Slide 1: Trend Micro FY2024 Q4 Results
Trend Micro FY2024 Q4 Results Mahendra Negi CFO, Representative Director February 18, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain Statements that we make in this presentation are forward-looking statements. These forward-looking statements are based upon management’s current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and
Slide 3: FY2024.Q4 Financial Highlight
FY2024.Q4 Financial Highlight (Forth quarter ended Dec 31, 2024)
Slide 4: Q4 Consolidated Results
(unaudited) Q4 Consolidated Results (in million Yen) Three months YoY ended Dec 31, 4Q2023 4Q2024 growth Net sales 64,965 69,979 + 8% Total Operating expenses 61,975 61,111 - 1% Operating income (Margin) 2,989 (5%) 8,868 (13%) + 197% Ordinary income 4,245 14,509 + 242% Net income - 2,074 7,940 － att
Slide 5: Pre-GAAP and operating income after deducting impact of cancelled bookings
(Reference) Pre-GAAP & Pre-GAAP-based operating income after deducting the impact of voluntarily cancelling bookings due to the risk of collectability from our business partner (a global online commerce company headquartered in the US) in the consumer business. (in million Yen) 4Q2024 YoY Pre-GAAP 1
Slide 6: Progress (12 months)
Progress （12 months） (in million Yen) Revenue Operating Income 300,000 (Progress of 60,000 (Forecast 271,000) Forecast: 101%) 272,638 (Forecast 52,900) 250,000 50,000 (Progress of 48,105 248,691 Forecast: 91%) 202,658 200,000 40,000 39,237 183,725 150,000 134,534 30,000 32,602 24,436 29,613 119,536
Slide 7: Pre-GAAP vs Total Costs
(in million Yen) Pre-GAAPⅴs Total Costs (unaudited) (Non-GAAP) Pre-GAAP Total Costs Pre-GAAP Margin 110,000 45% 100,000 102,307 40% 90,000 40% 80,000 85,220 35% 70,000 69,296 30% 60,000 65,456 65,108 64,236 61,975 50,000 61,111 27% 25% 53,803 56,294 53,322 40,000 52,764 30,000 20% 19% 20,000 18% 18%
Slide 8: Enterprise ARR
Enterprise ARR (Non-GAAP) (USD) (unaudited) *ARR at constant currency: (1USD= 147.74 yen as the company internal budget exchange rate for FY2024). Non-GAAP and reference for internal management. Therefore, they may be subject to so changes hereafter. 8
Slide 9: Cash flows
Cash flows (unaudited) (in million Yen) 4Q2023 4Q2024 YoY growth Cash flows from operating activities 10,425 12,295 + 18% Cash flows from investing activities 36,131 8,760 - 76% Cash flows from financing activities 1,407 575 - 59% Effect of exchange rate changes - 5,076 5,358 － on cash and cash equi
Slide 10: Headcount
Headcount Sep - 2024 Dec - 2024 6,936 6,869 Admin, Business Admin, Business Process, Process, 743 741 Technical Sales, Marketing, Technical Sales, Marketing, Support, 2,357 Support, 2,344 1,522 1,496 Research, Research, Development, Development, 2,314 - 67 2,288 (- 1%) Japan, Japan, 817 801 Europe,
Slide 11: Cost
(in million Yen) Cost ・ Of -0.8 Bn JPY YoY, estimated impact of yen depreciation is about 0.9 Bn JPY. (unaudited) (Non-GAAP) Salary & Benefit Office Overhead ・ Bonuses based on Pre-GAAP Operating 70,000 Outside Service Cloud Income increases by 3.1 Bn JPY vs. 23Q4 due Administration Selling & Market
Slide 12: Q4 Highlights
Q4 Highlights • Highest ever Enterprise organic Pre-GAAP growth on a constant currency basis • Growth momentum recovers in Americas and Europe • Highest ever Net revenues and Operating income for full year 2024 12
Slide 13: Consolidated Results (12 months)
Consolidated Results (12 months) (in million Yen) 12 months (Progress vs. YoY current year’s new ended Dec 31, 2023（1-4Q） 2024（1-4Q） growth annual forecast) Net sales 248,691 272,638 + 10% (101%) Total Operating expenses 216,088 224,532 + 4% Operating income 32,602 48,105 + 48% (91%) (Margin) （ 13%）
Slide 14: FY2025 Guidance
FY2025 Guidance
Slide 15: FY2025 annual forecast assumptions
FY2025 annual forecast assumptions • Japan, Americas and Europe increase by around 5% YoY respectively, AMEA increases by around 10%. • Overall cost increase is expected to remain lower than revenue growth, and the operating income margins should improve further. • No extraordinary profit/loss items
Slide 16: Projection for FY2025 Annual
