F-Secure Interim Report 1 January - 30 September 2021
21 Octubre 2021 - 12:00AM
F-Secure Interim Report 1 January - 30 September 2021
F-Secure Corporation, Interim Report, 21 October 2021 at 08.00
EET
F-Secure Interim Report 1 January - 30 September 2021
Solid growth in corporate security products
Highlights of July-September (Q3)
-
Revenue increased by 8% to EUR 58.7 million (54.5m)
-
Revenue from corporate security products increased by 13% to EUR
21.0 million (18.5m)
-
Revenue from cyber security consulting increased by 2% to EUR 11.2
million (10.9m)
-
Revenue from consumer security increased by 6% to EUR 26.5 million
(25.0m)
-
Adjusted EBITDA was EUR 11.0 million (11.0m), 19% of revenue
(20%)
-
Earnings per share (EPS) was EUR 0.04 (EUR 0.03)
-
Cash flow from operating activities before financial items and
taxes was EUR 3.9 million (7.9m)
Highlights of January- September
-
Revenue increased by 8% to EUR 174.6 million (162.3m)
-
Revenue from corporate security products increased by 9% to EUR
60.7 million (55.5m)
-
Revenue from cyber security consulting increased by 7% to EUR 34.8
million (32.6m)
-
Revenue from consumer security increased by 7% to EUR 79.2 million
(74.2m)
-
Adjusted EBITDA was EUR 28.8 million (28.4m), 16% of revenue
(18%)
-
Strategic reviews resulted in items affecting comparability (IAC)
of EUR 2.7 million
-
Earnings per share (EPS) was EUR 0.07 (EUR 0.06)
-
Cash flow from operating activities before financial items and
taxes was EUR 23.1 million (28.9m)
Figures in this report are unaudited. Figures in brackets refer to
the corresponding period in the previous year, unless otherwise
stated. Percentages and figures presented herein may include
rounding differences and therefore may not add up precisely to the
totals presented.
Outlook (unchanged)
F-Secure’s financial outlook for 2021 is:
- Revenue from corporate security products is expected to grow at
a high single-digit rate.
- Revenue from cyber security consulting is expected to grow but
uncertainty remains due to the COVID-19 pandemic.
- Revenue from consumer security is expected to grow
approximately at the same rate as in 2020.
- Adjusted EBITDA is expected to remain approximately at the
previous year's level (EUR 35.7 million).
The COVID-19 pandemic continues to impact the predictability of
cyber security consulting and can also impact the new sales of
software solutions. The related risks are described in Interim
Report 1 January - 30 September 2021.
Financial Targets
F-Secure published financial targets on 31 August 2021. The
mid-term financial targets derived from the strategy of F-Secure
Corporation are:
- Revenue from corporate security products to grow at a
double-digit rate
- Revenue from cyber security consulting to grow at a high
single-digit rate
- Revenue from consumer security to grow at a mid-single-digit
rate
- Adjusted EBITDA margin improving towards 20%
F-Secure’s financial targets are mid-term ambitions and should not
be viewed as an outlook for the ongoing fiscal year 2021.
CEO JUHANI HINTIKKA
F-Secure’s revenue grew by 8% which combined with our scalable
business model resulted in adjusted EBITDA margin of 19% during the
third quarter.
The revenue growth from corporate security products accelerated to
13% year-on-year. In business security software demand for
our cloud-native solutions translated into strong order growth for
EDR (Endpoint Detection and Response) and Cloud Protection for
Salesforce. In Managed Detection and Response (MDR) our focus on
key verticals resulted in deals with several new customers from
manufacturing, technology and financial service industries. While
our MDR business is still in an investment phase, our position as
the trusted partner to solve complex cyber security challenges
combined with the increasing market demand presents a great
opportunity.
The cyber security consulting revenue grew by 2% year-on-year.
Regional variations in business performance continued, as COVID-19
related restrictions still had a negative impact during Q3 in some
markets. I was pleased to see good demand for subscription-based
services where customers appreciate our outcome-based approach.
Additionally, customers’ technology-driven business strategies
create demand for high-value services that require deep expertise
from cloud environments. Attracting and developing talent with the
right skillsets is the key to success in this business.
Consumer security continued on a growth path with the Q3 revenue
growing by 6% year-on-year which was driven by the sales of our
whole portfolio, across the service provider channel. Device
activations increased and renewal performance was solid. In
addition, our partnership approach resulted in some existing
service providers signing new deals to add more F-Secure products
to their offering.
F-Secure builds and sustains trust in the digital society. To
further this mission, we are working to improve the trustworthiness
of artificial intelligence in the cyber security industry. F-Secure
is a key industrial partner in the SPATIAL project by the European
Commission where this collaborative effort unites academia and
industry to increase the reliability and security of artificial
intelligence and data management in cyber security
applications.
At the Capital Markets Day, we announced the new strategy that is
based on having three growing business areas brought together by
technology. In September we started a strategic review that aims at
finding a company structure that enables optimal capital allocation
for both corporate and consumer security businesses and maximizes
shareholder value in the long term. This evaluation will be
completed latest by the end of H1/2022. Based on the current
progress we continue to see the possible listing of consumer
security business as one alternative.
