Withsecure — Q3 2022 Earnings Presentation
13 slides from Withsecure's earnings presentation, 2022
Slide 1: Growth of cloud revenue continues, 33% growth year-on-year
Growth of cloud revenue continues, 33% growth year-on-year Q3 2022 Highlights Juhani Hintikka, President and CEO Tom Jansson, CFO
Slide 2: Key takeaways from Q3/2022
Key takeaways from Q3/2022 Growth in cloud-native corporate security products • Revenue grew by 33% year-on-year to EUR 17.9 million • Annual recurring revenue (ARR) grew by 29% to EUR 71.7 million • Elements products performing well, especially EDR • Growth in MDR revenue and Cloud Protection for S
Slide 3: Markets and strategy
Markets and strategy Market • Strong demand for cyber security products and services continues • Several high-profile cyber security breaches and incidents reported in the quarter Improved security outcomes to customers • Cloud collaboration increasing rapidly | OneDrive collaboration protection int
Slide 4: Markets and strategy
Markets and strategy New incentive programs launched in Q3 • Employee Share Savings Plan for WithSecure personnel ✓ Annual savings period + 2-year waiting period ✓ Award 1 share for 2 saved in the end of holding period • Performance Matching Share Plan – LT members invested over 1.6 million to WithS
Slide 5: New operating model supporting strategy
New operating model supporting strategy • Streamline our structures and processes for better collaboration • Become even more customer-centric in everything we do One unified Continue to Cloud R&D, Customer build Solutions Protection for One unified Product responsibility (Consulting & Salesforce as
Slide 6: Changes in WithSecure LT
Changes in WithSecure LT Solutions Customer Vice President and Cloud EVP, Solutions Operations General Manager of Protection for CPSF* Chief Customer (Tim Orchard as Salesforce Janne Pirttilahti Officer interim) Juha Kivikoski (not part of LT) CTO Office Products Chief Technology Officer Chief Produ
Slide 7: Revenue from Corporate Security Products
Revenue from Corporate Security Products (EUR million) Cloud-native revenue +33% Revenue from cloud-native security products 17.9 grew 16.8 14.7 15.2 • Steady growth of Elements platform, especially 12.7 13.5 EDR, continues 11.8 11.1 10.2 10.4 10.7 • High growth rates of Countercept and Cloud Protec
Slide 8: Annual Recurring Revenue
Annual Recurring Revenue (EUR million) Cloud-native products +29% Annual Recurring Revenue (ARR) 67.5 71.7 +6% • Year-on-year growth driven by all 64.1 +19% 55.5 60.9 product groups 51.5 41.7 42.5 43.2 45.5 47.0 • Slow summer months impacting orders, slight delay in ARR • ARR for on-premise products
Slide 9: Cyber Security Consulting impacted by divestments
Cyber Security Consulting impacted by divestments (EUR million) Cyber security consulting revenue Cyber security consulting revenue -6% • Divestments of UK public sector consulting 12.4 12.0 (December 2021) and South African subsidiary 11.6 11.2 (February 2022) impact comparability between years 10.
Slide 10: Deferred Revenue remained stable
Deferred Revenue remained stable (WithSecure, Deferred Revenue1, EUR million) •Orders are recognized after customer +6% commitment, while deferred revenue is 66.4 67.9 67.7 66.0 recognized according to invoicing 63.5 63.5 62.5 schedule •Some large multi-year contracts are split 22.9 24.2 23.3 21.5 i
Slide 11: Q3 profitability – improving from previous quarters
Q3 profitability – improving from previous quarters WithSecure, EUR million 7-9/2022 7-9/2021 Change % 1-9/2022 1-9/2021 Change % 1-12/2021 Revenue 33.5 32.1 4% 98.3 95.5 3% 130.0 Cloud-native corporate security solutions 17.9 13.5 33 % 50.0 38.1 31 % 52.7 On-premise corporate security solutions 6.7
Slide 12: Guidance
Guidance Outlook (unchanged) Revenue from cloud-native products will grow by approximately 30% from previous year, accelerating in the second half of 2022. Previous year revenue from cloud-native products was EUR 51.8 million. Comparable revenue of the group will grow at a low double-digit rate from
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