F-SECURE OYJ We are off to a good start
Highlights of July–September (Q3)
- Revenue increased by 5.3% to
EUR 27.9 million (EUR 26.5 million )- Revenue from Partner Channel increased by 5.5% to
EUR 22.1 million (EUR 21.0 million ) - Revenue from Direct Channel increased by 4.7% to
EUR 5.8 million (EUR 5.5 million )
- Revenue from Partner Channel increased by 5.5% to
- Adjusted EBITA was
EUR 11.4 million (EUR 12.3 million ), 40.8% of revenue (46.4%) - Earnings per share (EPS) was
EUR 0.05 (EUR 0.05 ) - Cash flow from operating activities before financial items and taxes was
EUR 11.4 million (EUR 10.0 million )
Highlights of January–September
- Revenue increased by 4.6% to
EUR 82.8 million (EUR 79.2 million )- Revenue from Partner Channel increased by 4.7% to
EUR 65.5 million (EUR 62.6 million ) - Revenue from Direct Channel increased by 4.0% to
EUR 17.2 million (EUR 16.6 million )
- Revenue from Partner Channel increased by 4.7% to
- Adjusted EBITA was
EUR 34.2 million (EUR 36.0 million ), 41.3% of revenue (45.4%) - Items affecting comparability (IAC) for Adjusted EBITA were
EUR -3.8 million (EUR -2.4 million ) - Earnings per share (EPS) was
EUR 0.13 (EUR 0.15 ) - Cash flow from operating activities before financial items and taxes was
EUR 31.4 million (EUR 29.2 million )
Outlook (unchanged)
In
We expect
Due to necessary investments into establishing our independence and ensuring future growth, we will see lower profitability during the rest of the year compared to Q1/2022. Thus, we expect the adjusted EBITA to be approximately 40% for the full year 2022.
Financial targets (unchanged)
The following financial targets in the medium term (by 2025) have been adopted for
- Growth: High single digit organic revenue growth
- Profitability: After initial growth investments, adjusted EBITA margin of above 42%
- Dividend Yield:
F-Secure aims to pay around or above 50% of net profit as dividend on an annual basis.
Financial performance
| EUR million | 7−9/2022 | 7−9/2021 | Change % | 1−9/2022 | 1−9/2021 | Change % | 1−12/2021 |
| Revenue | 27.9 | 26.5 | 5.3% | 82.8 | 79.2 | 4.6% | 106.3 |
| Partner channel | 22.1 | 21.0 | 5.5% | 65.5 | 62.6 | 4.7% | 84.2 |
| Direct channel | 5.8 | 5.5 | 4.7% | 17.2 | 16.6 | 4.0% | 22.1 |
| Cost of revenue | -2.2 | -2.2 | 2.0% | -7.0 | -6.3 | 10.2% | -8.8 |
| Gross Margin | 25.7 | 24.3 | 5.6% | 75.8 | 72.8 | 4.1% | 97.4 |
| % of revenue | 92.0% | 91.8% | 91.6% | 92.0% | 91.7% | ||
| Other operating income | 0.4 | 0.1 | 264.2% | 0.8 | 0.4 | 119.8% | 0.5 |
| Operating expenses 1) | -14.5 | -12.1 | 19.7% | -42.1 | -37.1 | 13.6% | -50.6 |
| Sales & Marketing | -6.2 | -7.0 | -11.0% | -22.4 | -21.0 | 6.8% | -28.5 |
| R&D | -3.3 | -3.6 | -9.2% | -11.5 | -11.4 | 1.5% | -15.6 |
| Administration | -4.9 | -1.4 | 245.8% | -8.2 | -4.8 | 71.9% | -6.5 |
| Adjusted EBITDA 1) | 11.7 | 12.4 | -5.8% | 34.5 | 36.1 | -4.5% | 47.4 |
| % of revenue | 41.7% | 46.7% | 41.7% | 45.6% | 44.6% | ||
| Adjusted EBITA 1) | 11.4 | 12.3 | -7.3% | 34.2 | 36.0 | -5.0% | 47.2 |
| % of revenue | 40.8% | 46.4% | 41.3% | 45.4% | 44.4% | ||
| Items affecting comparability (IAC) 2) | -3.8 | -2.4 | 58.3% | -2.4 | |||
| Depreciation & amortization | -0.6 | -0.4 | 44.4% | -1.4 | -1.1 | 20.2% | -1.5 |
| EBIT | 11.1 | 12.0 | -7.6% | 29.4 | 32.6 | -9.9% | 43.5 |
| % of revenue | 39.6% | 45.1% | 35.5% | 41.2% | 40.9% | ||
| Adjusted EBIT 1) | 11.1 | 12.0 | -7.6% | 33.1 | 35.0 | -5.3% | 45.9 |
| % of revenue | 39.6% | 45.1% | 40.0% | 44.2% | 43.2% | ||
| Earnings per share (EUR) 3) | 0.05 | 0.05 | -8.0% | 0.13 | 0.15 | -10.4% | 0.20 |
| Shareholders' equity per share, EUR | 0.10 | ||||||
| Operating cash flow | 10.3 | 7.6 | 36.1% | 25.7 | 22.5 | 13.9% | 36.1 |
| Cash conversion % | 82.5% | 75.0% | 92.8% | 83.4% | 95.6% | ||
| Deferred revenue | 19.8 | 19.0 | 4.2% | 19.8 | 19.0 | 4.2% | 19.7 |
| Net debt (+) / Net cash (-) 4) | -10.8 | 0.2 | 0.2 | ||||
| Gearing, % | -37.8% | ||||||
| Equity ratio, % | 32.4% | 30.8% | 24.5% | ||||