Financial performance
EUR m
|
7-9/2021
|
7-9/2020
|
Change %
|
1-9/2021
|
1-9/2020
|
Change %
|
1-12/2020
|
Revenue
|
58.7
|
54.5
|
8 %
|
174.6
|
162.3
|
8 %
|
220.2
|
Consumer security
|
26.5
|
25.0
|
6 %
|
79.2
|
74.2
|
7 %
|
100.1
|
Corporate security
|
32.1
|
29.5
|
9 %
|
95.5
|
88.1
|
8 %
|
120.1
|
Products
|
21.0
|
18.5
|
13 %
|
60.7
|
55.5
|
9 %
|
74.3
|
Consulting
|
11.2
|
10.9
|
2 %
|
34.8
|
32.6
|
7 %
|
45.8
|
Cost of revenue
|
-12.4
|
-11.8
|
5 %
|
-36.8
|
-35.8
|
3 %
|
-48.0
|
Gross Margin
|
46.3
|
42.7
|
8 %
|
137.8
|
126.5
|
9 %
|
172.2
|
of revenue, %
|
78.9 %
|
78.3 %
|
|
78.9 %
|
77.9 %
|
|
78.2 %
|
Other operating income
|
0.4
|
0.4
|
8 %
|
1.3
|
1.7
|
-19 %
|
2.1
|
Operating expenses 1)
|
-35.7
|
-32.0
|
11 %
|
-110.4
|
-99.6
|
11 %
|
-138.5
|
Sales & Marketing
|
-22.4
|
-20.9
|
7 %
|
-68.8
|
-64.7
|
6 %
|
-89.4
|
Research & Development
|
-9.8
|
-8.0
|
22 %
|
-29.6
|
-25.5
|
16 %
|
-35.9
|
Administration
|
-3.5
|
-3.1
|
11 %
|
-11.9
|
-9.3
|
28 %
|
-13.2
|
Adjusted EBITDA 2)
|
11.0
|
11.0
|
0 %
|
28.8
|
28.4
|
1 %
|
35.7
|
of revenue, %
|
18.8 %
|
20.2 %
|
|
16.5 %
|
17.5 %
|
|
16.2 %
|
Items affecting comparability (IAC) 2)
|
-0.4
|
|
|
-2.7
|
0.4
|
|
|
EBITDA
|
10.6
|
11.0
|
-4 %
|
26.1
|
28.8
|
-10 %
|
35.7
|
of revenue, %
|
18.1 %
|
20.2 %
|
|
14.9 %
|
17.8 %
|
|
16.2 %
|
Depreciation & amortization
|
-2.7
|
-3.1
|
-11 %
|
-8.2
|
-9.6
|
-14 %
|
-12.6
|
Impairment
|
|
-0.3
|
|
|
-0.3
|
|
-0.3
|
PPA amortization
|
-0.7
|
-0.7
|
-8 %
|
-2.1
|
-2.4
|
-11 %
|
-3.2
|
EBIT
|
7.2
|
6.9
|
4 %
|
15.7
|
16.5
|
-5 %
|
19.7
|
of revenue, %
|
12.3 %
|
12.7 %
|
|
9.0 %
|
10.2 %
|
|
8.9 %
|
|
|
|
|
|
|
|
|
Adjusted EBIT 2)
|
8.3
|
7.7
|
8 %
|
20.6
|
18.6
|
11 %
|
22.9
|
of revenue, %
|
14.1 %
|
14.0 %
|
|
11.8 %
|
11.4 %
|
|
10.4 %
|
|
|
|
|
|
|
|
|
Earnings per share, (EUR) 3)
|
0.04
|
0.03
|
10 %
|
0.07
|
0.06
|
16 %
|
0.08
|
Deferred revenue
|
|
|
|
81.5
|
72.0
|
13 %
|
81.0
|
Cash flow from operations before financial items and taxes
|
3.9
|
7.9
|
-51 %
|
23.1
|
28.9
|
-20 %
|
48.3
|
Cash and financial assets at fair value through P&L
|
|
|
|
43.7
|
42.8
|
2 %
|
51.4
|
ROI, %
|
24.2 %
|
24.2 %
|
0 %
|
17.9 %
|
20.3 %
|
-12 %
|
18.5 %
|
Equity ratio, %
|
|
|
|
61.2 %
|
49.2 %
|
24 %
|
52.5 %
|
Gearing, %
|
|
|
|
-13.8 %
|
8.4 %
|
-265 %
|
-14.1 %
|
Personnel, end of period
|
|
|
|
1,689
|
1,693
|
0 %
|
1,678
|
- Excluding Items Affecting Comparability (IAC) and depreciation
and amortization
- Adjustments are material items outside normal course of
business associated with acquisitions, integration, restructuring,
gains or losses from sales of businesses and other items affecting
comparability. Reconciliation and a breakdown of adjusted
costs is in note 5 of the Table Section of the report.
- Based on the weighted average number of outstanding shares
during the period 158,342,807 (1-9/2021).
Events after period-end
No material changes regarding the company’s business or financial
position have materialized after the end of the quarter.
Webcast
F-Secure’s CEO, Juhani Hintikka, and CFO, Tom Jansson, will present
the results in a webcast starting at 14.00 EEST. The webcast will
be held in English and can be accessed at
https://f-secure.videosync.fi/2021-10-21-fsq3ir. Questions are
requested in written format in the webcast portal.
The presentation material and the webcast recording will be
available on the company’s website.
Additional information
This is a summary of F-Secure’s Interim Report 1 January - 30
September 2021. The full report is a PDF file attached to this
stock exchange release and it is also available on the company's
website.
Financial calendar
F-Secure Corporation will publish its financial calendar for 2022
later this year.
Contact information
Tom Jansson, CFO, F-Secure Corporation
Henri Kiili, Investor Relations and Corporate Finance Director,
F-Secure Corporation
+358 40 8405450
investor-relations@f-secure.com
- F-Secure_Q3-2021_eng_FINAL
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