to invoicing 66.4 66.0 65.7 66.9 63.5 63.5 62.5 s
Slide 8: Q4 profitability
Q4 profitability 10-12 10-12 (mEUR) Change % 2023 2022 Change% 2023 2022 Revenue 38.0 36.4 4% 142.8 134.7 6% Gross Margin 27.6 23.8 16 % 100.2 87.7 14 % of revenue, % 73% 65% 70% 65% Other operating income 1) 0.4 0.7 -42 % 1.4 2.3 -39 % Operating expenses 1) -27.8 -30.5 9% -117.7 -116.7 1% Sales & M
Slide 9: Outlook for 2024
Outlook for 2024 Annual recurring revenue (ARR) for Elements Cloud products and services will grow by 10–20 % from the end of 2023. At the end of 2023, Elements Cloud ARR was EUR 78.4 million. Revenue from Elements Cloud products and services will grow by 10–16 % from previous year. Previous year re
Slide 10: Thank you!
Thank you!