| Personnel at the end of the period 5) | 361 | 246 | 46.7% | 248 |
The key figures and other financial information are presented on an actual basis for the income statement Q3/2022 and financial position as at
1) Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
2) A reconciliation of items affecting comparability is presented at the end of this report.
3) Based on the average number of shares for Q3/2022 and on the number of shares upon formation of
4) Prior to the demerger on
5) Prior to the demerger on
F-Secure’s first quarter as an independent company commenced well in terms of both revenue and profitability development, despite persisting macroeconomic and geopolitical turmoil. The cyber security space has proven to be resilient in economic downturns, and global megatrends such as accelerating digitalization and consumers increased awareness of the need for cyber security underpin the demand for our products.
The underlying market demand for
Operationally, we progressed according to plan. We continued to add new partners while improving ARPU (average revenue per user) with existing partners with our products F-Secure TOTAL and F-Secure SENSE. Customer loyalty also continued to improve. During the course of this year approximately 20 existing partners have signed up for F-Secure TOTAL upgrade, over half of them already live in production. We are delighted to see the strong market response to our comprehensive all-in-one security suite. Our other strategic growth initiatives have also developed well. The expansion into new vertical partnerships is progressing well with a mid-sized European insurance company and a European bank having signed up for F-Secure TOTAL in Q3 with service launches planned for late 2022 and H1/2023. Also, a utility company and an insurance company in the Nordics went live with their F-Secure TOTAL services during Q3. On the new product front F-Secure SENSE and ID Protection have been well received by the market which is reflected in the positive revenue development.
Key for delivering sustainable and profitable growth is to have the right ecosystem of customers, partners and committed people. One highlight of the quarter was F-Secure SPECIES – a global conference where
I am proud of the strong performance of our people during the quarter, right after successfully demerging into a company focusing solely on consumer cyber security. It hasn’t been without challenges to balance projects towards independence, maintaining high level of business performance while also developing completely new growth initiatives and ramping up our operations. In our daily work, our decisions are guided by the vision to become the number one security experience company. We continue referring to our current and prospective customers and partners as our compass, to gain deeper understanding of their needs and the value they expect from us. With that in mind, we develop our products and services to secure the digital moments that give consumers’ online lives meaning and purpose and most importantly of all, a sense of security.
Additional information
This is a summary of F-Secure Corporation’s Interim Report 1 January–30 September 2022. The full report is a PDF file attached to this stock exchange release. Full report is also available on the company website at www.investors.f-secure.com.
Webcast
Analysts following
Financial calendar
In 2023,
- Financial Statement Release 2022 and Annual Report 2022,
Friday, February 17, 2023 - Interim Report for January-
March 2023 ,Wednesday, April 26, 2023 - Half-Year Financial Report for January-
June 2023 ,Thursday, July 20, 2023 - Interim Report for January-
September 2023 ,Wednesday, October 25, 2023
The Annual General Meeting of
For further information, please contact:
Sari Somerkallio, Chief Financial Officer
tel. +358 40 3569251
investor.relations@f-secure.com
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