Projection for FY2025 Annual (unaudited) For FY2025 Expected (in million Yen) Jan - Dec, 2025 YoY growth Net Sales 288,600 + 6% Operating Income 60,300 + 25% Ordinary Income 57,600 + 9% Net Income 38,900 + 13% attributable to owners of the parent (Estimated annual exchange rate 1USD=154 yen, 1EUR=16
Slide 17: Shareholder Returns
Shareholder Returns
Slide 18: The basic policy on shareholder returns
The basic policy on shareholder returns As a rule of thumb, we will return all net income generated after making the necessary investments for business growth without retaining any earnings. Even after the significant shareholders return occurred in 2024, we will have cash in excess of our minimum c
Slide 19: Compensation for Shareholders
Compensation for Shareholders (unaudited) The ratio of 10 years’ cumulative total compensation to (in million Yen) Net income from 2015 to 2024: 145% Red: Growth rate of Total compensation for shareholders Blue: Ratio of Total compensation to Net income +205% 140,000 配当 Dividend 自己株取得 Buyback 120,00
Slide 20: Appendix for FY2024.Q4
Appendix for FY2024.Q4
Slide 21: Q4 USD based Results (Non-GAAP)
Q4 USD based Results (Non-GAAP) (unaudited) (in thousand USD) Three months ended Dec 31, 4Q2023 4Q2024 YoY change Net sales 439,431 458,852 + 4% Cost of sales 123,285 108,224 - 12% Operating expenses 295,924 292,481 - 1% Operating income 20,221 58,147 + 188% Ordinary income 28,717 95,138 + 231% Net
Slide 22: Net Sales Growth by Region
(in million Yen) Net Sales Growth by Region (unaudited) 2023Q4 25,000 + 4% 2024Q4 21,725 20,846 + 16% 20,000 + 3% + 9% 18,018 14,742 15,199 15,035 15,544 15,000 13,831 10,000 5,000 0 Japan Americas Europe APAC, MEA
Slide 23: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (unaudited) (in million Yen) If currency exchange rates used for 4Q2023 were used for 4Q2024: 2023Q4 25,000 + 4% * ( ) : difference from GAAP base 2024Q4 21,725 (0) + 13% 20,846 (- 514) 20,000 + 2% + 6% (- 111) (- 326) 17,504 14,742 15,087 14,708 15,544 15,000 13,831 10,00
Slide 24: Decomposition of Revenue
Decomposition of Revenue (vs. last year） (in million Yen) (unaudited) Exchange impact Americas Europe 952 Japan 345 877 2024Ｑ4 APAC, MEA 879 Net sales 1,959 2023Ｑ4 69,979 Net sales 64,965 (Non-GAAP)
Slide 25: Constant currency Revenue growth
Constant currency Revenue growth (YoY) (unaudited) 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 (Non-GAAP) • Each growth rate shown above is ba
Slide 26: Net Sales by Segment
(in million Yen) Net sales by Segment (unaudited) Growth rate (YoY) 25,000 Consumer - 2% Enterprise + 10% 20,000 10,145 1,488 + 4% - 4% 15,000 193 + 3% 1,984 + 2% 10,000 16,530 + 17% 14,842 + 9% 13,214 + 3% 5,000 11,580 + 12% 0 Japan Americas Europe APAC, MEA “Notice” As Sales by Segment numbers are
Slide 27: % share by region
% share by region 4Q2023 4Q2024 64,965 million Yen 69,979 million Yen APAC,MEA APAC,MEA 24% Japan Japan 32% 26% 31% Europe 21% Europe Americas Americas 21% 23% 22%
Slide 28: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (in million Yen) (unaudited) + 21% 2023Q4 35,000 31,108 2024Q4 + 24% 30,000 + 8% + 28% 27,027 25,684 25,000 22,436 21,734 21,788 20,703 20,000 17,044 15,000 10,000 5,000 0 Japan Americas Europe APAC, MEA “Notice” Pre-GAAP means Rev
Slide 29: Pre-GAAP (constant currency)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) If currency exchange rates used for 4Q2023 were used for 4Q2024: (in million Yen) (unaudited) + 19% 2023Q4 35,000 2024Q4 + 20% 30,467 30,000 + 8% + 28% 25,684 26,129 25,000 22,436 21,766 21,788 20,703 20,000 17,044 15,000 10,000 5,
Slide 30: Net sales & Pre-GAAP growth trend
Net sales & Pre-GAAP growth trend (unaudited) (on a constant currency basis) Net Sales Pre-GAAP 24% 18% (Reference for Consumeｒ) 9% Pre-GAAP growth excluding the impact 6% of cancellations due to the risk of collectability from a partner： - 1％ YoY Total Enterprise Consumer -3% -13% (Non-GAAP) 30
Slide 31: Deferred Revenue
(in million Yen) Deferred Revenue (unaudited) 230,000 221,386 217,014 218,013 211,532 210,000 203,061 202,356 200,337 195,225 192,914 190,000 184,807 170,000 150,000 130,000 0 110,000 0 Sep-'22 Dec-'22 Mar-'23 Jun-'23 Sep-'23 Dec-'23 Mar-'24 Jun-'24 Sep-'24 Dec-'24
