Slide 1: Trend Micro FY2025 Q1 Results
Trend Micro FY2025 Q1 Results Mahendra Negi CFO, Representative Director May 8, 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: FY2025.Q1 Financial Highlight
FY2025.Q1 Financial Highlight (First quarter ended Mar 31, 2025)
Slide 4: Q1 Consolidated Results
(unaudited) Q1 Consolidated Results (in million Yen) Three months YoY ended Mar 31, 1Q2024 1Q2025 growth Net sales 65,931 67,501 + 2% Total Operating expenses 53,803 52,495 - 2% Operating income (Margin) 12,127 (18%) 15,006 (22%) + 24% Ordinary income 13,664 12,408 - 9% Net income 10,754 8,858 - 18%
Slide 5: Net sales & Pre-GAAP growth trend
Net sales & Pre-GAAP growth trend (unaudited) (on a constant currency basis) Net Sales Pre-GAAP 5% 3% Total Enterprise -1% Consumer -7% -8% -27% (Non-GAAP) 5
Slide 6: The significant decrease in Pre-GAAP of Consumer business
The significant decrease in Pre-GAAP of Consumer business •As already mentioned at the 24Q4 financial results announcement, in the consumer business, due to the bankruptcy of our trading partner (an EC payment processing company), the service was effectively non-functional in regions outside of Japa
Slide 7: Operating income after adjusting for stock option related costs
(Reference) Comparison of Operating income after adjusting for stock option related costs due to higher stock price Due to the significant rise in our stock price from Jan. to Mar. in 2025 (from 8,567 yen at the end of 24Q4 to 10,015 yen at the end of 25Q1, Up 1,448 yen), stock option related costs
Slide 8: Progress (3 months)
Progress （3 months） (in million Yen) Revenue Operating Income 300,000 (Forecast) 288,600 (Forecast) 60,300 60,000 250,000 272,638 50,000 48,105 200,000 202,658 40,000 39,237 150,000 (Progress of 134,534 30,000 Forecast: 23%) (Progress of Forecast: 25%) 24,436 100,000 67,501 20,000 (Progress of 15,00
Slide 9: 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 60,499 50,000 27% 61,111 53,803 56,294 25% 61,975 53,322 52,495 40,000 30,000 20% 19% 18% 20,000 18%
Slide 10: Enterprise ARR
(USD) Enterprise ARR (Non-GAAP) (unaudited) *ARR at constant currency: (1USD= 153.77yen as the company internal budget exchange rate for FY2025). Non-GAAP and reference for internal management. Therefore, they may be subject to so changes hereafter. 10
Slide 11: Cash flows
Cash flows (unaudited) (in million Yen) 1Q2024 1Q2025 YoY growth Cash flows from operating activities 16,304 18,793 + 15% Cash flows from investing activities - 5,374 - 19,243 － Cash flows from financing activities - 106,892 - 20,669 － Effect of exchange rate changes 3,818 - 4,718 － on cash and cash
Slide 12: Headcount
Headcount Dec - 2024 Mar - 2025 6,869 6,819 Admin, Business Admin, Business Process, Process, 741 711 Technical Sales, Marketing, Technical Sales, Marketing, Support, 2,344 Support, 2,349 1,496 1,473 Research, Research, Development, Development, 2,288 - 50 2,286 (- 1%) Japan, Japan, 801 789 Europe,
Slide 13: Cost
(in million Yen) Cost (Non-GAAP) ・Of 1.3 bn JPY YoY decrease, estimated impact of (unaudited) Salary & Benefit Office Overhead yen appreciation, about 0.1 bn JPY. 70,000 Outside Service Cloud Administration Selling & Marketing ・Unexpected SO cost burden due to stock price 65,000 Stock Options / Acqu
Slide 14: Q1 Highlights
Q1 Highlights • Highest ever operating income • Operating margins continue to improve 14
Slide 15: FY2025 Guidance
FY2025 Guidance
Slide 16: Projection for FY2025 Annual (Unchanged)
Projection for FY2025 Annual (Unchanged) (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
Slide 17: Appendix for FY2025.Q1
Appendix for FY2025.Q1
Slide 18: Q1 USD based Results (Non-GAAP)
Q1 USD based Results (Non-GAAP) (unaudited) Three months (in thousand USD) ended Mar 31, 1Q2024 1Q2025 YoY change Net sales 443,742 442,345 - 0% Cost of sales 107,790 107,582 - 0% Operating expenses 254,329 236,421 - 7% Operating income 81,622 98,341 + 20% Ordinary income 91,964 81,316 - 12% Net Inc
Slide 19: Net Sales Growth by Region
(in million Yen) Net Sales Growth by Region (unaudited) + 3% 2024Q1 25,000 22,072 2025Q1 21,361 20,000 + 3% - 1% + 4% 16,501 16,993 14,388 14,174 14,261 15,000 13,679 10,000 5,000 0 Japan Americas Europe APAC, MEA
