Withsecure — Q2 2022 Earnings Presentation
12 slides from Withsecure's earnings presentation, 2022
Slide 1: Cloud revenue in steady growth, demerger of Consumer security into F-Secure completed successfully
Cloud revenue in steady growth, demerger of Consumer security into F-Secure completed successfully Q2 2022 Highlights Juhani Hintikka, President and CEO Tom Jansson, CFO
Slide 2: Key takeaways from Q2/2022
Key takeaways from Q2/2022 Growth in cloud-native corporate security products • Revenue grew by 32% year-on-year to EUR 16.8 million • Annual recurring revenue (ARR) grew by 31% to EUR 67.5 million • Elements products performing well, especially EDR • Growth in MDR revenue, average deal size increas
Slide 3: Markets and strategy
Markets and s tra te gy Market • Geopolitical situation remains tense • Strong demand for cyber security products and services continues • Land and expand strategy works well, strong NRR Demerger of consumer security business into F-Secure Corporation completed successfully • Trading of F-Secure sta
Slide 4: Revenue from Corporate Security Products
Revenue from Corporate Security Products (EUR million) Cloud-native revenue +32% Revenue from cloud-native security products grew 16.8 • Expansion of Elements platform, especially EDR, 15.2 13.5 14.7 continues 12.7 10.7 11.1 11.8 • Managed Detection and Response (MDR) revenue 10.2 10.4 grew, Q2 orde
Slide 5: Annual Recurring Revenue
Annual Recurring Revenue (EUR million) Cloud-native products +31% Annual Recurring Revenue (ARR) 67.5 +21% 60.9 64.1 +5% • Year-on-year growth driven by all products 55.5 47.0 51.5 • Quarter-on-quarter growth driven especially by 45.5 41.7 42.5 43.2 strong orders in Q1 • ARR for on-premise products
Slide 6: Cyber Security Consulting impacted by divestments
Cyber Security Consulting impacted by divestments (EUR million) Cyber security consulting revenue Cyber security consulting revenue -24% • Divestments of UK public sector consulting 13.3 (December 2021) and South African subsidiary 12.4 11.9 12.0 11.6 (February 2022) impact comparability 10.9 11.2 •
Slide 7: Deferred Revenue remained stable
Deferred Revenue remained stable (WithSecure, Deferred Revenue1, EUR million) Non-current •Orders are recognized after +7% Current customer commitment, while 66.4 67.9 67.7 deferred revenue is recognized 63.5 63.5 62.5 according to invoicing schedule 61.8 •Some large multi-year contracts are 52.9 52
Slide 8: Estimated comparable EBITDA
Estimated comparable EBITDA • Future F-Secure financials are presented as Discontinued operations according to IFRS 5 standard • Resulting IFRS 5 figures do not fully reflect the profitability of either business on a stand-alone basis • Operating expenses are split according to actual ownership of a
Slide 9: Q2 profitability impacted by ongoing transformation
Q2 profitability - im p a c t e d b y o n g o in g t r a n s fo r m a t io n WithSecure, EUR million 4-6/2022 4-6/2021 Change % 1-6/2022 1-6/2021 Change % 1-12/2021 Revenue 32,5 31,9 2% 64,8 63,4 2% 130,0 Cloud-native corporate security solutions 16,8 12,7 32 % 32,1 24,6 31 % 52,7 On-premise corpora
Slide 10: Discontinued operations – what happened?
Discontinued operations – w ha t ha ppe ne d? Discontinued Operations EUR million Profit after taxes of the operations transferred to F-Secure 4.3 Consumer business fair value, Distribution gain – fair value of Consumer business 463.0 calculated by multiplying average F-Secure share price Distribute
Slide 11: Guidance
Guidance Outlook WithSecure’s financial outlook for 2022 was issued by the Board of Directors on 3 June 2022. 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 m
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