Withsecure — Q1 2022 Earnings Presentation
14 slides from Withsecure's earnings presentation, Aug 19, 2022
Slide 1: Revenue Growth in all businesses, Consumer Security business demerger progressing
Revenue Growth in all businesses, Consumer Security business demerger progressing Q1 2022 Highlights Juhani Hintikka, President and CEO Tom Jansson, CFO Timo Laaksonen, CEO of F-Secure Sari Somerkallio, CFO of F-Secure
Slide 2: Key takeaways from Q1/2022
Key takeaways from Q1/2022 Growth in cloud-native corporate security products • Revenue grew by 29% year-on-year to 15.2 million • Annual recurring revenue (ARR) grew by 36% year-on-year to 64.1 million • Strong growth in Managed Detection and Response (MDR) and Cloud Protection for Salesforce (CPSF
Slide 3: Markets and strategy
Markets and strategy Change in geo-politics re-shaping cyber security • War in Ukraine has changed the global cyber security landscape • New “frontiers” creating new threats • Visible governmental actions • Organized civilian response Demerger of consumer security business progressing as planned • W
Slide 4: Revenue from Corporate Security Products
Revenue from Corporate Security Products (EUR million) Cloud-native revenue +29% Revenue from cloud-native security products grew 15.2 14.7 13.5 • Growth in all main products 12.7 11.8 10.4 10.7 11.1 • Expansion of Elements platform modules with customers 10.2 continues • Managed Detection and Respo
Slide 5: Annual Recurring Revenue
Annual Recurring Revenue (EUR million) Cloud-native products +36% Annual Recurring Revenue (ARR) 64.1 60.9 +13% 55.5 +5% • ARR for cloud-native products – good 51.5 43.2 45.5 47.0 momentum continues 41.7 42.5 • Year-on-year growth driven by all products • Quarter-on-quarter growth driven especially
Slide 6: Cyber Security Consulting impacted by divestments
Cyber Security Consulting impacted by divestments (EUR million) Cyber security consulting revenue Cyber security consulting revenue • Divestments of UK public sector consulting (December 13.3 -17% 2021) and South African subsidiary (February 2022) 12.4 11.9 12.0 11.6 impacts comparability 10.9 11.2
Slide 7: Deferred Revenue growth driven by growing orders
Deferred Revenue growth driven by growing orders (WithSecure, Deferred Revenue1, EUR million) Non-current • Orders are recognized after +7% Current customer commitment, while 66.4 67.9 deferred revenue is recognized 63.5 63.5 62.5 according to invoicing schedule 61.8 • Some large multi-year contract
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: Q1 profitability - impacted by ongoing transformation
Q1 profitability - impacted by ongoing transformation WithSecure, EUR million 1-3/2022 1-3/2021 Change % 1-12/2021 Revenue 32.4 31.5 3% 130.0 Cloud-native corporate security solutions 15.2 11.8 29 % 52.7 On-premise corporate security solutions 7.1 7.7 -7 % 30.0 Cyber security consulting 10.0 12.0 -1
Slide 10: F-Secure continued on a growth path
F-SECURE CONTINUED ON A GROWTH PATH (Consumer security, EUR million) Partner Channel Revenue from partner channel grew +4% • F-Secure started to roll out a new generation of TOTAL through 20.4 20.8 20.8 21.0 21.6 21.7 the partner channel 19.2 19.5 19.6 • The latest version of F-Secure TOTAL combines
Slide 11: F-Secure grew 4% in Q1/2022
F-SECURE GREW 4% IN Q1/2022 (Consumer security, EUR million) Revenue split & growth by geography Rule of 40 Metric Rest of the world +13% Rest of Europe -1% Revenue Growth (%) North America +16% Nordic countries +6% Estimated Comparable EBITDA Margin (%) +4% 27.4 51% 52% 26.3 1.4 1.2 4% 8% 3.4 4.0 4
Slide 12: Solid profitability
SOLID PROFITABILITY (Consumer security, EUR million) EUR million 1-3/2022 1-3/2021 Change % 1-12/2021 Revenue 27.4 26.3 4% 106.3 Adjusted EBITDA 14.8 12.8 15 % 53.7 Items affecting comparability (IAC) 2.7 4.3 EBIT 11.6 12.4 -6 % 47.8 Estimated comparable EBITDA 13.0 11.2 16 % 47.8 of revenue, % 48 %
Slide 13: Save the date
Save the date Joint Capital Markets Day for WithSecure™ and F-Secure 3rd of June Helsinki/ Kaapelitehdas
Slide 14: Slide 14