Slide 20: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (unaudited) (in million Yen) If currency exchange rates used for 1Q2024 were used for 1Q2025: 25,000 + 3% 2024Q1 * ( ) : difference from GAAP base 21,361 22,072 (0) 2025Q1 + 3% 20,000 - 1% + 5% (+ 6) (+ 38) (+ 65) 17,000 16,501 15,000 14,388 14,213 14,326 13,679 10,000 5,0
Slide 21: Decomposition of Revenue (vs. last year)
Decomposition of Revenue (vs. last year） (in million Yen) (unaudited) APAC, MEA Europe Americas Exchange impact Japan 498 175 110 647 711 2025Ｑ1 Net 2024Ｑ1 sales Net sales 67,501 65,931 (Non-GAAP)
Slide 22: 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 2025Q1 (Non-GAAP) • Each growth rate shown abov
Slide 23: Sales by Segment
(in million Yen) Sales by Segment (unaudited) 25,000 Growth rate (YoY) Consumer - 8% 20,000 Enterprise + 5% 10,085 - 1% 1,009 - 31% 15,000 142 - 25% 1,573 - 21% 10,000 15,984 + 6% + 2% 14,118 + 5% 11,987 + 8% 12,600 5,000 0 Japan Americas Europe APAC, MEA “Notice” As Sales by Segment numbers are jus
Slide 24: % share by region
% share by region 1Q2024 1Q2025 65,931 million Yen 67,501 million Yen APAC,MEA APAC,MEA 25% Japan 25% Japan 32% 33% Europe Europe 21% Americas 21% Americas 22% 21%
Slide 25: Pre-GAAP (Revenue before adjusting Deferred revenue)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) (in million Yen) (unaudited) - 4% 2024Q1 25,000 23,437 22,593 2025Q1 - 4% 20,000 - 23% 17,042 16,365 - 2% 15,000 13,840 10,591 11,135 10,949 10,000 5,000 0 Japan Americas Europe APAC, MEA “Notice” Pre-GAAP means Revenue before adju
Slide 26: Pre-GAAP (constant currency)
“For reference” Pre-GAAP (Revenue before adjusting Deferred revenue) If currency exchange rates used for 1Q2024 were used for 1Q2025: (in million Yen) (unaudited) - 4% 2024Q1 25,000 23,437 22,593 2025Q1 20,000 - 3% - 22% 17,042 16,594 15,000 13,840 - 1% 10,759 11,135 11,052 10,000 5,000 0 Japan Amer
Slide 27: Deferred Revenue
(in million Yen) Deferred Revenue (unaudited) 230,000 221,386 217,014 218,013 211,532 210,643 210,000 203,061 202,356 200,337 195,225 192,914 190,000 170,000 150,000 130,000 0 110,000 Dec-'22 Mar-'23 Jun-'23 Sep-'23 Dec-'23 Mar-'24 Jun-'24 Sep-'24 Dec-'24 Mar-'25
Slide 28: Deferred Revenue by Region
Deferred Revenue by Region (in million Yen) (unaudited) 2024Q4 - 7% 2025Q1 80,000 + 1% 74,919 70,000 69,436 64,726 65,188 60,000 - 6% 49,334 50,000 46,469 - 9% 40,000 32,406 29,548 30,000 20,000 10,000 0 Japan Americas Europe APAC, MEA (Non-GAAP)
Slide 29: Deferred Revenue by Region (constant currency)
Deferred Revenue by Region (unaudited) If currency exchange rates used as of the end of 4Q2024 were used as of the end of 1Q2025: (in million Yen) 2024Q4 - 2% 80,000 + 1% 2025Q1 (+ 3,777) (0) * ( ) : difference from GAAP base 74,919 73,213 70,000 - 4% 64,726 65,188 (+ 805) 60,000 - 5% 50,000 49,334
Slide 30: Non-operating & Extra-ordinary Items
Non-operating & Extra-ordinary Items (in million Yen) (unaudited) Other incomes Interest income Exchange loss 13 831 Equity in losses of 2,892 affiliated companies Loss on valuation of investment Other expenses securities 512 37 Operating 160 Income Income Ordinary before 15,006 Income income taxes
Slide 31: Balance Sheet
Balance Sheet (unaudited) (in million Yen) Dec-2024 change Mar-2025 Assets Cash & cash equivalents 170,056 - 4,082 165,974 Account receivable - 21,023 53,504 (less allowance for doubtful accounts) 74,527 Marketable securities & Securities investments 45,359 - 10,902 34,457 Software 17,904 + 480 18,3
Slide 32: Thank You
Thank You Copyright © 2025 Trend Micro Incorporated. All rights reserved.
Slide 33: Quarterly Chart (1)
Appendix (unaudited) Quarterly Chart (1) (in million Yen) FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 N e t s ale s 65,931 68,603 68,124 69,979 67,501 Co s t o f s ale s 16,015 16,492 15,967 16,505 16,417 O pe r at in g e x pe n s e s 37,788 39,802 37,355 44,606 36,077 O pe r at in g in c o m e 12,127 12,
Slide 34: Quarterly Chart (2)
Appendix (unaudited) Quarterly Chart (2) (in million Yen) FY2024 FY2025 （ S ale s by r e g io n ） Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 J apan 21,361 21,295 21,373 21,725 22,072 A m e r ic as 14,388 14,899 14,340 15,199 14,174 Eu r o pe 13,679 14,882 14,949 15,035 14,261 A P A C, Middle Eas t an d A fr ic a 16,50