Slide 1: Q3-2024 Business Update
Q3-2024 Business Update Kevin Simzer Chief Operating Officer
Slide 2: Our AI-Powered Strategy
Our AI-Powered Strategy Trend Micro Strengthens AI Deployments for Enterprises and Governments with NVIDIA AI Enterprise Safeguarding AI and business resilience with NVIDIA NIM Trend Micro Achieves Google Cloud Ready - Regulated & Trend Micro CEO Eva Chen Calls for Rebalancing of Security and Sovere
Slide 3: Q3-2024 Summary
Q3-2024 Summary Margin Enterprise Consumer Growth Performance Growth Net Sales: +6% YoY* Net Sales: +7% YoY* Net Sales: +1% YoY* Operating Margin: 24%** 10.3K Vision One Customers ARPU: +6% *** Operating expenses on track, Powered by strong Continued growth in mobile continued margin improvement pla
Slide 4: Q3-2024 Regional Performance
Q3-2024 Regional Performance Pre-GAAP Q3-2023 Q3-2024 (2%)* * +6% * * (4%) 2% Japan AMEA Europe Americas 4 | ©2024 Trend Micro Inc. * Pre-GAAP in millions of Japanese Yen if currency exchange rates used for 3Q2023 were used for 3Q2024
Slide 5: Recurring Revenue
Recurring Revenue $1.6B* Large Enterprise Small Enterprise 7% +4% CAGR Consumer $387M $1.3B (1%) $229M $360M (1%) $218M $1B +7% $707M Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 * Hybrid ARR at constant currency: 1USD= 147.7
Slide 6: Enterprise Recurring Revenue
Enterprise Recurring Revenue $1.26B* Subscription ARR +6% YoY Perpetual ARR 9% CAGR $410M (9%) $925M Shift $522M $847M +14% $403M Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 6 | ©2024 Trend Micro Inc. * Hybrid ARR at constan
Slide 7: Our Enterprise Opportunity
Our Enterprise AI-Powered ASRM XDR Opportunity Next Gen SOC 23% of Enterprise ARR* NG-SIEM + more modules S E R Hybrid Multi- EPP XDR V Cloud & Endpoint Container + more modules I 28,000 53% of Enterprise ARR* C E IPS XDR S Network LARGE ENTERPRISE CUSTOMERS OT + more modules MDR 15% of Enterprise A
Slide 8: Large Enterprise Recurring Revenue
Large Enterprise Recurring Revenue $1B * +7% YoY Vision One Connected ARR 11% Other Hybrid ARR CAGR $707M (12%) Shift +40% Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2024 Q1-2024 Q2-2024 Q3-2024 8 | ©2024 Trend Micro Inc. * Hybrid ARR at constant curre
Slide 9: Large Enterprise Recurring Revenue
Large Enterprise Recurring Revenue $1B * AI Powered Next Gen SOC +7% YoY Hybrid Multi-Cloud & Endpoint 11% +22% Network CAGR Email 0% $707M +2% +21% Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 9 | ©2024 Trend Micro Inc. * Hy
Slide 10: Large Enterprise Platform Attach
Large Enterprise Platform Attach 10.3K Q3-2024 Platform Highlights Vision One Attached Customers Attach Rate % 37% 780+ New Vision One customers in 2024 $240 Next-gen SOC ARR @ +21% Million* 2.6K 111% Next-gen SOC Subscription NRR 9% Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1
Slide 11: The Power of the Platform
The Power of the Platform ENTERPRISE MODULE ADOPTION RETENTION ARR CUSTOMERS RATE* IMPACT * 46% 83% 1X 15% 91% 2X 10% 91% 3X 29% + 95% 10X 11 | ©2024 Trend Micro Inc. * Constant currency: 1USD= 147.74 yen. Non-GAAP and reference for internal management. Updated module allocation for Q3, 2024
Slide 12: Q3-2024 Enterprise Platform Wins
Q3-2024 Enterprise Platform Wins $936K $153K $556K • Security tool consolidation to • SOC modernization project • Enterprise risk management address vendor risk & breach connected to breaking down project + addressing skills incident data silos shortage • One platform for AI-powered • One platform w
Slide 13: Consumer Performance
Consumer Performance Q3-2024 Highlights Direct Average Retail Price Per User (ARPU)** $35.83 13,794 Q3 net sales @ 1% YoY Million Yen* +25% Mobile channel revenue $32.84 YoY +55% Beyond device security revenue YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2023 2023 2023 2024 2024 2024 13 | ©2024 Trend Micro Inc. *A
Slide 14: Key Takeaways
Key Takeaways AI-Powered Balanced Driving Platform Strategy Performance Shareholder Value Improving operating Capital allocation & margin & driving increased returns to sustainable growth shareholders 14 | ©2024 Trend Micro Inc.
Slide 15: Q3-2024 Business Update
Q3-2024 Business Update Kevin Simzer Chief Operating Officer