Withsecure — Q1 2023 Earnings Presentation
10 slides from Withsecure's earnings presentation, 2023
Slide 1: Q1 2023 Highlights
Cloud revenue growth 31 %, consulting impacted by uncertainty of the financial sector Q1 2023 Highlights Juhani Hintikka, President and CEO Tom Jansson, CFO
Slide 2: Key takeaways from Q1 2023 – revenue and ARR
Key takeaways from Q1 2023 – revenue and ARR Cloud portfolio performed well • Cloud ARR grew 27 % year-on-year to EUR 81.5 million • Cloud NRR was 110 % • Cloud revenue grew by 31 % year-on-year to EUR 19.9 million • Endpoint Detection and Response expansions and new customers • MDR market remains v
Slide 3: Key takeaways from Q1 2023
Key takeaways from Q1 2023 Profitability • Adjusted EBITDA EUR -6.2 million • Change negotiations almost fully completed during Q1 2023, resulted to reduction of 84 positions globally; in addition, ending employments not replaced • Total estimated savings EUR 14 million annually • One-off restructur
Slide 4: Cloud revenue and ARR
Cloud revenue and ARR (EUR million) Cloud ARR +27% Cloud revenue and ARR 80.2 81.5 71.7 +2% • ARR growth year-on-year slightly below 67.5 60.9 64.1 outlook range (28 – 34 %) 55.5 51.5 41.7 42.5 43.2 45.5 47.0 • ARR growth from previous quarter partly explained by strong Q4 and seasonality • NRR for
Slide 5: On-premise revenue and ARR
On-premise revenue and ARR (EUR million) On-Premise ARR 34.5 On-premise revenue and ARR 32.0 31.8 -8% 28.8 29.9 28.6 28.0 30.2 27.1 27.6 • Revenue and ARR declining according 26.1 25.9 25.0 to expectations • Customers are transferring to cloud- based environments Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21
Slide 6: Cyber Security Consulting impacted by uncertainty in the banking sector
Cyber Security Consulting impacted by uncertainty in the banking sector (EUR million) Cyber security consulting revenue Cyber security consulting revenue • Many WithSecure customers operate in financial / 12.4 12.0 -10% banking sector, going though economic uncertainty 11.6 11.2 11.1 • Some large cu
Slide 7: Deferred Revenue at strong level
Deferred Revenue at strong level (WithSecure, Deferred Revenue1, EUR million) •Orders are recognized after customer commitment, while deferred revenue is 70.3 67.9 67.7 68.6 recognized according to invoicing 66.4 66.0 63.5 63.5 62.5 schedule 22.1 •Some large multi-year contracts are split 23.3 22.2
Slide 8: Q1 profitability
Q1 profitability WithSecure, EUR million 1-3/2023 1-3/2022 Change % 1-12/2022 Revenue 35.2 32.4 9% 134.7 Gross Margin 24.4 21.3 15 % 87.7 of revenue, % 69.3 % 65.8 % 65.1 % Other operating income 1) 0.4 0.5 -7 % 2.3 Operating expenses 1) -31.0 -28.7 8% -116.7 Sales & Marketing -17.4 -18.8 -5 % -79.1
Slide 9: Guidance
Guidance Outlook for 2023 (unchanged) Annual recurring revenue (ARR) for cloud products will grow by 28–34% from the end of 2022. At the end of 2022, cloud ARR was EUR 80.2 million. Revenue from cloud products will grow by 28–34% from previous year. Previous year revenue from cloud products was EUR
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