Slide 32: Deferred Revenue by Region
Deferred Revenue by Region (in million Yen) (unaudited) 2024Q3 + 19% 2024Q4 80,000 + 0% 74,919 70,000 64,440 64,726 62,824 60,000 + 11% 49,334 50,000 + 13% 44,491 40,000 32,406 28,581 30,000 20,000 10,000 0 Japan Americas Europe APAC, MEA (Non-GAAP)
Slide 33: Deferred Revenue by Region (constant currency)
Deferred Revenue by Region (unaudited) If currency exchange rates used as of the end of 3Q2024 were used as of the end of 4Q2024: (in million Yen) 2024Q3 + 13% 80,000 + 0% 2024Q4 (- 3,777) * ( ) : difference from GAAP base (0) 71,141 70,000 + 7% 64,440 64,726 62,824 (- 1,589) 60,000 + 6% 50,000 (- 2
Slide 34: Non-operating & Extra-ordinary Items
Non-operating & Extra-ordinary Items (in million Yen) (unaudited) Other incomes Equity in losses of Interest income affiliated companies Gain on reversal Exchange gain 7 Other expenses of stock options 685 906 58 7 Income Ordinary before 5,913 Income income taxes 14,509 14,517 Operating Income 8,868
Slide 35: Balance Sheet
Balance Sheet (unaudited) (in million Yen) Sep-2024 change Dec-2024 Assets Cash & cash equivalents 149,333 + 20,723 170,056 Account receivable + 26,790 74,527 (less allowance for doubtful accounts) 47,737 Marketable securities & Securities investments 51,848 - 6,489 45,359 Software 17,234 + 670 17,9
Slide 36: FY2024 12 months Financial Highlight
FY2024 12 months Financial Highlight (January ~ Dec, 2024)
Slide 37: Net Sales Growth by Region
Net Sales Growth by Region (unaudited) (in million Yen) + 3% 2023Q1-Q4 100,000 2024Q1-Q4 90,000 83,002 85,756 + 21% 80,000 + 2% + 16% 69,507 70,000 57,643 58,827 58,546 60,000 57,401 50,643 50,000 40,000 30,000 20,000 10,000 0 Japan Americas Europe APAC, MEA 37
Slide 38: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (in million Yen) If currency exchange rates used for 2023（Q1-Q4） were used for 2024（Q1-Q4）: (unaudited) + 3% 2023Q1-Q4 100,000 (0) * ( ) : difference from GAAP base 2024Q1-Q4 90,000 83,002 85,756 + 13% 80,000 - 5% + 7% (- 4,495) 70,000 (- 3,795) (- 4,195) 65,012 57,643 60,
Slide 39: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (in million Yen) (unaudited) + 2% 2023Q1-Q4 100,000 2024Q1-Q4 90,000 84,872 86,167 + 20% + 18% + 14% 80,972 80,000 69,898 70,000 65,129 67,561 61,342 60,000 55,384 50,000 40,000 30,000 20,000 10,000 0 Japan Americas Europe APAC, ME
Slide 40: Pre-GAAP (constant currency)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (unaudited) If currency exchange rates used for 2023(Q1-Q4) were used for 2024(Q1-Q4): 100,000 + 2% 2023Q1-Q4 90,000 86,167 2024Q1-Q4 + 13% 84,872 80,000 + 12% + 8% 76,276 70,000 66,098 67,561 61,820 61,342 60,000 55,384 50,000 40,
Slide 41: FY2024 Cost (12 months) YoY Growth
(in million Yen) FY2024 Cost (12 months) YoY Growth (unaudited) 240,000 Goods / Software Salary & Benefit + 10% Amortization & Capitalization 220,000 14,279 13,711 Stock options / Acquisition Related 8,369 Office Overhead - 7% 200,000 7,416 Costs Selling & Marketing 23,502 180,000 22,540 Outside Ser
Slide 42: Constant currency Revenue transition (based on FY2005)
Constant currency Revenue transition (based on FY2005) (in million Yen) (unaudited) 260,000 240,000 220,000 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 (Non-GAAP) •JPY net revenue amount for each fiscal year shown above is calculated(Non-GAAP) using each foreign cur
Slide 43: Thank You
Thank You Copyright © 2024 Trend Micro Incorporated. All rights reserved.
Slide 44: Quarterly Chart (1)
Appendix (unaudited) Quarterly Chart (1) (in million Yen) FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 N e t s ale s 58,704 60,831 64,189 64,965 65,931 68,603 68,124 69,979 Co s t o f s ale s 14,395 15,107 15,931 18,226 16,015 16,492 15,967 16,505 O pe r at in g e x pe n s e s 34,759 37,084 36,832 43,749 3
Slide 45: Quarterly Chart (2)
Appendix (unaudited) Quarterly Chart (2) (in million Yen) FY2023 FY2024 （ S ale s by r e g io n ） Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 J apan 20,914 20,689 20,551 20,846 21,361 21,295 21,373 21,725 A m e r ic as 13,446 14,065 15,389 14,742 14,388 14,899 14,340 15,199 Eu r o pe 11,012 12,440 13,359 13,831 13,679